A trading bot is a piece of software that uses the crypto market to trade for you. In theory, you don’t need to know anything about how it works; all you have to do is input your parameters, and the software does the rest.
In reality, though, making a profit with a crypto trading bot isn’t easy, let alone becoming a millionaire. If you’re unsure whether you should use a crypto trading bot and are wondering how much money you can make with it, here’s everything you need to know.
What are the advantages of using a trading bot?
Trading bots are intended to help you make more money than you would without them. They can also save you time and effort, especially if you have a lot of accounts to manage at once or your computer is very slow.
Trading bots offer several advantages over human traders:
- Speed – They can place trades much faster than humans, which could mean more daily profit.
- No risk – Unlike humans, who constantly make mistakes, bots never get tired or distracted by emotions.
- Scalability – Trading bots can handle multiple accounts simultaneously on different exchanges/wallets, so they don’t slow down your computer while taking care of all your transactions all at once.
- Automation – Most trading bots have pre-programmed strategies that help them execute trades automatically based on certain criteria, such as price fluctuations in various cryptocurrencies. This way, even if you aren’t there when the markets change, they could still work for you.
How much do crypto trading bots cost?
Generally speaking, trading bots are quite affordable. Most of them cost less than $50 and some even come with a free trial period so you can test them out before you buy.
Some trading bots have a monthly subscription fee, but they are usually quite low compared to the amount of money they will save you in the long run – if you know how to use them, that is.
How much money can you make with crypto trading bots?
The amount of money you can make with trading bots depends on their strategy, how often they trade and what type of cryptocurrencies they are trading. Most people who use crypto trading bots claim to make between $100-$200 per month from their bot. This amount may increase exponentially if your bot has a free trial period, so it’s worth trying out before buying one.
Therefore, as you can see, these earnings are a far cry from the millions that inexperienced traders dream of making. Unfortunately, to use a trading bot and earn that much money is just too good to be true. However, if you are a sufficiently advanced crypto trader, you’ll likely be able to make at least some decent additional earnings.
Otherwise, the chances of avoiding losses with cryptocurrency trading bots are very slim. That’s because they are not suitable for beginners, as they require a lot of technical knowledge before you can put them to good use.
Crypto trading bot scams
If that wasn’t enough, crypto trading bot scams, such as the Ethereum Code scam, are becoming increasingly common these days. The scammers are trying to take advantage precisely of the beginners who are looking to make a fortune quickly and with no effort.
The only way you can tell if a crypto trading bot is legit or not is by doing some research, checking out the reviews from other users who have used it before, or reading specialised websites. For instance, there’s more info at ScammerWatch about the many trading bot scams currently plaguing the market.
And we mean it when we say that there are many of them. It’s easy for the same scammers to “launch” multiple bots at once and hope that at least one of them brings profit. Case in point: reading about the Crypto Superstar trading bot reveals that it’s the same scam as the Ethereum Code. Therefore, stay vigilant.
Trading bots free demo account
Most of the time, you can get your hands on a free demo account, which allows you to test out all the features of your chosen crypto trading bot before making an actual purchase. Even though trading bots won’t make you a millionaire, are best suited for advanced traders, and the many scammers are constantly lurking, you might still find trading bots to be helpful. Testing a demo account is a good way to check if that’s the case.
Certified blockchain and front-end developer.