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DEC 7, 2023

Introduction to Crypto Sniping Bots

by ZIBAH, CopyChain Crypto

In our previous article we discussed the Defi Copy Trading ecosystem. We mentioned that some traders might share their trades late and in most cases, you might lose out if you enter the trade late. This is why we decided to show you another way you can conquer that through sniping bots.

Understanding Crypto Snipping Bots 

Sniping bots became a significant issue during the 2017-2018 crypto boom when skyrocketing prices created opportunities for these automated traders. Inexperienced investors often fell prey to sudden price changes, selling assets at a loss while bots capitalized on their mistakes. In cryptocurrency trading, sniping bots come in various types, each designed for specific trading strategies. In this article, we shall discuss all you need to know about Crypto Sniping Bots.
Crypto sniping bots are computer programs that big investors use to buy up cryptocurrencies the nanosecond they go on sale on crypto exchanges, way before normal folks even see them available. When a new crypto coin gets listed on a crypto exchange for the first time so people can start buying it, these smart sniper bots jump into action! They use their ultra-powerful computers to start buying up the shiny new coins in less than a blink of an eye.
While you're still looking for the "Buy" button, the sniper bots have already gobbled up bunches of the new crypto coins using the lightning speed of their computer programmes! The people who run these clever crypto sniper bots will then sell the coins they snapped up to other investors at much higher prices afterwards. Tricky, right?
The surge in bot activity not only impacts individual investors but also introduces a high level of unpredictability in cryptocurrency prices. This volatility poses a significant risk, and in the worst-case scenario, it has the potential to trigger a market crash.
Sniper bots can be used for a variety of trading strategies, including arbitrage, market making, and portfolio management. They often rely on real-time data feeds and advanced analysis tools to identify profitable trades and execute them with precision.

How Crypto Sniper Bots Works

1. Token Listing Detection: The bot keeps an eye on decentralized exchanges, constantly checking for announcements or new token listings. It scans social media, project websites, and DEX listing pages for updates.
2. Liquidity Pool Monitoring: When a new token is identified, the bot immediately looks at the liquidity pool, especially where the token is paired with a stablecoin like USDC or USDT. This step is crucial to ensuring that there's enough funds available for the upcoming trade.
3. Trade Execution: Once sufficient liquidity is detected, the bot quickly makes a trade to buy the new token using the paired stablecoin. It utilizes high-frequency trading techniques to be among the first to complete the transaction, aiming to maximize potential profits.

Types of Crypto Sniper Bots

Various types of sniper bots cater to specific strategies in cryptocurrency trading:
i. Entry/Exit Bots: The entry/exit bots make trades based on specific entry and exit points for the best buying and selling positions.
ii. Scalping Bots: The scalping bots focus on quick trades, making small bets to profit from sudden price changes.
iii. Arbitrage Bots: The arbitrage bots take advantage of price differences for the same coin on different exchanges, buying low and selling high.
iv. Technical Indicator Bots: The technical indicator bots use indicators like moving averages and Bollinger Bands to make trades based on market changes.
v. AI-Powered Bots: The AI-Powered Bots adapt and improve trading strategies using machine learning and AI to respond to evolving market data.

How to Use Crypto Sniper Bots.

Learn how to use Crypto Sniper bots with this step-by-step guide:
1. Choose a reputable bot: Research and pick a reliable Crypto Sniper bot based on reputation, user-friendly interface, and supported exchanges.
2. Register and open an account: Create an account on the chosen bot's official website and complete the registration process.
3. Connect your exchange account: Follow the bot's instructions to securely link it to your cryptocurrency exchange account.
4. Create your trading plan: Customize your strategy, selecting the cryptocurrency, number of transactions, stop-loss, take-profit levels, etc., to match your risk tolerance and objectives.
5. Test your approach: Before live trading, test your strategy on a demo account to assess its effectiveness in a risk-free environment.
6. Deploy your Crypto Sniper bot: Once satisfied, use the bot for real trading, starting with a modest investment and gradually increasing as confidence grows.
7. Monitor and fine-tune: Regularly check the bot's performance, evaluate outcomes, and adjust your strategy as needed.
8. Stay informed: Keep up with the latest cryptocurrency market news to make informed trading decisions, despite the assistance provided by Crypto Sniper bots.

The Risks Associated With Using Crypto Sniping Bots 

a. Developer Manipulation: Closed-source bots pose the risk of developers adding undisclosed functions, potentially compromising private keys, or manipulating token prices for personal gain. Using software from anonymous developers introduces uncertainties.
b. Fraud Concerns: Searching for bots online exposes users to scams, with the possibility of account draining or receiving a malicious sniper bot. To mitigate risks, opting for a bot developed by a reputable company or a non-anonymous developer is more reliable.
c. Blockage Risks: Decentralized exchanges actively combat bots using AntiBot systems, leading to programme blocks upon detection. Premium programmes may offer bypass capabilities, but not all sniper bots can navigate this protection.
d. Potential Losses: While early buyers often benefit from increased liquidity, there's a risk of profit and loss. Attackers may list tokens, triggering sales at inflated prices or maliciously crashing prices post-liquidity pool addition, especially with lesser-known tokens. Decentralized exchanges can't guarantee protection, as any user can issue, list, and sell tokens on DEX.

What Are Projects Doing to Counter Bad Crypto Sniping Bots?

Crypto projects have come up with some clever solutions to help block bad crypto sniping bots and give real humans a fairer shot at buying new tokens.
One popular method is using "whitelists". This means only users registered on a project's approved list can buy their crypto first when it's released. This helps stop random sniping bots from swooping in.
Another counterattack is requiring users to solve picture puzzles or type in codes called "CAPTCHAs" before they can make crypto purchases. Since bots have trouble analyzing images and text like humans, this slows them down.
Some crypto exchanges also make buyers wait in online "waiting rooms" for a chance to buy new tokens. Only a certain number of people are let through at once. This forms an orderly line the robots can't cut in front of!


Crypto-sniping bots are key players in cryptocurrency trading, providing various strategies for profitability. They give traders the ability to capitalize on opportunities, navigate market intricacies, and optimize returns. It's important to note that not all crypto sniper bots are equal; choosing the appropriate one depends on individual trading preferences and goals. This leads us to our next article on identifying the top crypto sniper bots in 2023, exploring their pros and cons. Thorough research is crucial to grasping the risks before using any bot in trading. Happy trading!
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