Telegram crypto bots connect to decentralized cryptocurrency exchanges and execute trades according to predefined rules. While they are usually free to use, a small transaction fee may apply.
What are Telegram Crypto Bots?
Telegram bots are user-programmed applications on the messaging platform Telegram that can help users automate tasks such as investment and price control. One of the best known Telegram bots is Bobby Buy Bot, which sends alerts to Telegram groups whenever a purchase is made.
Telegram bots cover a wide range of functions and can give you up-to-date information on NFT prices, tracking wallets and much more.
In the past few months, the wave of Telegram crypto bots has exploded. On May 23, 2023, the total market capitalization of DEX Bot Sectors tokens was 5.5 million. A little over two months later, on July 25, total market cap has already increased more than 25 times, exceeding its total market cap to date of 139 million.
How do Telegram Crypto Trading Bots work?
Many users like Telegram trading bots for their convenience and efficiency. For example, Unibot, the most popular trading bot, is designed to make extremely fast swaps on Uniswap. According to its website, Unibot can process transactions 6 times faster than transactions on the traditional website Uniswap.
Instead of turning on your computer, connecting your wallet to the website and confirming transactions, all you have to do is copy and paste the contract address of the token and send it as a chat to purchase the token. This seamless process makes it extremely easy for users to trade with a simple telegram command.
Telegram Trading Bots Features
While each bot has different functions, they usually run the same basic operations. These functions include:
Buy and sell tokens efficiently
You can quickly buy coins by copying and pasting the CA into the chat, which is seamlessly integrated into the messaging platform. Most bots will also have a refresh function that gives you live updates on how high or low your investment is. You can also sell your tokens quickly through the bot, as you can confirm and sign transactions in advance.
“stop loss” and “take profit” orders
Users can also set up “stop loss” and “take profit” orders, where the bot will automatically execute trades when the coin reaches a certain price. This feature can be extremely useful as users can automate the trading experience and do not need to be online to execute trades.
Anti-rug features
Most of the boots also have anti-rug properties. If the token developer attempts to withdraw the token, the bot can detect the pending transaction in the mempool and execute a quicker sell action to liquidate the position before the liquidity is withdrawn.
HoneyPot control features
Similar to its anti-rug features, the bot can detect malicious transactions from a token developer. If the incoming transaction makes it impossible to sell the token and turns it into a honeypot, the bot will liquidate the position immediately before it becomes a honeypot.
Multiple Wallet Sniping
To bypass individual wallet restrictions on tokens, users can use the bot to simultaneously snipe with multiple wallets. For example, if a user snips a token with five multi-wallets, the bot will perform the same action in each of the five wallets. This is often done by token developers to bypass restrictions such as the maximum wallet size hardcoded into the smart contract.
Liquidity Sniping
Telegram trading bots can also perform liquidity sniping, a form of automatic sniping that executes a buy order when the bot detects that liquidity has been added. Bots are often programmed to send purchases with the same gas settings as the developer’s transactions, adding liquidity so that the purchase happens in the same block immediately after the developer’s transaction.
Risks of using Telegram Crypto Bots
To start using these bots, you first need to configure your wallet and connect it to Telegram bots so the bot can trade on your behalf. Although Telegram trading bots claim to have deleted access to your account, we have no sure way of knowing and these Telegram bots may have access to your wallet in some way.
While Telegram trading bots are certainly suitable, it’s always important to note any potential security trade-offs they can create. To be safe, users may want to connect a separate wallet to the bot and only transfer the amount they use.
