How to tell when a trading bot is a scam

[XZERO1]

It's not easy to detect them and you only could be almost 100% sure about a legitimacy of a trading bot only if you're a coder yourself and know how these bots are being created which in that case you would've had created your own trading bot and there would be no need for a 3rd-party to begin with.

I'm still to find a good long-term profitable trading bot in crypto that can give you even a constant 1%-2% a day, I can say that most of the trading bots paid or free would fall in the same category, they give 1-2% a profit one/few day/s and then they manage to squash all that profit after a few days with one bad trade.

One thing I'm sure about is that bots work best on trading pairs with the least amount of volatility, unless that volatility can be easily predicted so that you can give your trading bot a certain range to trade for you (with longing and shorting on that range), but the problem with bots start when the volatility gets too much and that coin/asset price starts to leave that range that you specified, so you need a really good trader/programmer to see all that and configure the bot in a way that still can trade with profit without a range or at the very least doesn't go negative then.

[ice098]

Just a correction I think it is not exchange keys but rather an api key and access I think, actually yes that is true you can get a profit even you are sleeping but you can lose it all when you sleep or even you are awake. So I don't trust bot your funds are not secure, your account are prone to hacking and it is more serious I think you might get banned in that exchange too, trading bot will tell you all things that will get your trust and get your attention. Just don't use bots in your trading.

[el kaka22]

All trading bots are a "scam" in the end by a small to a big portion. Some of them are scams in a small portion, they tell you that it will make you money without you working, and that is a scam, not the way that steals your money, they just trick you thinking it would work like that, but the reality is that you work to configure it a lot and you end up with making a lot more stuff to make it work, and you keep an eye on it, and basically work and not just put it in and let it be, so yes they do not steal your money and yes there is a chance you could make money from it but it is not without work so it is a tiny scam and not a big one.

Some of them are way larger, they just tell you that it will work and it is great and they take your money and give a copy paste fake software of something that already exists and run away with your money and that is the big version and anything in between happens too.

[goinmerry]

The best reference to determine whether the bot is a scam or not, is always, people's feedback. Why used a bot if it's lacking reviews. In such a time that a user now finally decide to use a bot, as let's say they already do their research that the bot is legit, then they should use their common sense from there.

All trading bots are a "scam" in the end by a small to a big portion. Some of them are scams in a small portion, they tell you that it will make you money without you working, and that is a scam, not the way that steals your money, they just trick you thinking it would work like that, but the reality is that you work to configure it a lot and you end up with making a lot more stuff to make it work, and you keep an eye on it,

Beforehand, I think users should already know that expected profits brought by the bots' action must be configured properly. They will do the configuration before they can run the program that's why I will expect those users, newbie or not, that they will not think of bots as a money-making scheme as they will set it up according to their strategy.

[barbara44]

Instead of looking for bots I think it’s way more better if you can just learn and start trading by yourself. If you still decide to be making use of bots it should be one that is very popular and well trusted. There are lots of applications these days that can be created by hackers and used to steal information even though you’re not going to be the one giving them that information, they will just be stealing every of your info as long as the app is running in the background.

So, that’s why you have to avoid most of these apps that you’re seeing these days and look for something you can rely on, if not ,then you will have to be doing it yourself so that you can be very sure that you’re in a safe position and avoiding trouble. Ever since I started trading bot has never been an option for me because I want to do it myself.

[jaberwock]

Just a correction I think it is not exchange keys but rather an api key and access I think, actually yes that is true you can get a profit even you are sleeping but you can lose it all when you sleep or even you are awake. So I don't trust bot your funds are not secure, your account are prone to hacking and it is more serious I think you might get banned in that exchange too, trading bot will tell you all things that will get your trust and get your attention. Just don't use bots in your trading.

Whether the bot profits for you or loss that depends on how the bot is working and what kind of risk measures you have entered and how much capital, how much percent profit/loss deviation you are working on. But here since we are talking about scam bots and legit bots, I will label any bot that asks for your personal data like also OP mentioned and asking funds is an obvious scam and you must not just delete that kind of bots but also scan your computer for viruses.

I haven't used many bots but I have tried some free ones in past for very short period and in the end I found these bots to be rather funny than anything else. Almost all of them are trying to lure you into paid version and some are just rubbish.

[redsun114]

All trading bots are a "scam" in the end by a small to a big portion. Some of them are scams in a small portion, they tell you that it will make you money without you working, and that is a scam, not the way that steals your money, they just trick you thinking it would work like that, but the reality is that you work to configure it a lot and you end up with making a lot more stuff to make it work, and you keep an eye on it, and basically work and not just put it in and let it be, so yes they do not steal your money and yes there is a chance you could make money from it but it is not without work so it is a tiny scam and not a big one.

Some of them are way larger, they just tell you that it will work and it is great and they take your money and give a copy paste fake software of something that already exists and run away with your money and that is the big version and anything in between happens too.

Actually you might be saying this because you have encountered some poor trading bots. I know its frustrating when all the softwares you download in the name of bots are just waste of time.

I will share with you one bot about which I have heard a lot and mostly it has been positive - https://www.gunbot.com/

You can even visit their thread on bitcointalk : https://bitcointalk.org/index.php?topic=1715214.0

I am not associated with Gunthar or Gunbot but because I have heard positive about them so I am going to share for any newbies who want to try a trading bot but don't know whom to trust. As you can see, he has a lot of reputation on forum so obviously means the bot he developed is doing fine.

[Yatsan]

Just be mindful always that there are lots of scams in the surrounding so better be aware on obvious matters specially when it concerns your funds and your account. Once they started asking about those important private things that must not be shared into other people, then that must be the time you to turn off such things whether trading bots and other crypto related aspects wherein you feel something is not right about it. Also, better just do trade by your own instead of relying into trading bots for it will be beneficial for you to learn trading without depending into something that you can do by yourself. It is just simple as that to keep you away from being a victim of those trading bot scams.

[BatBoy313]

I think the first thing to do is DYOR in order to avoid getting scammed (well, that's obvious).
Read trading bot reviews, watch videos on youtube, read influencers on twitter, maybe if you are a member of closed discord channels ask traders what bots they use.
All of these factors in a bunch, if you do a good analysis of a new bot, will lead to the fact that you are unlikely to be fooled.

[palle11]

I think the first thing to do is DYOR in order to avoid getting scammed (well, that's obvious).

DYOR is all around what OP has listed. We have to be careful how we fall for certain things online. Someone asking you for money on a bot while you never seen that bot working or the way it is performing on your trade then it is a sign that you have to be careful. Scammers interest is about money and you have to always raise your ears when the issue of money is mentioned. A genuine service provider should not be all interested in money before giving service.

[cheezcarls]

I don’t believe in such trading bots. I ain’t a fan in using those bots as a shortcut in hopes of getting good results in cryptocurrency trading. It’s better to learn from scratch on how to make money doing cryptocurrency trading in a legitimate way. Google and Youtube are our best friends to search and learn them for free.

[Lanatsa]

I don’t believe in such trading bots. I ain’t a fan in using those bots as a shortcut in hopes of getting good results in cryptocurrency trading. It’s better to learn from scratch on how to make money doing cryptocurrency trading in a legitimate way. Google and Youtube are our best friends to search and learn them for free.

Bots are for automation and don't expect something else.They are already pre-set up with those coders on what commands they should follow out.Its not really that complicated to think off on whats the real

usage of these bots.I don't know about those scams though, if we do talk about some scripts or something like that then its really that prone but for trading bots then its impossible that you wouldn't really
able to notice it out.

Trading is for automation and don't expect that it would generate you out profits because that's not how bot  works in the first place.

[24Kt]

I don’t believe in such trading bots. I ain’t a fan in using those bots as a shortcut in hopes of getting good results in cryptocurrency trading. It’s better to learn from scratch on how to make money doing cryptocurrency trading in a legitimate way. Google and Youtube are our best friends to search and learn them for free.

Bots are for automation and don't expect something else.They are already pre-set up with those coders on what commands they should follow out.Its not really that complicated to think off on whats the real

usage of these bots.I don't know about those scams though, if we do talk about some scripts or something like that then its really that prone but for trading bots then its impossible that you wouldn't really
able to notice it out.

Trading is for automation and don't expect that it would generate you out profits because that's not how bot  works in the first place.

One red flag is if the bot is asking you to load your wallet along with your pass key or anything related about transferring of funds. But if you are just experimenting how these bots work, don't ever enter any vital details if it asks you to. Trading bots will aid you in trading if you know how to use it. And most of the time, you need to pay for it. So better contemplate if it is worth paying for the bot or just learn on your own so you can equip yourself with your own trading activities?

[adzino]

-snip-
They tell you their bots are profitable without an audited track record.
-snip-

Not sure what you mean by "without an audited track record". Even if they have "an audited track record", no bots can give you guaranteed profit. If that was the case, then everyone would be using that bots with audited record you are talking about, right?
It is basic common sense. Don't use bots that aren't open source. Even if its open source, don't use it if you don't know how to read the code or at least understand what is happening. Don't use any bots where you won't have control of your own money.

[AakZaki]

Free bots or other bots are provided to you with the intention of profiting from the bots they create. Many trading bots are currently available, and many of them are scams and will only drain your assets. there are types of bots that just use an API to connect Exchange with Bots and create some orders automatically. it also can not be trusted, because the possibility of errors and bot manipulation will occur.
people who use bots are those who are lazy to learn more about trading, moreover they are beginners who only know buy and sell.
Many members on this forum are against bots and don't use them because they know what a trading bot will do.

[Sled]

Free bots or other bots are provided to you with the intention of profiting from the bots they create. Many trading bots are currently available, and many of them are scams and will only drain your assets. there are types of bots that just use an API to connect Exchange with Bots and create some orders automatically. it also can not be trusted, because the possibility of errors and bot manipulation will occur.
people who use bots are those who are lazy to learn more about trading, moreover they are beginners who only know buy and sell.
Many members on this forum are against bots and don't use them because they know what a trading bot will do.

Well, I'm not going to generalize that all of these bots are useless, some are also reliable.
However, I'd never use bots as well not because they are majority a scam but because I trust myself more than them. I can perform better than these bots can do even though they are just relying on us.

but talking about free bots, ohhh, can't be surprising that they are totally shit. We never ever use this or else, we put everything at risk and more chance to lose our money pretty quick. I suggest traders do it manually and besides, we are learning more instead.

[TelolettOm]

Just tell what you know and found. With actual and also enough evidence, you can prove that the trading bots are exactly scams. Everybody here will also do more analysis in the accusation. Then, we will decide if the information is true or not. But, as long as your evidence is enough, this can be a warning for all of us here to be more careful when going to relate with the platform. At least, it warns us to be more careful again, not really believe in such certain trading bots, moreover the free one.

[bitbollo]

generally speaking if something seems too good to be true... yes is not true and it's just a scam.
plausible trading bots or at least the bots that are not a scam (some years ago there was a bot heavily promoted here on forum by a forum user - CAT), allow people to set up a strategy and not operate with fixed terms. of course if you cannot setup strategy, you can't see history of previous results or they ask direct access to your funds... yes they are just a scam.

[Oceat]

I don’t believe in such trading bots. I ain’t a fan in using those bots as a shortcut in hopes of getting good results in cryptocurrency trading. It’s better to learn from scratch on how to make money doing cryptocurrency trading in a legitimate way. Google and Youtube are our best friends to search and learn them for free.

Bots are for automation and don't expect something else.They are already pre-set up with those coders on what commands they should follow out.Its not really that complicated to think off on whats the real

usage of these bots.I don't know about those scams though, if we do talk about some scripts or something like that then its really that prone but for trading bots then its impossible that you wouldn't really
able to notice it out.

Trading is for automation and don't expect that it would generate you out profits because that's not how bot  works in the first place.

It will take a common sense to know that it is obviously a scam once they asked you something that is only you and your wallet should know. Plus a direct asked for a deposit to get this and that is a front act of scamming but some people doesn't understand how things work online. They should know how bots work or how trading works because buying lots of bots without a knowledge of trading is useless even if you got the best trading bot in town.

[goinmerry]

It's hard to determine a scam tool unless it shows some fishy and obvious stuff that we can call it's already a scam.

I'm relying on reviews since I don't have any references to rely on. I will try to read as many as sources I will encounter.

Then if I saw the majority of reviews is saying it's good, then time now to risk for it and be ready with the consequences.