Leading social trading and multi-asset brokerage eToro is implementing artificial intelligence into the world of cryptocurrency trading for ease of trading and risk management.
With a goal to improve trading experiences for its retail investors, eToro’s new AI tool which was launched today is built to work hand in hand with Twitter’s database in order to analyze the Cryptocurrency market sentiments via tweets.
eToro’s Partnership with TheTie
In collaboration with TheTie, a leading Cryptocurrency data analytic firm whose involvement with the Social Media Analytics market gives it access to more than 800 million tweets on a daily basis, eToro’s TIE-LongOnly CopyPortfolio will be made public to its user base as it garners Cryptocurrency related topics, both positive and negative to create a “valuation metric” for investors.
Speaking on the new development, the executive officer of TheTie explained that its involvement in creating this valuation data is due to the fact that the value of Cryptocurrency is mainly influenced by demand and supply and in a bid to create reliable solutions for hedge funds, it took to the development of what he terms a “sophisticated solution”.
Speaking on the influence Twitter has on Cryptocurrency and trading choices, TheTie also revealed that about 50,000 tweets made on a daily basis are centered around Cryptocurrency, Bitcoin precisely and 50% of these tweets stem from non-bot accounts.
How it Works
Once in every month, the algorithm used will recycle positive Cryptocurrency conversations on Twitter. Through the employment of machine learning and natural language, the portfolio will analyze relevant tweets on Cryptocurrency trading which will result in a sentiment score.
eToro’s overall goal is to eliminate the limitation that retail investors had previously faced with investment. With the implementation of this tool, it is expected that the investment strategies it will birth, which was previously only available to hedge funds will now be open to retail investors as well.
eToro’s managing Director Guy Hirsch conclusively affirmed his trust for the tool saying;
“A lot of people are crypto-curious, we believe with a tool like this, they will be much more comfortable.”