Can We Trust Telegram Trading Bots?
A brand-new asset category has just emerged on CoinGecko and CoinMarketCap listings: Telegram trading bots. What are their uses? Can we trust them? Is it a fleeting trend? TradingBeasts takes a closer look at this novelty.
Telegram Crypto Trading Bots Get Listed on CoinGecko & CoinMarketCap
The current buzz is all about trading robots on Telegram. After AI-based cryptos, BRC-20 tokens, and memecoins, now it's the bots' turn in the limelight.
We recently told you about CoinMarketCap on Tradingbeast. This application allows you to track the price of cryptocurrencies. The new "Bot Telegram" category has just appeared on its home page.
This new category is understandably experiencing significant growth, given its previously low market cap. The most renowned project is Unibot, which has been available since late May 2023 and has seen a significant price surge. By early July, the UNIBOT token had reached a market cap of 30 million US dollars, soaring to 198 million US dollars by August 10: an increase of over +560%.
Numerous projects have sprung up in this category to ride the wave of hype.
As of October 10, the total market cap for this category reached a staggering 76 million US dollars.
Although Telegram trading bots are not a recent innovation and have been around for several months or even years, the primary concern raised is the security of funds on Telegram.
A bot creates your wallet and shares your private key with you, but there's a lack of clarity about its security. Can the creators access this private key? How is it stored? This remains uncertain.
Purpose of These Telegram Trading Bots
Not all have the same purpose. For instance, Unibot offers users the ability to directly execute trades via their Telegram bot. According to their website, their bot can trade six times faster than the DEX Uniswap.
This way, your funds are directly transferred without undergoing the validations on your MetaMask during a Uniswap transaction.
Why is the Unibot token witnessing such a price surge? Those who possess and retain the crypto will receive rewards from trading fees: precisely, 40% of transaction fees on UNIBOT and 1% of the trading volume.
To access these rewards, one needs 50 UNIBOT, currently valued at 2,600 US dollars. Furthermore, an enticing affiliation system encourages users to bring in more users.
Other trading bots aim to trade on markets and purchase new tokens on DEX Screener. The idea is that by placing small amounts on new pairs, they can yield substantial profits. Of course, the risks are equally high.
The service offered to users then involves purchasing their cryptocurrency and holding onto it. Those who HODL share a portion of the profits generated by the trading robot. This project type is relatively novel compared to the former.
Regardless, we urge caution when considering such investments. Generating a crypto wallet on an obscure project that might have access to your private keys is not advisable. Be informed and don't fall for the allure by rushing into this new trend. It's still too early to determine the trustworthiness of such services.
Prioritizing Protection: Safeguarding Your Digital Wealth in the Era of Trading Bots
The allure of Telegram trading bots cannot be denied: their promise of profits and efficiency is compelling. Yet, their convenience comes hand-in-hand with significant risks. The decentralized essence of blockchain and digital assets means that regulatory bodies have limited oversight, especially concerning security.
Honestly, the most foolproof way to protect your digital assets might be to steer clear of trading bots. Yet, the tantalizing potential of these tools draws many into the fray, risks and all.
A Nasdaq report from August 2023 offers invaluable advice for those navigating the bot-infested waters:
"It's only natural for traders to tread carefully with Telegram trading bots. It's wise to use a new address and only invest what you're prepared to lose, acknowledging the very real possibility of losing it all. Any earnings should be promptly transferred to another address where the private keys remain truly private."
Ultimately, whether you embrace the traditional route, handling trades personally, or you're enticed by the swift efficiency of Telegram bots, the paramount concern should be fortifying your wallets with layers of impenetrable security.