You can compile, setup and run eggdrop in many ways.
There used to be a provider that would allow this too be done, with nothing more than a web-interface.
You do not need telnet or SSH to run eggdrop.
Telnet is a protocol, designed to allow interactive logins from a remote location. It provides a few advanced features, designed for display and formatting purposes (EG, bolded text).
However, telnet is very insecure, as all information is sent in plaintext. This can mean people can snif your conection (view them from another machine) and see your passwords (only those displayed in the telnet session though).
SSH is designed as a secure replacment for the telnet protocol. It provides encypted passwords, and more secure KEY based exchanges along with encrypting all traffic from thenon between the shell and the client.
So yes, you can use SSH. They are one and the same, with SSH in preferance for it's security purposes.
If you own the system and have access to the firewall, you can make it secure.
This can be done for both users and bots.
Create 2 listening ports within eggdrop, one for users and another for bots.
In the firewall, block all traffic to these ports, and one further port for later (only needed if the bot has a record with +h for another bot). You will need to make sure however, that the system on which the eggdrop is, is allowed to connect.
Using the "stunnel" program, you create a second listening port, which will route traffic to the port you setup for bots.
Next, using SSH, you create a forwarded port, that will listen on another port again, and forward traffic to the user port on the bot.
You should now be able to use SSH to access the bots partyline.
To get a bot to login over the secure link, you will need another session of stunnel. For referance (it gets tricky here), the machine above we will call A, this one is B. On be, setup stunnel to listen on a port, and forward traffic to the port that stunnel on machine A is listening too. In eggdrop, you should setup the bots record to connect to localhost, and the port that stunnle is listening too (allthough we say localhost, stunnel will forward the connection).
This should be a secure connection.
This is a bog basic method of doign it, which is complicated, and I can't help in any way more on this (IE, the theory is sound, the practice is hard).