This is a particular area in the crypto-industry that has many scams. Seemingly every day, there’s a new fraudulent trading bot which is nothing more than an attempt to swindle the hard-earned money of your deposits. There are plenty of risks in the world, so you have to stay vigilant – continue?
We’ve picked three cryptocurrency trading bots scams that you should stay clear of. It would be necessary to write a 1,000-page encyclopedia to include every scam. Three robots we tested had red flags that were common to all. Before you start trading ensure that you’re familiar with the warning signs.
Crypto Trading Robots 101
Simply put, trading bots for crypto will buy and sell cryptocurrency for you. The trading strategies of the bots can be set by the user in order to trade cryptocurrency according to their preferences.
We should warn you but. The trading robots are claimed to be fraudsters in certain instances, despite the fact that they’re genuine.
Inexperienced traders are often tempted to think that robots could do everything for them while they relax and enjoy a passive income. But, that’s impossible as otherwise we’d have a lot of money and drink Pina Coladas in Bora Bora. It’s true that the bot will assist, but only after that you’ve given it the correct data that’s compatible to the trading strategy that you’ve come up with.
It’s important to find out what red flags that suggest fraudulent bots. The bots we have reviewed are scams every bot below because of a variety of warning signs. You should now be able to identify the signs which indicate the existence of a fraudulent trading bot.
It is recommended that you continue to educate yourself via reliable websites such as TradeCrypto in the sense that there’s no way to be absolute certainty. There you will find an inventory of scam bots as well as a thorough description of them. Along with the awareness of typical red flags, that should be enough to prepare you in order to avoid scam artists.
3 Bitcoin Scams You Must Avoid
And now, it’s time to enjoy the main meal. We’ve put together a red flag list of each bot that is a scam. These signs alone are not conclusive proof but when you add them together these signs make it obvious.
1.) Crypto Bank
Investigating the scam begins with the bot’s website and contains all of the common methods. They posted various of security-related logos supposed to protect the users of Crypto Bank. Actually, however they are not, none of them has anything to do with crypto-security.
This disclaimer states so long as you are in agreement with the terms and conditions of Crypto Bank, you can reach them at any time. (They generally use WhatsApp).
The third sign is the outrageously high deposit requirement of $250 while the genuine bots for trading only need just a minimum of 10 dollars. If you create an account, the scammers will call you on WhatsApp so as to “encourage the user to trade”. They want you to deposit $250 in order to steal it. Don’t do it.
The logos of Crypto Bank and Bitcoin Bank are the same. As we’ve seen before, Bitcoin Bank is another trading robot fraud. These scammers simply make use of the same template and brand name to build a new website. Then they continue their scam until they are caught.
2) Ethereum Code
Ethereum Code is actually the owner of several websites that nearly identical. It is a common occurrence when trading bots are involved. This is a bit suspicious, as it’s not normal for any company to own more than one website. In reality the way they do it is that the fraudsters are able to continue their operation even if the website they are using is busted. Cunning.
It is believed that some claim the UK Trading Association has given the Ethereum Code a prize for being the number 1 product that is a trading program. With a little research and investigation, it’s clear that this has not happened. It is interesting to note that the majority of these scams for automated trading claim to be based in the UK. It’s not easy to know whether this is the case, however it’s probably not.
There’s no method of contacting the Ethereum Code developers, apart by leaving a message on one of the websites. So, no e-mail, phone number, or physical address is provided. The evidence suggests it’s because Ethereum Code doesn’t want its creators to be found. Why? What is the reason?
Bitcoin Formula
This bot is said to have 98% accuracy. Yeah, right. When you hear people promising such high rates of accuracy it is a scammer trying to fool you.
A good trading robot will come with a range of capabilities, providing many possibilities for cryptocurrency investors. The features include portfolio management margin and futures trading, and more. The fake bots created by scammers like Bitcoin Formula claim that their offerings only include live trading or demo accounts. Most likely, the reason is the fact that they’re lazy to design fake images corresponding to other common features.