Crypto Trading Bots: 3 Reasons Why Most People Will Never Succeed

If you want to become a successful crypto trader , you first need to invest plenty of time into your trading activities. But, what if there ...

If you want to become a successful crypto trader, you first need to invest plenty of time into your trading activities. But, what if there was software that would automatize the process and trade on your behalf? You would be left with plenty of spare time, enjoying your crypto profits while relaxing under a palm tree somewhere in a tropical paradise. Sounds pretty neat, right?

That’s what crypto trading bot developers think, too. That’s why they’re offering users automated trading solutions, which are usually a very alluring proposition to beginner traders. Unfortunately, there are some serious pitfalls here, that make it very hard for most people to make money with trading bots. Let’s see which pitfalls are those.

Why Most People Will Never Succeed With Crypto Trading Bots?

1) False expectations

The important thing that anyone interested in using a trading bot needs to understand is that this is not a tool that will do everything instead of you. Trading bots are designed to assist the user, not take over. Before they’re able to do anything, you first must set up a trading strategy for the bot to follow.

And to come up with a trading strategy, you need to know what you’re doing. Therefore, there’s no escaping learning and conducting lots and lots of manual research. This is a mistake that many beginners make, as they are looking for a quick profit with little to no effort.

The cryptocurrency market is volatile, unpredictable and dynamic. Your trading strategy is usually frequently changing, as you adapt to the new market circumstances. In turn, this entails even more work on the user’s part after the initial setup.

To successfully use a trading bot you’ll need at least some crypto trading know-how. Contrary to popular belief, trading bots are actually not a tool best suited for newbies. The more you know about crypto trading, the better results you will get with trading bots.

2) Trading bot scams

Unfortunately, many people are becoming victims of fraudulent trading bots these days. Precisely because these bots are so attractive to many users, the con artists are luring people with false promises of very substantial profits (usually $800-1000 per day). Nowadays, there are so many of these scams that it’s hard to keep track of them.

The Bitcoin cycle scam, busted on the specialized website, is a perfect example, as it encapsulates many of the common red flags associated with fake trading bots. The lack of licensed brokers, fake reviews, and ridiculous promises all tell us that something’s not right. Even worse, these scammers usually operate by placing endless phone calls after you register, urging you, with increasing aggression, to invest.

That’s why you need to be very careful when choosing a trading bot. The website writers are identifying trading bot scams and keeping us safe from financial loss in the process. We advise looking into their reviews before placing your trust in any bot, as it will save you the minimum $250 deposit that the scammers are after.

3) Relying on bots’ lack of emotions

Crypto trading bots have the reputation of being better traders than humans are, because they lack emotions. Namely, emotions can indeed be a burden when investing. They might make you invest more money in your favorite crypto than you should have, or you might make mistakes due to panicking when the price drops.

Trading bots are cold and calculated. They don’t let emotions get in the way. Makes sense? Sure, but when you think about it, it’s not a trading bot that came up with the trading strategy; it’s you, a living human being. Therefore, the logical conclusion is that emotions do have quite an impact on the way a trading bot will do its job.

In short, the lack of emotions doesn’t mean that trading bots will make you more money than you would have made on your own. And if that plays a part in your desire to use one, you’re bound to get disappointed. Between this, unrealistic expectations, and many dozens of trading bot scams, it’s no wonder that most people will never succeed with crypto trading bots.