Based

Swarm

Goatseus Maximus

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 <h2 data-ct-widget="explained-block-title" id="ai-agents-in-crypto-explained"> AI agents in crypto explained </h2> 
 <p data-ct-widget="explained-block-content"> </p>
 <p><em>AI agents in cryptocurrency refer to automated software programs designed to execute specific tasks on behalf of users.&nbsp;</em></p>
 <p>These autonomous <a href="https://cointelegraph.com/learn/on-chain-vs-off-chain-transactions">onchain </a>agents leverage <a href="https://cointelegraph.com/news/a-brief-history-of-artificial-intelligence">artificial intelligence (AI)</a> to interact with blockchain protocols, enabling a range of functionalities such as trading, swapping tokens, managing portfolios and engaging with <a href="https://cointelegraph.com/learn/defi-a-comprehensive-guide-to-decentralized-finance">decentralized finance (DeFi)</a> platforms.&nbsp;</p>
 <p>By automating complex processes, AI agents can help users optimize their strategies, reduce manual errors and execute transactions quickly and efficiently.</p>
 <p>The rise of AI agents in crypto aligns with the broader trend of integrating AI into various sectors, enhancing the capabilities of <a href="https://cointelegraph.com/learn/what-are-smart-contracts-a-beginners-guide-to-automated-agreements">smart contracts</a> and <a href="https://cointelegraph.com/learn/what-are-dapps-everything-there-is-to-know-about-decentralized-applications">decentralized applications (DApps)</a>. These agents can analyze vast amounts of market data, identify trends and make informed decisions without constant human oversight.</p> 
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  <h2 data-ct-widget="explained-block-title" id="how-can-ai-agents-drive-automation-in-crypto"> How can AI agents drive automation in crypto? </h2> 
  <p data-ct-widget="explained-block-content"> </p>
  <p><em>AI agents can make crypto more accessible, secure and efficient, transforming how users manage their digital finances.</em></p>
  <ul>
   <li><strong>Automated financial management: </strong>AI agents can take charge of your finances, making trades and managing your portfolio while you sit back and relax. It’s like having a personal financial adviser on autopilot.</li>
   <li><strong>Efficient transaction handling: </strong>AI agents can handle millions of transactions simultaneously, allowing for faster trades and more sophisticated strategies, keeping up with the fast-paced crypto market.</li>
   <li><strong>Personalized financial assistants:</strong> Think of an AI that not only recommends services but also takes care of payments and bookings — making your financial life easier.</li>
   <li><strong>Natural language transactions: </strong>You can interact with your finances using simple text commands. Tell your AI what you want, and it handles the complex operations for you.</li>
   <li><strong>Enhanced security: </strong>With advanced technologies like <a href="https://cointelegraph.com/learn/mpc-wallets">multi-party computation (MPC)</a>, your transactions are extra secure, protecting your assets from unauthorized access.</li>
  </ul>
  <p>Coinbase CEO Brian Armstrong has been <a href="https://cointelegraph.com/news/coinbase-artificial-intelligence-ai-crypto-transactions-wallet-brian-armstrong">a vocal advocate</a> for using AI agents in crypto, even suggesting that the future of blockchain transactions may increasingly involve these automated entities, reflecting the growing <a href="https://cointelegraph.com/learn/what-are-ai-to-ai-crypto-transactions">intersection of AI and blockchain technology</a>.</p>
  <p><img alt="AIs are now paying other AIs with crypto" src="https://s3.cointelegraph.com/storage/uploads/view/42dffb706e14def5a069d0d97e3a54ad.png" title="AIs are now paying other AIs with crypto"></p> 
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  <h2 data-ct-widget="explained-block-title" id="what-is-the-based-agent"> What is the Based Agent? </h2> 
  <p data-ct-widget="explained-block-content"> </p>
  <p><em>Coinbase introduced a new tool called “Based Agent,” which allows users to create their own AI agents in under three minutes.</em></p>
  <p>Based Agent is an AI-driven autonomous agent that connects with the Base L2 <a href="https://www.coinbase.com/en-gb/developer-platform">using</a> the Coinbase Developer Platform (CDP) and OpenAI’s Swarm. It allows users to perform onchain tasks like deploying <a href="https://cointelegraph.com/learn/what-are-nfts-and-why-are-they-revolutionizing-the-art-world">NFTs</a>, creating tokens and transferring assets.</p>
  <p>According to Lincoln Murr, a developer at Coinbase, <a href="https://cointelegraph.com/news/coinbase-based-agent-ai-agent-crypto-transactions-brian-armstrong-base">the Based Agent template</a> enables users to easily integrate smart-contract functions and execute trades, swaps and staking activities.</p>
  <p>To get started with Based Agent, you need the following:</p>
  <ul>
   <li>An API key from Coinbase’s developer program.</li>
   <li>A key from OpenAI.</li>
   <li>A template <a href="https://replit.com/templates?q=AI" rel="noopener noreferrer nofollow" target="_blank">provided</a> by Replit.</li>
  </ul>
  <p>This streamlined approach democratizes access to AI capabilities in the crypto space, empowering users to automate their trading strategies and build AI-powered bots that can perform onchain tasks.</p>
  <p>But can AI agents have crypto wallets?&nbsp;</p>
  <p>Yes, AI agents can have their own crypto wallets, enabling them to perform various transactions on the blockchain. For instance, the Based Agent template serves as a straightforward application for creating autonomous AI agents equipped with <a href="https://cointelegraph.com/explained/crypto-wallets-explained">crypto wallets</a> and onchain access.&nbsp;</p>
  <p><img alt="Brian Armstrong's tweet" src="https://s3.cointelegraph.com/storage/uploads/view/128051f616b8080906003272b79cd338.png" title="Brian Armstrong's tweet"></p>
  <p><em><strong>Did you know?</strong> Replit is an AI-powered software development and deployment platform designed to help developers build, share and ship software quickly. Coinbase’s Based Agent Replit template is available <a href="https://replit.com/templates?q=AI" rel="noopener noreferrer nofollow" target="_blank">here</a>.</em></p> 
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  <h2 data-ct-widget="explained-block-title" id="step-by-step-guide-to-create-an-ai-agent-using-the-openai-swarm-framework-and-coinbase-s-cdp"> Step-by-step guide to create an AI agent using the OpenAI Swarm Framework and Coinbase’s CDP </h2> 
  <p data-ct-widget="explained-block-content"> </p>
  <p><em>Steps required to build your AI agent with a crypto wallet include setting up the development environment, obtaining API keys, configuring your project, understanding the code structure and extending capabilities.</em></p>
  <p>Here’s how to build your AI agent with a crypto wallet using the OpenAI Swarm Framework and Coinbase’s CDP by following a simple step-by-step process.</p>
  <h3 id="step-1-set-up-your-development-environment">Step 1: Set up your development environment</h3>
  <ul>
   <li><strong>Fork the template:</strong> Start by forking the template from the Based Agent Replit.</li>
   <li><strong>Create a Replit account:</strong> If you don’t have one, sign up for an account.</li>
   <li><strong>Modify your project: </strong>Once you’ve forked it, you’ll have your own version of the project to customize.</li>
  </ul>
  <h3 id="step-2-obtain-required-api-keys">Step 2: Obtain required API keys</h3>
  <p>Coinbase CDP API key:</p>
  <ul>
   <li>Go to the CDP Portal.</li>
   <li>Create a new project and generate an API key. Make sure to save both the key name and <a href="https://cointelegraph.com/learn/public-key-vs-private-key">private key</a>.</li>
  </ul>
  <p>OpenAI API key:</p>
  <ul>
   <li>Visit the OpenAI Platform, sign up or log in.</li>
   <li>Go to the API keys section and create a new key.</li>
   <li>Fund your account with $1 or $2 for testing.</li>
  </ul>
  <h3 id="step-3-configure-your-environment">Step 3: Configure your environment</h3>
  <p>In your Replit project:</p>
  <ul>
   <li>Access “Tools” in the left sidebar.</li>
   <li>Select “Secrets” to store your API keys securely.</li>
   <li>Add your Coinbase and OpenAI keys as secrets, as shown in the image below.</li>
  </ul>
  <p><img alt="Coinbase and OpenAI keys as secrets" src="https://s3.cointelegraph.com/storage/uploads/view/4b58e6fd6716d4f1a321adb618ebc088.png" title="Coinbase and OpenAI keys as secrets"></p>
  <h3 id="step-4-understand-the-code-structure">Step 4: Understand the code structure</h3>
  <ul>
   <li><strong>Core functionality:</strong> Familiarize yourself with the main functions that enable blockchain operations, such as transferring assets and creating tokens.</li>
   <li><strong>Operation modes: </strong>Review how to interact with your agent through different modes, including direct command line interaction (chat mode), independent operation (autonomous mode) and conversation between OpenAI and Based Agent (two-agent mode).</li>
  </ul>
  <p><em><strong>Did you know? </strong>The Based Agent template <a href="https://replit.com/@KevinLeffew1/Based-Agent?v=1#run.py" rel="noopener noreferrer nofollow" target="_blank">includes</a> two key files: agents.py, which handles the core functionality of the AI agent for blockchain operations, and run.py, which defines the different operation modes for interacting with the agent.&nbsp;</em></p>
  <h3 id="step-5-extend-agent-capabilities">Step 5: Extend agent capabilities</h3>
  <ul>
   <li>Think about new functionalities you want to add to your agent to enhance its capabilities.</li>
   <li>You can integrate these new features by updating the agent’s function list (in agents.py file) with your additions.</li>
  </ul> 
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  <h2 data-ct-widget="explained-block-title" id="risks-of-ai-agents-in-crypto-trading"> Risks of AI agents in crypto trading </h2> 
  <p data-ct-widget="explained-block-content"> </p>
  <p><em>AI agents in crypto trading pose risks such as algorithmic bias, security vulnerabilities, regulatory gaps and potential market manipulation, necessitating caution from investors.</em></p>
  <p>One notable example is <a href="https://cointelegraph.com/news/truth-terminal-ai-millionaire-memecoins">Truth Terminal</a>, an AI bot that promotes memecoins like <a href="https://cointelegraph.com/learn/is-goatseus-maximus-goat-a-scam">Goatseus Maximus (GOAT)</a>. While it can create buzz and drive prices up, this hype often lacks any fundamental support, making investments highly speculative.</p>
  <p>Another risk is the potential for <a href="https://cointelegraph.com/learn/dangers-of-artificial-intelligence">algorithmic bias,</a> where the AI might favor certain narratives or projects, creating echo chambers that mislead investors about a token’s value. This can lead to irrational exuberance and unsustainable price spikes.</p>
  <p>There’s also the risk of <a href="https://cointelegraph.com/explained/what-is-market-manipulation-in-cryptocurrency">market manipulation</a>, where AI tools could be used to execute <a href="https://cointelegraph.com/news/what-are-crypto-pump-and-dump-groups-are-they-legal">pump-and-dump schemes</a>, leveraging automated trading to distort true market values.&nbsp;</p>
  <p>Additionally, the lack of regulatory oversight for AI-driven promotions means that unscrupulous actors can exploit these technologies without accountability.&nbsp;</p>
  <p>Finally, security vulnerabilities are a concern; if an AI agent is compromised, it could manipulate <a href="https://cointelegraph.com/learn/a-beginners-guide-to-cryptocurrency-trading-strategies">trading strategies</a> or market perceptions in harmful ways. As the landscape evolves, staying informed and cautious is more critical than ever.</p> 
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What are AI agents, and how do they work in crypto?

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Cointelegraph

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