Right at this very moment, hundreds of new trading bots are being designed and put on the market to attract traders. And it is not only a matter of novelty, it is that the extent to which trading bots are able to perform is getting larger all the time. They have transformed from simple algorithms that can detect price differences to advanced programs offering deeper analysis capability and long-term predictions.
Thus, it’s no wonder they are so popular among both new and experienced traders. Traders of different profiles, skill levels and budgets use them far and wide, and it’s safe to say they are one of the ongoing crypto revolutions.
The use of bots today
A study conducted in June this year estimated that four-fifths of the total cryptocurrency trading traffic was performed by AI and not by humans directly. Investors primarily turn to them for practical reasons, because very few people can afford to sit in front of charts for the whole day, and trading bots save precious time.
However, the fact that they can work non-stop augments not only the good runs and trades but also the bad bets. You would want to work less if a certain move increased your loss hour by hour, right? Be that as it may, trading bots have been dominating the industry for a long time now.
The good sides
If you use bots properly, you can thrive in the cryptocurrency trading world. They can be a quite helpful assistant that will make your life easier, and multiply your profit at the same time. If you are a +EV trader (you get more than you lose over time), and you employ multiple bots simultaneously, profits will start piling up consequentially.
Moreover, bots can go on and on forever without suffering from fatigue, which can be yet another catalyst for your profits. They also cannot get “tilted” like humans often do because they can’t get angry, which will reduce unnecessary variance in your trading. Finally, they can reduce the risks of trading if configured properly, because they will never cross the limits you put in, so they are a great boost to discipline.
The risks
This may seem appealing as a hobby or a job, but just like manual trading, it is not a game. The prices are never actually stable and profit is never certain; not even the best bot can change that fact. If you are inexperienced and just funnel money into any bot while being unprepared, you’re in for trouble.
Even if you have experience, a wrong strategy can bring you down. Having the right strategy for the right type of bot is essential because these are the vital basics you provide to the bot. There is also the risk of not knowing if you chose a legit bot or a fraudulent one. Believe it or not, fake bots may greatly outnumber real ones soon.
Scams
Unfortunately, in this business, we are all vulnerable to different fake and dishonest websites and bots. When it’s too good to be true, it’s usually a scam, whether there are promises of getting rich overnight, no fees, or something else along those lines.
There have been, now already infamous, scams such as Bitcoin Cycle, which was not licensed, had fake reviews and yet tricked thousands of people. It was debunked by ScammerWatch, which is a proven authority on fake bots. If you want to learn about different scams such as this one and understand the warning signs better, you can read more at ScammerWatch. Now, let’s look at another example of a scammer bot.
Bitcoin Fast Profit
According to its website, this crypto trading bot is perfect for a new trader to enter the world of trading. They advertise a user-friendly application, with just a few quick steps needed to deposit money and start trading. We‘ll have to give them that because no one should have a problem getting the hang of the UI and it’s really easy to start. Alas, you should not start at all, since everything besides the ease of use is a huge no-no.
Many users got their money stuck in their accounts, unable to pull it out. Apparently, this is why the scammers can operate without charging fees. Their websites are generic and unprofessional, with large banners and ads leading to other suspicious crypto sites. Their above-average rating on Trustpilot is mostly comprised of fake accounts rating them. They advertise some well-known people as being part of the community, which is, of course, a lie. There are also additional signs of fraud, such as fake reviews with profile pictures leading to completely different people. You can also check out the review of Bitcoin Fast Profit at Scammerwatch.com.
