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AI creates an ideal cryptocurrency portfolio for April

Mar 31, 2024

Utilizing artificial intelligence (AI) tools for investment research can provide an advantage for cryptocurrency investors and produce favorable outcomes. One potential use case is enlisting AIs to aid in constructing an optimal cryptocurrency portfolio based on specific criteria.

Finbold enlisted three advanced AI models to develop a hypothetical cryptocurrency portfolio for April. They requested a low-budget portfolio with high risk-reward potential and narrative diversification.

The three models recommended similar picks, with varying allocation percentages. The models used were OpenAI’s ChatGPT-4 Turbo API, Anthropic’s Claude 3 Opus, and xAI’s Grok with real-time data.

The recommended cryptocurrencies included Bitcoin (BTC), Ethereum (ETH), and Chainlink (LINK) as common choices among the three models.

  • ChatGPT-4 diversified the crypto portfolio by including established cryptocurrencies, promising altcoins, and tokens from emerging sectors like DeFi, NFTs, or Web3 to spread risk and take advantage of various market opportunities. It allocated Bitcoin and Ethereum 20% each, along with five other cryptocurrencies at 10% each.
  • Claude 3 Opus proposed a seven-asset crypto portfolio with BTC at 40% dominance, followed by ETH at 25%, and other cryptocurrencies with different allocations.
  • Grok recommended a portfolio allocation of 30% BTC, 25% ETH, and 15% LINK, along with other cryptocurrencies.

Investors should not view these recommendations as definitive portfolio-building decisions. The ideal allocation depends on individual goals, risk tolerance, and knowledge. Additionally, these AIs may make mistakes or base decisions on outdated information, as mentioned by ChatGPT.

Please note that the content provided does not constitute investment advice, as investing carries inherent risks.

Source: TheBitTimes

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