Cryptocurrency trading is a booming industry that has become increasingly popular among investors in recent years. This growing popularity has led to a spike in the development of the crypto trading bot. These bots help investors become more successful by automating their trades.
Indeed, an AI trading bot can be quite helpful and save traders lots of precious time. But the best crypto trading bots aren’t free. So let’s look into the amount of money you’d need to invest before you’re able to use one such bot to make a profit.
RELATED ARTICLE: WHY LEARNING ABOUT FINTECH IS CRUCIAL
The Cost of Developing a Crypto Trading Bot
Most developers base the price of a crypto trading bot on the amount of work involved in creating it. To develop a crypto trading bot, one needs a computer programmer with adequate experience. According to one pricing plan, an expert programmer would charge $15,000-$30,000 for their time on a project of such substantial size.
The equation is simple: Higher levels of programming skills lead to higher prices. Plus, more complicated bots cost more to develop since they have more functions for programmers to implement.
RELATED ARTICLE: 5 WAYS TO ACQUIRE FUNDING FOR YOUR NEW BUSINESS
The Price of Renting a Trading Bot
As far as renting goes, the cost of a crypto trading bot depends on the features and functionality it offers. Most trading bots are expensive. This is because they offer many advanced functions like portfolio management, market tracking, and order execution. These features ensure that traders experience the full benefits of using bots.
At most, a crypto trading bot will cost $20-$40 monthly per each function they have. In practice, however, you’ll most likely need to pay $6-12 a month per bot function to rent one. This fee will vary depending on the developer’s experience level and how many functions the bot has. Such is the cost of some of the best and most popular bots. These include Cryptohopper, Trality, and 3Commas.
Fortunately, there are many low-cost ways to rent one of these kits without investing all of your savings up front. You can start off by renting cheap bots that only have a few functions for testing purposes. Then as you gain confidence in your trading abilities, upgrade to more expensive bots with more functionalities. That way, you can maximize your profits while minimizing the risks involved in making trades.
You can also start by using the free versions of one of the top bots we’ve mentioned. Their free plans usually offer most of the features, but in a limited way. Still, it’s an excellent way to get acquainted with these bots before choosing one of the more expensive plans.
Free Crypto Trading Bots and Their Risks
Additionally, some crypto trading bots are completely free to use. These are open-source bots that can be easily modified by anyone. Choosing the best open-source crypto trading bot is difficult since there are many to choose from. But some notable examples include Gekko, Zenbot, and Enigma Catalyst.
Unfortunately, not even the best free crypto bots can compare favorably with the paid ones due to a relative lack of features and inferior UX design. Still, they can be helpful and present a decent alternative to free and limited versions of paid crypto bots.
There is, however, one specific kind of free crypto trading bot that isn’t really a trading bot. This sounds like a riddle, but the explanation is simple: These are fake crypto trading bots made by scammers who are only after your money.
Warning Signs to Watch For
Nowadays, there are many of these scams, including Immediate Profit, Bitcoin Billionaire, and Ethereum Code. The con artists are preying on users, mostly beginners, who are looking for an easy passive income.
Still, a trading bot could be free but legitimate, so that’s definitely not a guarantee that a free bot should be avoided. So how can you spot a scammy trading bot?
- The first red flag is when you notice that a bot has three or more official websites. They will be nearly identical looking and filled with generalized text about crypto trading and its history, with little specific info about the “bot” itself. This Immediate Profit review, for instance, goes into more detail about fake websites.
- On the same websites, the scammers will promise absurd numbers, such as a 90% successful prediction rate and the chance to earn several thousand dollars weekly. If you know what you’re doing, a realistic income is usually $100-200 weekly.
- Finally, check the associated Trustpilot page. This platform cares about the authenticity of the reviews posted on it, so it regularly warns users about fake reviews. Most fake bots remain with only negative reviews written by people who lost their deposits as soon as they placed them. And while we’re talking about reviews, it’s always a good idea to get more information on ScammerWatch, a specialized and trustworthy website about scam crypto projects.
About the Author
A crypto enthusiast with more than seven years of professional experience, Michael Klias is passionate about blockchain, finance, and technology. Find him at https://twitter.com/KliasMichael
RELATED ARTICLE: DISRUPTING THE INSURANCE INDUSTRY WITH INSURTECH