Aug 8, 2025

The Truth About Crypto Trading Bots and False Profit Promises – How to Avoid Scams

Learn how to spot scams in the world of crypto trading bots, avoid performance manipulation, and realistically assess ROI. Discover the difference between fictional profits and real investment strategies.

Introduction – Why Huge Profit Promises Are So Tempting

The world of cryptocurrencies attracts investors with visions of getting rich quickly.
Headlines like “1000% per month with a crypto bot” ignite the imagination and make many people believe in the possibility of rapid financial success.
Unfortunately, in practice, such results are impossible to achieve in the long term – even when using high leverage.

Below, I explain how the most common scams work and how even legitimate bots can manipulate the way results are presented.

Fake Profits – Ponzi Schemes and HYIP

How a Crypto Pyramid Scheme Works

These scams (known as HYIP – High Yield Investment Program) operate in a simple way:

You deposit your money into an “investment” promising dozens or hundreds of percent in monthly profits.
Initially, you receive small daily or weekly payouts to build trust.
Your payouts are funded by deposits from new participants.
After some time, you are “encouraged” to top up your investment.
Eventually, the project disappears, and you lose your capital.

The scheme is simple – only those at the very top make money, and everyone else loses.

Even Legitimate Bots Can Be Misleading

Not every bot is a scam, but even legitimate tools can use clever marketing tricks that exaggerate results.

API and Fund Safety

In a legitimate model, you keep your funds in your own exchange account.
The bot operates only via API keys configured so it can open and close trades – without the ability to withdraw funds.

Percentage Manipulation

The problem arises when a bot sums up percentages from individual trades instead of calculating the actual ROI (Return on Investment).
Example:

The bot opens 10 trades, each with a 5% profit.
The advertisement says: “50% profit.”
In reality, your balance might grow only from $1000 to $1020.

This calculation only makes sense if:

you always invest in one asset at a time,
each trade is executed with the same amount.

What Real Profit Means – True ROI

ROI shows the actual return on investment based on your starting and ending capital.
If your capital is $1000 and after a month you have $1200 – your ROI is 20%, no more.

Expectations vs. Reality

Spot markets: 30–50% annually is a very good result.
Futures markets with leverage: 100–200% annually is also an excellent achievement.

If someone promises you hundreds of percent per month, know that it’s unrealistic.

The Trap of “Spectacular” Leveraged Trades

Why 500% on a Chart Is an Illusion

On social media, you can often see rocket emojis 🚀 and claims of 500% profit.
In reality:

This means a 10% price movement with 50x leverage.
The posters don’t mention how many times they had losses or complete account liquidations before.
Long-term, such a strategy always leads to wiping out the account.

Copy Trading – Where the “Best Traders” Disappear

In “Master Copy Trading” sections on exchanges, you’ll find accounts with massive ROI.
But track them for a few months, and you’ll see:

they eventually disappear due to losing their entire capital,
they’re replaced by new traders,
the whole cycle starts again.

Conclusion – Common Sense in the Crypto World

In cryptocurrencies, there is no shortcut to wealth.
Real, sustainable profits come from a proven strategy, discipline, and capital protection – not from chasing “astronomical” percentages.

Check Real Results with Intralogic Backtesting Bot

If you want to see what honest ROI calculation looks like and a strategy based on backtesting data, check out Intralogic Backtesting Bot.
It will help you invest consciously, avoiding manipulation and false promises.