Do Crypto Trading Bots Really Work? | Everything You Need To Know

Crypto trading bots have risen across the crypto web, stirring the traders’ imagination and making them wonder: “Is this the magic formula for making a profit, or are trading bots useless?”. The answer is—neither of the above.

We will show that Crypto trading bots do indeed work, at least in the narrow sense of the word. They are (mostly!) what they say they are and are neither broken nor fake.

crypto bot

It’s just that trading bots are not as big of a deal as some people make them. People get scammed when things get truly ugly, as you will see later if you stay with us.

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What is a Crypto Trading Bot? 

A trading bot does not predict or is not an independent android crypto trader. Bots don’t operate on some algorithm that can predict whether a coin’s value will go up or down. Instead, bots obey your orders on when to buy or sell based on your input parameters radar. Think of it as your extended hand, which can save you time and resources when you don’t have enough time to sit in front of charts and look for small minute-to-minute changes in the market.

bot

For example, when you go to work, a coin’s price is $100. You instruct the bot to collect profit over a certain margin (say $105). You also instruct it to cut your losses by selling the coin and adjusting to the new margin if the price ever reaches $90. By doing so, you’re protecting your money. You can also opt for crypto saving accounts, which will help you earn interest.

See also: How To Add Bots To A Discord Server | Only Guide To Read

Great Expectations 

You’re mistaken if you expect a trading bot to do everything for you. As we have already stated, crypto trading bots are here to assist you with automating the trading process, but you need to keep your head straight and understand that you and only you are behind the trading process.  

You first need a solid strategy before putting the bot into action. Here comes the part no one likes to hear: You need strategies to know your market! It takes hours of study to glimpse a profitable strategy. This further tears the lazy people looking for a quick profit and don’t want to put the necessary hours in. A guide like Crypto Trading for Beginners is a good way to start learning. You can also download crypto alert apps to monitor changes in the market.

trading on phone

Besides, market conditions change rapidly and are extremely unpredictable. You must be there at the important moments to adapt your strategy to new market conditions and update your trading bot parameters. If you are not ready, the small margin that the bot collects gradually won’t amount to anything in case of a quick market change or crash. Sounds harsh, right? That’s because it is. Even though beginners often find Crypto trading bots most attractive, you need extensive knowledge to use them successfully. 

See also: How to Calculate Crypto Profits | Quick and Easy Ways

An Example of a Scam 

The fact that so many users are attracted to Crypto trading bots brings about another unfortunate fact – many people get scammed by fake trading bots. When something is popular, it always comes with its fair share of crooks and grifters. Those crooks offer unbelievable promises, such as a $1000 daily profit. The scams are numerous, so we can’t give a precise account of them, but we‘ll provide one short example and one link for another scam example.  

scam alert

Bitcoin Cycle was a scam that ScammerWatch unveiled, a website specializing in trading bot fraud. It had many elements pointing to a Crypto trading bot being a scam: fake reviews, crazy promises, a glittery and starry website, and no licensed brokers. The scammers have the habit of calling people who register on the phone and giving them precious tips for investing. 

By the following link, you can find another well-known scam, Bitcoin Superstar thorough review, with precise explanations of the scam elements. The site that reviewed this scam is tradecrypto.com. You might as well browse around for lots of valuable information for you as a trader. 

See Also: Internet Scams: What Are They and How to Avoid Them? 

The Bright Side 

Most Crypto trading bots do their job, and they tend to do great when the market is relatively stable. And you can make small profits in different places, which eventually pile up over time. 

Imagine being an experienced and successful trader. You could theoretically become a trading beast just by multiplying those small profits and then rearranging them into various new small investments, which will, in turn, make additional small profits, and so on. You get the idea. The percentage of people who can do this is not great, but that doesn’t mean you don’t have a chance. Just approach it correctly, as a science that takes years to master.

 

bot's hand

Furthermore, Crypto trading bots never get tired and don’t let emotions get their best. You can build an army of relentless profit-makers that would never tilt or do anything that contradicts the instructions. Then again, this has to be taken with a large grain of salt. Because the market is more of a living thing affected by human ideas and desires than some predictable mathematical model in which the bot would thrive.

See Also: What Is Footprint Charts – The Complete Trading Guide

Conclusion

True winners are the ones who understand the large-scale movements of the market. For example, a major thing in the world economy is changing, or who knows what Elon Musk will say the next day to troll us and our assets. Do you think that Crypto trading bots can be of any effect here? Should you use them? Feel free to. Just don’t blame them for your losses because a trading bot is nothing more than an automated extension of the trader himself. 

See also: How To Find New Crypto Coins | The Ultimate Guide For Hidden Gems!

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