In algorithmic crypto trading, scams and over-hyped solutions are competing with serious and regulated actors – such as HAL by CoinShares.
How can you tell them apart? It’s not as hard as it might seem.
Trading Bots: Identifying the Scammers
Let’s face it: scamming is a serious issue in automated crypto trading. Influencers are promoting dubious robot trading services, with exorbitants claims like “100% probability of making money!”
Tip 1: Be wary of solutions that guarantee short-term gains. Investing always comes with risk.
These investment scams are a concern for Consumer Affairs and Fraud Control departments worldwide. However, not all platforms are fraudulent. Some are developed by investment professionals, and integrated in larger firms.
Tip 2: Check if the bot operator is regulated by a governmental financial entity.
Just as the internet can be misused to spread false information, it is also a great tool to open up access to advanced technologies. Only the biggest firms can afford to develop solid, machine-learning backed trading algorithms. Automated algorithmic trading actually has the potential to democratize advanced crypto trading.
Tip 3: Research, research, research: where does the player draw its expertise from?
To sum up, before you make any investment decisions, make sure to ask about credibility, legitimacy and expertise.
Why is HAL different?
Having talked about scams in crypto, you might be wondering why you should trust HAL, and what sets it apart from less scrupulous competitors.
Source: HAL, CoinShares
1. An established platform
HAL (formerly known as Napbots) was created by a team of professionals with ample experience in the financial industry. Launched in 2019, the platform had approximately 4,000 active users and $10 million in live trading budget at its peak.
HAL operates with a clear mission in mind: expand access to the digital asset trading ecosystem. By pioneering new financial products and services, HAL aims to provide traders with trust and transparency when accessing the new asset class that is crypto.
2. A solution designed by experts
All of HAL’s strategies are designed by our in-house team of professional quant traders and crypto analysts. These experts create algorithmic strategies that rely on state-of-the-art mathematical models, and they are always back-tested on historical data before being tested internally in real conditions.
This sets HAL apart from competitors, who often offer trading bots of unknown origin, or simply give access to a marketplace of strategies. When you browse through such a marketplace, it’s almost impossible to know who designed the available strategies: have they been tested extensively or are there just scraps of code jumbled together?
By adopting HAL’s strategies, you benefit from the knowledge, experience and reliability of professionals.
3. A regulated actor
HAL is part of CoinShares, Europe’s largest digital assets investment firm with billions of dollars under management (see coinshares.com). CoinShares is a public and regulated group listed on Nasdaq First North Growth Market. CoinShares France, as a subsidiary of CoinShares, applies all the compliance, internal control and risk management measures applicable to regulated companies.
4. Fair and transparent pricing, along ease of use
HAL’s pricing is simple and unique: the subscription fee is €19,90 per month, regardless of the amount you’d like to trade (currently up to $100,000) and without engagement. There are no hidden costs or extra charges once you get going and you are not locked in: you are free to end your subscription at any time.
In keeping up with this democratization spirit, HAL provides high-end educational material & insights for its users. You can browse through articles covering many crypto basics, and check regular reports for HAL’s strategies.
Finally, HAL is built to be the simplest automated trading solution to use, and does not keep you in the dark about your performance. All the information you need is located in a handy dashboard, and switching between strategies only takes a few clicks.
Investing involves risk, including the possible loss of all the money you invest. In particular, crypto-assets are a highly volatile and speculative asset class. HAL is only suitable for traders who are willing to bear the risk of loss and experience sharp drawdowns. Past performance is not necessarily a guide to future performance.
The purpose of this material is to provide objective, educational and interesting commentary and analysis on developments in the crypto-assets sector. Nothing in this material should be interpreted as constituting an offer of (or any solicitation in connection with) any investment products or services by any member of the CoinShares Group where it may be illegal to do so. Access to any investment products or services of the CoinShares Group is in all cases subject to the applicable laws and regulations relating thereto.