Don't be surprised if AI tries to sabotage your crypto
Gracy
As the world of
cryptocurrency trading evolves, so does the technology supporting it. In recent years, we've seen a surge in AI tools like ChatGPT being integrated into various facets of the crypto landscape. This development, while exciting, is not without its drawbacks.
A recent survey by my own exchange — Bitget — found that in 80% of cases, crypto traders admitted to having negative experiences with
ChatGPT. Specific examples included false investment advice, misinformation and falsification of facts.
Misleading investment recommendations
Artificial intelligence is not an omnipotent entity but, rather, a man-made tool. AI and, more specifically, ChatGPT, operate within parameters set by human developers, and while its capabilities are impressive, they're not without their limitations. Our society's understanding of these tools is still maturing, and it's critical to recognize their potential risks, especially when it comes to financial decisions.
In the pursuit of better customer experience and innovation, many fintech companies
are exploring the potential benefits of incorporating AI into their operations. The experiments with using AI for customer inquiries, design, copywriting and coding, however, have shown that human talent still outperforms AI most of the time.
Bitget tried using ChatGPT to handle routine customer inquiries. Initially, we were impressed by its proficiency in analyzing and compiling the information. However, as we delved into more complex queries, the cracks began to show. Despite being trained on extensive data, ChatGPT sometimes offers misleading, biased or incomplete information, as a recent internal test reminded us.
When our staff inquired about market sentiment regarding a lesser-known altcoin, ChatGPT mistakenly associated the coin's name with a popular internet meme. The resulting response, although amusing, may have been taken seriously by those new to the market who rely heavily on third-party programs.
Another request came from a user who asked why
Terra’s LUNA was trading 95% lower than last year after said user received a list of prospective coins from ChatGPT to consider. The question was: “What are 30 cryptocurrencies that I can consider investing in based on the criteria of the best team, tokenomics, security, and reliability?”
When I tried to ask the same question and clarify why LUNA was on the recommended list, ChatGPT started offering another coin, quickly changing its mind.
ChatGPT wants you to invest in LUNA. Source: Screen capture
The thing is that language models like GPT-4 and GPT-3, which are used in ChatGPT, have access to an outdated information base, which is unacceptable in the trading market, where speed and relevancy matter. For example, FTX, the
crypto exchange that went bankrupt in November 2022, is still safe and sound if ChatGPT is to be believed.
ChatGPT still wants you to use FTX. Source: Screen capture
Although the exchange collapsed almost a year ago, ChatGPT’s knowledge only runs until September 2021, which means it assumes FTX is still a going concern.
The importance of human expertise in crypto trading
The crypto landscape is complex and ever-changing. It requires keen human insight and intuition to navigate its many twists and turns. AI tools, while robust and resourceful, lack the human touch necessary to interpret market nuances and trends accurately. It's important to exercise caution, diligence and critical thinking. In the pursuit of technological advancement, both companies and individuals must not overlook the importance of human intuition and expertise.
As a result, we have chosen to limit our use of AI tools like ChatGPT. Instead, we place a higher emphasis on a blend of human expertise and technological innovation to serve our clients better.
This is not to say that AI tools don't have their place in the crypto sphere. Indeed, for basic queries or simplifying complex topics, they can prove invaluable. However, they should not be seen as a replacement for professional financial advice or independent research. It's essential to remember that these tools, while powerful, are not infallible.
In the crypto world, every piece of information carries weight. Each detail can impact investment decisions, and in this high-stakes environment, a misstep can have significant consequences. Thus, while AI tools can provide quick answers, it's crucial to cross-verify this information from other reliable sources.
Moreover, data privacy is another critical aspect to consider. While AI tools like ChatGPT don't inherently pose a privacy risk, they can be misused in the wrong hands. It's crucial to ensure the data you provide is secure and that the AI tools you use adhere to stringent privacy guidelines.
Ethical considerations and data security
Still, AI tools like ChatGPT are not the enemy. They're powerful tools that, when used responsibly and in conjunction with human expertise, can significantly enhance the crypto trading experience. They can e xplain complex jargon, provide quick responses, and even offer rudimentary market analyses. However, their limitations should be acknowledged, and a responsible approach to their use is essential.
In our journey with ChatGPT, we’ve learned that AI tools are only as effective as their latest update, training and the data they’ve been fed. They may not always be abreast of the latest developments or understand the subtleties of a dynamic and often volatile
crypto market. Furthermore, they cannot provide empathy — a quality that is often needed in the tense world of crypto trading.
The integration of AI in crypto trading also raises ethical questions, especially when it comes to decision-making. If a user makes a financial decision based on misleading information provided by an AI tool, who bears the responsibility? It is a question the industry is still grappling with.
Then there is the issue of data security. In an era of data breaches and cyber threats, any technology that collects, stores and processes user data must be scrutinized. While AI tools like ChatGPT don't inherently pose a privacy risk, they are not immune to misuse or hacking. It is paramount to ensure that these tools have robust security measures to protect user data.
It's also worth noting that while AI tools can crunch numbers and provide data-driven insights, they cannot replicate the instinct that experienced traders often rely on. The kind of instinct that is honed over years of trading, observing market trends, and understanding the psychology of other traders. This is something AI, for all its sophistication, cannot learn or emulate.
While AI tools like ChatGPT offer exciting possibilities for the crypto industry, they should not be seen as a magic bullet. They are tools to aid, not replace people, intuition and financial expertise. As we continue to explore the potential of AI in the crypto world, we must be mindful of these limitations and potential risks.
Source: https://cointelegraph.com/news/artificial-intelligence-crypto-your-own-risk
2023-06-05
Become a trader now?A welcome pack worth 6200 USDT for new Bitgetters!
Sign up nowblog.recommend_articles
- GracyHow Soon Will Brokers Get Their Version of 'ChatGPT'? lmost three years have passed since the launch of OpenAI’s text generator, and now the possibility of using the language model in different areas has sparked a lively public discussion on the potential and current uses of artificial technologies. Today, one month before the algorithm's third anniversary, we talked with Gracy Chen, the managing director of Bitget, the largest crypto copy trading platform and the first to launch copy trading for the cryptocurrency spot trading market. We discusse2023-06-05
- GracyCrypto Regulators, Are You Listening? Bitget's Managing Director Gracy Chen Has Some Advice For You Cryptocurrency derivatives exchange Bitget’s Managing Director Gracy Chen has expressed optimism about seeing progress on the policy front for the cryptocurrency industry over the coming years as policymakers “continue to understand” the challenges and opportunities presented by the industry. In an interview with Benzinga, Chen said that regulators need to be more willing to engage in constructive dialogue and cooperation with industry participants to form regulations in the interest of innov2023-06-05
- GracyGracy's Insight: Major Mergers And Acquisitions Will Have A Direct Impact On The Crypto Market In 2023 Over the past week, investors understandably became concerned over the news that billions of dollars backing USD Coin USDC — the second-largest stablecoin — were locked up in the distressed Silicon Valley Bank (SVB). The market reacted violently, causing USDC to lose its dollar peg. But while the concern was understandable, it has become clear that USDC creator Circle will regain full access to its funds. The crypto community can breathe easily. It started as a tremor Hundreds of sensors are2023-06-05
We offer all of your favorite coins!
Buy, hold, and sell popular cryptocurrencies such as BTC, ETH, SOL, DOGE, SHIB, PEPE, the list goes on. Register and trade to receive a 6200 USDT new user gift package!
Trade nowBecome a trader now?A welcome pack worth 6200 USDT for new Bitgetters!
Sign up now