eToro, the leading social trading and multi-asset brokerage platform is starting to integrate artificial intelligence into the world of cryptocurrency trading for ease of trading and risk management.
The end goal for this project is to improve the overall trading experience for its retail investors. The new AI tool that launched earlier this week was developed to work hand in hand with Twitter’s database in order to delve deep into the analytics of the crypto market sentiment through different tweets.
eToro is making ground in a new partnership with TheTie, which is a leading crypto data analysis company whose involvement with the Social Media Analytics market gives it significant access to over 800 million posts by Twitter users on a daily basis. With this partnership, eToro’s TIE-LongOnly CopyPortfolio will be made public to its user base as it builds up for cryptocurrency-related topics. This can be in both a positive way or a negative way in order to create a “valuation metric” for investors.
The Executive officer at TheTie spoke on the new development and explained that its involvement in creating this valuation data is because of the fact that the value of cryptocurrency is primarily down to the influence of supply and demand as well as in a bid to design a reliable solution for hedge funds.
So in terms of how this works, every month, the algorithm used will recycle positive cryptocurrency conversations on Twitter. Via the employment of machine learning and natural language, such a portfolio will look into the relevant tweets on cryptocurrency trading which will see an end result of a sentiment score.
As reported by ZyCrypto, eToro’s overall goal though is to get rid of the limitation that retail investors had previously faced with investment.
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!