How to use a trading bot for binance?

How to use a trading bot for binance?


Binance is a cryptocurrency exchange launched in 2018 by Changpeng Zhao. Binance is crypto’s largest exchange by liquidity and daily trading volume. The exchange crushes its competition in all areas, including spot, margin, and futures markets.

Binance is beloved by investors for its intuitive user interface, large number of features, and high liquidity. The exchange offers low trading fees and enables traders to save even more on fees when trading with BNB – Binance’s native utility coin. The exchange is also involved in DeFi with its Binance Smart Chain network.

Does Binance Allow Crypto Trading Bots?

Binance is the most popular exchange for crypto trading bots. In fact, a large majority of bots have integrated Binance due to the fact that many users have an account on the exchange. Investors can find both free and paid bots for Binance. The exchange also makes it very easy to generate API keys – which you use to connect your trading bot and exchange account.

Binance makes no difference between users who trade manually and those who use automated trading services. You are free to connect your account and trade any trading pair without restriction. You can utilize rebalancing, DCA, grid, and all other kinds of bots.

At the time of writing, Binance supports more than 30 crypto trading bots, some of which include:

Are Crypto Trading Bots Secure on Binance?

Binance is one of the safest exchanges in crypto. Your account funds are protected by the platform’s SAFU program – an insurance fund created that reimburses users in the event of a hack or exploit. Not to mention, your account is protected by 2FA and several other security mechanisms that make withdrawals by other entities impossible.

Binance allows you to generate API keys which you can use to connect your exchange account with a crypto trading bot. The API keys act as authentication credentials that help Binance determine if the bot truly has your approval to manage funds.

You can even adjust the settings for your keys and determine what kind of functions the keys delegate to your bot. Maybe you only want to read your account’s assets, so you link the account to a portfolio manager to track the performance of your assets. Or maybe you want to actively trade assets, so you enable trade execution. Or if you feel especially safe, you enable withdrawals because hey, you might want to perform arbitrage trades.

The combination of SAFU and API keys make it impossible to lose funds when operating crypto trading bots. Only a computer virus injected into your computer would be capable of using your crypto in this situation.