From smart contract analysis to security and blockchain technology, artificial intelligence (AI) is being used to drive innovation across the cryptocurrency sector. But the one area that we’re yet to see much advancement in is portfolio management. Algorithmic trading is often talked of, but the theory is currently so much stronger than the reality. But change is coming. So, what can we expect from AI when it comes to crypto portfolio management?
Supporting the needs of investors
AI’s allure in crypto investing has always lain in the promise of near-effortless portfolio management. With algorithms handling research and market forecasting, it opens the potential for investors to either make shrewder decisions or to step back entirely, and allow the technology to manage their finances for them. And that sets the scene for two distinct types of investor to emerge.
First, there are the micromanagers, those chasing minute-by-minute optimisation. For them, portfolios are more than just diversified allocations. They are dynamic, ever-evolving entities, requiring agile strategies. AI will offer them a gateway to continuous adaptation, informed by real-time data and shifting market opinion.
Secondly, we have the incomers from traditional finance. Investors who have always valued clarity, security, and long-term vision. Until recently, they’ve been overwhelmed by the crypto sector’s complexity and volatility, even by its apparently foreign language. For them, AI’s greatest value is in simplifying the space, offering stability and easing their transition into a new financial market.
Until now, however, most AI crypto tools have been tailored almost exclusively to the first group, leaving the second overlooked and underserved… Which illustrates a tremendous lack of foresight, given that the second, group is not only larger, but also holds the key to the market’s broader growth.
So, how should crypto companies use AI to ensure that they’re catering for both types of investors?
How can crypto companies use AI to better support all investors?
The experienced investors
For crypto natives, AI will likely mean the creation of intelligent personal assistants – tools designed to deliver deeply personalised, data-driven investment insights tailored to individual goals, current portfolio positions, and evolving macro or on-chain signals. This is a significant move beyond the passive suggestions currently available from crypto assistants, actively helping users rebalance their holdings, simulate market scenarios, and anticipate trends. Essentially, equipping investors with professional-grade decision-making tools. A by-product of which will be the reduction of the crypto market’s hallmark reactivity.
The traditional investors
For most newcomers to crypto, simplicity is paramount. They want to explore the potential of digital assets without getting lost in the noise and complexity of the current market. That means being able to manage their portfolios with transparency and security, without needing to master an entirely new investment language.
While AI isn’t yet able to do that, its potential to build on existing strategies set by incumbents is clear. At my company, we’re already focused on serving mid-to-long-term investors who prioritise simplicity over speculation. We don’t currently use AI to achieve this. Instead, we use language and frameworks that are already familiar to our users, and resonate with how they already think about investing. But AI is evolving rapidly, and it won’t be long before we see the emergence of intelligent assistants capable of helping users to understand and rebalance portfolios, offer personalised guidance, and take the guesswork out of crypto management. The production of AI-generated strategies that users can follow, copy, or co-manage, also seems likely. Bringing algorithmic precision to those without deep market expertise. In short, AI has the potential to level the playing field, empowering both crypto natives and traditional investors alike.
That’s the wish list anyway, the ultimate goal for AI in the crypto space. It’s still a little time away, but there are other ways in which AI can bring immediate value to crypto companies.
The potential for AI in crypto companies today
Right now, customer engagement and marketing are among the most important ways in which AI is benefiting crypto companies. With tools like Apollo and Sales Navigator, AI can help brands to identify and enrich contact data for relevant financial professionals, enabling highly targeted outreach. Then, once a potential customer enters the ecosystem, their interactions can be tracked and fed into CRMs, such as Pipedrive, creating a centralised view of engagement.
The impact of this can be furthered, through the use of platforms like Zapier, which can sync customer touchpoints across the entire tech stack, while AI enhances the personalisation of every interaction – from email campaigns to digital ads. And then we have the likes of ChatGPT, and other generative AI tools, which can run multivariate tests and tailor calls-to-action, helping refine language and messaging to better resonate with individual users.
In other words, AI is no longer just a toy with potential. It’s a highly sophisticated tool that can help crypto businesses to create responsive, intelligent marketing systems that learn from their audiences and treats them with insight and respect. Taking the marketing funnel to a whole new level.
If used properly, AI could hold significant gifts for all businesses in the crypto space. Eventually, it could bring clarity where ambiguity has reigned, supporting simplicity and cultivating trust that could transform the entire space. The thing we need to remember is that although that’s potentially possible, AI isn’t there yet. And while we could wait for AI to become a genuinely useful tool capable of managing portfolios and delivering bespoke data-driven investment insights on demand, by waiting we miss out on the potential that is already there. So, for now, all of that is in the hands of the individual businesses that populate the industry. Because if we start changing the ethos of the market, start making transparency a must and clarity a priority, we can begin to properly open up the space, moving from Wild West to marketplace. So that when AI is eventually capable of doing all it can, we have a strong set of values and a wealth of new investors waiting to benefit from them.
