The cryptocurrency world seems unstoppable. Many trades are carried out on a daily basis by experts and amateurs alike. With cryptocurrency trading robots now available, the excitement seems endless and many are enjoying a good ride with their investment.
However, all robots are not the same. There are good ones as you have the scam bots. A legit trading robot is backed by reputable individuals while scammers devise a lot of means to defraud people of their hard earned money.
Differentiating between the bad and the good cryptocurrency robots is the first task of getting started with making vital profits in the cryptocurrency world.
Cryptocurrency Robots: What are they Anyway?
Cryptocurrency robots add automation to trading cryptocurrency. It is a new discovery and a technology that connects the financial markets and computer science.
The term cryptocurrency robots shouldn’t be misinterpreted as a human-like creature in a way. But rather, it is a set of complex programs that are connected to other Bitcoin markets all around the world.
The software is a tool that has access to a whole lot of trading information from all over the world. They react to a certain type of interaction and place trades to capitalize on likely upcoming events.
Why Use a Trading Robot?
Automated trading software like the Bitcoin Trader is used by all levels of skilled individuals. Let us assume you’re starting to learn how to trade as a beginner, a trading robot is often the best option as you learn the ropes. It protects you from taking risks that you don’t really know anything about.
The expert trader is not left out in the use of cryptocurrency trading robots either. They can adjust the settings of the software to implement a specific trading strategy.
Have in mind that they won’t be awake all through the 24 hours period of the day. And considering the volatility of the cryptocurrency world, going with a bot for their trade while they sleep is a good choice.
Now, the question that is still to be asked is what differentiates a legit cryptocurrency robot from an illegitimate one?
There are many ways to can identify a scam trading robot and as well a legit cryptocurrency trading robot.
Here are five such differences to look out for.
1. Is The Robot Connected to a Trading Website?
This may appear strange. But it is a fact you should hold strongly unto. If you know what happens in the digital trading sphere, this one should be normal.
For a cryptocurrency robot to carry out a real trade in the financial market, real APIs and good connection with the real trading website is required. You’ll know a scam cryptocurrency trading robot by this.
Such scammers tend to display a website that looks even official but in the real sense of it is not connected to any real trading platform.
Only a legit trading platform will present a genuine relationship with a real trading platform. Here, it is the function parameter of the robot that is called to question. Trading robots interact with exchanges and the financial markets to collect and process data received before taking a position with a trade.
This is even more important than offering you a variety of settings you can adapt to your trading strategy. If a robot has no link with any financial platform, your deposit will only sit there with the scammers while they give you the false impression that you’re involved in a trade.
2. Who Is The Broker You’re Dealing With?
A legit cryptocurrency robot platform works with a specific broker. Funds deposited for trades by investors are sent through online stockbrokers. Know that once you go with the auto-trading mode of the robot, the funds are immediately used on digital currency via the online broker you have chosen and which supports the investment type.
If you discover a trading robot is functioning without a broker mentioned in its frequently asked questions or necessary information section, you should beware of this type of cryptocurrency trading robot.
It might just be one of the scammer’s developments. Trading has to do with the financial market and a broker has to be involved.
In addition to the reputation of the broker, beware of fraudulent activities of some brokers.
There are some brokers who will tell investors to bet on cryptocurrency assets. This includes Bitcoin in the form of contract for difference (CFD). This is done by such brokers to avoid going through the normal complex nature of buying the assets online.
The brokers play on the dearth of knowledge of the investors in this case. Know if such approval has been given and know exactly what it is all about.
3. Detailed Information about the Founder and Physical Location
Cryptocurrency trading robots are founded by people. There is a face behind the creation. If this is missing, something definitely is fishy. Not only should it have a founder but a reputable founder.
You’re not just going to start using a product you don’t know the pedigree of the people behind it even if they are bold to disclose their identity. Take into consideration the geographical location of the platform.
You may find it hard to get an address in some situations where regulation is hardly visible.
Scam cryptocurrency trading robots usually don’t have a face, talking about the founder in this case. Beware if this is hidden. It is not far away from being a scam cryptocurrency trading robot.
In the normal situation for any business, you should have contact details including the physical location address of the business and phone numbers. For the legit cryptocurrency trading robot, this is no problem. Scam cryptocurrency trading robots keep this out of their contact information.
4. Endorsement by Famous Programs – Dragons Den and Shark Tanks
An endorsement can be another good way to distinguish a legit cryptocurrency trading bot from a scam trading bot. it is customary these days to find celebrities linked to some notable and legit cryptocurrency trading robots.
You’ll find world famous musicians such as 50 Cent and computing Icons like Steve Jobs and Bill Gates giving their support to some developments. There is nothing evil about this if the people concerned are tech-driven individuals and know what is involved.
Notable also are shows and programs that showcase entrepreneurial development. Dragon Den and Shark Tank are two major programs that bring real individuals behind a product to the general public.
This can be another checklist for you to differentiate between a scam and a legit cryptocurrency trading platform.
5. Customer Service
Since most scam cryptocurrency trading platforms don’t have a face, it may be difficult to have good customer service in place. If you don’t see this working, you shouldn’t be surprised at all. That helps you to decide fast.
Give them a test and see how the response is like. Try sending a dummy email and seeing if the response is prompt or meets your needs. In most cases, people behind the whole thing don’t always have technical knowledge about the financial market or technologies behind digital assets.
If you also look closely at some of the frequently asked questions section of these robots, you’ll find that they tend to give details that are really not logical or fully explain a concept. You’ll find yourself more confused than you were initially by visiting the area to solve a problem.
Definitely, a legit cryptocurrency trading platform has solid customer support in place that will respond to you.
A Choice To Make?
You have all it takes to differentiate a scam trading bot from a legit one. what you need do is to spend some time at first to do your thorough research on the trading robot you’re planning to use its services.
Don’t give anything to chance. Be very thorough with this. We at Top10BitcoinRobots are here to assist you.
It is your hard-earned money we are talking about here. Once you make a deposit, you may never be able to withdraw again and that will be the end of the whole thing. You don’t want to get into that.
And Now What?
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|Number of Assets||80+|