Cryptocurrency market is one of those markets which has attracted investors from every market. The reason is the profit earned in the crypto market, which is many times more than other markets. But where there is more profit, the possibilities of loss are also greater. This loss increases even more when investors resort to new tools or new technology to earn profits. Crypto investors are currently doing something similar in their quest for profit. In fact, according to a recently released report, investors in the cryptocurrency market are taking the help of artificial intelligence (AI) trading bots to earn profits.
Advertisements are given on social media luring investors in the market with higher profits, which are run by hackers and crypto fraudsters. These advertisements claim to have AI Trading Bots that make crypto predictions. Falling into the trap of these AI Trading Bots, investors invest in the crypto market and then they have to suffer losses. In many cases, scammers create fake websites and make investment offers and claim that their AI Trading Bots can make future predictions. Investors looking for big profits fall prey to these AI trading bots and end up incurring losses.
Recently, the United States Commodity Futures Trading Commission (CFTC) had also issued a warning to investors trading in the cryptocurrency market relying on AI Trading Bots. In this warning, CFTC said that artificial intelligence (AI) can never predict the future. In its press release, the CFTC said that crypto investors seeking good returns should not fall prey to the lucrative offers offered by these #AI trading bots.
The agency further said that due to the popularity of social media and influencers, the propagation of these bots has become easy. In such a situation, investors need to be cautious of these promotions. Coingabbar also believes that before trusting any trading bot or trade signal provider, investors should thoroughly research the background of the company associated with it. In its press release, the #CFTC cautions crypto investors against firms promising profits primarily by using bots, trade signal algorithms, crypto-asset arbitrage algorithms, and other AI-supported technologies.
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