GM!

Buff here.

Cryptocurrency trading bots have become popular lately, but many people perceiving it as scams.

As a guy who have been scammed and now been using crypto bot from trusted developer, I will try to shade some light around this topic.

So what is a trading bot?

Trading bot is simply a software program designed to automate cryptocurrency trading. It leverages algorithms and predefined rules to execute trades on our behalf, eliminating the need for constant manual monitoring.

I like to think of it as a digital assistant that work tirelessly to maximize trading opportunities.

Some benefits of Trading Bot

• Time and Efficiency

Trading bot save you precious time by analyzing market conditions and execute trades in real-time. This automation ensures you never miss out on potential profit opportunities, even when you're away from your trading screen.

Sometime the market move during midnight my time or while I am at work and I would have missed out on all the trades without crypto trading bot.

It allow me to take all this trades that I would have taken anyway if I am trading manually. It can be considered as passive income only when it’s set properly.

• Emotion Free Trading

One of the significant benefits of trading bots is to eliminate emotional part of trading. Bot follow predefined strategies without being influenced by fear, greed, or other human emotions that often lead to impulsive trading. This disciplined approach can result in more consistent and rational trading outcomes.

Basics in Trading Bot

• Choose a Reputable Bot

Look for established platforms with a track record of transparency, positive user reviews and a strong community presence.

I have been using wickhunter for 3 years where their only focus is to provide reliable trading bot that we can use to execute our trading strategy. It is very much a community driven project where they create new feature based on what the community need.

• Define Your Strategy

Before deploying a trading bot, determine factors like trading strategy, risk tolerance, pairs to trade, desired trading size, profit targets and stop loss. Having a clear plan in place will help you configure the bot accordingly and align it with your goals.

• Start Small and Monitor

It's wise to begin with small capital when starting. This approach allows you to observe the bot's performance, watch how it works and make adjustments as needed. Monitor its activities closely and reassess periodically to ensure it aligns with your expectations.

For reference, it took me 3 years to start becoming profitable with trading bot and I recommend to start with no more than $500, lower if it’s possible. Personally I am comfortable to start with $250 until I see consistent result at least for 1 year.

Spotting Scams from Miles Away

• Unrealistic Promises

Beware of trading bot that sells trading signals and promise high returns with little effort. If it sounds too good to be true, it probably is.

Anyone with experience in the market wouldn’t make promises or guarantee certain return.

• Do the calculator test

If you don’t want to do any research, simply use simple calculator test. If you become the richest person in the world in 10 years just by putting $1000, it is most probably a scam. Nobody need to go through the problem to sell trading signals bot if they have this kind of strategy.

• Transparency

Scam trading bot often lack transparency so if you try to ask questions and they get annoyed by it, it is a red flag.

• Look into their community

Most trading bot have telegram or discord channel to promote their service. Join their community channel and if the community is full of constant shill on their product and services, bots, unresponsive moderator and founder, it is another red flag.

If you are interested in wickhunter community, you’ll notice that it is usually conversation about people trying to understand on how to use the bot, question to troubleshoot problem they encounter and just community sharing their experience. Nothing fancy but a real community.

If I had known this rule before I invest in scammed project, I would have avoid it all:

• Do not believe in any dreamy promises.

• Do not do it just because everyone do it.

• Learn to trade yourself, do not take shortcut because there aren’t any.

• Do not believe in the ‘expert’ (read: youtubers/tiktokers) just because they say it’s a good investment.

• Do not trick yourself in believing that you know everything and have done your research just because of you don’t want to miss the ‘opportunity of a life time’. Most probably we are not doing this full time so there’s a lot that we don’t know.

Crypto trading bot can be a valuable tools when used properly. By taking the time to understand how the bot works, you can benefit from this tool as well.

That’s it for this week.

Have a great weekend and happy trading.

Buff.