The purpose of Telegram trading bots is to automate the process of trading on decentralized exchanges (DEXs) within Telegram. The bots can be communicated with by users via the app's chat system.
Various Telegram trading bots have different functionality, but the most of them enable multiple wallets, copy trading, and stop-loss and take-profit orders.
Trading bots on Telegram: How Do They Function?
With the help of Telegram trading bots, traders can automate their transactions by connecting to DEXs like Uniswap and trading based on user-defined rules.
Automated bots simplify the decentralized cryptocurrency purchase process by taking over the UI and UX of Web3 wallets and DEXs.
Although every trading bot has its own UI, they all basically function as a protocol to buy tokens rapidly or snipe them. "Sniping a token" is a trading method that involves acquiring a freshly introduced token as soon as it is made public.
In most cases, all that's needed to set up a trading bot is a trip to the official website, an open Telegram chat, and the input of certain commands from the control panel. Take note that the interface and menu structure vary among bots.
What Are Some Benefits of Utilizing Trading Bots on Telegram?
There are a lot of features that are shared by all of the telegram trading bots, but every bot has its own set of functions that are exclusive to itself. The following is a list of some of the most frequent features that you may anticipate from trading bots that use Telegram.
Purchase and sell tokens By only pasting the contract address into the chat box, users can purchase tokens using these trading bots that are integrated into the Telegram messaging network. Notifications of changes in your trade profits or losses can be provided by some bots using a real-time refresh feature. By facilitating pre-approved transactions, these bots also quicken the token sales process.Place orders for take-profit and stop-loss.Telegram trading bots allow you to create stop-loss and take-profit orders, which the bot can then use to execute trades autonomously based on those parameters. Tokens that are newer and not listed on CEXs can be traded using these order types; however, traders should use extreme caution while trading these tokens because of the higher risks they often carry.Detection of anti-rug and honeypot threatsThere are Telegram trading bots that can defend against rug and MEV attacks. Token developers cannot execute rug-pulls because the anti-rug function detects when a transaction is about to happen in the mempool and immediately executes a faster sale transaction to stop it.By routing all buy orders through a private relay, the anti-MEV functionality prevents the broadcasting of any purchase in the mempool. With this tactic, you can ward off MEV or sandwich bots. Trading copiesSome Telegram bots let users mimic the trades of other users' wallets automatically; all they need to do is enter the wallet addresses they want to mimic. By acting as an intermediary between the user's account and the selected trader, the trading bot can execute transactions according to the indications given by the followed trader. Keep in mind, though, that just because other traders have been successful in the past doesn't mean you will, too. Users need to use caution when configuring their trading bots and choosing which traders to follow. The possibility of slippage, difficulties closing positions, and increased transaction costs is known as liquidity risk, and it develops when there isn't enough market liquidity to complete transactions. This is another risk that copy traders face.Airdrop farmingWith the use of Telegram trading bots, traders can set up automated processes that can speed up the completion of airdrop objectives. on order to find the best airdrop possibilities, bots that specialize on airdrop farming often search across numerous chains. Users can increase their reward from airdrop campaigns by using airdrop farming bots to participate with multiple wallets.
Potential Dangers of Telegram Trading Bots
While trading bots for Telegram do provide some useful features and convenience, there are a lot of dangers you should know about before using them.
Your private keys are needed in order for the bot to connect to an existing wallet or create a new one. Before you proceed, create a new wallet and disconnect from your main one. The Telegram trading bot may also have access to your private keys since it generates them, adding a layer of custodial risk to these bots.
Interactions between smart contracts and Telegram trading bots are necessary. It is possible for Telegram trading bots to encounter weaknesses in the code of unaudited smart contracts while communicating with such contracts.
Those new to trading bots may struggle with the technical aspects of setting up a bot on Telegram. Before you start trading with real money, make sure you follow the instructions that the Telegram bot gives you.
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Disclaimer: The information provided herein is offered "as is" for illustrative and informational purposes only, with no representation or warranty whatsoever. This information is not intended to vouch for financial, legal, or other professional advice, nor does it endorse the purchase of any particular product or service.