Exploring ChatGPT-4: 5 Ways AI Can Boost Your Crypto Experience
Everyone is talking about ChatGPT. Let’s find out if it can help you double your portfolio in 12 months.
On November 30th, 2022, OpenAI, the team behind ChatGPT, surprised the world with their AI-powered chat. Within one week, the chatbot had already crossed one million user threshold and currently boasts an estimated 100 million active users with over 1 billion monthly website visitors.
The ChatGPT-3.5 version that was released in November was impressive enough. However, an improved and a faster version, ChatGPT-4, trained on even more data, was released on March 13th. The latter requires a $20 monthly subscription fee, but the free version is still a super handy assistant.
The chat can answer questions based on a dataset of 300 billion words and 175 billion parameters. It has become a key tool for maximizing efficiency to businesses, and can undoubtedly help those trying to succeed in the world of cryptocurrency.
Can ChatGPT help you make money? The answer is both yes and no. It won't provide specific investment advice, but it can certainly make your life easier in other ways. Here are five ways ChatGPT can assist you on your crypto journey.
Ask ChatGPT to educate you
Whether it's cryptocurrency or investing, both fields are filled with terminology, slang, and concepts that may be unfamiliar to you. While Google can certainly be helpful in deciphering these topics, ChatGPT may be a faster resource for finding answers. Ask about trading indicators, strategies, terms for a quickly generated, accurate explanation.
Another way that AI can help you consume information more efficiently is by summarizing articles, podcasts, or YouTube videos. ChatGPT-3.5 currently only accepts text input, but if you have a transcript of the audio or video, it can still save you a significant amount of time. With ChatGPT-4, you can even use the video itself for a summary. The video-to-text function is only available through API, but it’s only a question of time, when the option will be more easily accessible.
By leveraging ChatGPT's advanced language processing capabilities, you can quickly gain a better understanding of complex topics and save time. So, whether you're looking to expand your knowledge about cryptocurrencies or investing, ChatGPT can be your go-to tool.
Ask ChatGPT to help with project analysis
If you're researching and analyzing various cryptocurrency projects, ChatGPT can provide valuable assistance by offering information about their goals, team, technology, or tokenomics.
However, it's important to keep in mind that ChatGPT was trained using data up to 2021 so it can only offer fundamental information on older projects. Despite this limitation, ChatGPT can still be a useful resource in certain situations:
Ask ChatGPT to create content
If you're looking to generate content for your social media channels, blogs, or forums, ChatGPT can be a valuable tool. For example, if you're writing a blog post, ChatGPT can assist with creating engaging titles, identifying relevant SEO keywords, and crafting meta descriptions. After publishing your blog post, you can even ask ChatGPT to generate a Twitter thread or Instagram post caption that helps you to drive traffic to the blog post.
Ask ChatGPT to help you with investing strategies
While ChatGPT can assist with creating an investing strategy and offer suggestions, it's important to keep in mind that it is not a financial advisor and cannot suggest specific coins to buy. However, the suggestions that ChatGPT provides can still be helpful in making informed decisions about your investment.
Let's do an experiment and ask ChatGPT "How can I double my crypto portfolio in 12 months?" The first answer is very basic, with ChatGPT suggesting diversification, dollar cost averaging, and staking/farming.
But if you're seeking more advanced techniques, ChatGPT's response to this inquiry includes suggestions such as leverage trading, algorithmic trading, arbitrage, and participation in ICO/IDOs.
Well, that is also too broad, but the good thing about ChatGPT is that you can refine your requirements to receive more specific and targeted advice:
Give a step by step plan on how to double a portfolio in 12 months using leverage trading, ICO tokens, and algorithmic trading and provide the amount of tokens to buy for holding, also portfolio allocations based on market cap and the best time to enter the crypto market. What leverage size to use and 3 suggestions for algorithmic trading strategy.
The portion of ChatGPT's response related to portfolio allocation appears logical from a risk-to-reward perspective, and aligns with advice you might hear from credible trading experts:
The further steps in ChatGPT's response provide information on ICOs, timing, and leverage trading suggestions:
The final portion of ChatGPT's response provides information on algorithmic trading, including insights into concepts such as momentum, mean reversion, and market-making:
Needless to say that you can continue to inquire and ask for further recommendations, such as which moving averages to rely on, or inquire about the time frames to use when using RSI and MACD indicators, or anything else that needs further clarification.
Ask ChatGPT to write a code for trading algorithm
Did you know that ChatGPT can be your developer? This means that all you need to do is provide specific requirements and the chatbot will generate the code.
Let’s do another experiment and leverage ChatGPT to write a code that uses moving averages as indicators for a trend change:
Code strategy entries for this in pinescript v5. Enter a long when a 20 SMA crosses and is above 50 SMA, and close the long when 50 SMA crosses and is above 20 SMA. Enter a short when 50 SMA crosses and is above 20 SMA and close the short when a 20 SMA crosses and is above 50 SMA.
(Use: “Code strategy entries for this in pinescript v5.” as a first line whenever you ask ChatGPT to write a code you’ll use in Trading View.)
ChatGPT will generate the code within a few minutes, which you can then use in TradingView to backtest the strategy. If you encounter any errors while testing the code, you can ask ChatGPT to fix them by providing the name of the error and the code.
It's important to note that while any strategy generated by ChatGPT can be a useful starting point, it may require further refinement, risk management, and testing before it's suitable for live trading.
The early birds get the worm!
Considering the exponential growth of ChatGPT from November 2022 to this day, it is safe to say that this new technology is here to stay. Every new version of ChatGPT will be significantly better than the previous one. The sooner you become familiar with ChatGPT, the more you can benefit from it in the future. So, why not experiment with it today?