The rise of AI has brought many changes in various industries, including the trading world. Right now, AI trading is the newest technological innovation in the world of trading and many people have been utilizing it with the aim of making trading simple.
All are well aware of the rise of AI trading which means scammers are aware of the great demand that this trading presently is in. Scammers are now trying to make use of AI trading to trick investors and loot their money. If you are a trader, the possibilities of you encountering such scammers are very high.
This article will give you an understanding of AI trading scams and ways to prevent them which might come in handy for you to avoid falling into the hands of any scammers.
What Is AI Trading?
To understand AI trading scams, let us give you an overview of AI trading. This is a type of trading where artificial intelligence is used to make the process of trading easier for people. AI trading assists you with trading by providing various services such as giving you insights into the trading market, studying the history of the trading assets, understanding the trends, predicting the fluctuations and changes in the market, identifying profitable trading options, and so on.
In simple terms, AI trading provides traders with all the information and data needed to make profitable trading decisions.
ALSO READ: Explore The Top Canadian AI Trading Stocks Of 2023
How AI Is Used To Scam Investors?
Scammers have been using AI in many ways to scam investors and this involves claiming to be a person you know or creating people that don’t exist. For example, many scammers create people using AI and pose them as the CEO or chairman of an AI trading system to make people believe that it’s authentic. People might think that this is a real person and will trust scammers for AI trading.
Another way is scammers making use of the voice of a person that you know or you are close with and speaking to you in the same voice over the phone. There are also scammers that make them look authentic and contact people to say that their AI trading can help them in making profits.
How To Prevent AI Scams?
Here are a few ways in which you can prevent AI scams:
- Many AI trading scams claim to be providing you with investment opportunities but do not have a history of trading. Therefore, when an AI trading scam contacts you, you can ask about their trading activity history.
- Be aware that most scammers utilize public platforms like YouTube and Telegram for promotional activities.
- If you are contacted by an AI trading system, study about them before joining. Many scammers claim to have AI trading systems that can help with trading but they are usually systems that can scam you.
Choose Trusted Platforms
A field that evolves as rapidly as AI for algorithmic trading has new players constantly appearing. But until now, the following stand out especially for their relevance and continuous innovations:
Shrimpy
Without a doubt the current leader. It has 200,000+ active users and integration with all known platforms. Allows extensive backtesting to test strategies and fine-tune configurations.
It offers five large sets of bots to choose from for more granular customization. The goal is to simplify the experience of novice users with its Interface Conversation as much as possible.
Bitsgap
Another very popular for its intuitive visual configuration and leader board performance monitoring. Trades on 17 exchanges via API. Includes built-in grid trading and DCA bots, plus options to program the robot algorithm itself.
It has gone viral lately for allowing copy trading of profitable users’ strategies in an almost plug & play way. Read More.
Coinrule
Focused 100% on beginner traders. It allows you to create automatic trading strategies with a “drag & drop” interface. It also incorporates copy trading rules from experienced investors.
Native integration with 12 exchanges, with free but limited plans. At the moment only positive testimonials from users, but it lacks an extensive track record.
Cryptohopper
One of the first to offer automated bots back in 2017 and with years of expertise. It has nearly 200,000 traders who trust its platform for automated trading 24 hours a day.
Conclusion
AI trading scam is so widespread that it is targeting both novice and experienced traders and scam them in many ways. Although AI trading scams might be difficult to determine, with the right prevention, you can dodge the bullet easily. If you encounter any such AI trading scammers, take action against them by reporting them to the authorities.
READ MORE: What Is AI Trading? And How It Works?
