Dex Trading Bot: Another Survival Form of DEX

Since the fourth quarter of 2023, the cryptocurrency market has shown a clear bullish trend, and the Meme token market has experienced significant growth. These types of tokens have demonstrated enormous value growth potential in the short term, attracting a large number of investors. However, the Meme token market has also exhibited extremely high volatility and short market cycles, with some tokens having active trading periods of less than 10 minutes. Due to technical factors such as blockchain network congestion and operational speed limitations, transactions often need to be executed in seconds, increasing the risks faced by investors, especially the likelihood of buying at market peaks. In response to these challenges, Dex Trading Bots have emerged to address the demand for rapid trading and reduce issues such as MEV losses.

Mainstream exchanges have launched related products, and the Dex Trading Bot sector has quickly gained market attention. Analysis shows that these tools not only perform outstandingly in terms of usage rate but also demonstrate strong profitability, accumulating a large number of real users.

The Dex Trading Bot track, with its extensive user base, clear application scenarios, and significant profit potential, is becoming an emerging field in the cryptocurrency market that deserves close attention.

What is a Dex Trading Bot

The Dex Trading Bot is an automated trading tool specifically designed for DEX traders, primarily to optimize the trading experience for users. These bots can perform various functions, including but not limited to automatic order placement, portfolio management, setting stop-loss and take-profit orders, etc. The Dex Trading Bot can continuously monitor and trade in the cryptocurrency market 24/7, thus increasing the chances of capturing favorable trading opportunities.

The Dex Trading Bot can achieve automated trading through smart contracts, allowing users to operate without programming skills. Additionally, the current DEX Trading Bot supports cross-chain trading and multi-platform operations. At the same time, the Dex Trading Bot can also provide various strategy options, such as arbitrage, copy trading, and grid trading, helping users find the best profit opportunities in different markets.

The Dex Trading Bot can also implement more complex trading operations through automated APIs, such as limit orders, market orders, and order cancellations. Therefore, the Dex Trading Bot is a very powerful automation tool that can significantly improve trading efficiency and profitability, especially suitable for users who wish to trade efficiently on decentralized exchanges, particularly for traders looking to chase on-chain "shitcoins" and Meme coins.

Services Provided by Dex Trading Bot

The reason why the Dex Trading Bot is widely accepted by trading users is that it offers more services than DEX. Based on several top-ranking Dex Trading Bots in the market, the services provided by Dex Trading Bots can be summarized as follows:

Automated Trading

Automated trading refers to the use of Dex Trading Bot to automatically execute trades, thus saving time and effort. Traders do not need to manually monitor the market and execute trades; they only need to set trading strategies and conditions, and the trading bot will automatically execute trades based on these conditions.

Automated trading methods can help trading users better grasp market changes, seize trading opportunities in a timely manner, and reduce the impact of human factors on trading decisions. By using the Dex Trading Bot for automated trading, trading users can manage their investment portfolios more efficiently, improve trading efficiency, and reduce trading losses caused by negligence or emotions. Therefore, the automated trading feature of the Dex Trading Bot provides users with a more convenient and efficient trading method, helping trading users optimize their trading experience and enhance trading results.

Optimize trading experience

To enhance the trading experience, the Dex Trading Bot is equipped with features such as stop-loss, take-profit, and trailing stop-loss, which can help traders more accurately control risks and profits. Whether for short-term trading or long-term investment, the Dex Trading Bot can provide effective trading decision support for traders. With intelligent algorithms and real-time market data analysis, the Dex Trading Bot can help traders make more rational trading decisions, avoid emotional behavior, and thus improve the success rate and returns of trading.

Sniping function

The sniping feature refers to the purchase function provided by the Dex Trading Bot, such as participating in rush buying activities during market openings or pre-sales.

The Dex Trading Bot can quickly buy or sell assets at specific points in time to capture the best opportunities in the market. The sniping function can help investors seize the best trading timing in the trading market, thereby achieving better investment returns. By utilizing the sniping function, the Dex Trading Bot can react quickly to changes in market conditions based on preset conditions and strategies, enabling rapid buying and selling of assets, thus maximizing the use of market volatility to gain more trading opportunities and profits. The sniping function is a very important tool for investors; it can enhance trading efficiency and accuracy, helping investors better grasp market opportunities and achieve better investment returns.

One-click Copy Trading Function

The Dex Trading Bot allows trading users to pre-select one or more trading accounts or trading entities that they believe have a higher trading win rate. Then, within the Dex Trading Bot, these trading entities can be added to a watchlist, enabling automatic real-time tracking of their trading activities. If these trading entities engage in trading actions, the Dex Trading Bot will immediately replicate their trading behaviors, automatically executing each trading instruction from the trading entities. This allows trading users who do not have enough time and expertise for market analysis to enhance their own trading win rate.

Limit Order and DCA

The limit orders of the Dex Trading Bot are set to allow partial execution and obtain the tokens from the executed portion. When initiating a trade, the Bot can choose the order validity period, exchange price, and exchange quantity based on the optimal path set, thereby maximizing the benefits during the transaction. This allows trading users to conveniently avoid cost increases and slippage issues caused by price impacts during trading, while also circumventing MEV problems.

The Dex Trading Bot has added DCA (Dollar-Cost Averaging) investment products, allowing users to set up regular and fixed investments in the future to lower their buying costs within their expected price range. This method can help investors reduce the risks associated with investing at a single price point in a highly volatile market environment. The Dex Trading Bot offers DCA investment products, and users only need to set their purchase frequency, price range, total duration, and the cryptocurrencies they wish to purchase. Once the DCA is in effect, the tokens purchased by the user will be transferred to the user's account associated with the Dex Trading Bot, and trades will be executed automatically based on the preset price range and trading frequency. After the DCA period ends, the tokens will be automatically transferred back to the user's wallet.

Classification of Dex Trading Bots

According to the profit model of the Dex Trading Bot, it can be divided into three types:

Subscription Fee System

The subscription fee system means that a certain amount of subscription fee must be paid to the project before using the Dex Trading Bot in order to obtain usage rights. Generally, the fee paid is around 0.1 ETH for 1 month and about 1 ETH for 1 year. The subscription fee system tends to favor communities or small circles, with the most common user group being KOLs (Key Opinion Leaders) with a high winning rate online, who provide trading signals to their followers. Users can copy the operations of the KOLs through the copy trading function.

transaction fee

The Dex Trading Bot that charges transaction fees is similar to a DEX, and charges fees based on the number of times it is used for trading operations. Generally, the fee standard is around 0.5%-1.5% of the transaction amount, and these fees do not include the fees charged to the trading users on the DEX, meaning that users will be charged twice. However, generally speaking, Dex Trading Bots will allocate a portion of their income to their token holders, thereby maintaining a positive feedback loop.

If there are no token issuance projects, there will be no distribution of project revenue.

Subscription fee system and mixed transaction fee system

Some Dex Trading Bots combine subscription fees with trading fees. Generally, these Dex Trading Bots have some upgraded services or features, such as Maestro. The main source of income for the Maestro project comes from charging trading fees to trading users, which is 1% of the transaction amount. However, since it does not issue tokens, all fees are treated as protocol income and are not distributed to users. Nevertheless, it offers a VIP community service system, where users can pay $200 to Maestro each month, and after entering the VIP community, they can enjoy some carefully selected Smart Money addresses or wealth passwords, similar to paid groups created by traditional KOLs.

Based on the nature of the Dex Trading Bot, we can see that the project mainly targets high-frequency trading, aiming to gain an advantage in projects like Meme or Shitcoin through rapid trading. Therefore, the trading users of the Dex Trading Bot are essentially high-frequency traders. In addition, the project charges per transaction, and the fee standard is mostly set at the level of 1%. Consequently, the project revenue of the Dex Trading Bot is even comparable to that of some top DEX revenue levels.

Advantages of Bots Compared to Traditional DEXs

After using the Dex Trading Bot, its usage has surged significantly in a short period, and its project revenue is already comparable to top DEXs. The reason for this phenomenon is that the Dex Trading Bot has several irreplaceable advantages over traditional DEXs:

Quick Response

By using the Dex Trading Bot for trading, traders can achieve quick responses. Once the target price is triggered, the trade is executed immediately, avoiding delays that may arise from manual operations. This real-time trading method significantly enhances trading efficiency and reduces trading risks. Moreover, when there is a sudden increase in on-chain trading volume, congestion on the chain often occurs. DEXs, due to the performance limitations of the underlying chain, frequently experience lag due to excessive trading volume. However, the Dex Trading Bot achieves rapid execution through its efficient trading mechanism, avoiding delays caused by network congestion, ensuring that users can complete their trades swiftly. Additionally, traders often have a high demand for the speed of purchasing tokens at the opening, whether due to the need to chase after projects like 土狗 or Meme. Therefore, the Dex Trading Bot is particularly suitable for users who wish to trade quickly at market openings. These users can seize market opportunities at the earliest time and achieve higher profits through fast trading. The instantaneous response capability of the Dex Trading Bot enables users to place orders and complete trades rapidly.

Automated Trading

In the Crypto market, due to the 24/7 trading mechanism, the market changes rapidly, posing significant challenges to high-frequency trading users. This has led to a growing demand for automated trading, which can not only accurately capture the timing of market fluctuations but also save traders' time and energy. Traditional manual trading requires investors to spend hours monitoring the market and executing trades manually, while automated trading can completely free investors' hands, allowing them to escape the burdensome trading operations and focus more on market analysis and strategy formulation. This not only improves trading efficiency but also enables investors to better grasp market trends and make more informed investment decisions.

Reduce MEV loss

The biggest trouble that trading users face when conducting traditional DEX trading on the blockchain is MEV attacks. Trading users may suffer significant losses due to MEV attacks, so how to prevent MEV offensives is also a problem that DEXs need to solve. Although many DEXs have made improvements against MEV attacks, the results are not satisfactory, and MEV attacks still occur from time to time. Moreover, if MEV attacks happen during a trader's rush to buy newly launched tokens, the losses incurred will be much greater than the usual losses. Therefore, trading users typically need to set a higher slippage to ensure successful transactions. However, Dex Trading Bot can effectively prevent MEV attacks through its own technology.