The world of crypto trading has grown at an exponential pace. Gone are the days where digital currencies were traded in secret. Now, cryptocurrency has turned into a multi-billion dollar industry that has garnered the attention of reputable governments to large scale corporations alike.
With those entities, the sector has also obtained the attention of individuals who want to expand on their traditional trading experience to profit from digital assets. But they are not the only ones who want to benefit from cryptocurrency: even those who have never delved into trading assets before are now going all-in on digital currencies in hopes of large gains.
To summarize, everyone knows someone who is either trying to get into the market or is already knee-deep in it. Those who have free time on their hands have taken it up as a full-time gig. On the other hand, those who can’t leave their full-time jobs need to juggle the pressure of watching the markets 24/7, while also fulfilling their other commitments without any failure.
It’s because the crypto market is highly volatile. A profitable trade could present itself in a single minute only to be gone the next. If traders are not watching diligently, they could lose on profit-making opportunities very quickly.
That is where bitcoin & altcoin trading bots come in.
As automated software, these bots analyze the market, assess the conditions, and determine the profitability of carrying out a particular trade. They don’t stop there, but also go ahead and execute these orders all on their own.
The automated functionality of these bots lets traders get some much-needed relaxation, but with the assurance that they are not missing out on beneficial movements of the market. That is why, these automated algorithms are in demand after in cryptocurrency world, where everyone who wants to profit from this emerging market looks forward to making use of them.
At the time of writing, there are a plethora of bitcoin bots to choose from. But not all of them are credible or trustworthy. With that, those who want to benefit from automated trading without spending any money on software solutions often look for the services that come without any cost.
While the approach is understandable, it is also highly dangerous. Not all of these solutions are reliable, to begin with. The risk only gets greater when it comes to free trading bots that come without any cost.
Are There Any Free Bitcoin Trading Bots Available?
Almost all of the services that could be deemed credible and reliable charge for their full services.
It’s because an automated bot is a highly sophisticated piece of software that takes months or even years to develop to a certain level of proficiency. Keeping this in mind, it is logical for anyone who has invested that much time in developing such a solution to ask for proper compensation. That is why nearly all algorithms worth their salt comes at a specific price.
You could still find free cryptocurrency trading bots that do not charge its clientele. But here, you need to remember the age-old saying of, “If something is too good to be true, it probably is.”
Why Any Free Bot Trading Services Are Existent?
You should be highly wary of any cryptocurrency managing tools that give you everything and ask for nothing in return. In contrast, some trading bots that offer a 100 percent free trial for a few days or free service with limited features could often come from reliable sources.
It’s because these bitcoin bots are not offering everything they have for free.
In free trials, they are trying to show you what their solutions could do for you. In open trials with limited features, they are following the same objective, but to cash in on customer loyalty. These bots are banking on the possibility that after their clients have spent a certain amount of time with them, they might want to upgrade their subscription.
In any case, you should be very cautious of offers that are too good to be true, and only select to trade with exchanges that are popular, reputable and reliable.
Is It Safe to Use Free Crypto Bots?
Cryptocurrency by itself is prone to risks of losing money. Similar to conventional trading markets such as stocks, nothing is guaranteed in digital asset market. But due to being an emerging market, it is even more prone to fluctuations and volatility than its traditional counterparts.
That is why no automated script could guarantee you 100 percent profit. If you are using a cryptocurrency bot, you would be able to make trades that are sound from a technical analysis standpoint. But at the same time, there’s no telling if specific trades would end up benefiting you or not until they are completed.
With that, trading through an autonomous algorithm does save you from making technically inaccurate or emotionally charged decisions, which does enhance the chances of making potentially advantageous trades.
Remember that whenever you are placing your trust in a bitcoin bot, you are also putting your funds on the line. You might lose money in the trades you make, which is why you need to make sure that you are only playing with funds that you can afford to lose.
Another thing that you need to pay attention to is the security aspect of these cryptocurrency bots, especially when they are free.
Not all platforms are built to be secure enough to safeguard your funds from potential breaches. On the darker side of things, some services built by malicious parties might be after your money themselves.
What to Pay Attention To?
To make any trades on your behalf, a cryptocurrency bot has to be connected to an exchange where the whole action takes place. The list of supported exchanges is very clearly available on the websites of these services.
To start your trading activities, you need to have an account in an exchange supported by your chosen platform.
Afterward, you connect your trading bot to the supported exchange holding some assets for executing the orders. The script then starts making trades on your behalf, deducting the required amount from your account and depositing any profits back into it automatically.
But here’s where you need to be extremely cautious.
These trading bots connect to exchange accounts through API keys, which allow them to trade your funds on the exchange’s markets. These API keys require specific permissions to perform the necessary functions (such as trading your funds within the exchange and making deposits into your account). You may think of this as an app on your phone asking access to your contacts or images. While it is installed, it wouldn’t be able to access your data until you permit it to.
These permission requests include a withdrawal request that allows the bot to withdraw your funds out of the exchange and deposit into a separate account of their choosing.
Reputable platforms never ask you to allow withdrawal permissions for their bots. Neither should you allow any service, no matter how reliable it seems, to be able to withdraw funds from your account. This is not exclusively due to showing a lack of trust in the trading service, but also security mechanisms. If the cryptocurrency bot gets hacked, any malicious parties would be able to withdraw your funds for them never to return again.
That is why you should ensure that you are never allowing any API to withdraw funds from your account. As an added measure, look for solutions that allow you to avail additional security mechanisms such as two-factor authentication (2FA), which adds another layer of security to your funds.
Even when you do not allow your cryptocurrency bot to withdraw funds from your account, a scam platform might use your funds into the shady pump and dump schemes to play with market costs for an altcoin that it favors. Keeping this in mind, you should be very vigilant in giving an unknown entity any access to your account.
Before you invite any service to make use of your funds, make sure that you are looking at the crypto bot’s user reviews, its company history, and its team members’ social media profiles. This ensures that you are staying away from possible scams.
As an added safety measure, make sure that you keep your primary and trading accounts separate. And if possible, keep them on two different exchanges. This way, you can only maintain your account with a certain amount that you can afford to lose while keeping your primary savings intact.
Also, make sure that you are only dealing with trading bots that are well known in the crypto market and are known as credible entities. Here, you do need to keep in mind that the free trial offered by such bots only stays for 7-30 days. You would need to decide before that trial period ends to continue making beneficial trades with your cryptocurrency.
Remember, bitcoin trading could be very convoluted, but it is also no more complex than any other business opportunity once you devote some time to understand it. As long as you practice caution and vigilance, you could navigate your way through this emerging market with ease.