One of the most significant changes in FinTech is the advent of automated investing solutions. The world of investing has long been thought to be out of reach for the majority of people. Many people tend not to invest for a variety of reasons, including a lack of financial market experience or a dislike of having to actively monitor their portfolio.
Financial institutions have been able to successfully keep common investors in the dark and profit from the nascent sector's inefficiencies on their own since crypto trading is such a complicated and volatile market, plus it does not sleep and works 24/7. According to Coin Telegraph's data, beginner day traders lose money and quit within a year. It is estimated that 95% of traders lose money - and the cryptocurrency market is certainly not immune to the same market forces and human emotion. The latest crypto adventurers, who are now joyfully embarking on realizing their dream, should not be discouraged by these figures. To become a confident investor, one must conduct an extensive study, as well as grasp blockchain technology, and have access to a secure exchange. A platform committed to informing and protecting people and their investments was desperately required around the world. For these reasons, only an Automated platform could work efficiently at any time.
Allowing AI and automation to manage the investment helps to make investing more accessible to a wider variety of people. They are assisting in the process's simplification while still providing far lower costs than conventional investment advisors or managers. With an automated investing tool, the investment decisions are left to Automation and algorithms, which make decisions based on the risk parameters and long-term goals of the investor. From beginners who don't know where to begin to seasoned investors looking for a more hands-off, passive to an active approach to investing, there's something for everyone.
Well, there are now various Automated investment solutions starting to emerge which are helping open up the world of investing to the masses. Two of the biggest examples include:
Both solutions leverage automation to help more people invest and compound their money over the long term.
Trading Bot acts as a connector where if one feeds the bot with the inputs, it automates the procedures, rules and facilitates the work of execution of trading. The trading bot applications are algorithm-based programs designed to identify market trends and parameters in the crypto market
In terms of software, each bot has its own set of specifications. An investor must understand how to best use a bot and have a solid grasp of crypto trading to optimize its effect. In many cases, they must still make investment decisions such as when to buy or sell. For the efficient use of a crypto trading bot, it is essential to have a thorough understanding of the digital assets markets as well as an excellent supporting investment strategy. When deciding the bot's conditions and behaviors, extra caution is required. As a result, some monitoring is still required; while bots automate several repetitive tasks, it is still necessary to check it regularly. We can't leave the bot to function on its own for an indefinite time without tracking it. Trading cryptos for profit sounds amazing, but only a few people are capable of doing so. New traders are enticed to begin trading Bitcoin and altcoins, but the vast majority of them will never benefit from active trading in the long run. This is since the markets are extremely volatile, never close, and fund management businesses are mostly unregulated.
Trading Bots are not AI and don't learn by themselves. It would not be able to think for you and would not be able to give the best strategies to give the most profitable trades in any market cycle. Moreover, these are not 100% personalized and lack the personal touch.
Many people are attempting to use Machine Learning, a branch of AI, to finance. Pattern recognition is a strong suit for AI. Models can be trained to distinguish between an apple and a pear. The theory is that if the AI can spot patterns in price data - the chart - it can predict which way the price will move next. Now that the AI has recognized the pattern, you may buy and profit. Financial data has a variety of statistical features that necessitate a unique approach. These Machine Learning models are hundreds of times more complicated than theory-based models. They're a lot more difficult to create, test and deploy. They are not the result of human reasoning. Human researchers have never discovered patterns using simply their intuition. The amount of data and noise available is simply too much for the human mind to understand.
1. Use of machine learning to absorb different uncorrelated features and detect patterns in multiple dimensions, which can be related to price and volume (endogenous data), sentiment analysis (once processed by our sentiment analysis engine), or blockchain-related data (volume of transactions, speed of mining, size and move happening on “wallet of the whales”, etc.).
2. Use of sentiment analysis, based on social media and news. We absorb these data, store, filter, and process them with NLP (Natural Language Processing) in real-time. We evaluate the sentiment of the market about a given cryptocurrency. The market is highly driven by sentiment, which can be positive or negative, greed or fear.
3. Use of Fundamental analysis for signals. It can provide better trading signals by analyzing data and applying machine learning. As a result, a valid trading signal informs you that there is a trading opportunity in a certain market. You may take the signals and feed them into your trading account, allowing for hands-free trading.
Peculium has developed the SAIΞVE app, a one-stop solution to these problems. It is a savings management platform for digital assets.
We train our models based on the historical data and use the blockchain metrics, Sentiment Analysis of news and social media, as well as other exogenous data along with our mathematical models to generate the signals. Then we select the signals based on the best risk-reward ratio to be executed by bots in the accounts of clients. The in-house built AI / ML Strategy underlying technology uses Quantitative Models and technical analysis leveraging the vast amount of data that are collected in the Big Data storage. The signals which are generated by the AIEVE are being traded in real-time on the market by the trading Engine. It is leveraging a scientific approach using AI-driven Quantitative Finance in a non-custodial, transparent model.
Our Underlying Analytics Technology.
Our trading and risk analytics engine are based on deep data agent-based algorithms scanning in real-time multiple quantitative primary data sources. These algorithms analyze the dynamic behavior of market participants - ie, buyers and sellers - and cluster them based on common feature sets. Noise classification, cluster identification, and behavioral finance theory are part of our unique core capabilities.
The technology underlying our SAIΞVE App is based on decades of knowledge and experience gained from academia and tier 1 investment banking software development. Our analytics engine has been extensively tested in different sectors and economic cycles and has shown consistent performance and superior insights. In addition, exhaustive market research confirms the highly innovative nature of this technology and strong technical barriers to entry.
Our software is continuously monitoring and analyzing data flows on the world's major crypto exchanges. Product coverage includes most global spot and futures markets.
Peculium uses AI and sends signals to a trading engine and constitutes a solution that can be considered as an automated investing platform from detecting opportunities to perform in the market. It benefits crypto-investors to make decisions based on live predictions. This product was developed using AI and ML technology, whilst it is supported by big data. The solution learns from past experiences. AIΞVE has access to all the data instantly and uses AI to forecast short-term market movements. Thus, AIΞVE can increase the accuracy of its crypto forecasts in the short-term time frame. Decisions are, of course, made with the safety of investors' savings in mind so that investors don't lose money in the process, making it a win-win situation for all parties involved. It provides real-time risk assessments for its opportunities in the current market conditions so there are never any surprises. With such a revolutionary technology, this can help sectors of people like cautious investors, reluctant technophobes take their first steps into the world of cryptocurrency
The world of crypto investing is now at your fingertips. Don't let your money mold over in some saving's account with little yield. Start investing today and get your “piece of the pie”.