Crypto bot scams

Crypto bot scams

Humans always have a knack for automation. Cars have transitioned from manual transmission vehicles to automatic transmission. And as if that isn’t enough, a number of autonomous or robotic cars are being produced. Gadgets such as phones and televisions are not left out in the automation craze. Comcast, an American telecommunications company, launched a feature called Xfinity X1 eye tracking that allows a person control their television with their eyes. A similar technology, Senseye, developed by a Copenhagen-based company, allows individuals control their smartphones with their eyes.

Current technological advancements are more focused on making existing technologies more automated than creating nascent technologies. This focus has led to the explosion of artificial intelligence. There are robots for almost every human activity. In 2016, Mark Zuckerberg built a robot called Jarvis to be his personal butler.Also in 2016, a novel written by a robot made it to the final round of the Hoshi Shinichi Literary Award in Japan. A chef robot, Chef Watson is able to generate new recipes through a knowledge of taste chemistry and flavor pairings. Amazon warehouses use robots to move racks of shelves around so that human workers can easily pick the items required off the shelves.

Artificial intelligence facilitates the ease of an activity, thereby improving its efficiency. This is why there are crypto bots. These bots are programs that automatically buy and sell cryptocurrencies at the appropriate time after monitoring and reacting to market conditions based on preset rules. Human trading capability are limited. Investors cannot react quickly to the volatile nature of the crypto market. This issue is further worsened by the slow transaction times and down times of exchanges. To achieve best trades, investors must monitor trade exchanges at all times. This is impossible. And this is where crypto trading bots come in.

Trading bots work in a variety of ways. There are arbitrage bots that check prices across different exchanges and initiate trades to take advantage of price discrepancies. Others use historical volatility to test trading strategies, while other bots executes trades at predetermined signals (e.g. price or trading volume). Examples of popular trading bots are Blackbird, Haasbot, Hodlbot and 3Commas.

As there are legitimate trading bots that are programmed to aid investors make maximum profits, there are also bots that are designed as crypto scams. These bots often promise high crypto rewards, while in truth, they are programmed to steal user funds. One of the red flags of scam trading bots is that they request full access to the investments of users. Some of the popular trading bots that are crypto scams include Crypto Group, Bitcoin Billionaire, Bitcoin Circuit, Bitcoin Code, Crypto Profit, Bitcoin Trader, Bitcoin loophole, among others.

  1. Crypto Group: Created by venture capitalists, this bot claims to be 0.01 seconds ahead of the market to keep abreast of fluctuations. It also claims to be the most profitable of all trading platforms.

Why it is a scam

  • This bot is not licensed by the FCA. This means that if a user loses money due to an issue on the platform, there would be no way to retrieve it.
  • It offers unrealistic promises and pressures users to sign up by telling them that registration is free and there are limited spots available.
  • Furthermore, its features are too basic, too simplified. It is bereft of adequate tools for efficient money and risk management.
  • Finally, the platform claims to be endorsed by celebrities, but this information is fake.

 

  1. Bitcoin Billionaire: This bot claims to allow users with little or no knowledge about the market to make money through crypto trading. It claims that users can make $6000 daily with a $10 investment.

Why it is a scam

  • Reliable trading bots do not only tell their win rate (that is the percentage of retail traders that profit from the platform), but also their loss rate. But Bitcoin Billionaire doesn’t provide this information.
  • Also, just like Crypto Group, it is overly simplified — it has a simple interface with limited tools.
  • It is not regulated or supervised by any institution such as the FCA.
  • Just like Crypto Group, it pressures users with its “free to join” and “limited spots available” baits.

 

  1. Bitcoin Circuit: This bot is designed to trade Bitcoin for its investors. It claims to generate daily profits of up to $1500. The bot is also said to trade using a margin strategy — it offers investors opportunity to trade large positions with a little amount of money. However, what the bot doesn’t tell its investors is that this strategy is also highly risky and generate huge losses also.

Why it is a scam

  • It is unregulated by the FCA.
  • It claims to be free, yet has undisclosed fees and charges.
  • It is extremely simplified and its tools are inefficient for trading.
  • It pressures users to join, claiming to have only limited spots.

 

  1. Bitcoin Loophole: This platform claims to generate a daily profit of up to 88 percent from trading Bitcoin for its investors.

Why it is a scam

  • Just like other scam bots, it is unregulated by the FCA or any other regulatory body.
  • The profit percentage cannot be confirmed, and there is no information on the percentage of traders that have lost money using the platform.
  • No transparency about fees charged. Sign-up is said to be free, yet there are hidden charges that come with trades.
  • The bot also uses the “sign-up for free” and “limited spots available” tactics to pressure users to join.

 

  1. Bitcoin Code: The platform is said to be designed to help users with little or no knowledge about the crypto space profit from Bitcoin trading.

Why it is a scam

  • It is unregulated and also not monitored by a regulatory body.
  • No transparency regarding fees. It also charges for trades that haven’t been made public.
  • They also use pressure tactics just like other scams.

 

  1. Libra Method: The developers of this bot claims that it is able to detect profitable price movements in the market and leverage on such moves to make profit. Investors are required to deposit a minimum of $250 to get started.

Why it is a scam

  • The bot does not disclose important details regarding trades.
  • It has a high risk of loss.
  • It also pressures users to sign-up.
  • It is unregulated.

 

  1. Bitcoin Optimizer: This bot claims users can make up to $3000 in a day. Just like other bots, it is unregulated by the FCA. Also, one cannot ascertain if it complies with General Data Protection Regulations set by the EU.

Why it is a scam

  • Does not provide efficient trading experience as it has limited tools and features.
  • No transparency about fees and charges as there are trading and withdrawal fees users are usually unaware of.
  • Pressures users to sign-up.

 

  1. Bitcoin Revival: This platform is unregulated and fails to secure the data, funds and trading information of users. It claims to analyze the crypto market at all times.

Why it is a scam

  • Its operation is unclear. One cannot ascertain if it is controlled by actual trading algorithms or if it just funnels clients to unreliable brokers.
  • There is a negative feedback from majority of its users.
  • It is unregulated.
  • Has limited risk management tools.
  • Pressures users to sign-up.

 

  1. Bitcoin Trader: Launched in 2017, the bot promises to trade Bitcoin using information gotten from the market. Just like Crypto Group, it claims to be 0.01 seconds ahead from the market and detects profitable price changes.

Why it is a scam

  • There is a lack of transparency regarding its fees. It claims to be free, yet there are hidden charges.
  • There is a high risk of losing money on the platform.
  • It is unregulated by the FCA or any other regulatory institution.
  • It uses pressure tactics to get sign-ups.

 

  1. Crypto Profit: This bot is known to make unrealistic promises and has received countless negative reviews.

Why it is a scam

  • It is not regulated or monitored by financial authorities.
  • It doesn’t disclose the risks of trading with the bot and the proportion of traders that might lose money.
  • It has limited tools for efficient trading and risk management.
  • It also uses pushy promotional tactics like “sign-up for free” or “limited spots available” to get users to register on the platform.

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