Cryptocurrency transaction analysis is the process of using artificial intelligence to analyze transactions in the cryptocurrency market. The analysis can help investors identify patterns and trends in the market and make more informed decisions. This system can also help investors identify potential fraud or security risks and take steps to protect their investments.
The DeFi market can demonstrate this particularly clearly. In particular, the IDO process is the most vulnerable to hacker attacks and fraudulent schemes. For example, a sniping bot attack is one of the most popular ways to hack into IDOs on decentralized exchanges.
Thousands of bots simultaneously try to be the first to buy a token at the lowest price. While honest investors and the community simply do not have time to do so. Thus, liquidity and trust in the project are destroyed in a matter of seconds.
AI can fix this situation. It is enough to track the inadequate trend of mass token buying and block such transactions.
AI for cryptocurrency price forecasting
As the name suggests, AI-based price forecasting tools are designed to analyze the crypto market and predict the value of coins. So far, this technology is less popular than others.
It is important to remember that AI forecasts are not always accurate. Although AI-based tools can provide valuable information about the crypto market, they can be unreliable and make mistakes. Researching and understanding the risks associated with price forecasting is essential.
Artificial intelligence and cryptocurrencies are rapidly intertwining, and the technology is only continuing to evolve. AI-based tools and services are becoming increasingly popular among investors, traders, and even casual cryptocurrency users, allowing them to make more informed and faster decisions.