Competition has always been intense in the crypto market, given that it is highly lucrative and has no barriers to entry. However, 2024 has seen the space turn into a fierce battleground between two elements; human traders and AI trading bots, such as Finance Legend. While both of these elements have their own strength, the scales seem to be shifting due to the rapid advancements occurring in artificial intelligence (AI) technology.
Now, the question to ask is who is leading the crypto market this year – is it AI or human traders? To find the answer, you need to understand the strengths and challenges of both sides.
The Strengths and Weaknesses of Human Traders
Let’s begin with human traders. Nothing and no one can ever fully replace the human touch and this is a fact. There are lots of veteran traders out there who are experts in spotting trends early on and can also gauge market sentiment. This allows them to make smart decisions based, not just on data, but also their instincts. When you trade in the crypto market, you will bring your own advantages.
For instance, you can sense the emotional sense of the crypto market far better than bots possibly can. In a market as turbulent as crypto where the tides turn in a matter of seconds, you need to understand the market psychology. As an experienced trader, you can determine when there is hype and panic in the market and take actions accordingly. AI trading bots do not have this kind of emotional intelligence.
Likewise, you can develop and use creative strategies on your own. You can also rethink and change strategies quickly. You can also adapt to unforeseen and unpredictable events in the crypto market, something AI trading bots cannot do. But, there are downsides too. You can also let emotions get in the way and get influenced. You cannot process a lot of data simultaneously, or match the speed of AI trading bots.
The Strengths and Weaknesses of AI-Powered Trading Bots
The role of AI in crypto is a big one, particularly high-frequency trading (HFT). They have a serious edge in the market because they can crunch a mountain of data and then execute trades based on it in milliseconds. It is not possible for human traders to match the speed and efficiency they have. In addition, AI trading bots make their decisions based on data alone, which can offer more consistent results.
Apart from that, they do not suffer from human bias, of any kind, which means they do not let emotions interfere in their decision-making. But, this does not mean that they do not have their limitations. They depend on data, so if there is any unpredictability, they will make mistakes. Furthermore, they can only follow instructions and cannot think out of the box like you can.
2024: Who is Winning?
Things are not black and white where the crypto market is concerned. It is true that the use of AI in crypto has brought changes and AI trading bots have advantages, but they cannot fully replace human traders. Therefore, the best traders are now coming up with ways to combine both, their own skills and that of bots, in 2024.
