What Exactly Are Telegram Bots, And Why Are They So Popular In The Cryptocurrency community?

What Exactly Are Telegram Bots, And Why Are They So Popular In The Cryptocurrency community?

One of Telegram's key features is the ability to develop bots. Bots allow users to automate numerous DeFi operations by communicating with the messaging API, such as trading, managing wallets, searching for tokens, farming, and much more.

When a command is received, the Telegram bot generates a main menu with options for creating a new wallet or linking an existing one. Once a wallet is set up, customers can deposit funds and select from a variety of transaction alternatives to suit their needs.

Among the most popular projects are UniBot, Moonbot, and AIMBOT. In the second quarter of 2023, all of these cryptocurrencies experienced considerable increase.

Despite the fact that Telegram bots have distinct use cases, their price dynamics in recent weeks have strongly correlated with the dynamics of TON, the Telegram team's native token of The Open Network.

Why Are Telegram Crypto Bots Required?

Cryptocurrency bots on Telegram function similarly to personal crypto assistants, ready to assist with the purchase, sale, and management of digital assets. Here are some of the key reasons why consumers may want to use a Telegram bot for their bitcoin demands.

Users can use the Telegram bot to quickly and easily purchase and sell cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and others. This is especially beneficial for people who want to stay current on market trends and make quick trades when necessary.

The ability to transmit and receive cryptocurrency is another important characteristic of TG bots. Telegram bots also support cryptocurrency acquisition, which implies that businesses can accept cryptocurrency payments from customers and automatically convert them to fiat currency.

The Most Widely Used Telegram Bot Tokens

According to CoinMarketCap, the market capitalization of Telegram bot tokens was $91 million at the time of writing, and the trading volume in 24 hours was more than $9.5 million.

Top Telegram bot tokens by market capitalization

Unibot, a tool that allows Uniswap crypto exchange traders to make deals in the messenger, was significantly responsible for the enthusiasm in the Telegram bot token market. Following Unibot's successful launch, several other bots with identical features appeared on Telegram.

UniBot (UNIBOT) presently ranks top among Telegram bot tokens in terms of trading volume and market valuation, according to CoinMarketCap. It allows users to trade on Uniswap V3 without leaving Telegram, among other things. Unibot's price has risen rapidly since its June 16 introduction, from $18.18 to an all-time high of $236.43 in August 2023.

The ChainGPT (CGPT) trading bot has also garnered traction in the cryptocurrency world. Its value increased from $0.008 to $0.046 on April 10.

How Does The Official Telegram Bot Function?

@wallet, Telegram's official bot, allows users to buy, exchange, and send bitcoins using bank cards.

To use the service, customers must first link their phone numbers and create a virtual wallet. Replenishing funds is feasible not only through P2P but also by transferring funds via a cryptocurrency exchange to the address provided by the service (when transferring, make sure to select the proper network).

Using a bank card or P2P, you can buy and sell Bitcoins through the 'Market' area of the web interface. Users can also swap TON, USDT, and BTC with one another, with transactions handled immediately and at competitive prices.

Telegram recently added support for USDT transfers for making USDT purchases. Users can now give and receive stablecoins in conversations for free.

Are Telegram Bots Hazardous To Digital Assets?

CoinGecko's co-founder and chief operating officer Bobby Ong also noted the proliferation of tokens and cautioned about potential pitfalls. He mentioned that users' tokens are vulnerable because they must be transferred to a third-party wallet or because users must disclose secret keys to link existing wallets.

Furthermore, Ong stated that he would not be shocked "if one of the bots ends up intercepting or storing users' private keys."

Should You Use Crypto Bots On Telegram?

Creating Telegram bots for bitcoin can be an appealing way to simplify digital asset investments. They provide a user-friendly and accessible interface that may appeal to many cryptocurrency aficionados. However, given the sector's relative youth, it's critical to assess the benefits against the inherent hazards involved with these bots.

Security is a major worry when utilizing Telegram bots for Bitcoin. Interactions with these bots frequently entail the construction of a dedicated wallet or the connection to an existing one, which grants the bot access to your private keys. This accessibility increases the risk of your digital assets being compromised if the bot lacks sufficient security measures.

Furthermore, Telegram bots demand interaction with smart contracts, which, despite extensive audits, are not immune to vulnerabilities. Users must use caution when dealing with bots that have not been thoroughly vetted.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice.

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