What are Telegram Trading Bots and How to Use Them? 

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Lesson 30: What are Telegram Trading Bots and How to Use Them?

Lesson Intro:

The world’s largest crypto exchange, Binance, entered into a collaboration agreement with our nonprofit, the Prison Professors Charitable Corporation. With this collaboration, we’re able to provide justice-impacted people with a great resource they can use to learn about cryptocurrency, decentralized finance (DeFi), Web3.0, Artificial Intelligence, and other topics that relate to the digital economy. The agreement is part of our nonprofit’s ongoing efforts to help people prepare for success after prison.

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Each lesson includes critical thinking questions and a glossary. We encourage participants to use these lessons, and to memorialize their learning path by building a profile on Prison Professors Talent. More information on how to build a personal profile at the end of this workbook.

30. What are Telegram Trading Bots and How to Use Them?


  • Telegram trading bots are automated systems embedded inside messaging app Telegram that facilitate users to execute trades on decentralized exchanges. 
  • Telegram trading bots offer users a range of automated trading functions such as copy trading, liquidity sniping, and airdrop farming. 
  • Still in their early stages, Telegram trading bots have many risks that users should be aware of, including smart contract risks and custodial risks. 

What Are Telegram Trading Bots? 

Telegram trading bots function as automated systems within Telegram, facilitating users to execute trades on decentralized exchanges (DEXs). Users interact with these bots through the app’s messaging interface. 

Different Telegram trading bots offer unique functions, however most share common trading features including stop-loss and take-profit orders, copy trading, and multi-wallet support.

According to a Binance research study into telegram bots, the cumulative lifetime volume of trades facilitated on Telegram bots has exceeded US$283M as of 15th August 2023. 

How Do Telegram Trading Bots Work?

Telegram trading bots assist traders in automating their transactions by connecting to decentralized exchanges (DEXs) such as Uniswap and carrying out trades according to a set of pre-established rules set by the user. 

These bots replace the user interface (UI) and user experience (UX) of Web3 wallets and DEXs, streamlining the otherwise complex decentralized crypto buying process.

While each trading bot features a unique interface, their primary purpose is to serve as a protocol to quickly snipe or instantly purchase tokens. Sniping a token refers to a trading strategy when a newly introduced token is acquired as soon as it’s launched for the public. 

The setup process often involves a few simple steps: visiting the official website, opening the trading bot in a Telegram chat, and inputting commands given in the instruction panel. Note that each bot has a different layout and command menu.

Upon initializing a Telegram trading bot, users can either create a new wallet address exclusive to the bot or import a wallet address using private keys. It’s recommended to create a new wallet or use a separate account for Telegram trading bots, rather than importing your primary wallet. 

To start trading, users must fund their new wallet with crypto, usually with ether (ETH). Users can then select options to buy tokens by inputting the contract address of the desired token. The trading bot processes the transaction, accounting for gas fees, and expedites asset purchases. By contrast, when you trade with a new token using Uniswap or MetaMask, it involves processing various signatures and setting transaction fees.

What Can You Do With Telegram Trading Bots? 

There are many common features provided by telegram trading bots, but each bot has its own unique features. Here are some of the most common features you can expect from Telegram trading bots.

  1. Buy and sell tokens
    • Incorporated into the Telegram messaging platform, these trading bots allow users to acquire tokens by simply copying and pasting the contract address into the message box. Some bots include a real-time refresh feature that notifies you about profit or loss changes in your trades. Additionally, these bots accelerate token sales by enabling pre-approved transactions.
  2. Set take-profit and stop-loss orders
    • With Telegram trading bots, you are able to set stop-loss and take-profit orders, enabling the bot to autonomously carry out trades depending on the parameters set. Traders can leverage these order types to trade newer tokens that aren’t available on CEXs, however please be very cautious as these tokens are generally associated with higher risks. 
  3. Anti-rug and honeypot detection
    • Some Telegram trading bots come equipped with anti-rug and anti-MEV capabilities. In the event that a token developer tries to orchestrate a rug-pull, the anti-rug function identifies the impending transaction within the mempool and promptly executes a speedier sell transaction to prevent the rug-pull from materializing.
    • The anti-MEV feature directs buy transactions through a private relay, ensuring that any purchase is not broadcasted in the mempool. This strategy offers protection from MEV or sandwich bots. This method, however, typically means these private transactions operate at a slower pace. Please note that these functions are still in the experimental stage and may not always work as intended. 
    • Furthermore, Telegram trading bots are able to detect incoming malicious transactions initiated by a token developer. If such transactions render the token unsellable, it is considered a honeypot. The bot will then swiftly liquidate any position in order to avoid falling into the honeypot scam. 
  4. Copy trading
    • With certain Telegram bots, users can enter specific wallet addresses they wish to replicate, allowing them to automatically mirror the trades of those wallets. The trading bot serves as a bridge between the user’s account and the chosen trader, executing trades on the user’s behalf based on the signals provided by the followed trader.

      However, it’s crucial to remember that past performance of other traders doesn’t guarantee future profits. Users should be cautious when selecting traders to follow and setting up their trading bots. Another risk associated with copy trading is liquidity risk, which arises when there is insufficient market liquidity to execute trades, potentially leading to slippage, difficulty to close positions, and increased transaction costs.
  5. Sniping
    • Some Telegram trading bots can carry out liquidity sniping, method sniping and multi-wallet sniping. Liquidity sniping is a form of automatic sniping that executes a buy order when a bot detects liquidity is being added. The bots are often programmed to send buy transactions with the same gas settings as the transactions of the developer, adding liquidity so that the buy transaction will occur in the same block right after the developer’s transaction. This maximizes the amount of tokens a sniper gains on a new token.
    • Method sniping is employed when tokens remain untraded despite the addition of liquidity. Users can opt for automatically dispatching buy transactions based on the “Method ID” of a developer’s pending transaction. The Method ID reveals how the developer’s transaction engages with the token’s smart contract, potentially facilitating trading on a new token and permitting the sniper’s buy transaction to be carried out at the earliest opportunity.
    • Telegram trading bots allow users to execute snipes using multiple wallets simultaneously. For example, if a trader snipes a token with several wallets, the bot carries out the identical trade across all wallets.
  6. Airdrop farming
    • Telegram trading bots allow traders to create automated tasks that can assist in achieving airdrop goals. Bots that focus on airdrop farming usually work across multiple chains to identify the most promising airdrop opportunities. Airdrop farming bots allow users to participate in airdrop campaigns with various wallets, potentially increasing their reward.
    • However, it’s important to note that users should exercise extreme caution when sharing their wallet or personal information with these bots or participate in unverified airdrops. There are many scams and frauds in airdrops too. Always perform due diligence to ensure the safety and security of your assets and personal information.

Risks Associated With Telegram Trading Bots

Even though Telegram trading bots offer convenience and niche features, there are many risks that you should be aware of before trading with them.

  1. Security of assets 
    • Connecting an existing wallet or creating a new wallet within the bot both require access to your private keys. Make sure to connect to a new wallet and don’t connect to your primary wallet. Furthermore, there are custodial risks attached to these bots as private keys are generated by the Telegram trading bot, which may have access to your private keys.
  2. Smart contract risks
    • Telegram trading bots need to interact with smart contracts. When interacting with smart contracts that have not been audited, Telegram trading bots could be exposed to smart contract code vulnerabilities.
  3. Technical complexity
    • Setting up Telegram trading bots can come with technical complexity that beginners may find hard to navigate. It’s important to read all documentation provided by the Telegram bot, and start trading with small quantities of crypto that you are willing to lose.

Closing Thoughts

Telegram trading bots have emerged as alternative tools that bring crypto traders convenience, speed, and niche functionality. They simplify the trading process while offering a range of features like copy trading, liquidity sniping, and MEV protection.

Although these bots represent a promising development in the crypto space, users should be aware of the inherent risks associated with their use, including fund security and smart contract risks.Both novice and experienced traders should conduct thorough research before engaging with Telegram trading bots, ensuring they understand the bot’s functionality, its underlying smart contracts, and any associated risks. 

It’s important to choose well-reviewed and reputable trading bots, ideally with a verifiable track record. Staying informed about updates, potential issues, and actively participating in community discussions can further help traders optimize their experience and minimize potential risks while using these tools. 

Further Reading

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Critical Thinking Questions

  1. Risk Assessment and Mitigation: What are the primary risks associated with using Telegram trading bots, and what strategies can users implement to mitigate these risks while ensuring the security of their assets?
  2. Ethical Considerations in Automated Trading: How do features like anti-rug and honeypot detection in Telegram trading bots reflect on the ethical considerations of automated trading? Do you think these features adequately protect users, or are there additional measures that should be considered?
  3. Technology and Accessibility: Considering the technical complexity involved in setting up and using Telegram trading bots, what steps can be taken to make these tools more accessible to individuals who may not have a strong technical background?
  4. Impact of Copy Trading: How does the practice of copy trading influence individual decision-making in the trading process? What are the potential benefits and drawbacks of relying on the trading decisions of others?
  5. Regulatory and Security Concerns: Given the decentralized nature of Telegram trading bots and the associated custodial and smart contract risks, what role should regulatory bodies play in overseeing these tools to protect users? How can users stay informed and proactive about these concerns?

Advocacy Initiative:

We encourage participants to begin memorializing the ways they are using time in prison to prepare for success upon release. I encourage participants to create a personal profile by:

  1. Writing a simple biography
  2. Writing a daily journal to show all that you’re learning
  3. Writing book reports that memorialize the books you read
  4. Writing a release plan to show the ways you’re preparing for success upon release

These strategies helped me immensely once I got out. By using my time wisely inside, I was able to raise capital, build businesses, and succeed in ways that few people would think are possible for someone who served multiple decades in prison. Anyone can do the same—if they prepare first.

If you’d like to follow in the same footsteps, I encourage you to begin building your personal profile. Get started by sending an email message to our team at:

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[email protected]
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Our interns will accept your email invite. You may then send the interns a message such as:

Dear Interns,  

My name is xxx, and I am in prison. I would like to begin showing the strategies I am using to prepare for success upon release. Please send me a Release Plan Workbook, and any other books that will help me prepare for the job market. After receiving those workbooks, I will begin building my profile to show others how I am using my time inside to prepare for success outside.  

[Your Name]


  • Algorithm (noun): A step-by-step procedure or formula for solving a problem or performing a task.
  • Bitcoin (noun): A decentralized digital currency that uses cryptography for secure transactions on a blockchain.
  • Block (noun): A unit of data containing transaction information, which is added to a blockchain.
  • Blockchain (noun): A decentralized digital ledger that securely records transaction data across many specialized computers on the network.
  • Collision (noun): The occurrence when two different inputs produce the same hash output.
  • Cryptographic Hash Function (noun): A hash function that uses cryptographic techniques to ensure data integrity and security.
  • Data Integrity (noun): The accuracy and consistency of data over its lifecycle.
  • Deterministic (adjective): Producing the same output from the same input every time.
  • Hash (noun): The fixed-size output generated from input data using a hash function.
  • Hash Function (noun): A mathematical formula that converts input data into a fixed-size output (hash).
  • Hash Rate (noun): The measure of computational power used in cryptocurrency mining.
  • Immutability (noun): The characteristic of being unchangeable once recorded.
  • Merkle Tree (noun): A data structure used in blockchain to efficiently verify the integrity of data.
  • Mining (noun): The process of performing complex calculations to validate transactions and add them to a blockchain.
  • One-way Function (noun): A function that is easy to compute in one direction but difficult to reverse.
  • Output Size (noun): The fixed size of the hash produced by a specific hash function.
  • Preimage (noun): The original input data that is hashed to produce a specific hash.
  • Resistance (noun): The difficulty of performing a certain action, such as reversing a hash function.
  • SHA-256 (noun): A cryptographic hash function that produces a 256-bit hash, used in Bitcoin.
  • Zero (noun): The leading character in a hash that meets the difficulty criteria in Bitcoin mining.

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