With cryptocurrency being as insanely popular as it is now, many people are looking to get in for the first time. A big part of doing so is leaning on the capabilities of a crypto robot for the smoothest possible workflow when trading.
Unfortunately, unscrupulous entities realize this and would take advantage of unsuspecting individuals looking to get into the world of trading.
The absence of guaranteed success is one of the defining factors of any kind of trading. Therefore, for those who are aware, it’s almost expected that losses can be just as probable as gains.
That’s why it can sting so much when scam crypto robots enter the mix and guarantee a consistent downward spiral.
Today is all about ensuring that you can identify them immediately, saving yourself a lot of mental anguish and money in the process.
One of the most notorious things that scam crypto robots are known for is the creation of fraudulent trading platforms. These may be built entirely from scratch, or they may piggyback on the look and feel of existing reputable crypto sites to lure in unsuspecting victims.
Considering that the layouts are so similar to platforms that you may trust, it becomes incredibly difficult to tell the difference between what these entities have created and the real sites that they are mimicking.
In this case, your only option is to look out for subtle indicators that something may not be exactly what it seems.
Just about any reputable platform dealing with investment or holding financial information is going to protect itself with the use of an SSL certificate.
You can usually tell this is the case by seeing the padlock icon to the left of the web address in the browser’s address bar. Note that some scammers go the extra mile in securing their websites too, so this is not a guaranteed giveaway.
What you can use as a marker is this type of information requested. Typically, a real cryptocurrency trading platform will not ask for anything beyond what is necessary.
For example, needing your crypto wallet password is never going to be a thing on the legitimate side of the spectrum.
Fake Celebrity Endorsements
You need to be extremely wary of celebrity endorsements that are misplaced and altogether rumors. If there’s one thing that has become incredibly apparent, especially in this era characterized by technology and social media, it’s that people see their favorite celebrities as heroes or even idols.
Beyond admiration, this means that these personalities can get persons to take actions purely based on what they say. This is the root of how fake crypto robots use illicit celebrity endorsements to lure in the unfortunate victims.
If you hear about celebrity endorsement from a secondary source that is not known to be reputable, it is likely to be fake.
For example, if Elon Musk begins to tweet about his intention or current investment with a particular crypto robot, it’s likely the real deal. Similarly so, if such a report comes from a reputable news source, it’s usually right on the money.
Outside of these, you are likely most definitely looking at a scam. Instead of diving even deeper into this, you are encouraged to have a look at all the information here that surrounds debunking fraudulent claims about celebrity endorsements.
If it sounds too good to be true, especially in the world of cryptocurrency trading, then it probably is. Many people who end up getting scammed report a negative gut feeling as they were carrying out whatever action led to the unfortunate incident.
Under no circumstances should you ever invest in anything that you do not feel complete comfort in doing. That is a recipe for falling prey to scam crypto robots.
Remember the rule of risk in any kind of trading, even those forms beyond cryptocurrency. If any platform should go on about its ability to guarantee profits, for example, you are undoubtedly looking at a fraudulent entity.
Basically, as someone who is getting into or has gotten into trading, you should have already gotten the lay of the land in terms of what the industry is all about. If you have not, stop, thoroughly research the characteristics associated with cryptocurrency trading, then proceed again.
Should you run into a robot making claims that go against truthful attributes, it is likely a scam. It’s a well-known fact that manipulating people with buzzwords is a very effective strategy.
It’s a tactic employed by many people in their personal lives, and online platforms do it too. What’s important is to recognize the attempts at manipulation and shut them down before they ever have the chance to get off the ground.
The promise of giveaways is also a method employed by fake crypto robots to try to get potential victims to sign up with their platforms.
if there is ever a time you look at a website, consider what it’s offering, and can see where it equates to a net loss, there is something probably off.
While it is true that not every cryptocurrency robot in the world Is looking to enjoy a profitable incentive from the activities of its members, none of them are looking to tank themselves completely.
So, pay attention to what is being promised, and evaluate its feasibility before diving in headfirst.
For example, many scams crypto robots like to promise the matching of whatever your investment is. So, if you were to do an initial deposit of $250, the platform is going to give you another $250 to get started.
This would not be the best operational decision, as it would mean a financial disadvantage for the underlying platform. Therefore, it’s unlikely that any legitimate robot is going to take such a step.
Having a white paper is essentially a rite of passage for a true cryptocurrency platform. It details what the underlying concepts are, how things work, etc.
This is more of something you see with the cryptocurrency coins themselves, but you can use it as a marker of robots too.
In looking around the page, you should be able to open a spread that talks about the team or the robot as a whole.
If you are unable to find this, in a lot of cases, such information is not within your reach because it simply doesn’t exist.
This one is technically an extension of the previous point. Reputable crypto robots are typically built by a whole team of persons who have different roles that may or may not directly be related to development.
After making their platforms open to the public, they often aim to identify themselves, what they stand for, and what led to the creation of the platform.
Additionally, for both compliance and transparency reasons, this information is made both publicly and very easily accessible.
If you find yourself struggling to get a grasp of who the team is, that’s usually because it’s non-existent since you have a fake crypto robot on your hands.
Again, this is a point that builds on the previous two. Obscuring the team, for example, is one of the mistakes that fake robots tend to make that can be used against them; at least for identification purposes.
Similarly, ambiguity is almost a defining factor associated with these platforms. You will often notice a general lack of clarity around certain attributes or types of functionalities.
For example, a withdrawal area. Since scam crypto robots are aiming to get persons to deposit their money so it can be lost forever, much thought is often not put into a withdrawal area, especially since it doesn’t work anyways.
So, on one hand, you may find that the withdrawal area exists, but it doesn’t do anything, while on the other, a withdrawal page may not be there at all.
This is just scratching the surface of clarity concerns that often present themselves where fake crypto robots are concerned. Ensure that everything is clear, and you understand it all before you make any financial decisions.
Phishing is a part of the tactics that fake crypto robots use, as it is with other unscrupulous entities that try to get information that can be used to cause problems for you.
Essentially, phishing is a type of attempt by malicious entities to collect data that can be used to impersonate you, allowing them to get away with your financial assets.
For example, the idea may be to have you turn over your credit card information, which of course means that it can be used for electronic transactions against your will.
If you’re getting correspondence from crypto robots you’ve registered with asking you for sensitive details, then you may have a phishing scam on your hands.
For example, you may be told that the platform has identified your wallet information is compromised and you can only fix it by changing the said password.
A link is often provided that you want to stay away from. In any event, it may ask you to enter your current wallet password and the one that you want to set.
This gets past unsuspecting people because they are used to these kinds of forms being used for password changes. The problem here is that this one is simply collecting the information you put into it to then log into your actual wallet and make transfers that you did not authorize.
Cryptocurrency exchanges are another fundamental piece of the trading puzzle. The underlying site of a robot will usually give you an indication of which exchange is the best route to go, especially if you’re going to be using it.
However, even exchanges are not built equal. Some of the names that scam crypto robots may call on are either unknown or completely unregulated. In extreme circumstances, the exchange named doesn’t even exist.
Just like you research cryptocurrency itself, check out whatever exchange is being named to find out more about if it can be trusted. If it can’t, then you are probably dealing with a fake robot.
What You Can Do to Minimize Your Chances of Getting Scammed
So, now you are acutely aware of some of the tactics used by the fake platforms to trick you into either signing up with them or giving them information that can be used maliciously against you.
The only thing to cover now is a few steps that you can take to minimize your chances of falling prey to the kind of scams that so many before you have.
This was briefly mentioned before, but it’s more important than you may think. Fear of missing out or trusting buzzwords can be a huge problem for those who are looking to go into the world of trading. It creates a culture of quick and irrational decisions, which should never be the case in anything financial.
No matter how legitimate any platform looks, do not put any money into it before you’ve done proper research and investigation. Not only should you understand what reputable platforms bring to the table, but you need to know about the underlying asset and industry too.
This is especially characteristic of scam crypto robots. They try to make you feel as if you are running out of time and need to take action quickly before either something bad happens or you miss out on an opportunity.
So, you may see a countdown on the site, for example. You’re told that If you don’t register and do your initial deposit in a given time, all these supposed benefits you miss out on are put out there for you to see.
Alternatively, during phishing correspondence, you may be told that you need to complete the action that the scam desires quickly or there will be consequences to face. Learn about what these attempts look like and do not succumb to them.
Known Untrusty Robots
You may be wondering if there are any known fake crypto robots out there. Apart from looking out for signs and being more attentive in your potential trading endeavors, knowing off the bat that some platforms are fake prevents you from having to go through the research process to learn that.
Here’s a list of known illegitimate bots:
Unfortunately, there are malicious entities out there looking to take advantage of a desire to trade. These scam crypto bots use a combination of tactics to lure in unsuspecting individuals.
The information above covered defining traits of such platforms, as well as actions you can take and, some known platforms to avoid.
TrustPedia is a financial portal-based research agency. We do our utmost best to offer reliable and unbiased information about crypto, finance, trading and stocks. However, we do not offer financial advice and users should always carry out their own research.Read More