Crypto trading bots can save you time, reduce emotional trading, and help you stick to your strategy. But here’s the catch — a bot is only as good as the way you set it up.
If you’re just starting out, it’s easy to make beginner mistakes that could hurt your results.
Let’s talk about the 5 most common mistakes new bot users make — and how you can steer clear of them.
1. Skipping Paper Trading
A lot of new traders jump straight into live trading because they’re eager to see results.
The problem? You end up testing strategies with your real money — and paying for every mistake.
Avoid it by:
Always start with Paper Trading. It lets you simulate trades in real market conditions without risking a single cent. Once you’re confident your bot is performing well, you can switch to live trading.
2. Choosing the Wrong Bot Type
Not all bots are built for the same purpose. A DCA bot behaves very differently from a Grid bot or a Market Neutral bot.
Avoid it by:
Understanding the bot types before you start. Here’s a guide that explains them in simple terms: CryptoHero Bot Types
3. Ignoring the Strategy Marketplace
Many beginners try to create a bot from scratch without any reference — which can be overwhelming.
Meanwhile, the Strategy Marketplace is sitting right there, full of tested, ready-to-use strategies built by experienced traders.
Avoid it by:
Browse the marketplace, study the stats (win rate, running time, bot activity), and either rent or deploy a strategy that fits your goals. You can also use it as inspiration to build your own.
4. Setting Unrealistic Expectations
Some traders expect instant profits, but bots aren’t magic money machines. Even the best strategies have losing trades — that’s normal.
Avoid it by:
Thinking long-term. Focus on consistency and risk management rather than chasing quick wins. Track your bot’s performance over weeks, not hours.
5. Not Monitoring or Adjusting the Bot
Bots can run 24/7, but that doesn’t mean you should set and forget forever. Market conditions change, and your strategy might need tweaks.
Avoid it by:
Checking in regularly. Review your bot’s performance, adjust parameters when needed, and stay updated on market trends.
✅ Final Tip:
Start small, learn how your bot behaves, and scale up once you’re confident. The more you understand your strategy, the better your results will be.
Disclaimer
The information provided in this article is for educational and informational purposes only and should not be construed as financial or investment advice. The content reflects our personal views and experiences, and may not be applicable to your individual circumstances. Trading financial instruments such as stocks, options, futures, commodities and cryptocurrencies involves substantial risk and is not suitable for every investor or trader. You should carefully consider your investment objectives, level of experience, and risk appetite before engaging in trading.
Past performance is not indicative of future results. All investments and trading carry the risk of loss, and you should only invest/trade money that you can afford to lose. It is strongly recommended that you seek independent financial advice from a qualified professional before making any investment/trading decisions.
While we strive to provide accurate and up-to-date information, we make no guarantees regarding the completeness, reliability, or accuracy of the information presented. Any action you take based on the information in this article is strictly at your own risk.
We disclaim any liability for any loss or damage incurred as a result of the use of or reliance on the information provided in this article. Always conduct your own research and due diligence before making any financial decisions.
