Telegram Bots have been hot! And why not. Unibot, the leading telegram bot’s token surged 9500% within 60 days! One of the major factors contributing to the growing interest in Telegram bots is the ease of use they offer, particularly for non-sophisticated DeFi users.
Then, why did the title and thumb say “Stay Away”. It is not click-bait. Undoubtedly, TG Bots offer easy and opportunity to make big money but there are big risks associated with them which no one is educating you about. This article will educate you about the good, the bad and the ugly of the TG bots.
Why Do We Need Trading Bots?
We are starting with why people even use Telegram bots or want to use them. Pick a trading platform, any trading platform.nAs we’ve discussed here lots of times, one of the big advantages of centralized exchanges is that their trading interfaces are easier for most people to use.
Call it what you want. Simpler. More intuitive. Easier. Better User Interface. Great UX. Whatever you want to call it. Most CEXes are MUCH better at this than DEXes are. Binance, Bitfinex, and BYDFi are particularly good at this with a nice clean user interface for traders.
Top Telegram Trading Bots: @moonboteth Rev Share ✅
1M Supply – 1M Circ – 4M MC @BananaGunBot Rev Share ✅
10M Supply – 2M Circ – 17M MC @TeamUnibot Rev Share ✅
1M Supply – 1M Circ – 81M MC
— The Crypto Monk (@TheCTMonk) September 17, 2023
The one obvious exception among DEXes is GMX. Here you can long, short, or swap the 2 coins in your trading pair with ease all on the same screen. And it shows in the fees. GMX is the leading perp DEX (DEX for traders) in fees over the last 6 months. It has more fees than some bigger names like AAVE, PancakeSwap, and even Curve and Polygon.
But they are the exception. The #1 reason people use Telegram trading bots is because they have a great, fast, sleek UI that makes trading easy. But are they really all that great? Let’s look at one.
Unibot is by far the fastest growing TG bot. And if you look at what’s playing here on screen, it’s easy to see why. With just the press of a button on screen, you can:
- Buy with a limit order
- Sell with a limit order
- Buy or sell a ‘private’ transaction
- Buy from your wallet of choice (among many options)
- Track your P&L and token balances.
All in one place. Talk about easy to use. The most recent big accomplishments and threads about Telegram bots on Crypto Twitter are more about trading in the bot tokens themselves.
And here UNIBOT’s $UNIBOT token has cooled off. It had a HUGE run in 5 weeks from $30 to $236. But in the last 30 days, it’s down 57% and back down to $73 each. So you are making a wild speculation if you trade in these. That’s even if you believe in the power and advantages of Telegram bot trading.
Risks of Telegram Bots
So what are the risks of trading with these bots?
- Must Hold the Coin
The first risk is you must hold the coin of the bot. In Unibot’s case, that means the $UNIBOT token. Now due to the explosive growth of these bots, the price could be OK. Yet even UNIBOT soared and crashed. This last week, down 41%. So this is a risk. But that’s not the big risk. Here is the big one.
- Telegram Uses A Custodial Wallet
When you use any of these Telegram bots, you are depositing funds into a private wallet specifically for trading use. And while you do so, you are granting TG access to those funds.
So yes, this is a custodial wallet that TG can use to take your funds if they think you are doing something wrong. Now the bot has specific parameters it has to maintain as an automated tool. Meaning it can only buy, sell, whatever. Not unlike a smart contract.
But also like a smart contract, that could be exploited OR a protocol hack happens OR the team just decides they want the funds in your wallet. That is some bad, bad news.
If you intend to trade with a TG bot, then the only smart choice is to do so with small amounts of money and withdraw back into your self-custodied wallet regularly. Leave as little there as you possibly can.
Telegram trading bots have become increasingly popular, as users look for a convenient way to trade on-chain.
But how do they actually work and what are the risks?
Here’s what you need to know ⤵️ https://t.co/RHkR9IhfyC
— Binance (@binance) August 21, 2023
And yes, the bot has access to your private keys if you connect an existing wallet like Metamask, Trust Wallet, or Rabby.
So my pro tip. If you are going to connect a wallet to a TG trading bot, use a brand-new wallet ONLY for TG trading. This limits your potential losses if one of these bad things happens.
The Final Verdict
Due to copy trading and sniping capabilities, there is some potential to make money trading with Telegram bots. And I know you degens love it. And there’s trade potential in the bot tokens themselves too.
But watch how much money you leave with Telegram’s access to it. For me, it’s really as simple as I don’t feel confident that by using TG my keys won’t get exposed on my own private wallets. So I am avoiding TG bots for now until the security part changes or something else happens to get me more comfortable.
As always, Do Your Own Research and Trade At Your Own Risk & Comfort Level.
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.