AI cryptocurrencies, unlike conventional cryptocurrencies, learn market patterns, make predictions and perform automated transactions using machine learning algorithms and natural language processing. Artificial intelligence technology is used by some AI cryptocurrencies to enhance network security. Some coins, for example, use facial recognition technology to verify transactions and prevent fraud.
Principle of operation
Data collection - Development of trading strategy based on analysis - Use of smart contracts to make transactions - Continuous improvement thanks to machine learning algorithms - Analysis of results and strategy changes
Advantages
- Improved decision-making with huge amounts of data
- Greater efficiency and acceleration of transactions
- Improved security through detection of possible violations
Risks
- High volatility, as with all cryptocurrencies
- Technical issues and risks of data inaccuracy
- Ethical implications of using AI in the market
