If you have ever invested in Bitcoin or any other cryptocurrency, you have probably heard about bitcoin robots. Bitcoin robots are tools that make buying and selling decisions on behalf of a trader and make deals accordingly.
Bitcoin robots have much more precision than people, which means that they are more likely to make winning trades and profit on both growing and falling crypto markets.
However, as more robots have appeared over the years, so have fraudulent products that have stolen people’s money by taking advantage of an unregulated market.
For this reason, it is vital to be well informed when choosing a robot. In this guide, we put them on trial and found out which ones seem to be legitimate, and the scams from which you should stay away.
Read on to find a legal bitcoin robot today.
What Is A Bitcoin Robot?
A Bitcoin robot is a computer program based on complex algorithms based on trading techniques used by professional bitcoin traders. Most bitcoin robots are invented by crypto gurus, which supposedly earned millions from trading bitcoins.
These gurus automate their trading strategies by encoding them in a computer program. The goal is for the computer program to conduct all trading on their behalf.
Many do not share their programs with the public. However, a few do so to attract deposits and collect commissions from their earnings. The better bitcoin robots are usually in high demand, and some attract billions of dollars.
Bitcoin robot trading technologies include short selling, an approach that allows users to speculate on falling prices. It means that users are still making profits even when markets are falling. Moreover, the best robots rely on artificial intelligence to allow the robot to adapt to changing market conditions.
Thanks to a subset of AI known as Natural Language Processing, Bitcoin robots can read human language. It means that they can trade news with an expected level of accuracy of up to 99.4%.
However, that doesn’t mean that bots don’t take risks. One miscalculation can lead to huge losses, and therefore traders should always be careful.
Bitcoin robots are usually 100% automatic. It means that users do not need any knowledge or experience to trade with them.
Bitcoin robots eliminate all the troubles associated with buying or trading Bitcoin manually. Moreover, they eliminate human emotions of fear and greed in trading.
Warren Buffet, the most prominent investor in the world, once said that fear and greed are the biggest obstacles to successful trading.
The Bitcoin robot is an automated trading software that uses sophisticated algorithms and mechanisms to scan Bitcoin markets, read signals, and decide what trades should be executed to make a profit.
Robots are much more efficient than humans because they can scan all the information available on a certain cryptocurrency (in this case, Bitcoin) and make trades, all within seconds.
The principle of the robot’s work is that they look at signals for buying/selling. It is these signals that allow the robot to be seconds ahead of the market, which means that you can earn more than all the others. One of these robots is the popular Bitcoin Revolution robot that boasts an incredible winning rate of 99.4%!
Advantages And Disadvantages Of Bitcoin Robots
Understanding the advantages and disadvantages of automated trading is a quintessence in extracting the best from these instruments.
Although robots have some similarities to humans, they are very different from each other, which can make them more accurate as well as riskier.
- Robots are much more efficient than humans because they can scan all the information available on a particular cryptocurrency and make transactions, all within seconds.
- Bitcoin robots are not subject to feelings and emotions. They base their decisions solely on logic and algorithms. It makes them much more accurate than humans. Some robots are up to 99% accurate, which means that they hardly ever have any losing trades.
- Trading with Bitcoin robots is much faster than manual trading. Instead of manually analyzing markets, opening an account on a cryptocurrency platform, waiting for verification (which can take up to 2 weeks), waiting for a profitable trade, and going through the withdrawal process, Bitcoin robots will take care of all this for you.
- It’s easier than manual trading. All you have to do is make a deposit and leave the system to it. After that, you can withdraw your profits daily, without any extra hassles. Authoritative robots even offer 24/7 customer support.
- Like manual trading, trading with bitcoin robots involves risks and is not always 100% accurate.
- Trading robots can be complicated for those who are not familiar with them.
- The market is unregulated, and numerous scams are flying around, which means that users must be well informed before they decide to invest.
- Like other types of trading, capital can be lost.
How Does A Crypto Robot Work?
Conducting Trade Research On Your Behalf
The Bitcoin robot carries out trading research and comes up with ideas which then passes to the brokerage system of a certain partner.
Partners With Brokers
Bitcoin trading robots usually cooperate with selected brokers. The responsibility of these brokers is to execute orders sent by the robot.
The broker chooses trading signals and executes them in the form of orders. Bitcoin’s robotic brokers usually rely on advanced trading systems to ensure instant order execution.
Another role of a partner broker is to receive deposits and facilitate transactions. Bitcoin robots are generally not registered as a financial institution and therefore have no legal mandate to receive deposits from the public. Therefore, they must rely on brokers to receive funds and control transactions.
Works With Regulators
Regulators require all brokers to share client funds and report on their use. It ensures that no broker or robot can misuse the deposits. With regulators such as ASIC and the FCA, users have the assurance that their money is safe.
Uses Levers To Maximize Earning Potential
Robot brokers also provide leverage to allow traders to place huge trades using a small deposit. The best of them provide leverage up to 1:5000, which means that traders can bet on positions that are five thousand times their capital.
New traders should keep in mind that leverage is a double-edged sword that can increase both returns and losses. The rule when trading with such high leverage is always to trade what you can afford to lose.
Bitcoin Robot Scams Updated List 2020
Bitcoin robots can be very helpful. However, there are still so many robots out there that try to deceive uneducated users.
For a sharp eye, they are scamming bitcoin robots that aren’t that hard to spot. Firstly, the information they present on their site is usually not valid. Secondly, their customer service is not available by phone or any other way that can be tracked.
Moreover, fraudulent Bitcoin robots usually cooperate with fraudulent offshore brokers. These brokers have a bad reputation on the Internet and are not regulated.
The main purpose of fake robots is to have your deposit. It means they are willing to take any measure to convince you to put in more of your money.
As mentioned, at least 90% of all trading robots are crooks. Thus, the list of imaginary Bitcoin robots in 2020 is longer than this.
You should not register with a trading robot without sufficient evidence that it is legal.
How To Trade With A Bitcoin Robot
Bitcoin robots are typically 100% automated and, therefore, do not require any trading experience.
Step 1: Registration
You need to register a free account and click on “Live.” Bitcoin trading robots are generally unlicensed, although some require a monthly fee.
Those that do not charge a sign-up fee earn income by charging a small fee on the revenue generated through them.
It is also important to note that most robots are only available in countries where they have a regulated broker. Here is an easy guide to help you get started with your bitcoin trading robot.
Open the home page of any robot and click the registration button to open an account. You will be given a form to send your name, email, and phone number.
Legitimate Bitcoin robots process user data in strict confidentiality and comply with data protection measures such as GDPR.
Unlicensed BTC robots earn money by charging a small commission on any profit made through them. This model is ideal as it encourages them to improve their technology so that users can get a return on their investment.
Step 2: ID Verification
As mentioned earlier, Bitcoin robots rely on regulated brokers to make trades and facilitate them. Currently, all regulated brokers are required to verify the identity and residence of their users. It is to prevent money laundering.
The verification process usually involves the user uploading a clear photo and both sides of the government-issued identification document.
Residence verification, on the other hand, involves uploading a recent bank statement or utility bill with the address at the top. The entire process can take up to 24 hours.
While most brokers allow traders to deposit and trade before checking out, almost everyone requires users to complete the process before withdrawing money from their accounts.
Step 3: Deposit The Minimum Trading Capital
Most Bitcoin trading robots require a minimum deposit of $250. You can deposit via most debit and credit cards, Western Union, Wire Transfer, and e-wallets such as Skrill and Neteller. Some bitcoin robots accept deposits through crypto-wallets.
Legitimate trading robots do not charge a deposit fee. Moreover, they allow users who refuse to trade to withdraw their capital for free. All legal robots listed above have proven their security and friendly withdrawal process.
Step 4: Demo And Live Trading
Most Bitcoin trading robots provide a practice account. This account should help you get acquainted with the robot before you start working.
Remember that a small mistake in automatic trading, be it in settings or in trading session timing, can lead to significant losses. Therefore, you must read the trading manual provided by this trading robot and practice with its demo version before starting real trading.
Live trading with most BTC robots is done at the click of a button. Some users are allowed to define and set up risk parameters. Semi-automatic will enable users to determine which trading ideas they want to implement in their accounts.
Full-time beginners should only trade with 100% automated trading robots. Moreover, they should avoid changing their risk settings. Most trading robots are typically set at the recommended risk level of 10% for each trading level by default.
To find out more, you might want to look through the guide written by Janny Kul, an experienced trader.
How To Identify Legit Bitcoin Robots
As mentioned earlier, excellent trading robots are not so hard to find for a sharp eye. Below is a checklist to be used when choosing a trading robot.
- Reputation – Legit bitcoin robots are likely to have a good reputation on platforms such as TrustPilot and ForexPeaceArmy.
- Regulation – These robots should only work in partnership with properly regulated brokers. The best regulatory bodies include the FCA and ASIC.
- Transparency – Good robots should reveal everything a trader needs to know to make an informed choice.
- Customer service – Customer service must be readily available and ready to respond to all relevant requests.
- Deposit and withdrawal of funds – Legal trading robots must have a smooth deposit and withdrawal process. They must allow users to withdraw funds at any time.
To Sum Up
While most Bitcoin robots in 2020 are crooks, there are a few that are legal. In-depth research has been done to help you make informed choices.
Trading robots can help traders ensure constant interaction with the market, even if they are physically unable to do so. They can help eliminate some of the stresses and emotions that are often found in any financial trading market, which is not any less in the cryptocurrency market.
However, trading robots are not for everyone. Random investors are not the primary purpose of trading robots, and if you intend to buy and hold Bitcoin, then a trading robot is probably not the right investment for you.
Also, if you are not a competent programmer or are not familiar with creating financial strategies, trading robots may not be suited to you.
However, if you have the necessary knowledge and ability to overcome these obstacles, then a trading robot can be a useful tool in monitoring and making a profit from the Bitcoin market.