What Are AI Crypto Coins?

AI crypto coins are a unique type of digital token that marries two emerging technologies: artificial intelligence and the blockchain.  

What are AI crypto coins? 

AI crypto coins use the power of AI to take cryptocurrencies to the next level. (The field of AI aims to build algorithms that replicate human intelligence. Cryptos are digital currencies that operate on decentralized internet-based protocols, or blockchains.) 

Unlike “regular” digital tokens and platforms, AI blockchains can use artificial intelligence and machine learning to:

• Improve scalability
• Enhance or add functionality
• Increase blockchain security
• Identify and prevent illicit activities

How do AI crypto coins work?

Naturally, AI-based blockchains issue their own tokens, which users can spend on AI-driven projects or treat as investments. Each platform harnesses AI for its own purposes, influencing how and when users spend their coins. 

For instance, AI blockchains may leverage tech like machine learning, neural networks and/or natural language processing to:

• Process and analyze huge amounts of data
• Forecast future price volatility
• Make better-informed investing decisions
• Enhance their decentralized marketplaces
• Building dedicated platforms for developing and testing new algorithms

Investing in AI crypto coins works a lot like other cryptos. Simply find an exchange that supports your desired coin, sign up, invest and transfer your haul to your crypto wallet. 

Examples of AI crypto coins

• The Graph: A decentralized platform that indexes blockchain data (think Google, but for blockchains)
• The Oasis Network: Uses AI to build, deploy and scale privacy-focused blockchain apps
• SingularityNet: Offers a framework to build, exchange and commercialize AI-based programs
• Fetch.ai: Leverages AI to further development of the digital economy
• Numerai: A decentralized hedge fund that relies on AI to make investment decisions in traditional financial markets

Pros of AI crypto coins

• Quickly analyze and identify patterns in massive volumes of data
• Improved decision-making 
• Increased efficiency through AI automation
• Enhanced security

Cons of AI crypto coins

• The space lacks regulatory oversight to reduce scams and fraud
• Incredibly high volatility
• Complex coding requirements can lead to technical issues
• Ethical concerns surrounding biased decision-making, employment impacts, and energy consumption to maintain blockchains
• Not impervious to hacking

How to invest with AI – smartly 

AI crypto coins marry two innovative technologies to produce new and exciting opportunities for cryptos, the blockchain and AI. Their ability to learn from and respond to changing conditions makes them particularly popular in the financial industry. 

However, both AI and cryptos are in their infancy and pose substantial risks for investors. The 2022 crypto winter and ongoing uncertainty surrounding crypto’s regulatory status adds fuel to the volatility fire. As such, investors should remain wary of any crypto-based investments.

If you want to invest in the future of AI, look no further than Q.ai’s very own AI-backed Investment Kits. We leverage AI to make well-informed trades, hedge against uncertainty and delve into new investment opportunities. 

Plus, we offer tons of opportunities to diversify, from our Emerging Tech and Clean Tech Kits to our Recession Resistance and Guilty Pleasure Kits.