Telegram Trading Bots
Telegram trading bots are systems that have been designed in Telegram to perform trades on decentralized exchanges. The application users can have access to them by using the message interface. These bots offer a variety of uses when trading and some of these functions include copy trading and multi-wallet support.
How Do These Bots Work?
The bots bring automation into trading. They link decentralized exchanges with the transactions and perform the actions according to the instructions that have been outlined by the user. The bots replace the user interface (UI) of the Web3 wallets and the decentralized exchanges (DEXs) and this makes the buying process easier.
The main function of these bots is to snipe the tokens. Sniping a token is a technique that is used to get hold of a new token or any token as soon as it airs out on the market.
To do this, you need to go to the official website, open the bot in a Telegram chat, and key in the instructions in the instruction section. Once you have set up the bot, you can either create a new wallet address or import the address of the one you own already using private keys.
After this, you deposit funds into your account with a token and in most cases, the Ethereum token is preferred. The user can then buy tokens by feeding in the contact address of the token origin.
Also Read: Top 3 AI Crypto Trading Bots To Boost Your Profits
The Uses Of Telegram Trading Bots
Purchasing and selling the tokens
The bots can transfer the contact address to the Telegram messaging section. In addition, some of them can update you on any losses or gains that have been made in the trades taking place. Thanks to automation, the bots can speed up sales by enabling transactions that had been pre-approved.
Deploy take-profit and stop-loss orders
You can feed the bot instructions on where to place stop-orders and where to take profit from. The traders can also leverage orders to trade newly released tokens but this should be exercised with caution as the tokens are generally volatile in nature.
Honeypot and Anti-rug detection
If a token developer tries to perform a rug-pull, the anti-rug mechanism recognizes the transaction in the mempool and performs a faster sell transaction to prevent the rug-pull from happening.
The anti-MEV leads buy transactions into a private relay making sure that none of the information on the purchases have been aired out on the the mempool. This serves to offer protection from MEV and sandwich bots. The rate of the private transactions reduces.
Far from this, the Telegram trading bots are able to check if there any malicious transactions taking place. A honeypot refers to a scenario whereby the transactions make the token unsellable. The bot liquidates any position to avoid the impacts of the honeypot event.
Copy Trading
The users can feed the trading bots with information about the trades they desire to carry out from other wallet addresses and are therefore able to replicate them. The trading bot acts on behalf of the owner.
Copying trades can be risky and the trader should therefore evaluate the risks that the other trader is taking. The activity is also associated with high levels of liquidity which can come about when there is low market liquidity and this makes it difficult to perform trades.
Sniping
A few Telegram bots can perform liquidity sniping. Liquidity sniping refers to automatic sniping that carries out a buy order when a bot feels that more liquidity is about to be added. These bots can also send buy transactions with similar gas settings with the ones of the developer. As a result, the liquidity is added and the buy transaction will take place in the same block after the one of the developer has occurred.
Method sniping is a technique that is used in scenarios where tokens are not traded after the liquidity has been added.
Airdrop farming
There are bots that can assist one in realizing airdrop goals. The bots enable users to take part in airdrop campaigns with different wallet types which leads to an increase in their awards. The airdrops are subject to fraud so users should be careful while using these bots.
Risks Associated With Telegram Trading Bots
- Breach of asset security: If you connect your primary wallet to a trading bot, you risk exposing your private keys.
- Smart contract risks: The bots make use of smart contracts. If they use the ones that have not been audited, the bots can come into contact with the weaknesses of the smart contracts.
- Technical difficulties and complexities within establishing trading bots: It can be challenging to come up with trading bots. You need to read a lot about them before embarking on the journey.
Conclusion
The Telegram trading bots are becoming more and more adapted in the cryptocurrency world. Their automation cant be taken for granted and the services they provide are equally admirable. It is important though to carry out research before trading using the bots and exercise extreme caution so that you don’t become a victim of scams.
Also Read: A Guide To AI Crypto Trading Bots: Benefits, Risks, And Choosing The Right One For You