A trading bot for Binance is a special program that connects via API to the exchange, monitors market conditions and automatically creates orders to buy or sell cryptocurrency on behalf of the user. Such systems have been used in traditional financial markets for several decades, and in the world of cryptocurrencies they have become even more in demand, since, due to the high volatility of digital coins, it is necessary to respond to market changes as quickly as it is almost impossible for a person to do.
In an article by the Btcnewsweb.com editors, the following bots for the Binance exchange are considered:
What are trading bots and how they work
Trading bots for Binance connect to a user’s account on a cryptocurrency exchange and make transactions on his behalf. The process uses various indicators and signals. The main goal and idea of automation is to help the user earn money while spending the minimum amount of personal time. In addition, it is believed that computers trade better than humans, since almost all trading consists of mathematics and probabilities. The program provides a level of speed and accuracy that is impossible for humans.
Strategies implemented by bots can be simple or complex, up to advanced real-time arbitrage across multiple exchanges. It depends on what algorithms the developers have laid down.
To work, the user must provide public and private API keys that are generated in the personal account of the Binance exchange. Thus, you inform the exchange that the bot has permission from you to access the account and perform transactions.
APIs are used to give external applications or access data or functions within the exchange. Trading bots, using the API, request market data, information about the amount of funds on the user’s account, and make deals. At any time, the user can revoke access by deleting the keys on the exchange.
Ideally, trading bots should generate risk-adjusted returns, delivering more returns than if the funds were just waiting for the price to rise. The cryptocurrency market never shuts down, unlike classic stock exchanges, which is a very stressful situation for investors. Trading bots are gaining popularity in the crypto community due to increased market volatility. Today, dozens of different robots of various formats are available in the industry (paid with a license, paid with a percentage of the profit, free open source, etc.).
Now let’s look at a few trading bots that can work in conjunction with the Binance cryptocurrency exchange.
Trading bots for Binance
Binance, as the most popular exchange, is supported by most bots. Examples of trusted services (more bots here):
RevenueBot supports different strategies and allows you to trade multiple trading pairs on different exchanges at the same time. Provides detailed statistical data – on bot work cycles, on orders, on earnings, on referrals.
There are no subscription fees or hidden fees. As payment, the service takes 20% of the actual profit (charged directly from the account balance on the bot’s website). Until income is received, the use of the robot is completely free. After receiving the first profit, the account balance will go into negative territory, and the user is given three days to evaluate the results and test the bot. If you liked everything, you can top up your account and continue using the service.
The main features of RevenueBot are a smart grid of orders, identifying only suitable moments for trading, backtests, and automatic switching of a trading pair.
3Commas is one of the most versatile trading bots for Binance and 20+ other platforms. Provides the ability to manually trade with Smart Trade, optimized selling and buying coins in one window. Supports Trading View charts and signals.
Fully automated trading is also possible using the Trading Bot. In this case, the bot can be simple or composite (for one or several trading pairs). The algorithms Long, Short are used, it is possible to analyze and copy the trading settings of other users.
3Commas does not take commission on income. There are three tariffs with a fixed monthly fee, from $ 14.5 to $ 49.5 per month (subject to payment immediately for a year, otherwise it is twice as expensive). The most expensive plan has a three-day trial version.
Cryptorg service provides services for the creation and configuration of trading bots. There is a group chat, Telegram notifications and other functions to improve the convenience of trading. Intelligent strategies based on technical analysis themselves determine the best times to enter the market. You can run a large number of trading bots (up to 500), not even all trading pairs of the exchange.
Users are provided with a test period of 14 days. After it ends, you will be charged $ 15 per month. Other tariffs cost from $ 30 to $ 100 per month and expand the limits on the number of launched bots, futures bots, and access to exchanges. The most expensive plan also has personal technical support.
4. Stratum Bot
Stratum Bot is positioned by developers as a system that simplifies even the most complex strategies as much as possible. You can start trading within twenty seconds from the moment of the first launch. The settings are selected in one click by the button “Automatic selection of parameters”.
The Binance version of the bot costs $ 13 per month (while the YoBit version is free). Also, the paid version expands the number of simultaneous streams to 20, opens up the possibility of using Trailing Profit, averaging, various filters and indicators.
HAASbot / HAASonline is a suite of automated trading tools. Offers both local and cloud solutions, as well as a scripting language with which anyone can create their own strategies and algorithms. Backtests and trading simulators allow you to reduce risks and optimize strategies.
Within the bot, such auxiliary capabilities are available as synthetic order types, extensions for bots, a market scanner, portfolio management, and many others.
When buying immediately for 12 months, the license will cost from 0.031 to 0.088 BTC per month, depending on the set of services. The most expensive tariff removes all restrictions on the number of launched bots, security measures, trading functions, insurance methods.
6. Botee Trade
Botee Trade is a bot that runs in a browser or locally. You can run an unlimited number of backtests for free, view detailed analytics and make flexible settings for any situation. Averaging levels will help protect against significant losses, and combining backtest and real results in one window will help optimize the strategy.
You can use the service for 7 days for free. Then you need to buy one of the tariffs (60, 120 or 270 dollars per month). Each tariff plan supports connection to all exchanges and a complete list of indicators, as well as customizable strategies with different combinations of indicators.
Apitrade is a trading bot for Binance without a monthly fee, the creators of which guarantee regular income and a minimum level of risks. Each of the thousands of transactions can be monitored in real time, including its amount, duration, profitability. One-button launch, no lengthy setup. Prompt technical support via Telegram.
The Apitrade service earns up to 50% of the profits obtained as a result of automatic transactions performed by the robot. At the same time, the service robot charges payment only after the transaction is completed and the profit is made.
8. Profit Trailer
Profit Trailer is one of the most powerful and multifunctional automated trading services. It comes with several buy and sell strategies, including BB, EMA, SMA, DCA, RSI, STOCH, MACD, etc. Intuitive dashboard, advanced settings. Averaging function is supported.
Profit Trailer is available in free and paid versions. Free ones have very limited functionality, but still work. Paid ones cost from 49 euros per month (or 799 euros – for a lifetime use) to 69 euros per month (999 euros for life). The bot can be controlled from any device, including the browser.
Advantages and disadvantages of using bots
✅ The main advantages of working with trading bots for Binance:
✅ This is useful for the market as a whole. Experts recognize that automated systems make the market more efficient, inclusive and healthy. Due to the massive use of bots, the price spread on the exchange has significantly decreased in recent years.
✅ The bot always works, even when the person is sleeping. Thus, not a minute of time is wasted for profitable trading.
✅ Robots get rid of the routine. Not a single person can withstand the monotonous performance of the same type of actions for months.
✅ High accuracy of entry and exit from positions.
✅ Lack of emotion, which sometimes makes a trader commit rash acts.
✅ The large liquidity generated by bot trading is attracting new faces and companies to the industry.
❌ The disadvantages include the following points:
❌ The bot is not 100% independent, it still needs supervision and tuning. This requires some technical and financial knowledge.
❌ The quality of trading directly depends on the quality of the algorithms, that is, the professionalism of the robot development team.
❌ Potential security weaknesses. If the blockchain is practically invulnerable for hackers, then bots and other software can be susceptible to hacking.
Tips for using trading bots
Here are some tips for a safer and more efficient use of trading bots on Binance:
- API keys need to be stored as carefully as private keys from crypto wallets, since they can be used to access and manage your exchange balance.
- The bot usually only requests permission to trade. You should not give permission to withdraw funds. An exception may be when you use arbitrage bots that trade on different exchanges.
- Put two-factor authentication and strong passwords on everything you can.
- Use backtext. It allows you to run strategies on historical price data to test their performance. However, you need to understand that this is just a test, and in reality everything may be different.
- Experiment with strategies. Often times, one strategy works better with one coin and another with another. Or a strategy that works well in a bull market may not work well in a bear market.
- Tune in for some loss. Trade automation is not yet a guarantee of profit. Use stop loss to limit losses. And just start with small amounts that you don’t mind losing.
- In some cases, you will have to execute trades manually. A bot is more of an assistant than a complete replacement for a person.
- Keep track of your commissions. When you trade a lot, you will pay a lot of commissions. The profit needs to cover these costs.
- Some bots (for example, HAAS) support such a concept as insurance, protection against risks. The bottom line is that if the price changes too abruptly, the bot stops trading. Don’t neglect this feature.
Careful attention to every financial action will help you avoid many pitfalls.
Webinar on the topic: “Trading with bots in cryptocurrency” with representatives of popular crypto bots.
Trading bots can significantly improve the efficiency of work on the Binance exchange. But this is only true if you pay enough attention to setting them up and learning. Do not think that it is enough to launch the program with one button to receive passive income. There are pros and cons to using bots. There are more advantages one way or another.