Telegram Trading Bots: The Ultimate Guide for Newbies and Advanced Users

Quick Summary - Trading bots on Telegram are automated applications integrated into the messaging platform, allowing users to execute trades on decentralized trading platforms easily and quickly. - These bots provide multiple features including automated trade copying, liquidity sniping, and protection against attacks. - However, using these tools involves real risks related to the security of funds and smart contracts that must be taken into consideration.

Why have Telegram bots become an attractive option for traders?

In recent years, the digital trading industry has witnessed a true revolution with the emergence of tools that facilitate access to cryptocurrency markets. Trading bots on Telegram represent one of the most prominent of these innovations, providing a simple and user-friendly interface for traders of all levels.

These Bots operate as a smart intermediary between the user and decentralized trading platforms (DEX), allowing for complex transactions to be executed through a simple chat interface. According to industry data, the total transaction volume facilitated by these Bots has surpassed 283 million dollars since their inception until mid-2023, reflecting the growing interest in these solutions.

How do Telegram trading Bots work?

To understand how these tools work, one must first know that they replace the complex interfaces of traditional applications. Instead of dealing with complicated dashboards, users can send simple text commands via Telegram.

Basic Starting Steps:

When wishing to use a trading bot on Telegram, the user must follow a relatively straightforward setup process. The first step is to visit the official website of the bot, then open its version on Telegram and press the start button. After that, the commands outlined in the bot's tutorial guide are entered.

It is important to note that each bot has a unique design and different order lists, so the instructions should be read carefully. After the initial setup, the user can create a new exclusive wallet for the bot or import an existing wallet address using the private keys.

Critical Security Tip: It is always recommended to create a new wallet or use a separate account specifically for the bot, instead of linking your main wallet. This greatly reduces potential risks.

To start actual trading, the user needs to fund the new wallet with cryptocurrencies, usually Ethereum (ETH). After that, the currencies to be purchased can be selected by entering their contract address. The bot calculates fees and commissions and significantly speeds up the execution process compared to manual methods.

Advanced features provided by trading bots

Instant Buy and Sell

The main feature of any trading bot is the ability to buy and sell tokens at lightning speed. Since the bot is integrated into Telegram, it is enough to copy the contract address and paste it into the chat box. Many bots include instant notifications that keep you updated on your profits and losses continuously, and they also allow for quick selling through pre-authorized transactions.

Risk Management: Stop Orders and Take Profit

Traders can set automatic loss limits and profit targets, allowing the bot to execute buy or sell orders based on predefined criteria. This is especially useful for trading new tokens that are not available on centralized trading platforms, but it requires extreme caution as such tokens carry higher risk levels.

Protection against scams and attacks

Some advanced Bots are equipped with sophisticated defensive functions to detect liquidity withdrawal attempts (Rug Pulls) and attacks. Upon detecting the intention of the token developer to withdraw liquidity, the bot executes an immediate sell before damage occurs. Additionally, some Bots provide protection against maximum extractable value attacks (MEV), as they route purchase transactions through private channels away from the public memory pool.

It is worth noting that these defensive functions are still in developmental stages and may not work optimally in all cases. Additionally, transactions through private channels may be slower than regular transactions.

Automated Trade Copying

A powerful feature that allows you to match trades of specific wallets you choose. The bot acts as a bridge connecting your account with the trader you choose to follow, executing the same trades on your behalf based on their signals. But always remember that past results do not guarantee future profits, so choose traders carefully and start with a small capital.

Be wary of the risks of limited liquidity as well, which may cause price slippage and difficulty in closing trades at reasonable fees.

Sniping new tokens

Bots allow users to quickly participate in new token launches. There are several forms of sniping:

Liquidity Sniping: The bot sends a buy transaction the moment it detects a liquidity addition, with settings matching those of the developer's transaction, allowing the purchase to be executed in the same block immediately after the developer's transaction.

Systematic Sniping: It is used when tokens remain non-tradable despite liquidity being added. The user can distribute purchase transactions based on the developer's transaction method ID, which lifts restrictions and allows for faster trading.

Hunting with Multiple Wallets: Purchases can be made from multiple wallets simultaneously, which doubles the chances of success and potential returns.

Free Distribution Collection ( Airdrops )

The specialized bots in this field operate on multiple networks to discover promising distribution opportunities. They allow users to participate in distribution campaigns using multiple wallets, which may increase rewards.

Important Warning: Exercise extreme caution when sharing your wallet data or personal information, as most scams and tricks occur in the realm of unreliable free distributions. Always verify the credibility of the source before sharing.

Risks You Should Be Aware Of

key and fund security

Using the bot requires granting access to your private keys, either by creating a new wallet within the bot or by importing existing keys. Here, the risks of custody arise - the bot or its operators may retain access to your keys. Therefore, it is essential to use a separate wallet and not link your main wallet.

vulnerabilities of smart contracts

Bots need to interact with various smart contracts. If these contracts do not undergo comprehensive security audits, they may contain vulnerabilities that attackers could exploit, putting your funds at risk.

technical complexity

Although bots simplify trading, they can carry technical complexities that may confuse beginners. It is essential to read all the documentation carefully and start with a small capital that you are willing to lose while you learn.

Practical Tips Before You Start

Choose bots that have a good reputation and positive user ratings. Searching for a verifiable track record and real reviews is very important.

Stay informed about the latest updates and known issues through active communities and specialized forums. Active participation in discussions will help you enhance your experience and reduce risks.

Start with small amounts until you fully understand how the bot and the smart contracts associated with it work and any risks involved. Do not underestimate the importance of studying and having a deep understanding before investing larger capital.

Summary

Trading bots on Telegram have added significant value to the world of digital trading, providing convenience, speed, and advanced functionalities. However, these promising tools come with real risks that should not be ignored. The key lies in balancing the benefits of their features while remaining vigilant to potential risks. Choose wisely, study carefully, and invest cautiously.