Full-on Scam: SwapBot review

Swapbot website

Read this review to understand that Swapbot is not a cryptocurrency trading tool, it is a scam that you have to avoid.

What is SwapBot

SwapBot is said to be a cross-chain arbitrage robot. It means an automated piece of software that is trading cryptocurrencies and taking advantage of differences in prices across different blockchains.

For example Bitcoin can be represented as Wrapped Bitcoin on other blockchains, such as Ethereum. And the price of Bitcoin on these different blockchains does not have to be the same all the time. When it is not, you can buy it at a lower price on one chain and sell for a higher price on another chain. That is arbitrage trading.

SwapBot will let you invest USDT, BTC, BNB, ETH, DOGE, TRX and LTC. The highest returns are offered with USDT, starting at 1% daily and going up to 3% daily. So the maximum you can achieve is a 90% ROI in one month. The minimum investment is 20 USD(T).

The question is: Is SwapBot legit, can it really make you money in crypto arbitrages?

SwapBot scam

We tested SwapBot and we have to conclude that it is a scam. It just can’t achieve the returns it is promising in a legit way. It is based on an illegal financial scheme that is going to crash.

Why it’s impossible

In an ideal world you would look at the promised returns and you would immediately know that Swapbot is a scam. Because 1 to 3% daily is something impossible to achieve in real trading.

You can make 1 to 3% in one day, but you can’t make that every day. That is a fact that every honest trader will confirm to you. Who doesn’t, is probably wanting to sell you their system with similar results, so they are a scammer. Yes, it really is that simple.

Now let’s dive into details. At the beginning of this review, we briefly explained how arbitrage trading works – you take advantage of difference in prices on different exchanges.

Arbitrage trading is real, BUT… Arbitrage opportunities are closely monitored by thousands of trading robots and even the tinniest differences are immediately traded by these robots and eliminated from the markets.

Arbitrage opportunities always are very limited by liquidity. For example, when you see a token cheaper on one exchange, for that lower price there will always be a limited amount of that token you can buy. When you buy that amount, the price will go up and equalize with other exchanges.

The point is that arbitrage trading is not scalable. You can’t offer it as a free service to the masses. The more people trade the same arbitrage opportunities, the less profitable it is.

So, any public arbitrage service that offers steady daily returns is a scam. Period. There is no other way, it is dictated by how markets work, as we have just explained.

In fact, no matter the industry, any offer with 1 to 3% daily returns is a scam. This is how you can easily recognize a lot of online scams, because they offer this kind of ridiculous returns. When you see such numbers, you don’t have to analyze anything else, you can close that offer being sure that it is fraud.

Investment plans

How the scam works

We hear you, you say that Swapbot is paying you, so it can’t be a scam. Actually it does not matter, if it is paying or not.

Because these fraudulent platforms often start as Ponzi schemes. So when you deposit money, they take it and use it for payouts to older members. They don’t trade with it, they just transfer it to somebody else.

So these scams can gain some momentum in their early days, because people see payouts, so they promote the system and believe in it. But every Ponzi scheme runs out of money in the end, and Swapbot won’t be any different in that regard.

Deposits will dry out and Swapbot will crash. Then everybody will realize that there is no money in the system, that no trading is going on, that there is nothing to withdraw. Since all the transactions happen with cryptocurrencies, it will be too late to do anything about the scam.

Swapbot can crash any time, it is sure to crash, and that is why you have to stay away from it.

The pyramid scheme

Swapbot review – Conclusion

Swapbot is not a crypto arbitrage robot, it is a very simple scam that is running a Ponzi scheme. That is why it is sure to collapse, and that’s the reason you have to stay away from it.

If you want to try legit crypto investing, you can do it on a free demo on regulated platform. You will be able to test everything with virtual money.

You can start investing real money only when you understand the risks and when you have a good strategy.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 71-78% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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