The summer of the bull is now upon us and the cryptocurrency market is on fire! Dogecoin is getting pumped outrageously by Elon Mush, Mark Cuban and quite possibly, SNL. Ethereum is battling for Bitcoin dominance and Ripple holders are eagerly awaiting the outcome of Ripple’s lawsuit with the SEC. Despite Dogecoin’s vampiric suction of money from the crypto space, major cryptocurrencies like Litecoin and Bitcoin cash are making significant gains.
Whether you are a beginner or an advanced trader, if you are lucky enough to make a profit from this bull run, you should secure your gains, especially if those gains are not immediately converted into fiat currency. Those who remember the Mt. Gox crypto theft by hackers in 2014, clearly understand that cryptocurrency exchange is not a bank. Outside of offline storage or cold storage, the best level of security is with some type of crypto wallet, whether that wallet is a Bitcoin wallet, hot wallet, cold wallet, mobile wallet, software wallet, hardware wallet or trust wallet.
The best Crypto wallets or best Bitcoin wallets depend on the needs of the investor. Understanding the technology, however, can help a beginner choose the best option. Understanding machine learning is an important element of understanding the best cryptocurrency wallet technology.
What is Machine Learning?
Many consider machine learning to be a form of artificial intelligence. In actuality, machine learning is a system for training algorithms to learn and perform new and complex tasks. It is an artificial neural network based on the biological neurons in the human brain.
Many think that machine learning is just for managing algorithms and data sets. That is not entirely true. Machine learning is actually being currently used to manage human resources, as stated in a notable machine learning white paper.
Machine Learning for Crypto Wallets
Every coin of cryptocurrency has lots of code written into its blockchain ledger. A cryptocurrency wallet storing different cryptocurrencies is going to need large datasets to store all of that code and an artificial neural network based on a deep learning model to aggregate those datasets. In addition, the complex 24-password private keys used to access those wallets need to be stored within datasets and aggregated. Other essential features that use machine learning to create secure element include 2-factor authentication, pin code, keepkey, safe storage, recovery seed and seed phrase.
Machine Learning for Crypto Exchanges
Cryptocurrency exchanges also need a secure element as part of their customer service to protect their crypto assets from hackers, malware and other online attacks. Coinbase even provides its own crypto wallet as part of its customer service. Just like crypto wallets, this secure element on the exchange also needs machine learning.
In addition, advanced users require excellent business analysis so that they can make better decisions than their competitors. There are many different use cases for the different types of cryptocurrencies: BTC, ETH, Ripple, Bitcoin Cash Litecoin, XLM, etc. The essential features of these use cases have their pros and cons and the details of these essential features involve a lot of data. A machine learning algorithm is needed to gather and aggregate this data in order to create business intelligence to allow advanced users and beginners alike to make accurate predictions, and make the best choice. Therefore, machine learning is a basic component of customer support for all of the major digital assets trading platforms: Binance, Kraken, Gate.Io, Coinbase, Coinbase Pro, GDAX, Gemini, etc.
This there is so much code involved in these cryptocurrencies and non-fungible tokens, there is a lot of raw data being gathered and aggregated by these exchanges. Therefore, as part of their machine learning algorithm, data science and data analysis have to be utilized by these crypto exchanges. Whether we are talking about beginners or advanced users, it is definitely an exciting time to be a cryptocurrency trader.