- Mistake #1: Trading without experience
- Mistake #2: Relying solely on AI
- Mistake #3: Failing to track your investments or seek professional advice
Artificial intelligence has earned its place in many industries — from education and marketing to customer service and beyond. Given its ability to process data quickly and make predictions, it seems like an ideal tool for crypto investing. In fact, early AI systems were originally designed for brokers. But when can AI actually do more harm than good? And what are the most common mistakes novice investors make?
“AI performs exceptionally well in many areas when it comes to crypto investing. It can analyze market sentiment faster and often more accurately than a human investor,” says Brian Prince, co-founder and CMO of XCoins and founder & CEO of TopAITools.com.
He explains that AI can quickly identify trends and apply them in real-time scenarios. For example, it can function as a robo-advisor, allowing you to automate your crypto investments. “But there are pitfalls to watch out for,” he warns.
Mistake #1: Trading without experience
Vijay Marolia, founder and Chief Investment Officer at Regal Point Capital Solutions, advises against relying on AI for investment recommendations. Instead, he recommends using AI for research, data entry, and market analysis.
“Always double-check anything that seems crazy or off,” Marolia says. “AI models use large language models (LLMs), and they sometimes generate inaccurate information — in the AI world, this is called a hallucination.”
John Patrick Mullin, CEO and co-founder of MANTRA Chain, echoes this view. While AI can be a valuable part of your investment strategy, “it’s not a crystal ball,” he says.
“Investors should test every theory before acting,” Mullin advises. In most cases, the difference between winning and losing in crypto comes down to thorough research. Smart investors use AI-generated data as a starting point — not the final word — and conduct deeper due diligence before making any moves.
John Matze, co-founder of social platform Hedgehog, adds that it’s still essential to take an old-school approach to trading and investing: do as much research as possible before making any financial decisions.
“AI platforms like ChatGPT and Gemini should be viewed as tools to assist your workflow — not as something to blindly depend on,” he says.
о если вы рассчитываете на краткосрочную прибыль, определяя время выхода на рынок с помощью ИИ.
Mistake #2: Relying solely on AI
Vijay Marolia, founder and Chief Investment Officer at Regal Point Capital Solutions, advises against relying on AI for investment recommendations. Instead, he recommends using AI for research, data entry, and market analysis.
“Always double-check anything that seems crazy or off,” Marolia says. “AI models use large language models (LLMs), and they sometimes generate inaccurate information — in the AI world, this is called a hallucination.”
John Patrick Mullin, CEO and co-founder of MANTRA Chain, echoes this view. While AI can be a valuable part of your investment strategy, “it’s not a crystal ball,” he says.
“Investors should test every theory before acting,” Mullin advises. In most cases, the difference between winning and losing in crypto comes down to thorough research. Smart investors use AI-generated data as a starting point — not the final word — and conduct deeper due diligence before making any moves.
John Matze, co-founder of social platform Hedgehog, adds that it’s still essential to take an old-school approach to trading and investing: do as much research as possible before making any financial decisions.
“AI platforms like ChatGPT and Gemini should be viewed as tools to assist your workflow — not as something to blindly depend on,” he says.
Mistake #3: Failing to Track Your Investments and Avoiding Human Advisors
Prince also warns that relying too heavily on AI might lead you to neglect your investment portfolio altogether. To avoid this, he recommends consistently monitoring your investments, assessing their performance, and making adjustments when necessary.
Another habit to steer clear of: avoiding professional human advice.
“It’s important to recognize when you’re in a complex financial situation that calls for expert human guidance,” Prince advises. He notes that crypto investing often comes with constantly evolving tax implications that might require consultation with a specialist.
