As a crypto trader or investor, you may have heard of crypto trading bots. These are bots that help traders to automate their trades and reduce human influence on such trades.
Because they are automated, bots are known for executing transactions they have been programmed to execute, devoid of human emotions. This makes them a valid alternative for trading apart from manual trading.
There are several trading bots out there, and some are more popular for certain exchanges than others. There’s even a whole group known as Telegram trading bots. In this guide, we discuss in detail what these bots are and how they work.
What are Telegram Bots?
As the name implies, these are bots that work with messaging app, Telegram. They are automated systems built on Telegram that help users to execute trades on decentralized exchanges.
There are different Telegram trading bots, each used for a unique function. The most common ones however have features such as stop-loss and take-profit orders, copy trading, and multi-wallet support.
How Telegram Trading Bots Work
The bots connect to decentralized exchanges and help traders automate their trades on such exchanges. They carry out trades with fixed instructions concerning those trades.
They also make crypto buying less cumbersome by replacing the user interface (UI) and user experience (UX) of Web3 wallets and DEXs.
Their primary purpose is to provide a protocol that enables quick sniping or instant purchase of tokens.
Telegram trading bots can be set up quite easily by simply visiting the bot’s official website, opening the trading bot in a Telegram chat, and inputting commands given in the instruction panel.
You may then create a new wallet address exclusive to the bot or import a wallet address using private keys. Next, you have to fund your new wallet, usually with Ethereum.
Next, select options to buy tokens by inputting the contract address of the desired token. The bot then carries out the transaction and purchases the token on autopilot.
Everything including transaction fees is automatically set, unlike when you use a decentralized exchange manually.
What You Can Use Telegram Bots for
Buying and Selling of Tokens
As stated earlier, the primary aim of Telegram trading bots is for quickly buying them as they are available to the public. All you have to do is copy and paste the smart contract address of the token in the Telegram message box.
Some can even notify you automatically about profit or loss changes in your trade, and also hasten token sales by enabling pre-approved transactions.
Setting Take Profit and Stop Loss
You can also use the bots to set take profit and stop losses. This enables the bot to carry out transactions autonomously based on set parameters. This feature allows users to access and trade tokens not yet available on centralized exchanges.
Telegram trading bots also enable users to copy the trades of more experienced traders. With certain bots, all you have to do is enter the specific wallet addresses they wish to copy, and the bot automatically mirrors the trades of those wallets.
The bot serves as a bridge between the user’s wallet and that of the pro trader, and reproduces the trades of the pro trader.
Some Telegram bots are really great for sniping. They are good for liquidity sniping, method sniping and multi-wallet sniping. In liquidity sniping, the bot automatically executes a buy order when a bot detects liquidity is being added.
They also do method sniping when tokens remain untraded despite the addition of liquidity. A bot user may choose to dispatch buy transactions based on the “Method ID” of a developer’s pending transaction, and this can be done with multiple wallets at once.
Some Telegram bots can also assist users to achieve their airdrop goals. Such bots usually work across multiple chains to identify the most promising airdrop opportunities.
By allowing users to participate in airdrops using various wallets, they increase their potential rewards from airdrops.