"Cryptocurrency Market Manipulation Detection Using AI And ML"

Assalam O Alaikum

Hello dear friends! Well come to my post. How are you all? I hope you will be doing well by the grace of Almighty Allah. I'm also fine and enjoying my day. Today I'm here to share my knowledge with you about the topic "Cryptocurrency Market Manipulation Detection Using AI And ML" in this Steem Alliance community. So let's start without any more delay of time.

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Friends, as we all know that the crypto market and the digital currencies are growing with the passage of time as we are moving into the more digital world which is full of technologies. That digital technology is also impacting the crypto market which results in increase in the investors, traders and stakeholders within the market.

That thing has rapidly grew the market which has put positive influence on it. As these things are increasing, the risks of market manipulation and other malicious activities are also increasing massively which create significant problems for the people in the form of assets loss, frauds and thefts etc.

Market Manipulation is basically the activity which some people perform to influence the market in order to get personal benefits by affecting others within the market. They play different schemes to disturb the investors and traders through the social media to get the benefits in the form of buying assets at low price and selling at high prices.

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_Freepik

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Usually, they use social media platforms to perform such schemes and disturb the people. These schemes including the pump and dump, spoofing and other things related to it. Through these schemes, they spread the false information among the investors and traders and force them to sale their assets at low prices.

But the machine learning (ML) and (AI) artificial intelligence has influenced the whole market as it plays a vital role in detecting such conditions of crypto market. This is because these tools has a power to analyze the market conditions through the collected data and then analyze the situation correctly.

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_Freepik

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The AI and ML, perform that activity in various steps and in first step, they collect the data through different historical charts, social media activities, price movements and the trends on order book of digital currencies. After collecting, that data is analyze and processed through different techniques such as data normalization and extraction etc.

After that, on the processed data, the feature engineering is applied through the performance of AI and ML is increased massively which provides us more accurate results about the market sentiments and conditions. In the thing, the features such as order book frequency, size of trade and other things are analyzed to make the insights more clear.

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_Freepik

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The machine learning ML is composed of different algorithms and smart contracts which are used to detect the market manipulations. These algorithms are the supervised learning and unsupervised learning which are different from each other. Usually the unsupervised learning models detects the anonymity and the patterns of trends.

No doubt that, the ML and AI, both providing a promising solutions to detect the market manipulations but the people face a lot of challenges during utilization. One of them is the nature of crypto currencies as they are co related to each other especially the alt coins which make them difficult to detect. But we can say that in future their working will be improved and updated with the passage of time.

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Conclusion

In conclusion, the ML and AI provides a great benefits to the crypto traders, stakeholders and investors in understanding the market conditions especially the market manipulations. So through them, they can make informed decisions right according to the market conditions and can protect their assets from losing. In results, we can make the platform more reliable and transparent for the users.

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Written by @abdullahw2

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Thanks All ❤️

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