Every sector has its share of “less than fortunate” events, especially those new, innovative, and emerging ones such as the Cryptocurrency sector.
For example, on the 14th of October, a cryptocurrency data tracker, Whale Alert, reported a particular BTC “situation” of 1.03 BTC. This particular was marketed as a giveaway, but unfortunately, it turned out to be fake, and instead of rewarding the recipient, it was aimed to take advantage of them.
This is only one way out of the many methods used in this space to manipulate others. Another one that has become increasingly popular recently is targeting traders through automated trading bot services.
“Real” Crypto Trading Bots
As with all products and platforms, everyone wants to feel like they are getting the absolute best value for their money. One way to ensure that, and avoid the problem talked about in the opening paragraphs, is to make sure you are using a legit crypto trading bot.
This is especially important for anyone aspiring to become, or who may already consider themselves to be a serious trader. It’s even more vital for those using a crypto auto trader.
Features of a Legit bot
Here are some common characteristics to keep an eye out for; ones that will help you determine what bot services are really there to help you or not.
“Reasonable” Advertising
In the world of investing, the line between hype / overpromises and reality can be at times a bit vague. Firstly, a reputable crypto trading bot platform will not (or should not) promise a specific amount of returns on any trade.
They are more than likely traders (or at least investors) themselves and know from experience that nothing is ever guaranteed when it comes to investing.
With that said, you won’t find a reputable platform making the claim that if you use their service, that you will for sure make “x” amount back on your money. While it is common to find such companies displaying the wins of their former and or current customers, they make no guarantees.
Human Supervision
We’ve come far in our technological journey as humans, but even then, “some” oversight or maintenance is required for automated crypto trading bots – albeit upgrades or just monitoring for bugs, some human involvement will be required.
While there are indeed services that fully automate the trading process, they also have an engineering team (even if the team is one person) that handles all the technical needs for their programs and software.
Transaction records
A trade log is important to traders for various reasons. That could be for tax purposes or perhaps tracking and journaling purposes, and good platforms know that. Therefore, providing access to your transaction records are usually a staple feature provided by legit platforms.
Referrals
The referral system, which is a part of the customer rewards program on larger scale, is a great incentive for any customer who enjoys the said product. It’s common to find platforms that offer these, but also common for the rewards offered to not be an oddly substantial amount.
If a crypto trading bot is legit, you more than likely won’t find them offering high referral rewards like 75% basically giving the product away – this sometimes could be used to mask “certain” things.
Read reviews
Before using or buying any crypto bot, performing deep due diligence is highly recommended. Go online and read user reviews. You can check online reviews populated through large reputable search engines, social media platforms, or even crypto news platforms. You can also ask questions about the bot in cryptocurrency-centric forms.
If your trading bot redirects you to a third-party broker, read users’ reviews on that broker. You will see others share their experiences on said platform, and from there, you can use your judgment on the reviews even if they greatly vary.
Pricing
Nothing good in life comes cheap, right? Sure, as consumers, no one wants to overpay for anything, and businesses know that, but at the same time, a company that is truly providing value, cannot afford to give their product away.
While there is a fair and comparable pricing to all products, keep an eye out for those prices that look “too good to be true.” A legit auto trading bot should be fairly priced, have a promising customer satisfaction guarantee (within reason), and with the customer support to match.
Applying Action
Slow down, take your time, and try to apply logic to every move before acting upon it. Even veterans fall subject to such ploys.
Legit trading bot services often times offer a trial period to test their product, or again, a strong product backing and or customer refund guarantee.
You should conduct an in-depth study before investing in any platform, regardless of your time and experience spent in this (or any) space.
