ChatGPT AI Trading Bot: How to Make $2,500 Per Day in Passive Income

Introduction

Are you looking for an innovative way to make passive income in the ever-evolving world of cryptocurrency? Today, I'll show you how to set up a trading bot that utilizes artificial intelligence to operate efficiently on decentralized exchanges such as Uniswap. This system leverages concepts of arbitrage, mempool analysis, and front-running to generate profits from liquidity transactions.

Understanding the Basics

The trading bot operates on the principle of "sandwiching" transactions, where the bot identifies pending transactions in the mempool— a sort of waiting room for unprocessed transactions— and strategically places orders that result in profits from slippage. Essentially, the bot detects specific transactions, sets higher gas prices for its orders to jump ahead, and thereby profits as the subsequent transactions are completed.

Getting Started

Before diving in, ensure you have the MetaMask browser extension installed, as it is crucial for interacting with the Ethereum blockchain. Follow these steps to set up your trading bot:

1. Visit Remix: Remix IDE is a platform for creating solidity-based smart contracts. Follow the link to access it. Only use authorized links to ensure you're proceeding correctly.

2. Create Your Contract: In Remix, navigate to the sidebar and create a new contract in the contracts folder. [Name it Bot](https://www.topview.ai/blog/detail/what-is-a-bot).sol.

3. Insert Bot Code: The source code for the bot is available via the link in this article. Make sure to copy and paste it into Bot.sol. The code is pre-set with optimal configurations for ease of use.

4. Compile the Bot: In the Solidity compiler tab, ensure you are using version 0.6.6 to match the contract specifications. Compile the Bot.sol file.

5. Deploy the Contract: Navigate to the "Deploy and Run Transactions" tab within Remix. Select "Injected Web3" as the environment, which connects to MetaMask. Adjust gas fees to aggressive for faster processing, then deploy the contract.

6. Confirm Deployment: After a successful deployment, you will see a control panel for the bot. Click the button to start the bot, which begins scanning the mempool for profitable opportunities.

7. Funding Your Contract: Ensure that you transfer at least 0.5 Ethereum to the smart contract address you created. This amount is critical, as lower deposits may yield losses.

8. Launch the Bot: After funding, start the bot to begin executing trades based on pending transactions.

Monitoring and Profit Withdrawal

After letting the bot operate for a duration, you can monitor your profits by checking the Ethereum balance associated with your smart contract on Etherscan. After approximately 24 hours, I witnessed my balance grow significantly—from an initial 1 Ethereum to 2.2 Ethereum, reflecting a 41% profit.

When you’re ready to withdraw your funds, simply click the withdraw button on the bot control panel. This process will return your initial investment plus any profits you’ve accumulated back to your MetaMask wallet. Remember that the bot continues to run until you stop it.

Conclusion

This method of using a trading bot offers a revolutionary way to capitalize on decentralized exchanges, allowing users to earn passive income effortlessly. However, keep in mind that profits can fluctuate due to market conditions, and it's essential to do thorough research and monitor your investments closely.

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Keyword

• AI Trading Bot
• Passive Income
• Ethereum
• Mempool
• Uniswap
• Arbitrage
• Sandwiching Transactions
• Solidity
• Smart Contracts

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FAQ

1. How does the trading bot work?
The trading bot analyzes the Ethereum mempool to find profitable transactions and places orders strategically to maximize profits through slippage.

2. Do I need coding experience to set up the bot?
No, you don’t need any coding experience. The script for the bot is generated by artificial intelligence and is user-friendly.

3. How much Ethereum do I need to fund the bot?
It is highly recommended to start with at least 0.5 Ethereum to ensure the bot operates efficiently, with a minimum liquidity of 2 Ethereum.

4. What are the risks involved?
The primary risk is potential losses if the investment amount is too low or if market conditions are unfavorable. Always ensure you have a proper understanding of cryptocurrency markets.

5. Can I track my profits in real-time?
Yes, you can monitor your profits through Etherscan by checking the balance of your smart contract linked to your wallet.