Artificial intelligence cryptocurrencies are a hot topic. In fact, top AI crypto tokens have seen an average surge of 257% in 2024 alone, led by the likes of Nosana (NOS), which rose almost 1000% in under six months. This guide shows you how to invest in AI crypto assets, helping you identify promising tokens with minimal effort.
What are AI crypto tokens and why invest in them?
AI crypto tokens are digital assets that utilize artificial intelligence to enhance their functionalities. This can take the form of automating tasks, optimizing data processes, and enabling decentralized AI applications. These tokens combine the disruptive potential of AI technology with the security and transparency of blockchain technology. This union helps users explore novel opportunities in decentralized finance (DeFi), smart contracts, and AI-based crypto projects.
Examples of top AI crypto projects:
- Fetch.ai (FET): Utilizes AI to enable autonomous economic agents to perform tasks like data sharing and machine learning optimization.
- SingularityNET (AGIX): A decentralized marketplace for AI services where developers can monetize algorithms and users can access various AI services.
- Ocean Protocol (OCEAN): Facilitates secure and transparent data sharing and monetization, allowing data owners to maintain control over their data while earning from it.
- Bittensor (TAO): A decentralized machine learning protocol that incentivizes collaboration and sharing of AI models.
- DeepFakeAI (FAKEAI): Provides AI-powered tools for creating deep fake videos, democratizing access to this technology while ensuring ethical use.
How to invest in AI crypto tokens?
If you’re looking to invest in AI tokens, you can choose to do so via centralized exchanges (CEXs) or decentralized exchanges (DEXs). Here are the steps associated with each:
Via centralized exchanges (CEXs)
- Choose a reliable exchange: Start by selecting a trustworthy crypto platform like Binance, which has a dedicated section for AI tokens.
- Create an account: Sign up on the exchange and complete the KYC (Know Your Customer) process.
- Deposit funds: Add funds to your account using a bank transfer, credit card, or other supported methods.
- Search for AI tokens: Navigate to the AI tokens section or use the search bar to find specific tokens.
- Place your order: Decide on the amount you wish to invest. Place a buy order for the selected AI token. Choose the correct trading pair to place trades using your intended crypto or stablecoin.
Once purchased, it is advisable to move the tokens to a secure hardware wallet for safekeeping.
Via decentralized exchanges (DEXs)
Before you head to a DEX, ensure you have conducted thorough research. Start by identifying promising options using websites like CoinMarketCap or CoinGecko. These platforms provide information about a huge range of tokens, including their market cap, trading volume, and price history.
- Choose a DEX: Select a reliable DEX that supports AI tokens. Popular options include Uniswap, SushiSwap, and PancakeSwap. These platforms enable peer-to-peer trading without requiring a central authority.
- Connect your wallet: Use a cryptocurrency wallet (e.g., MetaMask, Trust Wallet) to connect to the DEX. Ensure your wallet is funded with an asset like ETH or BNB, which you will use to swap for AI tokens.
- Check the token details on explorers: Verify the token’s smart contract address and other details using blockchain explorers like Etherscan or BscScan. This step ensures you are trading the correct token and helps avoid scams.
- Explore AI tokens on Dexscreener: Use tools like Dexscreener to analyze the trading data of AI tokens across various DEXs. Dexscreener provides real-time data, including price charts, liquidity, and trading volume.
- Select the AI token: On the DEX interface, search for the AI token using its contract address. Confirm that the token details match those verified on explorers.
- Swap your tokens: Enter the amount of the crypto you wish to swap and confirm the trade. The DEX will execute the swap and the AI tokens will be sent to your wallet.
- Verify and confirm: After the swap, double-check your wallet to ensure you have received your AI tokens. Use the wallet’s transaction history and blockchain explorers to verify the transaction details.
Did you know? SingularityNET (AGIX) is a prominent example of an AI token that gained traction on DEXs before being listed on CEXs, resulting in significant gains. The token surged to an all-time high of $1.86 shortly after its CEX listing. This represented a substantial gain from its earlier prices and its initial coin offering (ICO) price of $0.0657.
Are AI crypto tokens worth the effort?
The performance of top AI players like Fetch.ai and Ocean Protocol — which boast exceptional year-to-date performances as of 2024 — have instilled confidence in traders and investors looking to scoop up AI crypto tokens. Ensure to closely follow the outlined steps to stay safe when interacting with decentralized ecosystems. While this guide has demonstrated exactly how to invest in AI crypto tokens and listed a few top options, you should always do your own research before investing. Consider market volatility and ensure your portfolio is diverse before going all in on these trending assets.
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