Best AI Crypto Coins In 2024
Best AI Crypto Coins in 2024:
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NEAR Protocol - integrated with smart contracts using artificial intelligence
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Bittensor - cryptocurrency with the function of payment agents
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Internet Computer (ICP) - the protocol that provides decentralized execution of calculations
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Render Token - the project integrates AI to optimize the rendering process
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The Graph - the project optimizes the process of indexing data using subgraphs
As of the end of 2023, the artificial intelligence (AI) sector in the cryptocurrency industry has a market value of approximately $6.3 billion. Cryptocurrency AI is what gives access to the technologies and services that run on it. For those who are interested in this sector and are looking for which AI-based cryptocurrency tokens are worth investing in, Traders Union experts offer a list of the most popular crypto projects that utilize AI and machine learning (ML), as well as consider the nuances of such capital investment and give advice to beginners.
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Is AI crypto trading legal?
Cryptocurrency trading, including that which utilizes AI, is legally legal in almost every country in the world. However, specifically AI tokens in many cases may fall under so-called cross-jurisdiction, i.e. a situation where they are regulated by both the crypto-trading industry and the artificial intelligence industry. When trading coins of AI projects, it should be clarified how these two areas of regulation are combined for them.
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Are AI cryptocurrencies safe?
Artificial intelligence project cryptocurrencies can be as secure as any other cryptocurrency. In their case, security depends on a combination of factors, including the level of security of blockchain technology and the quality of the artificial intelligence algorithms. It is also necessary to consider possible vulnerabilities in software and regularly update trading systems to minimize risks.
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What’s an AI cryptocurrency?
In simple words, it is digital money that is in one way or another involved in AI and related projects. Such cryptocurrency is typically used to fund AI research and development, reward network participation, and exchange in AI ecosystems. The main feature is its deep integration with AI technologies and methods, unlike conventional cryptocurrencies.
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How can an investor buy AI cryptocurrencies?
To purchase cryptocurrency AI projects, an investor can use online platforms and cryptocurrency exchanges that offer such assets. The purchase process, as usual, involves registering on the exchange, selecting a cryptocurrency and making a transaction through the appropriate interface. Artificial intelligence cryptocurrency, in addition to the usual exchanges, is often traded on specialized marketplaces, such as SingularityNET.
List of the best AI crypto coins
NEAR Protocol
NEAR Protocol is a decentralized platform designed for building decentralized applications (dApps) and digital assets. NEAR provides infrastructure for deploying DeFi applications such as decentralized exchanges, credit protocols, and liquidity pools.
NEAR utilizes sharding technology to improve the performance and scalability of the blockchain. It allows the network to process a large number of transactions in parallel, distributing the load among different fragments of the network. The NEAR protocol utilizes a Proof-of-Stake (PoS) consensus agreement that secures the network and incentivizes user participation.
Participants holding NEAR tokens can become stakeholders and participate in the voting process to make decisions in the network. NEAR supports smart contracts that allow developers to work with decentralized software products on the blockchain.
Key features:
Integration with resource management mechanisms and automated smart contracts utilizing artificial intelligence technologies.
Bittensor
A protocol standing at the intersection of artificial intelligence and blockchain. It seeks to create a decentralized network for distributed artificial intelligence (DAI) by providing a TAO cryptocurrency that can incentivize participation in the network and reward contributions to AI.
Bittensor is a protocol available for open-source use, driving a machine learning network built on blockchain technology. The system continuously learns from new data and experiences, allowing it to quickly respond to changing market conditions and customize strategies accordingly.
Cloud computing platforms often integrate Bittensor to provide computational resources to train ML models and perform AI tasks. An important aspect of TAO is also its decentralized nature.
Key features:
Agent-based payments feature, a mechanism that allows the network to reward nodes for completing machine learning and data processing tasks.
Internet Computer
Internet Computer (ICP) is a project that aims to create a decentralized computer network that provides the ability to perform computations and deploy applications directly on the internet. Internet Computer was announced in 2016 by the DFINITY Foundation team with the goal of creating a new internet protocol that would provide security, scalability, and decentralization for running applications and storing data.
The ICP cryptocurrency is used as a medium of exchange on the Internet Computer platform to pay for compute execution and application deployment. ICP holders can use their tokens to participate in voting on important network decisions and to receive rewards for providing computing resources.
The Internet Computer Project is actively collaborating with other blockchain and decentralized applications projects. Partners include Coinbase Ventures.
Key features:
The ability to run applications on the Internet directly and provide secure, decentralized computing.
Render Token
It is a network for distributing computing power for generating computer graphics and other types of digital content. The project eliminates the need for centralized servers and allows architects, designers and animators to create and render graphics in the cloud.
One of the main tasks that the AI within Render Token solves is rendering optimization. Using machine learning algorithms, the AI analyzes the parameters of the rendering task (image size, number of objects, textures and effects used) and then optimizes the process of allocating processing power to maximize performance and quality of the result.
Cryptocurrency is highly autonomous and learnable through the use of AI. The system continuously learns from past rendering tasks and their results, allowing it to improve its algorithms and strategies.
Key features:
Ability to integrate AI into the optimization of the rendering process, using AI directly to improve the quality and speed of graphics processing.
The Graph
An innovative protocol based on the concept of subgraphs that are created by third-party developers to index and manipulate data from specific blockchains. The protocol allows programmers and developers to access data from different blockchains using intuitive GraphQL language queries.
The Graph was first introduced on the Ethereum blockchain, and now its sub-graphs function in over 30 different decentralized networks. A host of well-known blockchain projects such as Aave, Audius, Uniswap, Opyn, ENS, DAOstack, Synthetix, Gnosis, Balancer, Livepeer have implemented The Graph subgraphs.
The company was founded in 2018 in San Francisco, the same year the non-profit organization The Graph Foundation was registered, which took on the important functions of disseminating technology, protecting intellectual property, and supporting the development of the ecosystem.
Key features:
The use of AI to optimize the process of indexing data with subgraphs makes the project one of the leaders in infrastructure for blockchain.
Injective
Injective is both a decentralized exchange (DEX) and a protocol that creates blockchain-based trading opportunities. The project offers decentralized financial instruments, including derivatives, swaps, futures and options, and provides users with the ability to trade them without intermediaries and centralized structures.
The protocol uses AI to analyze market data, predict trends and develop optimal trading strategies. Using machine learning and deep learning algorithms, Injective is able to quickly adapt to changes in the market and make intelligent trading decisions.
The advantages of Injective are flexibility and scalability. In addition to trading itself, the protocol allows the deployment of tools to create custom decentralized financial applications (dApps). Thanks to the use of AI, Injective can scale efficiently and provide high performance even under heavy network loads.
Key features:
Execution of smart contracts using a modularized version of the Ethereum Virtual Machine (EVM) based on Cosmos-SDK (Ethermint) technology.
Theta Network
The Theta Network is a decentralized video streaming platform designed to improve video content quality, optimize the network and reward users. The Theta Network has gained popularity for its creative approach to video streaming problems such as slow download speeds, high latency, and inefficient bandwidth utilization.
One of the major issues faced by video streaming services is limitation in performance and scalability. The Theta Network addresses this issue. The project aims to change video streaming standards by optimizing the data transfer process and providing a better viewing experience for users.
A key component of the development of video streaming and decentralized networks is the Theta cryptocurrency. It was originally launched in 2018 as an ERC-20 token, but with the launch of the main network in 2019, Theta has been turned into a native token.
Key features:
Focusing on AI in the project to improve the video streaming process, providing faster downloads and stable connections.
Fetch.ai
Fetch.ai was launched in 2017 with the aim of creating an infrastructure for economic agents to share data and services using advanced smart contracts. The project team includes experts with years of experience at companies such as DeepMind (Google's artificial intelligence division) and Deutsche Telekom.
Based on the ideas of self-learning and self-organization, Fetch.ai aims to change the way agents interact on the network and make their interactions more efficient and intelligent. The project's partners include Bosch, Ocean Protocol, Outlier Ventures, Datarella and many others.
Fetch.ai offers its own environment for developing and executing smart contracts, called the Open Economic Framework (OEF). It provides tools for creating decentralized economic environments where agents can interact and share resources.
Key features:
Managing economic agents that are more intelligent than smart contracts, able to learn and make decisions based on analysis and predictions.
SingularityNET
A popular platform for developing, sharing and monetizing AI. Its founder, Ben Herzl, is a well-known AI and robotics specialist who previously worked at Google and IBM.
The project provides tools for creating intelligent agents and services that can be used in various fields, including medicine, finance, and education. On the platform, developers can generate and upload various artificial intelligence models and algorithms such as neural networks, genetic algorithms, machine learning, and more. These algorithms are used to create various services and applications - such as pattern recognition, data prediction, process automation, and more.
SingularityNET's cryptocurrency is called AGI (Artificial General Intelligence). It is built on the Ethereum blockchain and is used to pay for services and access intelligent algorithms on the platform.
Key features:
SingularityNET enables developers to create, share and monetize AI, making the project a unique solution in the industry.
Akash Network
The Akash network was launched in April 2021. The project aims to create a DEX platform that would allow entrepreneurs and developers to easily rent and provision computing resources at fair prices using blockchain technology and smart contracts.
The AKT cryptocurrency was created based on the Tendermint blockchain and uses Proof of Stake (PoS) consensus to ensure the security and operation of the network. AKT holders can put their tokens into the nodes of the network to keep them running and are rewarded in the form of commissions for providing computing resources. This creates an economic structure that facilitates the growth and development of the network.
The project is developing partnerships with other cloud computing projects. The Akash Network community actively influences the development of the network by suggesting improvements and voting on major decisions.
Key features:
Maximizing node participation in the network through a staking and reward mechanism.
Best crypto exchanges
What’s an AI cryptocurrency?
Artificial intelligence cryptocurrency is a digital currency that is linked to artificial intelligence projects and technologies such as machine learning, neural networks and natural language processing algorithms. The basic principles of AI coins are the same as other blockchain-based cryptocurrencies. But AI cryptocurrency projects usually focus on the development and application of artificial intelligence technologies in various fields, which may be different from the development of conventional cryptocurrencies, where the goals may be more general.
AI cryptocurrencies are often used to raise funds for artificial intelligence research. AI itself is then used to improve the security, efficiency and usability of the cryptocurrency. AI projects issue coins that investors can buy to fund their developments. Some tokens are created to incentivize participation in the network, rewarding users for providing their resources (e.g., computing power), training AI models, or completing tasks.
Artificial intelligence and cryptocurrency also act as a medium of exchange in ecosystems where AI technologies are used to manage various processes and services. In addition, crypto-money and tokens based on artificial intelligence can underpin various projects and applications in this area, including decentralized trading platforms. They can be used to create text and graphic services, investment protocols, and much more.
How to buy AI crypto coins
Buying AI crypto coins differs from buying regular cryptocurrencies in that it requires more careful research into the project and consideration of its AI potential. AI cryptocurrencies can be found on most major exchanges. Popular platforms (Binance, Coinbase, Huobi) offer a wide range of currencies related to artificial intelligence projects.
In addition to classic exchanges, such cryptocurrencies are presented on platforms that are often specially "customized" for trading AI tokens. For example, SingularityNET Marketplace, DBC or Cortex AI Marketplace. These platforms provide infrastructure for trading cryptocurrencies embedded in AI projects and integrate specific functions related to these projects.
Decentralized exchanges (DEX), such as Uniswap and PancakeSwap, also provide access to AI crypto coins. They allow users to trade cryptocurrencies directly with other users, providing a greater degree of anonymity and decentralization.
For all those wishing to invest in AI cryptocurrencies, TU experts have prepared a step-by-step algorithm.
Step 1: Define the goal and strategy
First of all, it is necessary to outline the purpose of purchasing AI crypto coins and develop an investment strategy. Factors such as risk level, investment period, and desired investment size are considered here.
Step 2: Research the AI cryptocurrency market
It is worthwhile to research the AI token market, understand its specifics to identify promising projects and assets for investment. It is important to familiarize yourself with the development team, technological solutions, roadmaps, partnerships, etc.
Step 3: Opening and funding an account on an exchange
You need to choose a reliable crypto exchange that supports AI crypto coin trading, register an account and go through the authentication process, and then fund your account using the available methods (bank transfer, credit or debit cards, cryptocurrency deposits).
Step 4: Selecting and buying an asset
First, you need to identify suitable trading pairs for buying AI crypto coins. They will be categorized as either "AI crypto coin/cryptocurrency" or "AI crypto coin/fiat currency". Once selected, the desired amount of AI crypto coins is entered and the transaction is confirmed. It is important to make sure that the price and commissions that will be charged for the trade are clear.
Step 5: Transfer funds to a secure vault
Ensuring the safety of assets is extremely important. After the purchase, the trader should transfer the AI crypto coins to a secure vault such as a hardware wallet or cryptocurrency storage software. This point will be discussed below.
Step 6: Monitoring and investment management
Regularly monitoring the market and conducting investment analysis is an essential part of any investment. It is often helpful to adjust your investment and portfolio management strategy as crypto markets are very volatile.
By following this guide, any trader can safely and efficiently buy AI crypto-coins, thereby essentially starting to invest in artificial intelligence.
Is AI crypto coins suitable for beginners?
For those new to the world of cryptocurrencies, investing in AI project coins can be a bit more complicated due to the specific characteristics of this asset class. TU experts have highlighted the main factors that a novice trader in AI cryptocurrencies should consider: risks, specifications, innovation, etc.
1. Risks
As with any investment asset, investing in AI cryptocurrencies is not without risks. A trader should be ready for unexpected price jumps and realize the level of risk. Before choosing a trading platform, it is advisable to conduct research about the exchange, its reputation, security and trading conditions. In the case of AI tokens, it is better to aim for a long-term investment perspective.
2. Innovation
AI cryptocurrencies tend to have innovative applications such as trade automation, market analysis, creation of smart ("smart") contracts and development of decentralized applications. One needs to understand the working principles of these innovations. The AI cryptocurrency market can be highly volatile, so you should keep your emotions in check and not panic about short-term market fluctuations.
3. Specifications
Classical trading techniques are rarely suitable for working with AI tokens. Investing in AI cryptocurrencies often means developing special investment strategies that take into account the specifics of AI technologies and projects. It is important to use technical analysis tools such as charts and indicators to identify trends, and never invest more than you are willing to lose.
4. Knowledge
Engaging with AI cryptocurrencies in any way requires a deep awareness of AI technologies and concepts. Ignoring it is almost a 100 percent chance of being out of money. Before you start trading, you should familiarize yourself with the basics of AI and its applications in cryptocurrencies. Understanding the technology will help traders make informed decisions and identify promising projects.
5. Communication
Successful AI cryptocurrencies often have active and innovative communities that play a key role in the development of the project and its success. Working with these communities is a useful aspect of investing in AI cryptocurrencies. In addition, it is important for investors to conduct regular research to stay up-to-date with the latest trends and developments in the field.
How can an investor store AI cryptocurrencies?
Most cryptocurrency exchanges offer free crypto wallets where investors can store their cryptocurrencies. These crypto wallets provide access to public keys, which are the credentials needed to transact and trade crypto assets. Investors can utilize this option for easy storage and quick access to their assets.
However, storing cryptocurrencies on exchanges in this way has its own risks due to the possibility of hacker attacks or hacking of exchange systems. Therefore, many investors prefer to use so-called offline cold wallets to secure their crypto coins as well as private access keys. In fact, they are one of the safest ways to store assets, including AI cryptocurrencies.
A standalone cold wallet (also known as a "hardware" wallet) is a physical device that is designed to store private cryptocurrency keys offline, meaning it is not connected to the internet. This makes it impregnable to online threats such as hacker attacks or malware. A wallet usually consists of a physical device and software.
A user can create a new wallet and obtain their private keys, which are then stored on the device. To conduct transactions, the customer must connect the cold wallet to a computer or mobile device, sign the transaction with their private key, and then transmit the signed transaction over the network for validation.
👍 Pros of standalone cold wallets
Traders Union experts named 5 main advantages of storing AI coins in cold wallets:
1. Maximum security: private keys are stored offline, making them inaccessible to cyber threats and hacker attacks.
2. Investors have full control over their private keys and assets, without having to trust third parties.
3. Ease of use. Some cold wallets have intuitive user interfaces, making them user-friendly even for those who are not technical experts.
4. Support for a variety of assets. Stand-alone cold wallets support many types of cryptocurrencies, including AI cryptocurrencies, providing ample opportunities for portfolio diversification.
5. Most cold wallets offer a backup feature, allowing you to restore access to assets if your device is lost or damaged.
Expert Opinion
AI tokens facilitate the implementation of artificial intelligence-driven technology solutions and services across various cryptocurrency ecosystems. Its adoption helps improve and optimize various aspects of blockchain technology. In the long term, the interactions between artificial intelligence and blockchains are foreseen to further increase, leading to an increase in the popularity of AI-based cryptocurrencies. Right now, we are only at the beginning of this journey. To choose the best AI crypto coins, I recommend carrying out careful research and analysis, taking into account factors such as the project's technology, team, use case, market potential, and community support.
Conclusion
Artificial intelligence cryptocurrency is a variety of tokens associated with projects that utilize and develop artificial intelligence technologies. Such projects seek to solve many problems using AI and offer unique opportunities to invest in innovations in this field. AI tokens can be used to access a variety of products and services, such as process automation, training AI models, and even creating custom DEX applications.
AI tokens differ from regular cryptocurrencies in specific ways. To deal with these differences, it is important to carefully study AI cryptocurrency projects, evaluate their technological solutions, development teams and growth prospects. Investors should also constantly learn and evolve, and stay informed about the latest news and developments in artificial intelligence and cryptocurrencies. AI cryptocurrency markets, like the industry as a whole, are extremely volatile and require specialized knowledge and solutions.
Glossary for novice traders
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1
Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
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2
Cryptocurrency
Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
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Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
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Investor
An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.
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Ethereum
Ethereum is a decentralized blockchain platform and cryptocurrency that was proposed by Vitalik Buterin in late 2013 and development began in early 2014. It was designed as a versatile platform for creating decentralized applications (DApps) and smart contracts.
Team that worked on the article
Anastasiia has 17 years of experience in finance and content marketing. She believes that informational support and expert opinion are greatly important for novice investors’ and traders’ success. She is ready to share her knowledge of Forex, stock, and crypto trading and help select proper investment products and strategies for active/passive earning.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).