Did you know that the use of Telegram Trading and crypto-snipping bots has seen a real surge lately? The market value for trading bots in decentralized exchanges (DEXs) soared from around $5.5 million in May 2023 to a mind-blowing $186 million by May 2024. This almost x34 growth over the period of a single year mirrors the uptick in traders embracing Telegram bots.
But first things first—let’s figure out what exactly these bots do and why they have gained such popularity among traders. Telegram trading bot and Telegram sniping bot are automated tools embedded within the Telegram messaging app (shows you how much more than just a messenger Telegram really is). They enable users to conduct trades instantly, track market movements, and manage their investment portfolios seamlessly on the platform. These bots are crafted to interact with decentralized exchanges (DEXs) and various trading platforms to execute trades based on predefined algorithms and user commands.
The functionalities of Telegram trading bots can vary widely. We already mentioned traditional trading and sniping bots, but there is more, much more of them.
Those who want to specialize want automated liquidity injected into a token on a DEX and automatically place buy orders at the opportunity – uses liquidity sniping bots. This particular bot type gains popularity during launches on platforms because every trader knows that early access can result in some serious gains.
Want advanced bots that can directly engage with contracts to carry out trades more swiftly than conventional methods by circumventing exchange interfaces? Sniping bots have you covered.
Often, users want to replicate other, more experienced traders’ trades by monitoring their wallet addresses. Here’s where Mirror trading bots come to the rescue. This functionality is especially attractive for beginner traders seeking to leverage market participants’ strategies.
Want to capitalize on price differentials for the asset across exchanges? There is a Telegram bot that aither. With arbitrage bots purchasing at a low price on one platform and selling at a higher price on another is easy as “one, two, three“.
Investment management bots are another type that is worth mentioning. These bots assist users in overseeing their cryptocurrency portfolios by monitoring positions, analyzing market trends, and suggesting asset allocations. Some advanced bots also propose rebalancing strategies to enhance portfolio performance.
Not all bots are created equally, that’s why some are more popular among users than others. Here are some that, we think you should look into:
Unibot is known for its transaction speeds and sophisticated trading functionalities, which are appreciated among more experienced traders. This bot has emerged as one of the most prevalent Telegram bots, but it is often criticized for higher fees. It offers functions such as stop loss and take profit orders, liquidity sniping, and real-time market analysis.
Blazing Bot is a well-known snipping bot tailored for high-speed trading activities in liquidity sniping. It offers customization options enabling traders to adjust gas fees, manage wallets, and tailor trading strategies for better performance​. Naturally, this type of customization and ease-of-use interface has skyrocketed bots’ popularity among novice and experienced traders alike.
Maestro is another well-liked bot that supports trading across various blockchains, such as Ethereum and BNB Smart Chain. The reason it stands out is its features, such as safeguards against rug pulls and presale sniping, and its compatibility with a variety of trading tactics​.
Banana Gun boasts an array of different yet so-needed functions, including manual buying choices, crypto wallet creation, and advanced sniping capabilities.
The risks
We talked a lot about benefits, but there are some risks that you should know about. To operate effectively, these bots need access to users’ wallets via API keys. This access presents a security risk since a compromised bot could potentially grant access to funds. Moreover, according to Hacken, the closed-source nature of bots requires users to trust that the developers have implemented security measures.
Automated trading carries inherent risks of financial loss due to technical malfunctions, market fluctuations, or incorrectly configured settings, which brings some technical and market risks. For instance, if a bot is programmed with parameters, it might execute trades at prices, resulting in substantial losses, as noted by Blockchain Press Media.
Numerous Telegram trading bots function with closed-source code, which means that users cannot see how they operate internally. This raises the issue of lack of transparency.
The lack of transparency, in this situation can pose challenges particularly when dealing with amounts of money. Users have to depend on the reputation of the bot and its creators, which can be risky in the realm of cryptocurrency.
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