ChatGPT advises investors with high risk appetite to invest in cryptos. Should you take the plunge?

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high-risk investor, it promptly asks you to put your money in cryptocurrencies, among other options. Not only does it suggest investing in cryptos, but it also shares with the inquisitive user the key reason for doing so. It says that the cryptocurrency market is highly speculative and volatile, and therefore it is suitable only for the high-risk investors who are seeking substantial returns.

Among the popular options are bitcoin, Ethereum and other altcoins, it further advises. ALSO READ: Bitcoin reaches all-time high of $72,000, should you invest? Whatever advice ChatGPT may give, one is advised to take its advice with a pinch of salt. It is, therefore, not recommended to completely rely on a chatbot based on large language models (LLM) despite its colossal potential to answer a range of queries without skipping a beat.

“Although ChatGPT provides recommendations, how far it works for an individual is not known. It does not understand the psychology of an investor. There are behavioural problems with people’s mindset.

And the investing journey calls for a lot of handholding to handle the psychology rather than merely learning the tips to invest money," says Sridharan Sundaram, a Sebi-registered investment advisor and founder of Wealth Ladder Direct. Notwithstanding the chatbot’s advice, there is no denying the fact that bitcoin and other cryptocurrencies are highly volatile. Bitcoin’s prices have declined nearly 10 per cent in the past one month alone after a bull run seen in the wake of a green signal given by the Securities and Exchange Commission (SEC) to spot bitcoin ETFs in January this year.