Dex Trading Bot: Another survival mode for DEX, pushing speculation to the extreme

Since the fourth quarter of 2023, the cryptocurrency market has shown a clear bullish trend, with the Meme token market significantly growing as a result. These tokens have demonstrated enormous value growth potential in the short term, attracting a large number of investors. However, the Meme token market also exhibits extremely high volatility and short market cycles, with some tokens experiencing 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 possibility of buying at market peaks. In response to these challenges, Dex Trading Bot has emerged, aiming to address the demand for rapid trading and reduce MEV losses among other practical issues.

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

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

Introduction to Dex Trading Bot

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

The Dex Trading Bot achieves automated trading through smart contracts, allowing users to use it without the need for programming skills, and supports cross-chain trading and multi-platform operations. It also offers various strategy choices, such as arbitrage, copy trading, and grid trading, to help 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 cancel orders. Therefore, the Dex Trading Bot is a powerful automation tool that can significantly improve trading efficiency and profitability, especially suitable for users who wish to trade efficiently on decentralized exchanges, particularly those chasing on-chain "shitcoins" and Meme coin trading.

Services Provided by Dex Trading Bot

The reason why Dex Trading Bots are widely accepted by traders is that they offer more services than DEX. Based on several top-ranked Dex Trading Bots in the market, the main services can be summarized as follows:

Automated trading

Automated trading uses the Dex Trading Bot to automatically execute trades, saving time and effort. Trading users 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 helps to better grasp market changes, seize trading opportunities in a timely manner, while reducing the impact of human factors on trading decisions. By using the Dex Trading Bot for automated trading, traders can manage their portfolios more efficiently, improve trading efficiency, and reduce trading losses caused by neglect or emotions. Therefore, the automated trading feature of the Dex Trading Bot provides users with a more convenient and efficient trading method, helping 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, helping traders to 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 users. 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 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 market opportunities. The sniping feature helps investors seize the best trading moments in the market, 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 buying and selling of assets, thus maximizing the use of market volatility to gain more trading opportunities and profits. The sniping feature is a crucial tool for investors as it enhances trading efficiency and accuracy, helping investors better grasp market opportunities and achieve improved 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, add these trading entities to a watchlist, and then automatically follow the trading activities of these entities in real-time. If these trading entities engage in trading activities, the Dex Trading Bot will immediately replicate their trading actions and automatically execute each trading instruction. This enables trading users who do not have sufficient time and expertise to conduct market analysis to improve their own trading success rate.

limit order and DCA

The limit order of the Dex Trading Bot is set to allow partial execution and obtain the tokens for the executed portion. When proposing a trade, the Bot can select the order validity period, exchange price, and exchange quantity based on the optimal path set, thereby maximizing the benefits in the trade. This enables trading users to more conveniently avoid cost increases and slippage issues caused by price impacts during trading, while also circumventing MEV problems.

The DCA investment product has been added to the Dex Trading Bot, allowing users to set up regular fixed investments in the future to lower their buying costs within the expected price range. This method helps 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, purchase price range, total time period, and the cryptocurrency they wish to purchase. Once the investment is in effect, the purchased tokens will be transferred to the account associated with the user and the Dex Trading Bot, and will be automatically executed according to the preset price range and trading frequency. After the investment 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 Bots can be divided into three types:

Subscription Fee System

The subscription fee system requires a certain amount of subscription fee to be paid before using the Dex Trading Bot in order 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 tends to favor communities or small circles, and the most common user group consists of KOLs with a high winning rate online who provide tips to their followers; users can copy the KOL's trades through the copy trading feature.

transaction fee

The Dex Trading Bot that charges transaction fees is similar to a DEX, charging based on the number of trading operations used each time. The standard fee is generally around 0.5% to 1.5% of the transaction amount. These fees do not include the costs incurred by the trading user in the DEX, meaning that fees will be charged twice. However, generally speaking, Dex Trading Bots will distribute part of their income to their token holders, thereby maintaining a positive feedback loop.

Projects that do not issue tokens will not distribute project revenue.

Hybrid System

Some Dex Trading Bots combine a subscription fee model with trading fees. These Dex Trading Bots typically have some upgraded business or services, such as a project's main revenue coming from charging trading fees to users, with each fee being 1% of the transaction amount. However, since no tokens are issued, all fees are considered protocol revenue and are not distributed to users. Nevertheless, they offer a VIP community service system, where users pay $200 per month to enter the VIP community and enjoy access to carefully selected Smart Money addresses or wealth codes, similar to paid groups created by traditional KOLs.

The essence of the Dex Trading Bot shows that the project is primarily aimed at high-frequency trading, gaining an advantage in quickly trading projects like Meme coins or low-cap tokens. Therefore, the trading users of the Dex Trading Bot are mostly high-frequency traders. In addition, the project charges on a per-trade basis, with most fees set at around 1%. As a result, the income from the Dex Trading Bot project is even comparable to that of some top DEX platforms.

Advantages of Bots Compared to Traditional Dex

After using the Dex Trading Bot, its usage has significantly increased in a short period, and even the project revenue can compare closely with top DEXs. This phenomenon is due to several irreplaceable advantages of the Dex Trading Bot compared to traditional DEXs:

Quick Response

By using the Dex Trading Bot for trading, users can achieve quick responses; once the target price is triggered, the trade will be executed immediately, avoiding delays that may arise from manual operations. This real-time trading method greatly enhances trading efficiency and reduces trading risks. Additionally, when there is a sudden surge in on-chain trading volume, 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, implements an efficient trading mechanism that enables rapid transactions, avoiding delays caused by network congestion and ensuring that users can quickly complete their trades. Furthermore, as trading users often need to buy tokens like 土狗 or Meme quickly, there is a very high demand for speed during the market opening, making the Dex Trading Bot particularly suitable for users who want to trade quickly at market open. These users can seize market opportunities at the first moment and achieve higher profits through fast trading. The instant responsiveness of the Dex Trading Bot allows users to place orders and complete trades swiftly.

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. Therefore, the demand for automated trading has emerged. Automated trading can not only accurately capture fluctuations in the market at various time periods 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 from heavy trading operations, allowing them to focus more on market analysis and strategy development. 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 concern for trading users on traditional DEX platforms during on-chain trading is MEV attacks, which can lead to significant losses. Although many DEXs have made improvements to address MEV attacks, the results have been unsatisfactory, and MEV attacks still occur from time to time. If an MEV attack happens while traders are purchasing newly launched tokens, the losses incurred by trading users can be much greater than usual. Therefore, trading users often need to set a higher slippage to ensure successful transactions. However, a Dex Trading Bot can effectively prevent MEV attack problems through its technology. Trading users only need to pay about 1% in fees, and the slippage costs saved often exceed the fees paid, greatly reducing trading costs.

has a high degree of flexibility

Trading users can personalize their settings according to their needs, including custom trading strategies and parameters. This flexibility allows each user to optimize their trades based on their investment strategies and risk preferences. By utilizing 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 constantly changing market environment, high flexibility has become an important factor in enhancing trading competitiveness and adaptability, offering users more options and room for maneuver.

Enhance user experience

The Dex Trading Bot provides a higher user experience for traders compared to traditional DEXs. The Dex Trading Bot offers convenient cryptocurrency trading, monitoring, and analysis tools, greatly enhancing the convenience for trading users. By integrating with various platforms, trading users can easily conduct cryptocurrency transactions, monitor market dynamics in real-time, and perform in-depth data analysis to help users make informed trading decisions. The Dex Trading Bot not only simplifies the trading process but also provides comprehensive market information and analysis.