The world of cryptocurrency trading is always changing, always adapting and always improving. This can be seen with the introduction of Telegram bots that are facilitating the way traders and investors receive information about their stock. Bots keep them updated with the cryptocurrency market changes as a whole.
Telegram bots are usually independent third-party applications but can also be fully functional apps that are published by exchanges. For example, CexIoInfoBot is a Telegram bot that serves the users of a London-based exchange, CEX.IO. Here, we will take a look at different types of telegram bots and assess their potential to improve your trading experience.
Let’s start with the basics. What is a Telegram bot? Well, it is a class of chatbot applications that can be run alongside your crypto portfolio management apps or your exchange apps. Some of these bots are very rudimentary and the functionality can be very limited. Others, however, are incredibly sophisticated and can help you do a whole host of things with your cryptocurrency portfolio.
You may have seen chatbots in other industries already. Many banking apps use bots to help users save money or invest. One such app is Monzo that uses a sophisticated bot to keep users up to date with all of their banking information and provide Monzo with their feedback as well.
Banking chatbot is a great way to showcase some of the functionality of Telegram crypto bots in general. If you haven’t been using any, here are some of the key features of such Telegram bots.
- Evaluated expenditure in real time. This means that as you spend money the bot tracks your expenditure and will relay information about your next incoming payment and how much you will need to limit your spending on a daily basis in order to budget until payday.
- Theoretical purchases and budgeting. Users might have their eyes on the latest iPhone or even the next hot coin. They can text the bot to ask if they have the funds to afford that purchase. The bot will then calculate whether or not the funds are currently available alongside a revised daily budget to ensure the user is not in a deficit before their next income payment.
- Lots of stock exchanges and FOREX also use bots to keep users updated on the current buy and sell prices of the monitored stocks. These also partner with banking apps which allow you to make savings or investment contributions from any excess money in your account. Also, the bots can simply round up the purchases made on an account and invest the difference. For example, if you purchase something for $7.95, the bot will round it up to $8 and invest the 5-cent difference.
The Telegram bots themselves often resemble a message thread. But instead of a real user on the other end, you’re communicating with a sophisticated bot that will respond to your questions. Think live-chat functionality but with an automated system.
One of the most frustrating things about cryptocurrency trading is missing that next profitable investment opportunity. Especially, when some currencies are very volatile and prices can rise and fall dramatically in the space of minutes. Telegram bots are combating this issue and empowering cryptocurrency traders to make real-time transactions, with some bots even automating the investment to make sure you don’t miss out if you’re busy.
Telegram bots work in set parameters. They are complex systems that respond to inputs in a fairly human way. Overall this functionality is especially useful in crypto trading and investment as it will perform and execute investments within your comfort level and to your exact pre-set parameters.
This means, if the bot is fully functional with your exchange it will monitor your portfolio. If it sees an asset rapidly declining in value and approaching your maximum loss limit it will automatically offload that cryptocurrency. This minimizes your overall risk and balances out your portfolio as a whole to make it more profitable.
We mentioned earlier the sophisticated investment/banking bots that will invest money that you can afford to spare (again always within your pre-set parameters). And these bots are fantastic for cryptocurrency as well. Multi-functional Telegram bots can handle your finances in a responsible way and inform you of any issues or important information you need to be aware of.
Telegram bots provide a whole range of important information and can tell users how much they can safely afford to invest according to their investment risk attitude and tell users about specific stock/currency, including chart history and current values.
Custom bots might transfer your allocated funds over to invest on your behalf but they don’t give investment advice and they don’t actively choose things to invest for you. A Telegram bot is a very functional safety net that allows you to maintain overall control and provides you with all of the vital information you need to make the best trading decisions.
There are two key areas that Telegram bots don’t have functionality in, and that is for user safety. As mentioned above, they won’t come up with investment strategies or provide investment advice to protect end users. Be wary of any bot that claims to do this as it is likely not legitimate or safe.
The other thing that Telegram bots can’t do is fully automate investment (yet). This again is to protect users of an exchange, and stop high-volume trading being conducted by robots to the detriment of the user base.
In short, Telegram bots are a nifty little tool to help you stay safe and trade within your means. They minimize risk to some extent and can provide the latest crypto news when you need it in real time.