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The birth of Artificial Intelligence (AI) is credited to the Dartmouth Workshop in 1956, where the idea of creating intelligent machines was discussed.
In 2010, deep learning a subset of machine learning rose to prominence. Deep learning has gained significant attention in recent years from investors.
AI-powered machines have the ability to analyze large amounts of data, identify complex patterns and make data-driven predictions fast.
It’s worth noting that deep learning and pattern recognition algorithms are trained by analyzing large amounts of data.
However, analyzing past market performance is not always a good predictor of the future as market conditions often change.
Investors and financial institutions combine deep learning with traditional human-made analysis to gain advantage over competitors.
AI-powered portfolio management
Deep learning algorithms excel in optimizing portfolio allocation by taking into account various assets, historical performance data and a spectrum of risk factors.
Their primary objective is to create portfolios that either maximize returns or align with specific investor objectives. AIs are also used for rebalancing portfolios.
AI-powered systems automate portfolio rebalancing by continually tracking asset performance and analyzing deviations from target allocations.
This seamless process ensures that the portfolio remains in line with the intended risk-return profile.
In addition to portfolio management, AI-powered algorithms aid in assassin risks, analyzing market sentiment and conducting predictive technical analysis.
Deep learning plays a pivotal role in assessing and effectively managing investment risk.
AI is actively used for sentiment analysis by examining social media, news and other information sources to gauge how public opinions may impact asset prices.
This information is important for making investment decisions.
Crypto markets and the AI
Cryptocurrency markets, or often referred to as crypto markets, are financial markets where digital assets are bought, sold and traded (by the speculators).
Cryptocurrencies are digital currencies that use cryptography for security and operate on blockchain technology.
Blockchain technology is similar to a digital ledger that’s not governed by a single person or company. Instead, it’s shared on many computers.
It was first used for Bitcoin (BTC), but it can do much more.
Blockchain technology is used not only…
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