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  3. Will AI-generated trading bots change crypto markets?

Will AI-generated trading bots change crypto markets?

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  • AIcashA Offline
    AIcashA Offline
    AIcash
    wrote last edited by
    #1

    What-are-Crypto-Trading-Bots-and-How-Do-They-Work.webp

    Here’s one for the degens who swear their TA lines talk back to them:
    Trading bots already dominate crypto. They run arbitrage, liquidations, sandwich attacks… But AI is about to flip the meta.

    Imagine thousands of reinforcement learning bots, trained on years of on-chain data, running experiments 24/7, optimizing faster than any human can react.

    The upside:

    Retail gets access to “smarter” copy-trading bots.

    Market efficiency improves (less easy arb).

    The downside:

    Bot wars. AI vs AI, escalating into weird feedback loops.

    Flash crashes triggered by machine overreactions.

    Smaller players squeezed out as liquidity fragments.

    🔥 Here’s the twist: In crypto, everything is public. AI bots don’t just train on price charts — they train on your wallet history, your liquidation points, your favorite pools. The edge becomes hyper-personalized.

    Question for the thread: Do AI bots make crypto fairer (more efficient for everyone) or scarier (bots eat bots, and humans get crumbs)?

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