The world of cryptocurrency is vast and complex, with thousands of tokens vying for attention. Finding the hidden gems that have the potential to skyrocket in value can be a daunting task, even for experienced investors. However, with the help of AI-driven tools like ChatGPT, retailers can now track “Smart Money” movements, identify accumulation or distribution patterns, and make more informed decisions. In this article, we will explore how to use ChatGPT as a research instrument for cryptocurrency analysis and discover emerging tokens with high potential.
ChatGPT can synthesize social media and news sentiment to reveal early stories and market trends. By feeding technical indicators and on-chain transaction data to the AI, retailers can gain valuable insights into the market mood and identify potential red flags or concerns. For example, you can copy and paste current headlines from major crypto news outlets or snippets from popular social media platforms like Twitter or Reddit into ChatGPT. Then, ask the AI to analyze the overall market sentiment, identify aspiring stories, and mark potential concerns. This method can help you determine the general emotional state of the market and make more informed decisions.
In addition to sentiment analysis, ChatGPT can also be used to search for growth in a project’s ecosystem. You can provide snapshots from platforms like Defillama, and the AI can identify which sectors are gaining the most traction and which protocols are growing the fastest. This can help you identify outliers – protocols that are attracting liquidity and users faster than others. These outstanding performers are usually more than just technically sound; they are the ones that are building the kind of traction that often promotes sharp price movements.
According to a recent study by MEXC, 67% of crypto traders from Gen Z have activated at least one trade bot or AI-operated strategy in the last 90 days. This shift towards automated trading with AI support is significant, and retailers who leverage tools like ChatGPT can gain a competitive edge. By feeding technical indicators and on-chain data to the AI, retailers can track “Smart Money” movements, identify accumulation or distribution patterns, and make more informed decisions.
For advanced traders, a data-controlled approach to using ChatGPT can result in outstanding options. By collecting the right data and providing it to the AI, retailers can gain deeper insights into the market and make more informed decisions. For example, you can feed ChatGPT raw technical data from chart platforms, such as the relative strength index (RSI), moving average convergence divergence (MACD), and different moving average values for a specific coin over a certain period. The AI can then analyze this data and provide insights into the current market trend and potential upcoming price movements.
ChatGPT’s real performance comes when you explore custom versions of the AI, known as GPTs, which are tailored to specific applications. Many GPTs are developed to expand the functions of ChatGPT, such as analyzing smart contracts, summarizing blockchain research, or pulling structured market data. By using these GPTs, retailers can gain a more comprehensive understanding of the market and make more informed decisions. To access GPTs, you need a ChatGPT Plus account, which costs $20/month. From there, you can explore the different GPTs available and start using them to analyze the market.
To create a data-controlled scanner with ChatGPT, you can go beyond one-time input requests by building an automated detection pipeline. First, create embeds from projects’ white papers, social media posts, and Github commits. Combine these vectors into superficial outliers that are worth human review. Add a tokenomics risk score that weighs the circulating supply, unlock, and cliffs, along with a liquidity depth metric created from snapshots and decentralized exchange (DEX) pool order books. You can also perform anomaly detection for large transactions and contract interactions to mark unusual activity in real-time.
To build this system, collect data from APIs like Github, Coingecko, and Ethercan. Process it with Python (or another language) to create numerical metrics and embeddings. Use clustering and anomaly detection to highlight unusual projects and add the results to a dashboard or alert system so you can act quickly. Backtest your signals by replaying events and transaction streams, transforming scattered data points into a structured process that generates repeatable, high-signal trade ideas.
In conclusion, finding hidden gems in the crypto market requires hard work and dedication, but with the help of AI-driven tools like ChatGPT, retailers can gain a competitive edge. By using ChatGPT to analyze sentiment, track “Smart Money” movements, and identify accumulation or distribution patterns, retailers can make more informed decisions and potentially uncover emerging tokens with high potential. For more information on how to use ChatGPT to find hidden gems in the crypto market, visit https://cointelegraph.com/news/how-to-use-chatgpt-to-find-hidden-gems-in-the-crypto-market?utm_source=rss_feed&utm_medium=rss_category_analysis&utm_campaign=rss_partner_inbound.
