If you’ve hung around long enough in the crypto space, you would agree with me that the activities of scam projects and coins that promise mouth-watering returns on investment skyrocket whenever bulls dominate the crypto market.
The tempo of such shady activities has heightened as scammers, through social media channels, now use fake trading bots and software to target, lure and defraud amateur investors.
These scammers understand that amateur investors will jump at prospects of making huge returns and continuous winning trades with zero losses, so they deploy fake trading software or bots that claim to provide such lucrative opportunities in a short timeframe to inexperienced investors.
How can you avoid being scammed?
Since they are everywhere, it is best for you to know what trading bots are fake and avoid falling for them by noting these red flags:
Unrealistic returns
An unrealistic return on investment that cannot be consistently earned is a dead giveaway that you’re dealing with a fake trading bot.
A critical look will save you the financial setback of falling for such a scam.
No human supervision
The volatility of the crypto market dictates that you make calculations, trading strategies and take quick actions.
In that regard, trading bots that suggest that they are fully automated — by virtue of being able to solely execute trading strategies without constant guidance and supervision from skilled human traders — are fake.
This is because someone still needs to obtain profits for investors by manning the software.
No transaction record
Fake trading bots do not execute transaction strategies.
You can verify whether or not your transactions were carried out by checking your order status in their account.
You can also ask for transaction details from the exchange if it uses a third-party platform.
The crypto market is crawling with scammers and people keep falling for them even after being warned.
If you’re new to the space, it is advisable that you do extensive research before investing.
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