Using artificial intelligence (AI) tools for investment research offers valuable advantages for crypto investors, allowing them to leverage the results. One possible application is to ask AI to help build an ideal crypto portfolio according to certain parameters.
Finbold drew from three of the most advanced AI models on the market to build his April cryptocurrency portfolio. In particular, we sought a low-budget portfolio with the highest risk/reward potential and narrative diversification.
Notably, the three models made some similar choices despite different allocation proportions. To do so, we used OpenAI's popular ChatGPT-4 Turbo API, Anthropic's leading Claude 3 Opus, and xAI's Grok with real-time data.
Popular cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), and Chainlink (LINK).
ChatGPT’s Diverse Crypto Portfolio
ChatGPT-4 returned the most complete response, despite disavowing the last update in April 2023, which could have affected the results. We have built a crypto portfolio that includes:
“A mix of assets including established cryptocurrencies, up-and-coming altcoins, and even tokens from emerging sectors (DeFi, NFTs, Web3, etc.) to spread risk and take advantage of different market opportunities.”
Bitcoin and Ethereum lead the way with a 20% allocation each, followed by five cryptocurrencies with a 10% share. These include BNB Chain (BNB), Solana (SOL), Polkadot (DOT), Chainlink, and Avalanche (AVAX).
Finally, ChatGPT-4 suggests that the remaining 10% of the budget will be devoted to “speculative selection of promising sectors.”
Claude 3 Opus’ Ideal Crypto Portfolio
Claude 3 AI's most complete Large Language Model (LLM) provided an ideal crypto portfolio of 7 assets. In this selection, BTC leads with a 40% advantage, followed by ETH with 25%.
Cardano (ADA) and DOT are in third place with 10% each, followed by LINK, Uniswap (UNI), and Cosmos (ATOM) with 5% share.
Grok AI Cryptocurrency Portfolio Allocation Example
In the meantime, Grok suggests a crypto portfolio allocation of 30%, 25%, and 15% to BTC, ETH, and LINK, respectively. What is interesting is that with his 10% investment of the whole low budget he added Dogecoin (DOGE) and his Sponge V2 (SPONGE) and ends with UNI and Balancer (BAL) each contributing 5% is.
Nevertheless, investors should not consider these recommendations as the final decision on cryptocurrency portfolio construction. Your ideal investment allocation will depend on your specific goals, risk tolerance, and future knowledge.
Additionally, as ChatGPT revealed, these AIs are prone to mistakes and may be making decisions based on outdated information.
Disclaimer: Content on this site should not be considered investment advice. Investments are speculative. When you invest, your capital is at risk.
