How to trade crypto using ChatGPT

In November 2022, a little-known startup named OpenAI launched a novel platform, bringing artificial intelligence (AI) out of the lab and into our handheld devices. Dubbed ChatGPT, this platform explained itself as a generative AI chatbot — interactive and precise right from the get-go.

Key Takeaways

ChatGPT can be used as a research assistant when it comes to breaking down complicated reports, news, jargon and more. Using the right input prompts can help you generate more actionable insights. Best used as a supplement, not a replacement for your personal analysis or professional counsel.

In the beginning, ChatGPT was all fun and games, until people started to rush to this new platform looking to simplify everyday tasks like getting just the right captions for Instagram and emails in formal language.

Once the public response to ChatGPT blew up internationally, OpenAI deployed back-to-back updates to the platform, taking it from merely a chatbot to a friend, a philosopher, a professional advisor, and up till even a psychic for their daily work and thoughts.

Traders take notice of AI’s potential

Like many professionals from across different sectors, the trader community grew instantly curious about this technology that seemed like the screen-locked genie with all sorts of answers.

A user on reddit said: "I have used it to generate technical indicators and optimize them for trading of a particular stock. However, after much optimization, it still does not perform material better than just manually selecting the technical indicators on my own." But since then, the chatbot has undergone some major updates which could have improved its overall efficiency."

In order to see if AI could expand profit margins, traders globally started tapping into ChatGPT to access market predictions and restructure their investment strategies accordingly.

PROMPT: What are some current macroeconomic factors influencing the Crypto market?

Nithin Kamath, Founder and CEO of Zerodha - India's largest discount stock brokerage firm - shared his take on X: "I keep asking K about what all this progress in AI means for our business. It feels to me like we're at the very beginning of a massive shift in how financial services will work."

Trading crypto using ChatGPT: Reality check

if one believes that AI can help one execute trades with perfect precision, the reality is far from right. Despite the technology being pretty versatile in terms of its use cases, it is still not mature enough to be relied on to execute trades.

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NOTE: AI does not have real-time market data access or regulatory compliance, both of which are essential for live trading decisions.

How can ChatGPT help crypto traders

Careful and mindful usage of ChatGPT can, however, indeed help traders in some ways.

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For example, it can be a quick stop to generate lists of market news and crypto trends while also helping break down complicated market jargon. This establishes ChatGPT as a personal research and analysis advisor for traders, potentially for those taking first steps into the market.

PROMPT: “Explain what ‘quantitative tightening’ means in simple terms.”

NOTE: Prompt engineering is crucial. The more specific your query, the more actionable the outcome will be.

The importance of human oversight

In order to generate accurate results, traders need to be very clear in their prompts or questions. This step is key for them to gain deployable results for their queries.

The generated answers should still be subject to human-level research in order to minimize potential financial risks.

PROMPT: Compare the past 5-year performance of XRP, BTC, and ETH in a tabular format

What lies ahead for GenAI in finance

In the future, it would be interesting to see if the upcoming upgrades to these GenAI chatbots would make them more equipped to be trusted with financial decisions.

For now, however, it's best to adhere to the suggestions of market analysts who always underline that chatboxes like ChatGPT should be used for researching trading ideas and is not a replacement for one's personal analysis and professional counsel.

The failures of these GenAI chatbots are deeply rooted in multiple factors - their reliance on historical data, their inability to handle unforeseen events, and the lack of human judgment and oversight.

This story was originally reported by TheStreet on Sep 6, 2025, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

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