Dex Trading Bot: Another Survival Form of DEX

Since the fourth quarter of 2023, the cryptocurrency market has shown a significant upward trend. In this macro environment, the Meme token market has experienced notable growth, demonstrating substantial short-term value growth potential, attracting a large number of investors. However, the Meme token market also exhibits 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 Bot has emerged, aimed at addressing the need for rapid trading and reducing MEV losses and other practical issues.

Some mainstream exchanges have launched related products, and the Dex Trading Bot field has quickly gained market attention. Analysis shows that these tools not only demonstrate excellent usage rates but also exhibit strong profitability, having accumulated a large number of real users.

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

What is Dex Trading Bot

The Dex Trading Bot is an automated trading tool specifically designed for DEX traders, primarily used to optimize the trading experience. These bots can perform a variety of functions, including automatic order placement, portfolio management, setting stop-loss and take-profit levels, etc. The Dex Trading Bot can monitor and trade the cryptocurrency market continuously 24 hours a day, increasing the likelihood of capturing favorable trading opportunities.

The Dex Trading Bot enables automated trading through smart contracts, allowing users to use it without any programming skills. It also supports cross-chain trading and multi-platform operations. Additionally, it offers 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 perform more complex trading operations through automated APIs, such as limit orders, market orders, and order cancellations. This is a very powerful automation tool that can significantly improve trading efficiency and profitability, especially suitable for users who want to trade efficiently on decentralized exchanges, particularly for traders chasing on-chain "shitcoins" and Meme coins.

Services Provided by Dex Trading Bot

The reason why Dex Trading Bots are widely accepted by trading users is that they provide more services to users compared to DEX. Based on several top-ranked Dex Trading Bots in the market, the services they provide can be summarized as follows:

Automated Trading

Automated trading utilizes the Dex Trading Bot to execute trades automatically, 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.

This method 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 a Dex Trading Bot for automated trading, trading users can manage their 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, which helps to optimize the 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 better 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 behaviors, and thereby increase the success rate and returns of their trades.

Sniping Function

The sniping function refers to the purchasing feature provided by the Dex Trading Bot, such as participating in buying activities during the opening or pre-sale.

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 feature helps investors seize the best trading moments in the trading market, thereby achieving better investment returns. By utilizing the sniping feature, the Dex Trading Bot can rapidly respond to market changes based on preset conditions and strategies, enabling quick buy and sell actions of assets, maximizing the use of market volatility, and gaining more trading opportunities and profits. The sniping feature is a very important tool for investors, as it improves trading efficiency and accuracy, helping investors better seize market opportunities and achieve better investment returns.

One-click Copy Trading Feature

The Dex Trading Bot allows trading users to pre-select one or more accounts, trading robots, or other trading entities that they believe have a higher trading success rate, and then add these trading entities to their watchlist within the Dex Trading Bot. It will automatically and in real-time follow the trading behavior of these entities. If these trading entities engage in trading activities, the Dex Trading Bot will immediately copy their trading actions and automatically execute each trading instruction. This enables trading users who do not have enough time and expertise to conduct market analysis to improve their own trading success rate.

Limit Order and DCA

The limit orders of the Dex Trading Bot are set to allow for partial execution and to obtain the tokens for the executed portion. When proposing 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 trade. This enables trading users to more conveniently avoid cost increases and slippage issues caused by price impacts during trading, while also avoiding MEV issues.

The Dex Trading Bot has introduced a DCA investment product, allowing users to set up periodic fixed investments in the future to lower the buying cost within the expected price range. This method can help investors reduce the risk of investing at a single price point in a highly volatile market environment. Users only need to set the purchase frequency, price range, total time period, and the cryptocurrency they wish to purchase. Once the DCA is in effect, the purchased tokens will be transferred to the account associated with the user and the Dex Trading Bot, and trades will be executed automatically based on the preset price range and trading frequency. After the DCA ends, the tokens will be automatically transferred back to the user's wallet.

Classification of Dex Trading Bots

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

Subscription Fee System

The subscription fee system requires users to pay a certain amount of subscription fee before using the Dex Trading Bot to gain access. Generally, the fee is around 0.1 ETH for one month and about 1 ETH for one year. The subscription fee system is relatively aimed at communities or small circles, and the most common user group is KOLs with a high success rate online who provide trade signals to their followers. Users can copy the KOL's actions through the copy trading feature.

transaction fee

The Dex Trading Bot that charges trading fees is similar to a DEX, charging based on the number of transactions each time it is used for trading operations. The typical fee standard is around 0.5%-1.5% of each transaction amount, excluding the fees that trading users incur on the DEX. However, in general, Dex Trading Bots will allocate a portion of their income to their own token holders to maintain a positive feedback loop.

If there are no projects that issue tokens, there will be no distribution of project revenues.

Subscription Fee System and Mixed Transaction Fee System

Some Dex Trading Bots mix subscription fees with trading transaction fees. These Dex Trading Bots usually have some upgraded services or offerings, such as Maestro, whose main income comes from charging trading users a transaction fee of 1% of the transaction amount. However, since there is no token issuance, all fees are treated as protocol revenue and are not distributed to users. Additionally, it offers a VIP community service system where users can enjoy some carefully selected Smart Money addresses or wealth passwords after paying $200 to Maestro each month, similar to paid groups created by traditional KOLs.

Based on the nature of the Dex Trading Bot, we can see that the project is mainly aimed at high-frequency trading, gaining advantages in snatching up Meme or shitcoin projects through rapid transactions. Therefore, the trading users who utilize the Dex Trading Bot are primarily high-frequency traders. In addition, the project charges on a per-transaction basis, with most of the fee standards set at around 1%. Thus, the revenue of the Dex Trading Bot project is even comparable to that of some top DEXs.

Advantages of Bots Compared to Traditional DEXs

After using the Dex Trading Bot, its usage has significantly increased in a short period, and even the project revenue can now be 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, users can achieve rapid responses; once the target price is triggered, the trade is executed immediately, avoiding delays that may arise from manual operations. This real-time trading approach significantly enhances trading efficiency and reduces trading risks. Additionally, when on-chain trading volume surges, on-chain congestion often occurs, and DEXs frequently experience lag due to the performance limitations of the underlying chain caused by excessive trading volume. The Dex Trading Bot, however, utilizes its efficient trading mechanism to achieve rapid transactions, avoiding trading delays caused by network congestion and ensuring users can complete trades swiftly. Moreover, due to the need for trading users to quickly purchase tokens like 土狗 or Meme at market openings, the Dex Trading Bot is particularly suitable for users who require fast trading during market openings. These users can seize market opportunities at the first moment and achieve higher returns through quick trades. The instant response capability of the Dex Trading Bot allows users to swiftly place orders and complete transactions.

automated trading

In the cryptocurrency market, due to the 7*24 trading mechanism, the market changes rapidly, posing significant challenges for 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 at various times 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 from 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 losses

The biggest challenge faced by trading users when using traditional DEX trading on the blockchain is MEV attacks. Trading users may suffer significant losses due to MEV attacks, so how to prevent MEV attacks is also a problem that DEX needs to solve. Although many DEXs have made improvements to counter MEV attacks, the results have been less than satisfactory, and the phenomenon of MEV attacks still occurs from time to time. Moreover, if an MEV attack happens when traders are trying to rush to buy newly launched tokens, the losses incurred by trading users will be much greater than usual. Therefore, trading users typically need to set a higher slippage to ensure successful transactions. However, a Dex Trading Bot can effectively prevent MEV attack issues through its own technology. Trading users only need to pay about 1% in fees, and the savings from slippage often exceed the fees paid, significantly reducing trading costs.

has high flexibility

Trading users can customize their settings according to their needs, including custom trading strategies and parameters. This flexibility allows each user to optimize their trading based on their investment strategies and risk preferences. Through customized settings, users can better adapt to market changes, improve trading efficiency, and also better control risks. Different investors have different needs and preferences, and the high flexibility of the Dex Trading Bot can meet these diverse demands, providing users with a more personalized trading experience. In the ever-changing market environment, high flexibility has become an important factor in enhancing trading competitiveness and adaptability, also providing users with more options and room for maneuver.

Enhance user experience