Telegram Trading Bots: Greed Shouldn’t Compromise Your Safety

Telegram Trading Bots: Greed Shouldn’t Compromise Your Safety

Telegram trading bots are the latest craze in the digital asset space — but can these bots be trusted?

One of the most popular examples of a Telegram trading bot is Unibot — a bot that comes with a wide array of features including automated limit orders, fail guard sell capabilities, and private transactions.

The convenience and efficiency of Unibot and other similar bots have led to their rapid growth in popularity. Yet, many users of these bots’ users may be putting their information and assets at risk.

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To put it simply, many people give bots access to their wallet keys out of greed, whether it stems from wanting to make the best trades possible or getting early access to new tokens, NFTs, or similar assets.

Today, we are discussing why Telegram trading bots pose significant risks to your wallets and digital assets without the proper precautions. In the wake of the many major cryptocurrency and NFT scandals of 2023, it is vital to prioritize safety over greed when it comes to maintaining control and security over your digital assets.

Read on to discover the basics of Telegram trading bots, the risks they pose, and how to stay safe.

What is a Telegram Trading Bot?

A Telegram bot is a program that acts as a chat assistant on Telegram, an online messaging app that is similar to WhatsApp and Facebook Messenger.

Trading bots involve a specific application of the software that allows users to automate trading activities. These bots work by connecting to your wallet and performing trades on your behalf in exchange for a percentage of your earnings. According to a recent CoinTelegraph report, the cumulative crypto trading volume involving Telegram bots exceeded $190 million in August 2023.

What are the Risks of Telegram Trading Bots?

Although Telegram trading bots open new investment opportunities they also present major risks.

A trading bot is, in essence, a hot wallet used for short-term trades and transactions. Since hot wallets are connected to the Internet, this exposes them to exploits and, thus, creates a vulnerability that hackers can take advantage of to steal your assets. Additionally, giving trading bots access to and permission to use your private keys can expose your information and assets to bad-intentioned developers.

Moreover, trading bots raise concerns surrounding ownership and custody. Thinking back to recent scandals where centralized exchanges went under and customers lost access to their assets, such as Celsius freezing withdrawals or the collapse of FTX, giving trading bots and the developers behind them access to your private keys is a massive risk without advanced security measures and controls in place.

Safety First: Keeping Your Digital Assets Safe in the Age of Trading Bots

The reality of Telegram trading bots is that, although these tools can be incredibly useful and profitable, they are ultimately very high risk. With the decentralized nature of blockchain technology and digital assets, regulators currently have little influence over the security aspects of these technologies.

In truth, the best way to keep your digital assets safe is to avoid trading bots altogether. However, the potential benefits of these bots are enough for many users to take the risk anyway.

An August 2023 Nasdaq report highlights several of the key ways to protect yourself from bot exploits:

“Understandably, many traders are urging caution when using TTBs [Telegram trading bots]. Best practices suggest utilizing a fresh address and only depositing an amount you can afford to lose, with the understanding that all funds could easily be lost. Any profits should be immediately sent to a separate address where the private keys are, in fact, private.”

Whether you choose to play it safe and manage your trading activities yourself, or if you opt for the convenience and speed of Telegram trading bots, what matters most is taking the extra steps necessary to add additional layers of security to your wallets.

Safeguard Your Assets with Webacy

At Webacy, we provide top-notch wallet security capabilities that enable you to assess your risk level, monitor your wallets, and act on threats immediately.

Our Backup Wallet tool provides you with a recovery wallet and a panic button feature that allows you to instantly transfer your digital assets into the recovery wallet at any moment. This is massively important in today’s high-risk trading environment for crypto, NFTs, and other digital assets, as you may have only moments to spare if your wallet were to be compromised. Get started with Webacy today to safeguard your digital assets with our reliable and powerful tools.