How to run a trading bot on Binance
Looking for a great exchange to run Bitsgap trading bot? Then Binance might be one of the best solutions for you. This exchange has stellar volume, awesome security features, and they make it dead easy to use API keys for your automated trading.
Running a trading bot on Binance can also be very profitable, but how do you do it? In this article, we’ll cover everything you need to know to get started with using automated tools on the popular Binance exchange.
We’ll cover the features of the exchange, explain API keys, and how to use your Binance API keys safely with the 3rd party solutions so that you do not risk losing your money or your account.
What is Binance?
Binance is one of the most popular cryptocurrency exchanges. The exchange has over 100 cryptocurrencies which investors can trade, and it has a huge amount of volume, which bot traders can easily take advantage of.
It’s one of the few exchanges that still allows anonymous sign-ups, and it can be a great place to trade a variety of different cryptocurrency assets. They offer API access, great account security, and many bot software packages work with their exchange.
They also offer lots of great features like white listing, device management, suspicious activity alerts, and anti-phishing procedures to help you trade safely while using crypto bots.
Does Binance allow crypto trading bots?
Yes, Binance does allow trading bots, and they provide API keys to help you to connect your exchange accounts to the software. They also allow you to customize permissions for the API key easily, to make it safe for automated software, and have a security process to prevent unauthorized API key generation on your account.
How to generate Binance API keys
In order to generate a Binance API key, first log in to your Binance account.
1. Click on settings at the top of the dashboard, and then select API management.
2. Enter a name in the API label spot when prompted and hit create.
3. Go to your email address on file and confirm the newly created API.
4. Head back to your API management section to see your API token list.
5. Make sure that your API key has “enable withdrawals” turned OFF.
Optional: Restrict access to the API to specific whitelisted IP addresses
Your API key is now generated, and you can copy and paste the tokens listed for that API into your software to begin using your Binance account with the trading bot.
Is it safe to share your Binance API keys with a trading bot?
If you take the proper precautions, then yes, it is safe to share your Binance API keys. However, you should always make sure that the “withdrawal” option on the API key is unchecked.
Note that read and trading must be enabled or your bot will not work, as it does not have the appropriate permissions to trade for you.
How much money do I need to have to start the bot?
Starting the automated trading is very cheap, and you only need a small amount of money to get started. In fact, you can even start without any money at all if you need some practice!
Bitsgap’s backtesting feature allows you to see how your strategy will play out in real-time, allowing you to make important adjustments to your bot before you commit any of your actual money to the software.
It’s a great way to get familiar with bot trading, and it’s recommended that you do some practice rounds so that you understand how the software works before wasting your crypto on a bad strategy.
What coins or pairs are good for Binance bot trading?
Deciding which coins or crypto pairs to trade can be confusing initially, but there are a ton of options available. Many people choose Bitcoin as a base currency, because this is usually the one with the most trading volume on the exchange.
While smaller coins can often have large price movements, if there’s not enough volume, then it could be hard for you to make a profit, as there won’t be a large enough coin pool to work with.
You might need to spend some time evaluating the volume of the asset, and the supply in the order book before deciding on anything.
If you just want to get started, then you may want to start with a very popular pair, like BTC/USD, which will have a ton of volume and a decent price variance to allow you to test out how the trading bot works.
Binance is an excellent choice for those looking to get into cryptocurrency bot trading. It’s a high volume exchange with excellent safety features, and many different software packages work with the exchange due to its popularity.
As long as you make sure that you’re taking the proper precautions, then there’s no reason that you can’t trade here safely using a bot. Just remember to set your API permissions properly, enable 2FA and address whitelisting, and use a different email and password for all the accounts that you use for automation including your Binance account.
If you want to test the waters with bot trading, then we’d recommend that you sign up for a free 7-day Bitsgap trial. This will allow you to see how the service works with Binance, and it will even allow you to test out your strategies risk free, which many other bot providers do not allow.