A black box with a money button: how AI is reshaping bitcoin and crypto trading

Strategies such as arbitrage demand split-second order execution, so traders often turn to AI bots—programs that automate trades using artificial intelligence—to optimise performance.

This article explains how AI is applied in digital-asset markets and how an ordinary crypto investor might profit. It looks in particular at solutions from AlgosOne—a company developing an AI bot for users with no experience of trading on crypto or traditional financial markets.

The role of trading bots in crypto trading

For more autonomous trading, AI bots such as AlgosOne fit the bill. They use proprietary machine-learning algorithms and offer several benefits.

On the bitcoin market, trading bots appeared in its formative years. A 2018 study attributed the sharp rise in the price of the digital gold on Mt.Gox in 2013 to the Willy and Markus bots. Over two months the price climbed from $150 to $1,000.

Two features of the crypto market have helped bots proliferate:

• high volatility. It requires fast, timely reactions when opening and closing positions. During sharp price swings, bots feel no emotions and do not deviate from a set strategy;
• around-the-clock trading. Unlike TradFi, cryptocurrencies trade without weekends. Bots do not sleep and can seize opportunities at any time.

As the crypto industry developed, trading algorithms became more sophisticated. They evolved from simple automation based on technical indicators such as RSI to gathering and analysing off-chain and on-chain data, and adjusting strategies in real time using AI.

Bots learned to gauge market sentiment based on news and social-media posts. As DeFi grew, they were deployed actively on DEXes and to capture MEV.

How to make money with trading bots

Bots can be configured to buy or sell gradually in small tranches (DCA), profit from price discrepancies for the same instrument across venues (arbitrage), or build a large position without materially moving the market (Time Weighted Average Price, TWAP). Such bots automate routine processes based on preset parameters, without deep analysis of market data.

For more autonomous trading, AI bots such as AlgosOne use proprietary machine-learning algorithms and offer the following advantages:

• autonomy and adaptability. Unlike programs that act strictly according to fixed parameters, AI bots can process information in real time and adapt trading to market conditions;
• more complex strategies. Traders can implement complex strategies based on multiple interlinked data sources that update continuously;
• low barrier to entry. Clients of AI-trading platforms need not know anything about trading or cryptocurrencies, nor configure bots themselves.

For example, to start with AlgosOne it is enough to deposit from $300 to $1m in fiat (USD, GBP, EUR) or cryptocurrency (BTC, ETH, SOL, XRP, USDT and more than 50 others). After funds are deposited, AlgosOne locks them for:

• 12–24 months. The standard investment plan;
• 24–36 months. Under this plan, profits are automatically added to the deposit for higher returns.

Longer terms allow AlgosOne’s bots to deploy capital freely within their strategies. In the event of early termination, the client pays a penalty and forfeits accrued profits.

In the first quarter of 2025, the AlgosOne team will introduce a one-month investment plan.

“AlgosOne tests models over long periods to verify their reliability and guarantee profits for users. However, we will soon present our new model, which can deliver stable profits within shorter 30‑day plans,” the project’s representatives comment.

AI trading also has drawbacks:

• lack of transparency. Machine-learning bots are “black boxes”—often a trader cannot pinpoint exactly what is happening inside or why the bot made a given decision;
• dependence on data. Erroneous or stale information can lead to poor decisions and, consequently, losses.

The AlgosOne team regularly monitors and evaluates the performance of its AI bots to fix errors promptly and minimise risks.

“Our bots constantly learn and improve. Over time they become more accurate, which increases the share of successful trades. In addition, we return to users part of the amount of unsuccessful trades from a reserve fund,” representatives of AlgosOne comment.

AlgosOne charges fees only on profitable trades. They decrease from 20% to 12% depending on the client’s trading level (tier).

The platform has obtained an EU licence to provide financial services, including cryptocurrency trading. At the time of writing, its TrustPilot rating stands at 4.6 out of 5 based on 1,200 reviews.

Conclusions

AI is improving by the day and becoming ever more accurate—according to Anthropic CEO Dario Amodei, it will reach human level as soon as 2026.

AI-based tools have long been used in financial and crypto markets to process vast amounts of data around the clock. They trade without emotion and often make more measured decisions than humans.

Even so, AI trading is a dynamic process that does not always guarantee profits. Bots are constantly learning—which means they can make mistakes.

You can test AI trading tools using the AlgosOne service. New users receive a 15% deposit bonus. During the first 14 days, deposited funds are not locked and there are no limits on withdrawals.