In recent years, there has been a massive leap in interest in the cryptocurrency market, as these assets have become prominent in economic and investment discussions worldwide. With the increasing role of artificial intelligence across various sectors, a new category of cryptocurrencies directly linked to artificial intelligence applications has emerged, which is expected to achieve strong growth in the next few years.
However, despite the great temptations, the cryptocurrency market remains fraught with high risks, as studies indicate that between 85% to 95% of new investors lose their money in this field, either due to lack of experience, rushing after greed, or the absence of risk management strategies. Therefore, one must approach this market with great awareness and careful planning.
1- The impact of artificial intelligence on the cryptocurrency market
Strong return of investors:
Alternative cryptocurrencies (Altcoins) have historically seen significant increases during bullish market cycles, and the next season is expected to be the largest in the history of this industry. The entry of major financial institutions into investing in Bitcoin and Ethereum enhances confidence and attracts more capital.
The role of artificial intelligence:
The rapid developments in artificial intelligence enhance the need for blockchain solutions to secure and verify data. This technological relationship will make cryptocurrencies linked to artificial intelligence among the most sought-after assets in the future.
Massive financial flows:
It is expected that massive funds will flow towards medium and small cryptocurrencies, which could raise their values significantly. Conversely, the market may witness inflated valuations for some projects, necessitating caution against excessive speculation.
2- How to reduce risks in cryptocurrency investments?
Entering the cryptocurrency market without a well-thought-out strategy can lead to losses of up to 90% of capital. Therefore, experts recommend the following:
Gradual investment with small amounts at the beginning, especially if you are new to the field.
Choosing currencies with a strong foundation and applicable technology in reality, instead of getting swept away by media hype.
Diversifying the investment portfolio among several currencies to reduce risks instead of putting all funds into one project.
Constant market analysis and understanding trends, especially cryptocurrencies linked to artificial intelligence that are witnessing increasing momentum.
Commitment to stop-loss (Stop Loss) to protect capital in case of sharp declines.
Following news and updates as regulatory or technical decisions may directly and quickly impact prices.
3- The most promising cryptocurrencies linked to artificial intelligence
There is a group of projects that experts believe have strong growth potential in the coming period:
Tao: A prominent cryptocurrency expected to reach a market value of over 30 billion dollars, making it an attractive option for investors looking for solid upcoming projects.
AOS: Considered one of the projects capable of rapid expansion in the market, providing a strong infrastructure, making it a candidate for significant growth.
Neural, Graph AI, Destro, and Zigchain: Emerging currencies with significant future potential, especially as they approach listing on major trading platforms.
Anyone Protocol: A project focused on providing essential infrastructure for artificial intelligence projects, making it important in the long term.
Vertical and Parallel AI: Considered high-risk cryptocurrencies but carry opportunities for substantial returns for those with patience and a clear strategy.
ABM and Spectre: Innovative projects expected to rise strongly with the expansion of the artificial intelligence sector.
ZKML and Condex: Currencies offering modern technologies in the fields of artificial intelligence and NFTs, making them of interest to investors.
4- Essential warnings and guidelines
The market is currently witnessing an unjustified inflation in the prices of some currencies due to the greed of investors and their desire for quick profits.
Many startups may fail despite having strong teams and good intentions, which is common in the world of entrepreneurship.
Fear of missing out (FOMO) drives many to make wrong decisions that lead to significant losses.
Investors must be aware of market cycles (up – down) and act wisely before entering the broad public.
