From Cointelegraph

May 22, 2025 06:21 AM:

AI agents powered by ChatGPT are revolutionizing crypto trading by automating tasks with natural language prompts and API integrations. However, success relies on using ChatGPT as a support tool, not a fully autonomous system, to avoid failures due to lack of real-time data or risk management. Regulatory focus on AI in trading is increasing to ensure transparency and compliance.

ChatGPT-powered AI agents are reshaping how traders interact with crypto markets by combining language abilities with external tools to monitor prices, understand trends, and place trades automatically. These assistants can work with major platforms and DeFi tools, enhancing trading strategies based on technical data and market news.

Success stories in ChatGPT-powered crypto trading include users making profits through strategy generation and sentiment analysis. However, limitations arise when ChatGPT is applied beyond its core design, leading to missed opportunities and underperformance compared to dynamic strategies. A scam involving a ChatGPT-generated trading bot resulted in users losing $17,240 in ETH.

Key benefits of using AI in crypto trading include fast execution, precise rule-following, 24/7 monitoring, and flexible automation with ChatGPT. However, limitations such as the need for live market data integration, clear instructions, and security measures must be managed to optimize AI trading efficiency.

Ethical and regulatory concerns surrounding AI in crypto trading are being addressed as AI becomes more integrated into trading systems. Issues include accountability for harmful trades, risks of market manipulation, and the need for regulatory oversight and policy developments to ensure compliance and fair AI usage in financial markets.

Read more at Cointelegraph: Can ChatGPT Trade Crypto for You? Here’s What You Need to Know