Cryptocurrencies are highly volatile. It’s has become common to hear stories of investors who entered the crypto market during the boom, only to panic sell when prices suddenly dropped. Even seasoned traders are, at times, influenced by their emotions. It can be hard for traders to ignore the stream of Wall Street bigwigs and government officials expressing their lack of faith in cryptocurrencies when the markets echo their statements.

Navigating crypto investing takes plenty of skill and know-how. Fortunately, there are also some powerful tech-driven tools that could help both fledgling and experienced traders make sense of the wild crypto market. Artificial intelligence (AI) are now finding their way into crypto activities and even creating synergies with blockchain technology to help address these concerns. Ventures like Endor and Signals are all embarking on projects that can potentially impact crypto investing in major ways.

Lower Barriers to Predictions

It is important to understand how AI fits in the context of crypto investing. According to Endor CEO and Co-Founder Dr. Yaniv Altshuler, by using AI, an investor or analyst “can take past-data, let’s say, the price of an asset at each day during the past year, and all of the places and times it was mentioned in social networks and use mathematical tools in order to produce a prediction regarding whatever it is we are interested to predict the asset’s price a month from now.”

Doing such an analysis without AI is tedious and impractical. However, the tools and expertise necessary to analyze such data are only typically available to large enterprises who have the resources to invest. Accurate predictions do not come cheap.

“The quality of the prediction depends on the quantity and quality of the data, the quality and sophistication of the mathematical models used, and with some extent also to the amount of computation power that can be dedicated to solving this problem,” Dr. Altshuler says.

There have already been significant developments in this area. For instance, Endor has successfully worked with several large enterprises in analyzing behavioral patterns in big data. The firm, an MIT spinoff, uses social physics or the use of physics-inspired tools to analyze behavior in human-driven events. It has successfully developed what they call the “Google” of predictive analytics – an AI-driven technology that allows users to simply enter questions and quickly get accurate predictions.

The company is now moving into the crypto space through its Endor.com Protocol – a blockchain protocol that makes predictive analytics accessible to ordinary users. Using a token economy, the protocol encourages participation of data owners and developers who could contribute to improving the system. By tapping the shared expertise and custodianship of crowds, this ecosystem ultimately makes tools and predictions more affordable.

Endor is also able to analyze blockchain data to generate predictions. Behavioral patterns from blockchain transactions could help make sense of the factors that drive the highly-speculative crypto market. Using the protocol, investors will be able to readily spend Endor’s EDR tokens to pay for predictions without having to learn advanced data sciences or invest in big data infrastructure.