Crypto trading bots are programs that make use of the crypto market data to automatically trade on your behalf. High-quality bots, such as the ones 3Commas reviewed here, can be very helpful in making money, but they can also be a source of risk if used incorrectly.
There are many factors that determine whether or not a bot is successful. The most important factor is how much time you invest into learning about crypto trading and what kind of strategies you apply when using it. Therefore, contrary to popular belief, crypto trading bots are actually not best suited for beginner traders.
On the other hand, crypto traders who know what they’re doing will find trading bots quite helpful. However, you first need to make sure that those bots are – legal. In this article, we’ll discuss the ways of making sure that a trading bot you consider using is not, in fact, just a scam that will only lose you money. So, let’s begin.
How to spot an illegal crypto bot?
Unfortunately, crypto trading bot scams are a common occurrence on the internet. These scammers create fake websites that look like real ones and then trick people into thinking that they’ve found a legitimate crypto trading bot, for instance, that Crypto Trader is legit.
The scammer will ask you to deposit money with them (usually $250), but instead of depositing your funds, they will simply steal it from you. And of course, the bot will only give the impression of functioning, but it actually won’t do anything at all.
Crypto Trader is a paradigmatic example of such a bot, because it displays all the usual red flags, along with Bitcoin Millionaire, Ethereum Code, etc. But which red flags are those?
1. Multiple websites
As a rule, scammy trading bots have at least three official websites. That’s because the scammers have lots of, nearly identical looking, websites that they’re using for a myriad of cons. As soon as one of them is busted, they change the websites slightly to accommodate the next fraud.
But it’s not just the number of websites that’s a telltale sign; it’s what’s on them as well. You can expect a whole lot of text on there, but very little about the trading bot specifically. It’s mostly generalized information about the basics of crypto and trading bots, accompanied with an absolute minimum of concrete info about the bot. The reason is that such info doesn’t actually exist.
2. Ridiculous promises
When the scammers do talk about their ‘product’, what they do is make hilarious promises. It’s quite common for them to guarantee that the bot will make accurate prognoses 90% of the time and bring profit amounting to several thousand dollars, on a daily basis.
While that is theoretically possible if you’re an expert who knows exactly what they’re doing, in truth, most traders report making some $100-200 daily. When and if the technology advances enough to be able to bring users such absurd profits, you can bet this bot will be all over the news and everyone will hear about it, regardless of whether they’re interested in crypto or not.
3. Fake reviews
Another way to learn if a trading bot is scammy is to inspect user testimonials and reviews. Testimonials found on official websites will all be fake, which is easy to check using the Google Lens service. If a bot is illegitimate, it’s almost a guarantee you’ll find the same images elsewhere on the net, only linked to other people.
As for user reviews, Trustpilot is a great place to see what people have said about a trading bot. When it comes to fake bots, there are two possible scenarios. In the first one, the company is marked due to posting fake reviews, which have been eliminated in the meantime, and you’ll find only a few negative, 1-star reviews.
In the other scenario, fake positive reviews have not been removed yet, but you’ll be able to spot them by a complete lack of nuance. They just praise the bot in a generalized manner, without offering any details whatsoever – like they haven’t used the bot at all, actually. Check out this article for additional advice about how to spot scams in the crypto world.
If you’re an advanced crypto trader, we believe you’ll find legal trading bots, such as 3Commas, Cryptohopper, and Trality, to be useful. However, be sure to check if a bot has multiple websites, what kind of promises it comes with, and whether or not its user reviews/testimonials are authentic.
If you spot just one of these red flags, then the bot is almost certainly a scam. You can also check info at ScammerWatch, a specialized website, to ensure you’re not dealing with con artists.Read more investing news on PressReach.com.Subscribe to the PressReach RSS feeds:
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