There are many advantages to automating your trading tactics instead of pointing and clicking with a mouse. For starters, bots can execute trading decisions without emotion, are lightning fast, and have much less margin for error. According to CNBC estimates, crypto trading bots account for 70% to 80% of global trading volume.
TokenBot is an automated copy commerce platform designed for social commerce groups and communities within messaging apps such as Discord, Telegram, and Slack. Once added to a social media group, TokenBot monitors the admin account on an exchange and automatically notifies members of their trading activity details in real time. The bot has over 8,000 daily active users and streams nearly $100 million daily in trading volume.
In an exclusive “Ask Me Anything” session with Cointelegraph Markets Pro users, TokenBot co-founders Anthony Elia and Shaun Newsum shared their views on how the bot could help crypto traders.
TokenBot Introduction and User Interface | Source: TokenBot
Cointelegraph Markets Pro User: What crypto exchanges are currently supported on Tokenbot?
Anthony Elia and Shaun Newsum: We support all major spot and futures exchanges. Binance, FTX, Bybit, Coinbase, Kraken, and BitMEX. We are expanding Gate.io, OKEX, Huobi soon. Many of our master traders who use the platform, especially those with leveraged trading strategies, use Binance, with FTX in second place.
CT Markets Pro User: How does the structure work? I connect my API to the bot, then the trades are shared between friends/community via Discord/Telegram? What is the price for this?
EA and SN: Yes, you connect your API key in the TokenBot.com dashboard, click on your Discord/Telegram account, then add to the bot in your group chat. There are no fees for splitting transactions. If users want to copy your trades, you can set your price as low as $29/month, and TokenBot takes between 10-30% of the platform depending on the subscription price. TokenBot will automatically copy these transactions to the subscriber’s crypto account via its API keys.
CT Markets Pro User: Are transactions shared in near real time or is there a delay?
EA and SN: Are transactions shared in near real time or is there a delay? Yes. Our system connects directly to the exchange’s WebSockets API and we receive near real-time transaction notifications to reduce latency. We have been designing this system for over three years.
CT Markets Pro User: Does the bot also support DEXs, or only centralized exchanges?
EA and SN: Currently, only centralized exchanges. However, if we are supporting DEXs, we will look to support dYdX first, as their on-chain perpetual futures product has caught a lot of traction with traders.
CT Markets Pro User: You mentioned transparency as a big strength of the setup. But what if a trader, for example, trades on Coinbase, then transfers coins to Uniswap, then trades/buys/sells there? The bot can’t retrieve DEX transactions, can it? Are there any workarounds?
EA and SN: You can copy trades on CEX with TokenBot, but there is no way to tell if the trader you are copying took that coin off the exchange to say Uniswap and traded it there. But you would have a trade left open until the trader sells the position it originated from. The trader should possibly respond to his trading community still open. There is no way for the trader to manipulate the P&L on his trades.
CT Markets Pro User: There have been numerous phishing exploits involving Discord recently. How protected is Tokenbot from this type of attack?
EA and SN: Since we are primarily a CEX/API product, our primary layer of security relies on hardware-based encryption and “binding” of IP-restricted API keys. Most API keys in our system can only be used by our servers. For example, you can create an API key to use with TokenBot on Binance, By bit and Phemex – and this API key is ONLY functional on our servers. This limits the possibility of man-in-the-middle attacks.