How to avoid trading bot scams

The trading-bot space is full of scams. Here's how to tell a legitimate tool from a wallet-drainer.

Red flags

• "Guaranteed returns" or fixed daily profit. Nobody can guarantee this. It's the #1 sign of a scam.
• Asks you to deposit funds into their platform or send your private key to a website. A safe bot never holds your keys or money.
• Screenshots of huge profits with no verifiable, public record you can check yourself.
• Pressure and urgency — "limited spots", countdown timers on a bot that "prints money".

Green flags

• Self-hosted: you run it on your machine, with your keys, no custody.
• Honest about risk: says plainly that you can lose everything and it's not a promise.
• Transparent logic: explains why it trades, not just "AI magic".
• Paper mode first: lets you test with fake money before risking real funds.

Rule of thumb

If it sounds like free money, it's a scam. A real tool gives you an edge and discipline — not a guarantee.

This article is informational, not financial advice. Trading prediction markets carries a risk of total loss. Check that using it is legal in your jurisdiction.