Step by Step Guide to Trade on Chain with Solana

CXdt...aXxN
5 May 2024
70



Steps for Starting to Trade on the Solana Blockchain


Create a Wallet

  • To begin trading on the Solana blockchain, the initial step is to set up a Solana wallet. If you are new to blockchain trading, select a wallet that suits your needs. Popular choices include Phantom and Solflare, both known for their ease of use and availability of mobile apps, ensuring access to your wallet at all times. Upon downloading the app or browser extension, remember to securely back up your private key. This is crucial because your wallet isn't linked to an email address; losing access to your device without a backup of your private key means losing your funds permanently.


Create a Telegram Account

  • Many new crypto projects launch on Telegram, making it a prime platform for early engagement. In Telegram, you can easily copy and paste a new Contract Address (CA) directly into your trading bot with just a couple of clicks. Many bots offer an 'auto buy' feature, enabling immediate purchase of the token once the CA is entered. To trade even faster, consider a bot equipped with scraper or sniper functions, though not all bots provide these features. For beginners, starting with a simpler bot like BONK bot is advisable, as it offers fewer options and is less overwhelming.


Find a Trading Bot

  • With your Telegram account ready, it's time to add some trading bots. Our website lists the best and most trustworthy Telegram bots, and we continuously update our selection. If you already know what features you need, our website’s blog section provides detailed overviews of each bot's capabilities. If you're unsure, take some time to explore the Trading Bots menu on our site to familiarize yourself with the available options.


Safety First!

  • Prioritize security by transferring your private key from the trading bot to the wallet you created in the first step. While some bots offer the option to import your private key, exporting it to your main wallet is generally safer. This precaution is vital because if your Telegram account is banned due to complaints from other users, and you haven't exported your private key, you could lose access to your wallet permanently. This is because the trading bot (which also functions as your wallet) is linked to your Telegram account.


Fund Your Wallet

  • After completing the initial setup, the next step is funding your wallet to start trading. Given that you're trading on the Solana blockchain, adding Solana (SOL) to your wallet is essential. Both Phantom and Solflare wallets provide an option to purchase Solana directly within the wallet. If direct purchase options are restricted in your region, you can alternatively fund your wallet through a Central Exchange (CEX). Once you've acquired Solana, you'll need to transfer the funds to the wallet address of your trading bot. If you've opted to integrate your wallet directly with the trading bot, your funds will automatically be ready in the bot after the purchase.


Ready to Go!

  • With all the steps followed correctly, you are now set to begin trading on the Solana blockchain! However, remain vigilant for scammers and fraudulent schemes ('rugs'), as financial dealings often attract untrustworthy behavior. Always proceed with caution and make informed decisions in your trading activities.



There are a few ways to find tokens:


  • Dextools live pairs (risky)
  • Call channels on Telegram
  • Influencers on X (please don’t trust all of them)
  • Live pair channels on Telegram (risky)
  • Burn channels on Telegram (less risk)


Don’t buy more than you can afford to lose and on chain trading offers a lot of gains but it can drop as fast as it pumps.



Exploring On-Chain Trading Opportunities on Solana

On-chain trading on the Solana blockchain provides unique advantages, particularly appealing for those eager to invest in newly launched cryptocurrencies at their inception. Unlike conventional exchanges that may face listing delays and regulatory hurdles, on-chain trading allows investors direct access to newly issued tokens, often before they become available on major platforms. This prompt access can lead to significant returns for investors who are able to spot promising projects early.


Navigating the Scene: Utilizing Telegram for Timely Insights

Telegram has become a vital platform for those involved in on-chain trading, offering a space to gain early insights into new developments. Telegram groups and channels are rich sources of discussions, announcements, and updates about upcoming token launches and liquidity events. By engaging with these communities and following key influencers within the Solana space, traders can acquire critical information to guide their investment strategies.


Utilizing Trading Bots on Solana for Enhanced Efficiency

Trading bots designed specifically for use with Telegram are crucial for enhancing trading efficiency within the Solana ecosystem. These bots are equipped with various features that range from monitoring call channels and social media platforms like Twitter to executing trades based on set criteria. The use of these bots enables traders to automate their operations, allowing for rapid responses to market changes and seizing new trading opportunities as they arise.


Reviewing Telegram Trading Bots for Solana

A variety of Telegram bots have become essential tools for traders in the Solana community, each offering different features and functionalities tailored to various trading styles and objectives. Here’s a closer look at some of the prominent trading bots available:



1. BONKbot

BONKbot is a widely utilized trading bot within the Solana ecosystem, favored for its simplicity and straightforward functionality. It primarily offers basic buy, sell, and portfolio viewing options, making it an ideal choice for those new to trading bots or who prefer a no-frills approach to on-chain trading.



2. Maestro

Meastro Trading bot Although not as prominent on Solana, Maestro is a versatile trading bot used across various blockchain networks. Its features include scraping for trading signals and executing limit orders. Given its functionality and growing user base, its presence in the Solana community is expected to increase.



3. Trojan

Trojan is well-suited for more experienced traders but also remains accessible for beginners wanting to grasp the fundamentals of trading bots. It provides helpful information and resources, supporting users in maximizing their trading effectiveness on the Solana network.





4. Magnum

Magnum serves as a multi-chain trading bot that continues to evolve, with ongoing development enhancing its trading speed and stability. It also features a user-friendly app, broadening its appeal and usability across different blockchain platforms.





5. Shuriken

Shuriken has earned its place as a notable multi-chain trading bot, particularly praised for its aesthetic and functional web app. Although relatively new to the scene, Shuriken offers an engaging user experience that has quickly gained positive attention within the trading community.


Choosing the Ideal Trading Bot for Your Needs

When selecting a trading bot, it's essential to consider your trading experience, risk tolerance, and investment goals. Extensive research is necessary to ensure the bot's reliability, user-friendliness, and community endorsements before making a commitment.


Enhancing Efficiency with Telegram Bots

One significant benefit of using Telegram bots for on-chain trading is their integration with Solana wallets. This allows traders to input the contract address directly into the bot, facilitating swift trades without the need to navigate between multiple platforms. This integration streamlines the trading process, reducing obstacles and boosting the speed and effectiveness of transactions.


Ensuring Security in On-Chain Trading on Solana

It's critical to secure your investments, especially considering the potential for scams and rug pulls in the cryptocurrency space. This guide aims to equip you with knowledge and strategies to navigate and mitigate the risks associated with on-chain trading on Solana, helping protect your assets.


Assessing Personal Risk: Guarding Against Rug Pulls

Before engaging in on-chain trading, evaluate your personal risk tolerance. Early investments can offer high returns but also bring increased risks, such as rug pulls. Learning how to conduct thorough due diligence and rug checks is crucial to minimize these risks.


Critical Elements for Conducting Rug Checks

When considering an investment in a new token, several key aspects should be reviewed to avoid potential scams:


Liquidity Lock

  • Importance of Full Liquidity Lock: Initially, a 100% liquidity lock is a strong indicator of a token's credibility. Any decrease in liquidity over time should be a concern, as tokens with unlocked liquidity can lead to significant risks, including rug pulls.


Freeze Authority

  • Potential Risks of Freeze Authority: The ability for token issuers to freeze accounts, thus preventing selling, is a feature that should generally be approached with caution. This could be misused by malicious parties to manipulate the market or restrict access to funds.


Wallet Distribution

  • Concerns with Wallet Concentration: An imbalanced distribution, especially where a single wallet holds a large share of the tokens, can suggest a risk of market manipulation by the creators through token dumping. Conversely, a fair distribution across numerous wallets is ideal, although anomalies like Raydium holding less than 5% of the tokens might be suspicious.


Mutability

  • Considerations for Token Mutability: The ability to change token characteristics, known as mutability, isn't typically harmful but can become a concern when observed alongside other risky attributes.


Tools for Conducting Rug Checks

  • Rugcheck.xyz: This tool enables users to carry out detailed rug checks without needing to link their wallet, providing insights into the token's legitimacy.
  • Birdeye: Offers methods for examining wallet distribution and the presence of freeze authority, useful for deeper token analysis.
  • Dexscreener: While not specifically a rug check tool, Dexscreener offers valuable market insights and can complement other analysis tools for a thorough evaluation.


Slow Rugging Explained
Slow rugging is a less overt but equally dangerous form of market manipulation, where token owners systematically sell off their holdings over time, potentially undermining the token value surreptitiously.

Identifying Standard Slow Rugging

  • Monitoring Sell-Off Patterns: It's crucial to monitor top wallets, especially after a token launch, for gradual sell-offs. These need to be assessed whether they align with typical user activity (e.g., corresponding buys that suggest normal trading) or if they mainly represent the token owners liquidating their stakes.


Detecting Sneaky Slow Rugging

  • Deeper Transaction Analysis: Sneaky slow rugging requires more intensive scrutiny. Look for repetitive selling patterns from wallets, particularly those that periodically show zero token balances. It’s important to trace the origin of these tokens and carefully examine the transaction history to detect any signs of developers or initial holders systematically offloading their shares.


Mitigating Risks in Solana On-Chain Trading

Trading on the Solana blockchain presents substantial opportunities for growth and profit. However, these opportunities are not without risks. By employing thorough rug checks and staying alert to slow rugging tactics, traders can significantly minimize their risk of falling victim to these deceptive practices. This proactive approach is essential for safeguarding investments and ensuring a more secure trading environment in the volatile cryptocurrency market.



Conclusion

On-chain trading on the Solana blockchain offers a dynamic opportunity for investors looking to gain early access to emerging cryptocurrencies. By utilizing Telegram channels and specialized trading bots, traders can obtain critical insights and perform trades with exceptional speed and efficiency. As the Solana ecosystem progresses, on-chain trading stands as a powerful method to explore and capitalize on the ever-changing world of cryptocurrency investment.


If you want to explore more bots and snipers then here are some more to check out if you want :


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