The crypto space is expanding at an incredible speed, with new projects constantly appearing. Some have a high potential to skyrocket and become a new Bitcoin or Ethereum, bringing an early investor large profits in the future. But how do you distinguish a valuable project to invest in?
Here, you cannot do without comprehensive crypto research, which may take lots of time and effort. The good news is there is already a tool to do it for you (mostly), and yes, that is ChatGPT we are talking about.
Whether you want to learn the ins and outs of a particular digital asset or gain a general understanding of the crypto world and how it functions, ChatGPT will make the process a lot easier.
ChatGPT is an AI chatbot launched by OpenAI in 2022. Trained on a massive database, the tool has access to a considerable amount of information, including that on the crypto market. It may concern characteristics of various cryptocurrencies, market trends and news, etc.
The chatbot can answer questions on almost any topic — it allows you to arrive at conclusions much faster without the need to aggregate, compare, and analyze data from multiple sources. All you need is to type in your prompts regarding the issue or attach relevant documents if you want them to be summarized.
ChatGPT Prompts, or How to Get Started
Prompts refer to the input you enter into ChatGPT to get responses. These can vary depending on what task you set for the chatbot. Let’s analyze the ones most relevant to crypto research:
- Informational prompts. They are useful when you perform general research and want to get info on a particular subject or get some concept explained. Such prompts may look like this: “What is crypto tokenomics?” or “What is the difference between a hard and a soft cap?”.
- Instructional prompts. Using them, you can instruct the chatbot to perform a certain task, i.e., analyze a particular phenomenon or review a token’s whitepaper: “Summarize the Cardano (ADA) whitepaper.”
- Opinion-based prompts. ChatGPT is not a human and cannot have an opinion of its own. However, it can provide a list of pros and cons of a certain development: “What are the advantages and disadvantages of the Bitcoin Lightning Network?”.
Having figured out which prompts will serve your purpose, you can get right to the research. Your queries may differ depending on what you want to find out. However, we have summarized some of the main ways you can use ChatGPT to broaden your crypto horizons.
Exploring Concepts
ChatGPT can serve both crypto newcomers and seasoned users by responding to a wide range of questions. Those who seek to learn about the industry may find the chatbot especially helpful, as it can simplify complex terms and provide accessible explanations. If the first responses need clarification, you can ask ChatGPT to go into details.
Analyzing the Market
The chatbot can provide valuable insights into the market conditions and help analyze trends. Traders can use a paid subscription to access real-time data and decide whether to buy/sell crypto. Besides, ChatGPT can review past market conditions to predict the pattern that may occur or study the performance of a particular crypto over time.
Keeping Up with the News
To stay updated on what is going on in the market, you can ask the chatbot questions like “What are the latest headlines in the crypto world?” or instruct it to tell you about recent ICOs. Also, ChatGPT can use paid services to monitor crypto news and alert you or even suggest a change to the trading strategy based on it.
Assessing Risks
ChatGPT helps you decide whether a specific project is worth investing in by outlining its potential risks and pitfalls. As for cryptocurrencies that have been in the market for a while, statistical data may come in handy. You can request historical price charts, trading volumes, or market capitalization to be able to make informed decisions.
Comparing Cryptos
Suppose you are hesitant about which of two (or more) cryptocurrencies to add to your portfolio. In that case, the chatbot can comprehensively analyze all these assets and compare them against one another. The comparison parameters may include the technology cryptos are based on, their tokenomics, market cap, use case, governance model, and others.
Learning About Security Measures
Another great use of ChatGPT is learning about how to enhance your security. You can get advice on the best practices for protecting your digital assets, learn about storage options, and find ways to add extra protection to your account, such as two-factor authentication.
Is ChatGPT fully reliable?
Like any machine learning model, ChatGPT has certain limitations and can make mistakes. Besides, as it functions on a prediction model, this chatbot may provide incorrect data based on the info gathered earlier. That is why, although ChatGPT can greatly assist you with your research, it should not be used as a standalone tool, and the info it provides should be cross-referenced from other sources.
Final Thoughts
ChatGPT is a powerful AI tool that has already proved to have multiple use cases. It can be especially helpful when analyzing the crypto market and asset performance, enabling crypto enthusiasts to make informed decisions. Although, like any machine, it may not be error-free, this chatbot can save its users tons of time by presenting summarized info on their research topic.
