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Can ChatGPT Help You Get Rich Trading Crypto?
The artificial intelligence ChatGPT has taken much of the globe by storm. From the world of work to teaching and the arts, hardly any area of human activity has escaped searching questions about what the highly sophisticated AI could mean for the future. This includes crypto, which has also recently been having fun imagining how it could exploit OpenAI’s creation, which uses natural language processing, reinforcement learning and a copious amount of data to arrive at uncanny text-based answers.
On the one hand, numerous traders have been asking ChatGPT to write the code for trading bots for them, so that they can simply sit back and watch their portfolios automatically rise in value (at least in theory). At the same time, others have been asking the chatbot for its ‘opinion’ on cryptocurrency trading, from which is the ‘best’ token to buy to how to sell ETH to a Bitcoin maximalist.
Given just how surprisingly powerful and creative ChatGPT is, its arrival begs a question: can ChatGPT be used to get rich trading crypto? Well, while it is actually a helpful source of info on crypto (at least for inexperienced traders), it’s not going to provide you with the secrets of the cryptocurrency market, and for a variety of reasons. That said, if you’re technologically savvy enough to build a trading bot with it, it may help you generate some modest returns, provided the market itself doesn’t throw up some surprises.
Asking ChatGPT How to Get Rich Trading Crypto
Let’s get straight to the big, million-dollar question: can ChatGPT tell you which cryptocurrencies to invest in, or which trading strategies to follow in order to have the best chance of making a profit trading crypto?
Source: CryptoVantage/OpenAI
The answer to this question is: yes and no. As the screenshot above reveals, ChatGPT consistently shies away from ever picking a ‘favorite’ or ‘best’ cryptocurrency to invest in, providing the explanation that “the value of digital currencies can be highly volatile and depend on a variety of factors.”
Likewise, if you ask which of two cryptocurrencies is better as an investment (e.g. bitcoin vs ethereum), it won’t name a particular coin as ‘superior.’ However, it’s precisely here, when you start to be more specific with your queries, that it actually becomes more helpful and informative. In the case above, it provides a pretty on-point summary of the key differences between Bitcoin and Ethereum, something which may help the user decide which of the two to concentrate on.
Moving further in this direction, you can also try asking it for even more precise advice, such as “Which features of a cryptocurrency should I consider before investing in it?” This produced the following helpful explanation:
Source: OpenAI
Using your imagination, there’s potentially many, many things you could ask ChatGPT in order to acquire a keener sense of how to navigate the cryptocurrency market. For instance, asking “How can I get rich trading cryptocurrencies?” produced this point-by-point rundown of things any self-respecting trader should be mindful of or do.
Source: OpenAI
Unfortunately, if you continue subjecting ChatGPT to this line of questioning you soon encounter one of its main weaknesses, which is that it seems (at least for now) to have only a limited repertory of potential responses on any given subject. This is illustrated in the screenshot below, which asks a different question but gets much the same response, except for a few welcome additions.
Source: Open AI
To be fair, if you’ve only just started out investing in cryptocurrencies, such information can prove useful in getting you on the right track. Of course, the obvious rejoinder here is that 99% of the info ChatGPT provides can easily be found on any decent crypto-related website (such as this one), so it doesn’t seem worthwhile — at least at this stage in human evolution — in going out of your way to seek the ‘advice’ of an AI chatbot. Indeed, the advice here is very general, and doesn’t provide anything along the lines of, ‘Buy XRP on January 23: it’s about to skyrocket.’
In other words, anyone hoping for a silver bullet is going to be sorely disappointed by ChatGPT, yet it nonetheless raises the possibility of a future in which an even more sophisticated and intelligent AI can provide more tailored and actionable advice to investors. For now, we need to keep doing all of the important work ourselves, for better and for worse.
ChatGPT Crypto Trading Bots
Despite ChatGPT’s limitations, this hasn’t stopped the cryptocurrency community from attempting to get mileage out of OpenAI’s little chatbot. Some investors have done something like the above and asked it for advice general advice, while others have gone so far as to have it write code for trading bots they could use.
Source: Twitter
In fact, some people claimed to have made big profits using trading bots they put together using ChatGPT, with one trader on TikTok making the dubious claim of having earned over 2,000% in profit. This, of course, should be taken with a massive pinch of salt: one more reliable — and detailed — AI-focused YouTuber built his own trading bot with ChatGPT, and made a profit after 24 hours of a rather modest 1.62%.
As such, using ChatGPT in this way would not likely help you get rich trading crypto, and may be no better than simply devising and executing a strategy yourself. There’s also the fact that you will need some coding experience in order to actually take ChatGPT’s answers and transform them into actually usable code, since often the AI simply provides merely a high-level outline of the steps you’d need to take, rather than a full set of instructions.
Source: OpenAI
Lastly, even if ChatGPT could write a trading bot for you, and even if it were trained on massive amounts of past data, this still wouldn’t guarantee profits. This is for the simple and time-honored rule that the past doesn’t guarantee the future, and that patterns that held up in previous years can easily be disrupted by any kind of Black Swan-style event that exists outside of earlier models.
Put differently, the exciting thing about the cryptocurrency market is that it can never be predicted with much accuracy, and this is something that not even the most impossibly intelligent AI will ever change.
