As we come to the end of 2024, it’s important to acknowledge that although there have been some ups and downs this year, some great inroads have also been made such as the Bitcoin halving event (marking the start of the bull market), approval of spot Bitcoin and Ethereum ETFs, as well as the implementation of Ethereum’s Dencun Upgrade (enhancing the leading Layer 2’s efficiency, scalability and security).
However, when it comes to crypto trading, things haven’t been smooth sailing, and traders have had to deal with the impacts of a more complex and saturated crypto market. This has included volatility levels reaching all-time highs, trading fees going up, and liquidity being spread thin across exchanges. The good news is that with the rise of artificial intelligence (AI), crypto traders and developers now have the ability to create powerful AI agents that provide a competitive edge.
Amongst these is Monitok’s hybrid crypto exchange with an AI trading assistant, which goes beyond mere automation, and offers predictive analytics, personalized trade recommendations, and real-time risk management – to name a few features.
Challenges That Modern Crypto Traders Face
With crypto markets becoming increasingly saturated and unpredictable, traders are confronted with a host of new challenges, creating roadblocks that can be overwhelming without the right support or solution in place.
Let’s dive into some of the most common challenges currently facing crypto traders.
1) Overwhelming amount of new tokens
With thousands of crypto tokens launching across multiple blockchain networks, crypto traders face an increasingly difficult task—finding value amidst a flood of new assets. This oversaturation often leads to confusion and missed opportunities as traders struggle to evaluate each new project (due to a lack of time), and also increases the risk of falling into illiquid or low-performing assets.
2) Increased volatility
Although volatility is often one of the reasons why crypto swing traders can make impressive gains, it’s also one of the most dangerous aspects of trading. This is because market conditions can change in seconds, and many traders often find themselves ill-equipped or unable to respond to sudden price swings in both a rapid and informed manner.
3) Liquidity fragmentation
Another common frustration amongst crypto traders is an increase in liquidity fragmentation. With liquidity often spread thinly across various exchanges and platforms, trading conditions have suffered, and often result in slippage, delays, or poor pricing. This not only reduces efficiency but creates extra hurdles for those looking to execute large trades or capitalize on quick market shifts.
4) High transaction fees + network congestion
Rising transaction fees and network congestion continue to be persistent issues in the crypto space. During busy periods, network slowdowns can cost traders valuable time and money, while high gas fees can take away from profits. So without efficient management, these issues can become costly; and for even the most skilled of traders.
5) AI-driven competition
As AI crypto bots become more omnipresent and readily available, it’s starting to create a divide between those who use them, and those who don’t. AI trading bots are often outpacing the manual data collection and analyses of most crypto traders, and also offer superior evaluation of crypto asset performance. AI does this by being able to collect, track and interpret the “right” data correctly, helping to foresee the impact of macro events to markets, and knowing when to take profit; helping traders to manage emotions and greed. This gives those who embrace AI a distinct advantage.
AI Technology in Modern Crypto Trading
Given the challenges seen above, it’s not surprising how more and more developers are seeking to leverage AI to enhance crypto trading.
Below are some examples of how AI is revolutionizing crypto trading.
How AI is revolutionizing crypto trading
Firstly, AI has the ability to detect patterns in large datasets and provides traders with insights that would otherwise be missed. More specifically, AI-powered tools can identify correlations between market events, price movements, and trading volume that are nearly impossible for humans to spot. This enables traders to refine their strategies with next-level precision.
Another very impressive (and useful) feature of AI for crypto trading is its ability to process vast amounts of quantitative data and in real-time. So instead of having to spend ages manually analyzing order books, technical indicators, and market sentiment, AI allows traders to do this far quicker, and more efficiently. This in turn allows traders to rapidly respond to market shifts during periods of high volatility.
AI-powered bots also have the ability to automate the trading process in ways that can greatly enhance efficiency. Executing trades faster than humans ever could, allows traders to act on opportunities the moment they arise.
But perhaps the most appealing utility is AI’s predictive models, which attempt to forecast price movements by analyzing historical data and current trends, and at times yields surprisingly accurate predictions. Although not foolproof, these AI models can be very useful for managing risks, and gauging potential market shifts.
How Monitok’s AI Assistant Simplifies Decision-making
To bring additional value to users, Monitok’s revolutionary hybrid crypto exchange will be incorporating a cutting-edge AI assistant to help simplify (and enhance) the decision-making process based on users’ profiles and market trends.
Below there are some of the core features of the new AI assistant, and how they will each bring value to Monitok users.
Predictive analytics for trading
Monitok’s AI assistant includes predictive analytics and will process real-time data and historical trends to help traders identify patterns, and anticipate market movements with greater accuracy. This is a process that usually takes human hours to conduct manually.
Personalized AI trade recommendations
Monitok’s AI assistant is more than a one-size-fits-all solution and offers personalized trade recommendations by analyzing users’ trading habits, risk tolerance, and market conditions. This is designed to optimize profits whilst simultaneously saving users time.
Automated trade selection
To further simplify the trading process, Monitok’s AI assistant automates trade selection, executing transactions at the most opportune moments. This reduces the burden on traders to constantly monitor the market and react to rapid price fluctuations.
Gauging social sentiment
By collecting on-chain data, and scraping data from crypto social media and news outlets, the AI assistant iwill then feed them through an LLMs to provide a holistic social sentiment on various markets, tokens and projects.
Real-time risk management
Last but not least, Monitok’s AI assistant offers real-time risk management, meaning it continuously monitors market conditions and adjusts strategies to mitigate potential losses. This feature is particularly useful during market downturns.
Why Monitok’s Users Should be Excited
While there are a few AI trading bots in the crypto industry, most fail to address the full spectrum of challenges traders face. Monitok, however, will offer something far more well-rounded with its AI trading assistant (set to be released in Q3, 2025) and revolutionary hybrid exchange, which already solves key issues such as a lack of security, complex user experience, and fragmented liquidity.
Therefore, the future addition of an AI assistant is the cherry on the cake, as providing features like personalized trade recommendations, predictive analytics, and automated trade selection will work in perfect harmony with Monitok’s hybrid infrastructure; giving traders more control, precision and speed. A match made in heaven if you will.
It’s important to note that staking $MONY will unlock various AI features, and will give users the ability to personalize their own apps. For this reason, Monitok’s ongoing $MONY Airdrop Rain Season, and upcoming token launch will provide users with a great opportunity to accumulate enough $MONY to start experimenting with the platform’s AI.
In the meantime, the Monitok team will continue to work diligently on the platform’s AI features and recommends that all interested users follow the project on its Twitter page to keep up to date with the latest developments.
