Trading Bots: SCAM or Legit? What You NEED To KNOW!
❓ What Are Trading Bots? ❓
They are merely automated trading algorithms and software that help buy and sell various cryptocurrencies in an automated way. However, there are three main types of crypto bots out there that you should know about: ► Signal generator bots: These make trading decisions based on tips by so-called ‘experts’ or a computer program that is fed data and churns out buy or sell signals. ► Arbitrage bots: These essentially buy a specific crypto on an exchange with a low price and sell it on another exchange which has a higher quoted price to generate profit. ► Finally, you have bots that trade on your behalf with a set of instructions you have given it. Many of these types of bots offer features like backtesting to help optimize your trading strategy.
💡 The Truth About Bots 💡
Many people are drawn to crypto bots because they love the idea of making money in their sleep. I don’t blame you. However, the truth is that they are anything but money printers! Many signal-driven bots are just a way to fleece you for money. Think about it; if the signals were so good, wouldn’t the signal creator keep them for themselves? Then you have scam bots which promise you guaranteed returns. That should set off alarm bells. Then you have others that ask you to send money to a broker or strange place. The point is there are many wolves selling crypto bots. So, be careful. Even if you do use a legit bot and you devise a winning strategy, you’ll still have to invest time in refining it to account for different market conditions. You won’t sit there on a beach for decades laughing all the way to the bank.
🤖 Why Use A Crypto Bot? 🤖
Watch my vid. Here I explain all the reasons why I personally use a crypto trading bot.
4️⃣ Shrimpy 4️⃣
This social portfolio management tool was established in 2018. Yes, it doesn’t offer any signals. But it does offer spot trading, portfolio tracking, strategy automation, backtesting and smart terminal trading. The two features that really stand out to me are longer-term portfolio management tools which automates things like portfolio rebalancing, dollar-cost averaging and stop losses. Then you have the social trading feature which allows you to copy the trades of the top traders on the platform.
3️⃣ Kucoin 3️⃣
Yes, most of you will know Kucoin as a top exchange for exotic altcoins. However, what many people don’t know is that they also offer a plethora of free trading tools too. That includes things like preset trading strategies, dollar cost averaging, classic grid (to help you sell high and buy low), dynamic portfolio rebalancing (so you are never too exposed to a single position) and much more. Over 2.5 million bots have been created on Kucoin worldwide - so yep, there is a literal buffet of options here. Even better, those tools are absolutely FREE!
2️⃣ CryptoHopper 2️⃣
CryptoHopper provides support for a whopping 100+ cryptos on literally every exchange worth having an account at. It provides expert trading tools without the need for coding skills. That even includes advanced trading stuff like market-making and exchange arbitrage. Yes, they also offer features like backtesting and trialing features to help you buy and sell more efficiently than before + paper trading to test those new strategies you’ve developed with no risk at all.
1️⃣ 3Commas 1️⃣
This is one of the most popular trading bots out there. There are a ton of really useful features, paired support for 23 different crypto exchanges. Just watch my vid to find out why I personally use 3Commas as my trading bot of choice.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial, legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.