There are many advantages to automating trading methods instead of pointing and clicking with the mouse. For starters, robots can execute trading decisions without emotions, they light up quickly, and they have much lower margins of error. According to CNBC estimates, cryptocurrency trading bots account for 70% to 80% of the total trading volume.
TokenBot is an automated copy trading platform designed for social trading groups and communities within messaging applications such as Discord, Telegram and Slack. Once added to a social media group, TokenBot monitors the admin account on the exchange and automatically informs members of their trading activity details in real time. The bot has more than 8000 daily active users and generates nearly $100 million daily in trading volume.
In an exclusive Ask Me Any Session with Cointelegraph Markets Pro users, TokenBot founders Anthony Elia and Shawn Newsom shared an insight into how the bot can help cryptocurrency traders.
Introduction to TokenBot and its user interface | Source: TokenBot
Cointelegraph Markets Pro User: What cryptocurrency exchanges are currently supported on Tokenbot?
Anthony Elijah and Sean Newsom: We support all important stock exchanges and futures contracts. Binance, FTX, Bybit, Coinbase, Kraken and BitMEX. We’re expanding to Gate.io, OKEX, and Huobi soon. Many of the major traders who use the platform, especially those with leveraged trading strategies, use Binance, with FTX coming in a close second.
CT Markets Pro user: How does the structure work? I connect my API to the bot and then the trades are shared by friends/community via Discord/Telegram? What is the fare for that?
AE & SN: Yes, you plug your API key inside the TokenBot.com dashboard, click on your Discord/Telegram account and add the bot in your group chat. There are no fees for sharing deals. If users want to copy your trades, you can set your price as low as $29 a month, and TokenBot takes anywhere from 10-30% of the platform depending on the subscription price. TokenBot will automatically copy these trades to the subscriber’s crypto account via their API keys.
CT Markets Pro user: Are trades shared in near real time, or are there lags?
AE & SN: Are trades shared in near real time, or are there lags? Yes. Our system connects directly to the Exchange’s WebSockets API, and we get near-real-time notifications of deals to reduce latency. We have engineered this system for over three years.
CT Markets Pro user: Does the bot support DEXs as well, or only centralized exchanges?
AE & SN: At the moment, only central exchanges. However, if we support DEXs, we will look to support dYdX first, as the on-chain perpetual futures product has gained a lot of traction with traders.
CT Markets Pro user: You mentioned transparency as a great forte of preparation. But what if a merchant, for example, trades on Coinbase and then transfers coins to Uniswap and then swaps/buys/sells there? Won’t the robot be able to capture DEX trades correctly? Are there solutions?
AE & SN: You can copy trades via CEX using TokenBot, but there is no way to know if the trader you are copying has withdrawn this coin from the exchange to say, Uniswap and exchange it there. But you will have an open trade until the trader sells the position from where it originated. The trader will eventually have to respond to their community about which trade is still open. There is no way to get around a trader manipulating profits and losses on their trades.
CT Markets Pro user: There have been several phishing exploits lately involving Discord. How secure is Tokenbot from this type of attack?
AE & SN: Since we are essentially a CEX/API producer, our main layer of security is through hardware encryption and “binding” API keys to the IP. Most of the API keys in our system can only be used by our servers. For example, you can generate an API key for use with TokenBot on Binance, By bit and Phemex – and this API key only works on our servers. This limits the possibility of any “man in the middle” type attacks.