The Quantum AI trading scam is catching out aspiring crypto traders. Quantum AI claims to use a powerful automated trading system to identify entry and exit positions in the crypto markets. And adding to its appeal are videos circulating online that Elon Musk has personally invested in the platform. The bad news is that Musk has no affiliation with the company. In fact, the real Quantum AI is a Google product.
So, what exactly is the Quantum AI trading bot? And if it is a scam, what are the best legitimate crypto trading bots?
Quantum AI Exposed
Quantum AI is a trading bot that automatically enters trades in the cryptocurrency markets. The software uses a type of derivative, known as CFDs, to speculate on the price of 300 digital assets including Bitcoin, Bitcoin Cash, and Ethereum, without clients having to own or transfer tokens. The platform asks for a $250 minimum deposit to get started.
Quantum AI has gained real traction in recent months as fake videos of Elon Musk endorsing the platform have done the rounds on social media and online publications.
Bogus videos explain how Musk developed trading software that uses quantum computing to trade financial securities with a 90%+ success rate, analyzing data 100 times faster than any other trading program.
The videos go on to say Musk recruited a “hand-picked team of engineers” from Google and Apple who have been developing the crypto trading platform for the last three years. There are also misleading claims that people can expect profits of between $1k and $2k on their first day.
Unfortunately however, these videos are fake. Scammers have overlaid their own audio file onto legitimate videos of Musk speaking, creating very convincing, but ultimately fake marketing materials.
Adding to the scam’s sophistication is that the con artists are piggybacking off of the current trends and legitimate interest in quantum physics and computing, plus artificial intelligence and machine learning.
With all this in mind, crypto traders should steer clear of Quantum AI.
How To Spot A Crypto Scam
The good news is that budding crypto investors can perform a few straightforward checks to verify the legitimacy of a crypto trading platform and automated investing bot:
- Reviews – Check for positive ratings from industry review sites and other traders. For example, we have tested and reviewed the top crypto trading bots.
- Claims that sound too good to be true – If the company is promoting an automated trading system that “makes you £1,320 in 5 hours and cures poverty” then stay away.
Trading cryptocurrencies is risky and there is no guarantee of profits. Avoid firms promising to make you rich in just a few hours.
- Regulation – Whilst many legitimate crypto trading companies operate without a license from a financial watchdog due to the evolving regulatory landscape, well-known scams will often appear on blacklists. New Zealand’s FMA, for example, issued a warning about “fake news articles” relating to Quantum AI. Germany’s BaFin and Ontario’s OSC have also placed Quantum AI on their investor warning lists.
- ISO certification – Check whether the website has an ISO seal of approval. This usually means a third party has confirmed the firm follows measures designed to safeguard the privacy and confidentiality of personal data and information. If the crypto trading software does not have this, or a registered business address, then it may be operating a scam.
Quantum AI Alternatives
Cryptocurrency investors have several good options when it comes to automated trading software. Our three top picks include:
- Bitsgap – Launched in 2017, the beginner-friendly platform provides crypto trading bots, signals, and automated investing algorithms. Bitsgap has partnered with 25 crypto exchanges, including Coinbase and Kraken, ensuring traders can find the best prices. The firm has also teamed up with TradingView to offer user-friendly charts and indicators, while the cloud-based crypto bots support a variety of strategies, including grid trading, Sbot, Combo and Classic bots.
- NapBots – Launched in 2017, NapBots offers automated crypto bots that can generate returns in bullish and bearish markets.