Published in · 9 min read · Jul 12, 2023
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The promise of AI is that one day it can be used to accurately predict the markets and improve the decision making process of investors, with the potential to rapidly analyze data and remove the emotional aspect from trading.
Already we are starting to see that happen, with FalconX’s AI assistant Satoshi receiving a lot of attention in April 2023. But what tools can you use right now to help you to navigate and trade the crypto markets?
In this article, you’ll learn about the current state of AI tools for crypto investors, some of which can be used now, while others are worth keeping an eye on until they do a full launch. While these tools are pioneering the crossover between AI and crypto are far from a perfected state, we can expect that AI applications for crypto traders will blossom in the near future and improve over time.
The first set of tools on our list are based on the most popular AI application to date: OpenAI’s ChatGPT. There are various plugins focused on cryptocurrencies that can be used to cut down the time you spend on research, such as the DeFiLlama plugin built by Kofi.
A quick walkthrough of the tool is provided below:
However, it’s important to note that the plugins mentioned here all require ChatGPT Plus, which costs $20/month. Another thing to note is that you may want to double check the details, as the AI isn’t perfect and could potentially make some small mistakes.
To start enabling plugins for your research, go to settings, then ‘beta features’ and move the slider to activate.
You can then search for plugins by going to the store. Install the DeFiLlama’s one and then start querying the data, automate the creation of tables and charts and so on.
The plugin’s logo is displayed near the top of the screen if it is enabled.
To start analyzing and organizing cryptocurrency data using AI, you can enter a prompt like:
“You are now DeFi-GPT.
Your task is to use DeFiLlama to find the following information:
The 10 highest yielding pools for protocols on the Optimism chain, based on the 30d Avg APY. Create a table displaying these top 10 pools on Optimism, their 30d Avg APY, the base APY, the reward APY, and TVL.”
Another essential ChatGPT plugin is Smarter Contracts, which may help users to avoid potential scams by analyzing contracts and tokens. This plugin is especially useful for traders who scan for new pairs on DEXscreener or monitor trending contracts on Dune to find newly launched projects and get in early.
Some others worth mentioning are:
- Check the Chain reads blockchain data for Bitcoin, Ethereum, as well as others.
- CoinCap provides real-time price and volume information, similar to CoinMarketCap.
- There’s also Alchemy’s ChatGPT plugin, which is similar to Check the Chain, but available across the Ethereum, Polygon, Arbitrum and Optimism chains. However, you’ll need to join the waitlist to access this tool.
The possibilities are almost endless! There’s even a way to use ChatGPT to help you to create TradingView strategies with as outlined in this video by Analyzing Alpha (although it will require some knowledge of PineScript for the best results). While it’s not going to give you a strategy that is a definite path along the road to riches, it’s an inventive way to use AI to automate and hone your trading techniques.
Learn more about how to set up automated strategies through TradingView on Perp in this workshop!
Inspired by ChatGPT, the ChatWeb3 tool is suited to those new to the Web3 space as well as developers. As an AI chatbot powered by GPT and Langchain, the tool was built to guide users through their Web3 journey with easy-to-understand explanations of concepts, technologies and best practices.
There’s something for everyone, as this tool covers various topics and has several starting points: New to Web3, DeFi Trader, Web3 Developer and NFT Degen. Select which one applies to you and start building your Web3 knowledge!
Want to find the Dune Analytics dashboard to answer your burning questions about on-chain data? Let us introduce you to some Dune AI assistants!
Dune.ora.so allows you to type any question and find all related Dune Analytics dashboards.
For example, if you want to find the top traders, then you can type “top traders by PnL” into the search field and the results show all of the related dashboards that can help you to track successful on-chain traders. Click on the dashboard links, favorite them and do some regular monitoring to uncover alpha!
Another similar tool is duneai.streamlit.app, which was created by Primo Data, that enables the analysis of any Dune dataset with natural language.
KyberAI is a tool built by Kyber Network that’s currently in private beta, so you’ll have to sign up and do the referral grind if you want to access this as soon as possible to improve your trading.
The main feature is the KyberScore, which ranks over 400 tokens with a bullish or bearish assessment for the next 24 hours. These assessments are based on machine learning and are updated every 4 hours.
You can also benefit from automated technical analysis and a wealth of on-chain data for each supported token. The KyberScore can be combined with other indicators to find a confluence of bullish or bearish signals and screen assets that you want to trade.
Interested readers who want to learn more about KyberScore can do so by reading their documentation page.
As a beta feature on Etherscan released in June 2023, the code reader makes it easy to understand any smart contract’s source code. One requirement is an OpenAI API key to get started with answering your questions about the code underlying a smart contract.
To get started, simply enter your OpenAI API key, choose the GPT model you want to utilize, enter the contract address of interest and start asking questions!
The AI-generated answers makes it simple for non-coders to learn more about a particular smart contract’s source code and facilitate further research!
Yes, you read the whitepaper. But did you fully understand it?
Anthropic’s Claude2 is a chat tool that allows you to ask questions from any file that you upload. This AI tool offers more functionality than ChatPDF, since it’s not just PDF files that can be queried, but also .txt and .csv files.
As a result, Claude2 can be used as part of the fundamental analysis for cryptocurrency projects by uploading whitepapers or other materials and asking the AI any questions. You no longer have to rely on others for a simple drill down of cryptocurrency whitepapers (or other materials): simply upload the file and ask away!
However, Claude2 has a limit on the file size and types that can be uploaded. For podcast and video interviews, AssemblyAI is a convenient tool that’s free which can be used to automate transcription and generate short summaries of the main talking points.
Simply enter the YouTube link of the video you’re interested in, click on “Next” and select the “Transcription” and “Summarization” options. The AI will run the models and take some time (15–30% of the video length) to produce the requested outputs.
So if you’re looking for full transcripts or just want to quickly get some key takeaways from a video without listening to the entire episode, then AssemblyAI is the perfect tool for this!
Scorehood is a mobile app offering AI crypto trading signals that utilizes technical, sentiment, and fundamental analysis. The overall score is converted into a recommendation: such as bearish, bear hold, bull hold, and bullish.
The components of these rankings are based on four scores: one for momentum analysis, another for technical analysis, another for volume and volatility analysis, while the final component is based on sentiment analysis.
At the bottom of each coin’s page, the Fibonacci support and resistance levels are shown along with the Relative Strength Index (RSI) and the current pivot point. You can get a 15-day free trial to try Scorehood out by downloading the app via the Apple App Store or Google Play Store.
Like ScoreHood, CoinScreener is another paid tool that uses AI algorithms and technical analysis to provide trading signals.
As well as AI signals, there’s also the top trader tracking feature, which allows you to see when the most profitable traders open or close positions. There’s also the unusual volume and whale tracking features, helping CoinScreener users to spot big moves before they happen.
A copy trading feature is also in development that automates the CoinScreener AI signals to open positions on your behalf.
Pepe Analytics is an upcoming platform aimed at the most risk-loving degens who want to be the earliest to new memecoins, offering four core features that will use AI to produce predictability scores: 1) smart contract audit aggregator, 2) social analytics, 3) user analytics and, 4) deployer data.
The platform is token-gated, where coupons (which give holders access to the platform) were sold as NFTs for 0.35 ETH. The sale is now over, but these NFTs can be purchased on the secondary market, with a floor of 0.75 ETH at present.
While the floor price isn’t cheap, there is a 420 limit, so it differs from some of the other alternatives in this list that accepts any paying customer. Given that the NFTs are limited, the alpha generated by the platform remains scarce.
The intersection between AI and crypto is a fascinating development and we expect more tools to be released in the near future to assist crypto traders as this technology improves. This article has covered some of the most popular AI tools, some of which you can use today while others that are due to launch in the near future.
Are you using any AI tools as part of your investing or trading strategies? Have you used any of the tools in this article and have any positive (or negative) feedback you want to share? Which tools are not included in this list that you have found to be useful? Let us know via Twitter or our Discord server!
Disclaimer: We do not guarantee the effectiveness of safety of any of the tools or tokens mentioned in this article. This article does not endorse any of the tools mentioned or constitute financial advice, and is meant for educational purposes only. You should always DYOR before paying for, or using, such tools.
