What are Telegram Trading Bots and How Do You Use Them?

Introduction

With a global monthly active user base of 800 million, Telegram stands as the fourth-largest social networking platform. Its highly programmable nature led to the introduction of a free bot API for developers, sparking the rise of telegram trading bots and fostering inclusivity within the cryptocurrency community.

Following the surge in popularity of telegram bots in late 2022, the demand for trading bots has surged dramatically, leading to a notable cumulative trading volume of $190 million on the social platform as of August 2023. This exponential growth can be attributed to the convenience and user-friendly nature that trading bots offer, a topic we will delve into further. This article serves as an enlightening and informative piece, providing insights into the functionality of telegram trading bots. At its core, the article aims to address the fundamental question: What exactly is a telegram trading bot?

What are Telegram Bots?

Source: MysteryofCrypto

Telegram bots are highly customizable, automated small applications that run entirely within the Telegram app, connecting to decentralized exchanges and executing crypto trades based on pre-defined rules. Telegram has etched itself into the hearts of DeFi lovers by introducing a flexible interface and a highly accessible medium for trading.

One might wonder about the need for a trading bot where we have centralized and decentralized exchanges that users have relied on for years, offering a wide array of cryptocurrencies. However, this new innovative medium of trading introduces simplicity and ease. Users no longer need to struggle deciphering the user experience of exchanges or wallets. Using these bots is as simple as giving instructions to a friend, but in this case, the friend on the other end is a bot following your commands. Telegram bots bring that much ease, saving time and ensuring a seamless trading experience.

Source: Kryptomoney

With its widespread usage, Telegram provides a convenient platform for hosting this innovation, serving as a hub for numerous crypto-related activities. The platform boasts a staggering user base of 800 million, catering to the diverse trading needs of countless crypto enthusiasts. Since the inception of telegram bots, one particular bot has garnered significant attention, Unibot has emerged as the most popular trading bot with an impressive marketcap. The price of Unibot Token rose from around $2 to $236, and the market size once exceeded $200 million. The exponential growth of Telegram bots has been so remarkable that Coingecko has dedicated a specific category to them. The substantial growth of these bots indicates their wide adoption, underscoring their ability to resonate with users.

Features of Telegram Bots

Notably, Telegram trading bots have attracted attention for their diverse features and functionalities, all geared toward providing users with a seamless trading experience. Here are some key features that users can expect from these trading bots:

Mirror Shift

Trading bots can reflect changes in market prices and trends in real-time, enabling users to make timely and informed trading decisions based on the most up-to-date information.

Token Value Monitor

These bots help users track the value and performance of specific tokens or cryptocurrencies, providing insights into market trends and helping traders make informed decisions about buying, selling, or holding their assets.

Ease of Understanding its User Experience (UX)

What makes its UX great is the ease of accessing information, with emphasis placed on creating a user interface that is intuitive, clear, and user-friendly. A well-designed UX ensures that traders can easily navigate the bot’s functionalities and execute trades without encountering unnecessary complexities or confusion. Telegram sets the standard so high that even decentralized and centralized exchanges find it hard to match.

Honeypot Detection

The telegram honeypot security feature helps identify potential rug pulls or fraudulent activities within a trade. It helps users avoid these malicious schemes and protects their investments.

Automation

This is one of the most sought-after features of these bots. It enables users to automate trading tasks, such as executing buy or sell orders based on predefined parameters, sending alerts, and implementing specific trading strategies. These automation tools streamline trading processes and help users capitalize on market opportunities more efficiently.

Stop Loss

Like DEXs and CEXs, telegram bots automatically execute a sell order when a specified price level is reached, preventing further losses beyond a predetermined threshold.

Take Profit

Users can also customise these bots to trigger the sale of an asset when it reaches a predetermined price level, enabling traders to lock in profits at a desired target.

Copy Trading

Telegram bots allow you to replicate the trades of successful or experienced traders. This way, you do not need to be an ace trader to use it; traders can follow the trading activities of established traders and potentially benefit from their expertise without having to make independent trading decisions.

How Do Telegram Bots Work?

Telegram bots operate as automated entities within the Telegram platform, capable of executing tasks without direct manual input from users. Their algorithms combine cutting-edge technologies like machine learning and artificial intelligence.

These bots then link to crypto exchanges to assess market data and forecast risk. When all market conditions are ideal, they will buy and sell crypto assets according to their pre-assigned rules.

Telegram bots are created using BotFather, Telegram’s dedicated bot for bot management, which allows users to develop and manage their bots with specific commands. They can be programmed to respond to specific commands, keywords, or interactions, enabling them to perform various tasks such as providing information, sending notifications, or even carrying out transactions.

Users can interact with Telegram bots via text-based commands or through specific buttons provided by the bot interface, allowing for a wide range of automated functionalities within the Telegram ecosystem.

How to Get Started on Telegram Bot

These bots were built to seamlessly onboard users; the most talked-about of all the telegram bots is Unibot; deservingly so, it has recorded a great deal of success, with a total trading volume of $382 million, as reported on its website as of the time of writing this report. However varied the features these telegram bots offer, certain similarities are fundamental, one of which is seamless onboarding.

To get started, using Unibot as a case study, first go to the website, scroll down, and click on “Start Trading.” It will automatically lead you to Telegram with the UX, as shown below.

When you click on “Start,” automatically three wallets will be opened up for you, giving you back the time it would take to create, generate, and save your passphrases if you were creating a wallet.

You also have the option of connecting your external wallet to the bot or simply sending funds to the auto-generated wallet.

On the menu bar, you select the desired action for the bot to execute. You can buy, sell, and set the limits. To begin trading, you’ll need to copy the contract address, preferably from CoinMarketCap, CoinGecko, or any other verified source, and paste it into the bot. Set pre-defined instructions, and your order will be executed six times faster than trading on Uniswap.

Main Telegram Trading Bots

While you may have frequently come across Unibot, it’s crucial to recognize that various other bots, just like Unibot, cater to diverse trading preferences and strategies. These bots offer users automated solutions for executing trades, monitoring market movements, and managing their digital assets. The following are a few of the main trading bots:

Unibot

Unibot is the biggest Telegram trading bot by market cap. It has garnered positive feedback for its user-friendly interface, facilitating swift transactions and fostering a seamless trading environment for both seasoned and novice traders alike. It offers a range of comprehensive features that are available for free. Notably, it provides tools such as limit orders, mirror sniper, fail guard sell, and private transactions, empowering users to execute precise trading strategies and stay ahead of market trends.

Maestro

Maestro Bots is one of the leading telegram bots that has achieved remarkable success in trading volume and revenue generation, accumulating approximately $16 million in fees as at the time of writing this report, primarily through ETH transactions, since the start of 2023. Comprising three integral components—the Snipper bot, the Whale bot, and the Wallet tracker—this platform facilitates swift token purchases upon liquidity inclusion, enables rapid manual or automated trades via token contract address input, and incorporates features for automated selling, wallet monitoring, and seamless crypto balance tracking across BSC and ETH wallets within the telegram interface.

Wagiebot

Wagiebot prides itself on its cutting-edge infrastructure that processes multiple network requests within milliseconds, ensuring swift and efficient trading operations. Available on three networks: BNB Smart Chain, Ethereum, and Arbitrum, the bot’s key features include instantaneous LP matching, anti-rug, and honeypot checks, as well as specialised functionalities like sniping, copy trading, anti-MEV protection, and limit orders, enabling users to capitalise on market opportunities with precision and agility.

Banana Gun

Banana Gun boasts a market cap of $14 million as of the time of writing and operates as a telegram bot, facilitating quick participation in presale token sniping and crypto trading. Offering features such as auto sniper, manual trader, anti-rug mechanisms, private transactions, sandwich protection, and reorg protection. Banana Gun seeks to enhance the user experience and security in the crypto market.

Coinmatic

Coinmatics is another Telegram bot that allows users to leverage copy trading to earn money, irrespective of their trading experience. Traders, on the other hand, can capitalize on extra profits by sharing their trading strategies and gaining subscribers. The platform further enriches the trading experience with free market research tools, including real-time ticker alerts and comprehensive analytics. Coinmatics streamlines the trading process. Its user-friendly approach enables quick onboarding, seamless strategy selection, and transparent performance tracking. Supporting various exchanges and integrating diverse tools, Coinmatics stands as a comprehensive solution for both aspiring investors and experienced traders.

Challenges of Telegram Trading Bots

Convenience and time-saving are undoubtedly valuable aspects of Telegram trading bots, but they can come at a cost that traders must carefully consider.

Here are some of the key challenges of Telegram trading bots:

Possibility of Over-Reliance

Trading hands-free can be exciting; however, over time, traders might become overly reliant on the automated functions of Telegram trading bots, which can potentially lead to a lack of critical thinking and independent decision-making.

Another reason being overly reliant on a Telegram bot is a problem is that it can create a false sense of security, causing traders to overlook important market signals and trends that require human intuition and analysis.

Over-reliance on Telegram trading bots can limit learning and skill development, which is one of the saddest challenges of this innovation. One crucial part of cryptocurrency is the expansive knowledge that comes with its technology, and trading is a vital aspect of that knowledge. However, when traders solely rely on these bots, it could hinder their development of an understanding of market dynamics and trading strategies. Without actively engaging in the trading process, traders may miss out on valuable learning experiences that can help them become more proficient and successful in the long run.

Security

The security aspect of Telegram trading bots is a hotly debated issue, and for good reason. These bots typically request access to users’ wallets, which invariably gives them access to passphrases, leaving a potential opening for vulnerabilities. Imagine if one of these bots were to be hacked—your hard-earned funds could be at serious risk. That’s why it’s crucial to be extra cautious, prioritise security, and opt for well-reviewed, reputable bots to minimise the chances of such mishaps, or better yet, do not leave funds you cannot afford to lose.

Possibility of Technical Errors and Malfunctions

Despite their convenience, Telegram trading bots are susceptible to technical errors and malfunctions. System glitches, software bugs, or server issues can disrupt trading operations, leading to missed opportunities or unintended trades that could adversely affect a trader’s portfolio.

Is Telegram Trading Bot a Good Investment?

The thing about crypto is that most profitability is derived from riding narratives; the sooner you engage with the narrative, the greater your potential profits. There was a time when meme coins dominated the narrative, followed by NFT tokens, AI tokens, and most recently, the buzz surrounding Telegram bots, which have not only received significant media attention but also maintained strong token prices. The question lingers: will telegram trading bots be another fleeting trend, or are they here to redefine the crypto landscape? While the narrative surrounding these bots is compelling, it’s essential to pause and consider the risks.

How secure are these bots? When they link to your wallet, they gain access to your private keys. While some have asserted the deletion of private keys from connected wallets, what happens if a hack occurs beforehand? Alternatively, what if this deletion never happens? Trusting your private wallets, which house your funds, could potentially pose a significant risk.

The decision to embrace this innovation should be a thoughtful one, aligning with your risk tolerance. While this article was solely written for informational purposes, it is important to conduct your own research and seek independent financial advice before considering buying or using Telegram trading bots.

Highlights/Recent Developments

• Weekly trading volume on Telegram bot tokens

Source: Dune.com

This chart displays the trading volumes of each of these trading bots. Although volumes have declined, likely due to market conditions, Unibot maintains its lead regarding the highest trading volume.

• Telegram Bot token prices surged at the announcement of the bond issuance plan

Telegram bot tokens have seen a surge in value and popularity following Telegram’s announcement of a bond issuance plan. Additionally, Unibot (UNIBOT) is leading the pack and has attracted a cult following, offering traders a user-friendly alternative compared to decentralized exchanges. Other Telegram bot tokens have also increased in value, offering features such as on-chain tracking and wallet checking.

Conclusion

The emergence of Telegram bots has undoubtedly turned heads and captured the spotlight. As we’ve delved into this innovative trading medium, it’s clear that these bots bring a unique blend of convenience, automation, and potential profit. Despite this, it still needs to be approached with caution and a discerning eye. Keeping in mind that simple practices like using a burner wallet, trading with funds you can afford to lose, and using passwords can do some level of good. So, take your time, conduct your due diligence, and make decisions that align with your financial goals and risk appetite.