Telegram Bot Money Making: What You Need to Know About Automated Trading Tools?

Quick Overview

Telegram trading bots are one of the fastest-growing fintech solutions in the crypto space, allowing users to conduct financial transactions directly through the messenger application. Working with connected decentralized exchanges (DEX), these tools automatically execute trades based on predefined parameters. The trading volume had already reached 283 million US dollars by August 2023, indicating the rapid spread of the technology among crypto traders.

How Does a Person Start Earning Money with a Telegram Bot?

The Default Settings Process

To use Telegram trading bots, you first need to register in the application and then join the channel of the selected bot. The primary step is to connect your wallet – however, many suggest that you should not use your main wallet but rather create a dedicated trading account solely for this purpose.

During the setup, the user needs to place cryptocurrencies in their wallet – typically in ether (ETH) – which the bot then uses to purchase tokens. The instructions are simple: you enter a contract address, and the system automatically processes the transaction, calculating the gas fees and executing the purchase.

The Most Important Functions of Earning Money with a Telegram Bot

Direct Token Exchange and Fast Sale

The most fundamental function is the buying and selling of tokens, which can be done directly from the message window. Advanced bots provide real-time profit/loss updates and speed up the selling process with pre-transaction authorization – this is a significant advantage for those new tokens where speed is a critical factor.

Automatic Position Management

Setting stop loss and take profit orders allows the trader to sleep while the bot independently manages the positions. This is especially useful when trading assets that are not yet available on major exchanges (CEX), thus potentially putting us in an early investor position. However, these newly introduced tokens carry higher volatility and fraud risks.

Rugpull and Honey Pot Detection

Certain sophisticated solutions are capable of identifying malicious transactions that are about to occur directly in the mempool. If the developer attempts to initiate a rug pull operation, the bot recognizes this and automatically performs a faster sale. The MEV-anti feature sends buy orders through discreet channels, which protects the transaction from so-called sandwich bot attacks. However, these features are still experimental and are not guaranteed to work perfectly.

Tracking Trading ( Copy Trading )

This feature allows you to specify another trader's wallet address, and the bot will automatically follow all of that trader's transactions on behalf of the user. However, it is important to note that past performance does not guarantee future profits. Liquidity risks may also arise when there is insufficient liquidity to execute transactions, which can lead to slippage and higher costs.

Liquidity Sniping and Advanced Search Methods

A bot is capable of automatically initiating buy orders when it detects that liquidity is being added to a new project. The algorithms often operate with the same gas settings as the developer, ensuring that the purchase occurs within the same block. Advanced sniping types, such as method-ID based search, identify the developer transactions even more precisely. Multi-wallet sniping allows a trader to perform sniping operations on the same token simultaneously with multiple wallets.

Airdrop Automation

Airdrop farming bots search for the best airdrop opportunities across multiple chains and allow simultaneous participation of multiple wallets in various campaigns. This can increase the rewards received, however, personal data shared with such bots must be handled with extreme care.

The Critical Risks of Automated Trading

Security Risks and Private Key Management

When connecting a wallet or creating a new wallet, access to the private keys is required. A critical mistake is to use the primary wallet – always create a dedicated trading account. The deposit risk arises from the fact that the bot generates and potentially stores the private keys, which can be an additional security vulnerability.

Smart Contract Vulnerability

Telegram bots communicate with the smart contracts of decentralized exchanges. If these smart contracts are unaudited or faulty, the bot is equally at risk. This is especially true for new, untested protocols.

Technical Complexity and User Error

Setting up the device requires technical knowledge, and beginners can easily make mistakes. It is highly recommended to start with small amounts, the loss of which will not be a disaster for the user.

What Type of Traders is the Telegram Bot Ideal For?

The tool is particularly useful for the following users:

• Early investors, who want to quickly respond to new token introductions
• Multi-tasking traders who want to automate repetitive transactions
• Diversification-oriented investors, who want to participate in multiple projects through airdrops
• Non-technical users who want to avoid the complex DEX interface

Final Remarks

Telegram trading bots represent one of the latest innovations in the self-organizing crypto ecosystem, making advanced trading strategies accessible to laypeople. The application provides speed, convenience, and features that would be unattainable on traditional trading platforms.

At the same time, one must not ignore the inherent risks. The user must thoroughly understand the operating mechanisms of the bot, the underlying smart contracts, and the security of the entire ecosystem. Choose well-reputed bots supported by an active community, do your own research (DYOR – Do Your Own Research), and start with small amounts until you feel secure using the application.

The potential for earning money with a telegram bot is significant, but due diligence and risk management are essential.