Artificial intelligence and Big Data are two fast-growing technologies that hold great promise for companies in all industries. However, the true revolutionary potential of these two technologies probably lies in their convergence: collecting or having access to large datasets alone is not enough to produce a result. It is impossible for a human being to process such a large amount of data, because it’s not only about extracting the knowledge. It’s also about making a quick decision based on that knowledge. As we can see in the crypto market and the Blockchain market, the overabundance of information does not allow us to make sufficiently well-considered decisions without wasting a lot of time. This is where the AI comes in...
“It is impossible for a human being to process all information in crypto every day.”Nicolas Surleau (CTO)
Detecting the fakenewsIt is a fact: in the Blockchain sector, the daily flow of information is considerable. On top of that information that we have access to can be sometimes distorted because of manipulations from those who wish to take advantage of the price movement. They want to create a chaos for us to be lost and for them to gain profit.
As we’re being flooded with data every day, investors will inevitably encounter difficulties with cross-referencing sources and analyzing content to select reliable information and to weed out fake news. The internet is playing an increasingly essential and multifaceted role in our lives, serving as a source of news, but also as a key marketing channel for endless products and services. How do we then know when are we being informed, and when are we being sold to?
Daneel helps experts and novices alike to find their way around by providing a verified and reliable newsfeed to its users. Enhanced by IBM's Watson artificial intelligence, Daneel compiles all the information online and assigns it a score based on the validity of the source, the velocity of the news. All that is possible thanks to the text mining. With this data in hand, sophisticated investors will be able to react intelligently and quickly to new trends and market movements.
Bombarded with data: interpreting using AI may be the answer
Bombarded with data with cryptocurrency opportunities on every corner, automating interpretation of data within the market could be the investor’s secret weapon. However, despite acknowledging the potential of AI and its ability to distil data for the end user, many users are unaware of the triggers that make an investor to decide: cryptocurrency is a highly ‘mood-driven’ market, and so investors are searching for a tool that can distil the qualitative part of the information into easy-to-digest insight.
As we explored this relationship, we are sure that AI may play a unique role in supporting the user in the face of a fast-paced market. But for AI to rise to the challenge of being productive, and not only informative, the indicators anticipated in advance by an AI assistant are just as important as its live access to information.
There is no escaping it: as markets and opportunities have matured in both fiat and cryptocurrency trading world, smart trading decisions and the ability to interpret new data go hand in hand. On one hand, predicting trends based on the market history is more effectively done by AI. On the other hand, when it comes to making informed judgments in the face of social and qualitative data, human traders and researchers still have the advantage.
However, unlike the data analyzed to inform fiat-based trading, this rich qualitative data plays a much larger role for trading cryptocurrency: surrounded by the sea of volatility and token choices, any cryptocurrency trader will tell you that decisions are ‘mood-driven’ in the first place and trend-driven in the second.
What does this mean? The tools designed to aid cryptocurrency trading decisions need to be able to distil large quantities of social data and present insights, under a platform or assistant, that are easy to digest.
Make the qualitative easy to digest
So yes: due to this unique nature of the crypto market, the ‘qualitative’ is what our AI tools need to target; but despite attempts of previous platforms, this is easier said than done.
On the one hand, our methodologies recognize the points within the data that link back to the market sentiment: for example, Technical Analysis isolates specific trends within the market that imply sentiment-based factors and then provides the target points for the researcher or advisor to highlight the opportunities that are ‘green to go’.
However, taking in consideration other unexpected volatility due to the trend ties, to predict a coin’s behavior, the manual research process is simply too slow for the pace of the crypto market: traders need speed, but also a platform that derives intelligent suggestions on autopilot.
As Daneel packages these two requirements under a single platform, the assessment of these target points is not only completed instantaneously; but is also designed to differentiate between deceptive and genuine buy-sell signals.