All About AI Cryptos

If there is one technology that is currently dominating the headlines, it is artificial intelligence (AI). This technology is being widely used in art, academia, business, and much more. But did you know that AI has found its way into the crypto space as well?

This is not too surprising as both are relatively novel technologies that have been as controversial as they are popular. But anyone who is invested in crypto should know the ways that AI is embedding itself into the industry and could impact the crypto landscape for years to come. 

What are AI Cryptos?

First things first, it is important to understand what AI cryptos are in the first place. As the name would suggest, there are crypto assets associated with AI technology. One way this happens is that the cryptos are the native assets of a blockchain-powered AI project. These function as an investment vehicle into the project, a utility token for the ecosystem, or both. 

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The popularity of AI means that many more consumers want to make money from it and these types of AI cryptos can be a way to do so. Another way that AI can be connected to crypto assets is by having it carry out functions in the ecosystem. As Will Macmaster points out, the AI crypto coins list is filled with tokens that use AI-based predictive models. This means that AI is used to predict the future trajectory of the token and this can guide investment decisions. 

AI is also used to distribute perks for token holders such as play-to-earn or spend-to-earn rewards, making the process more streamlined. Some crypto projects also use AI in their decision-making processes. We already know about upgrades and other crucial ecosystem decisions being made by a management team or voted on in the case of DAOs but generative AIs are sometimes used to determine the best course of action for the tokens. 

AI has already been used on crypto-focused platforms like Solana casinos and crypto exchanges but crypto AIs represent a new dimension altogether. 

How Does AI Benefit Crypto?

So we know how AI is used in the crypto space. Now, it is worth exploring how it benefits the space. One of the most obvious benefits is that it promotes efficiency and saves time for blockchain developers and entrepreneurs. Usually, a major ecosystem decision would be mediated on for weeks or months before a consensus could be reached. If the project was a DAO, voting would need to be done which could slow down decision implementation. 

Using AI means that recommendations on the next steps to take can be provided in minutes or even seconds. Because generative AIs are designed to analyse a great mass of data instantaneously, they might even consider factors that humans might have missed. When it comes to delivering benefits like spend-to-earn, AI use can lead to faster results and can be used to analyse data on the go, giving entrepreneurs an idea of how these benefits have been received by their customers thus far.

AI in the crypto space also creates more avenues for investment for both entrepreneurs and everyday investors. More blockchain-powered AI projects mean another sub-niche of the crypto space and another possible avenue for investors to make money.

What Should Investors Do?

As an investor aware of the increasing overlap between AI and crypto, you might be wondering what to do moving forward. Should you dive headfirst into AI cryptos or avoid them? The reality is that AI cryptos can be very good investments if you go about it the right way.

As Will Macmaster has explained, many of the AI cryptos in the market have very promising outlooks and could give you a great return on your principal investment. But the trick is to sort out the wheat from the chaff. Just like with every other type of crypto, charlatans will try to launch AI shitcoins to take advantage of the hype. 

This is why you need to educate yourself about AI and crypto and practice discernment when looking at tokens to invest in. Read reviews of the project online and make sure it has legitimate use cases, as opposed to AI being used as an empty buzzword. Following this, buy your AI token of choice from a reputable platform and always follow the golden rule of not investing money you cannot afford to lose. 

Finally, keep your ear to the ground and stay abreast of the latest developments in the AI crypto space. 

Conclusion

The world of crypto is always changing and it seems that AI crypto is the newer sub-niche making headlines. We are now seeing AI projects having native cryptos and crypto projects infusing AI into their operations. This offers several benefits, like increasing efficacy, saving time, and helping investors to make more money. 

Anyone looking to get in on the action should do their research, of course, and apply caution.