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A Quick Guide to Understand the Best Crypto Trading Bot to Trade on Binance Futu

Started by admin, Jun 01, 2022, 05:09 am

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A Quick Guide to Understand the Best Crypto Trading Bot to Trade on Binance Futures.
Binance is one of the most popular crypto exchanges in the world providing the best trading services to its traders. Moreover, to attract more traders, the trading platform is adding more services to the exchange including Binance Futures. This platform allows traders to place trades on the future price of Bitcoin, BTC.
Binance is a renowned name in cryptocurrency sphere offering the best trading services and support, various methods to deposits, withdraw and trade cryptocurrencies. Multiple FIAT currencies are also supported. Binance Futures allows users to open both long and short positions for a variety of cryptocurrencies with up to 125x leverage. It offers more than 140 cryptocurrency assets that can be traded both long and short with perpetual contracts.
The Futures market available with Binance trading platform are:
· USDT-margined : Perpetual contracts.
· USD Coin-margined : Perpetual and Quarterly contracts.
How to trade on Binance Futures?
To place trades on Binance Futures:
· Firstly, the traders are required to select a cryptocurrency from the drop-down box under the main Menu. This will occupy the place order section of the platform with your chosen crypto coin.
· Now, it's time to select the trade order size and include take profit or stop-sell level if required.
· Finally, click the submit button, and the new trade will be visible in the open positions tab of your Binance Futures trading platform.
The traders can also use 'Buy' and 'sell' buttons in the price chart panel for the quicker access. The specific trading parameters can also be chosen from the pop-up window which allows the traders to execute their trade.
Additionally, one can set the crypto trading bot with a predefined strategy to earn profits on their trade. Binance Futures specializes in trading of leveraged perpetual futures account. Once registered, the investors or traders can take both long and short positions on all the supported cryptocurrencies at the Binance platform.
With crypto trading bot Binance you can automate trading Bitcoin, BNB, Ethereum, and other cryptocurrencies. This platform is easy to start with and is very suitable for both novice traders and experts. When it comes to trading on Binance Futures, a crypto trading bot can do all the hectic tasks for you. It automates trading and is useful for many different sorts of traders.
Crypto Trading Bot Binance make your trading more effective while being manageable. The crypto market works 24x7, and only automated trading can fully exploit any possible opportunity that will develop in market. TrailingCrypto is one of the best crypto trading platforms that support Binance Futures trading without any hidden costs.
Binance trading bot.
Binance trading bot analyses the changes in the price in market across all coins on Binance and place trades on the most volatile ones. It also keeps track of all the crypto coins bought, and then sell them according to the specified take profit and stop loss by the trader.
Creating your own crypto trading bot Binance has gained huge popularity. One can either choose copy/paste bots that everyone is using or you may develop your own unique algorithms to outperform. A Binance trading bot trades on your behalf based on the rules and strategies that you create for them. They execute functions and use algorithms to make buying and selling decisions automatically.
However, Binance offers both trading and consulting, along with the use of their advanced trading bots. If you are new to trading, you can use the third-party online trading platform like TrailingCrypto which allows you to trade effectively on Binance.
How does a crypto trading bot work?
Crypto Trading Bot for Binance actually communicate with the Binance platform directly and place orders based on the conditions which you determine during the creation of the bot.
The best cryptocurrency exchanges like Binance allow their users to use an API to interact with the platform. This is how you can authorize a Binance trading bot to buy and sell through your Binance account.
Generally, the mechanism behind a Binance trading bot works in three stages including:
· Signal generation - The signal generator takes care of the trader's most bulky tasks i.e. scouring the charts, execute technical analysis, and identify the best opportunities to trade. It is responsible for making predictions on previous and current market conditions.
· Risk allocation - This is the stage where decisions regarding risks and rewards have been made. Once the bot receives a signal to buy, it decides how much to spend on the trade.
· Execution -Now the trading bot knows what to buy and how much to spend on Binance platform or Binance Futures, it's time for the execution. Through API key requests, the crypto trading bot Binance will perform actual transactions.
Grid trading.
For Binance Futures contracts, grid trading bot automates the buying and selling. It is designed to place orders in the market at the preset-time intervals within a configured price range.
Now what is grid trading?
Grid trading is when the orders are placed above and below the set price, creating a grid of orders at decreasing and increasing prices.
Let's understand how?
Say, a trader could place buy order at every $1000 below the market price of BTC, while also selling ay every $1000 above the market price of BTC.
This takes advantage of the ranging conditions.
Binance grid trading is available on Binance Futures now. Users can customize and set certain grid parameters, to determine the upper and lower limits along with the number of grids. Once the crypto trading bot Binance or the grid trading bot is created, the system will automatically start buying and selling of the orders.
Let's understand how it works.
Suppose you expect BTC to float in a price range between $40,000 to $50,000 in the next 24-hours. In this case, you could set up a grid trading system to trade within this predefined range.
On the grid trading panel, you could set parameters of the strategy, including:
· The upper and lower limits of the price range,
· The number of orders to be placed within the configured price range,
· The width between each buy and sell-limit order.
In this scenario, as the price of Bitcoin falls towards $45,000, the grid trading bot for Binance will accumulate buy positions on the way down at a lower price than the market. As prices recover, the bot will sell on the way up at a higher price than the market. This strategy essentially attempts to profit from the price reversions.
Grid trading performs best in the competitive crypto market with regular price variations. It assures profitability each time the selling price exceeds the purchase price during a lateral price movement by automatically executing low purchase orders that further leads to high sell orders, hence eliminating the need for market forecasting.
How grid trading works?
The grid trading works by scheduling or setting up the buy and sell orders within the predefined price range while creating grid-like information. By automatically executing high sell order corresponding to low buy order, this strategy guarantees to make profits each time when the selling price is higher than buying price during sideways price movement.
Binance grid trading is now live on Futures, and traders can customize and set grid parameters, to determine the upper and lower limits of the grid along with the number of grids. Once the grid is created, it needs to be activated with a single click. With activation, the system will automatically trigger sell and buy orders at the predefined price.
In the given chart, every trade will be profitable. Here, the grid trading bot is settled at a price from 3,300 to 4,200 for BTC. Whenever the price hits each target price, the trading bot will let traders make profits.
Whenever a buy order is triggered, a new sell order will be placed (which is higher than the buying price). And, whenever the sell order is triggered, a new buy order (which is lower than the sell price) will get placed automatically. This means that every time the prices fluctuate between 2 grids, a trade is executed and profit will be earned.
If you are a novice trader and don't know much about grid trading and how to set a grid trading bot for Binance, TrailingCrypto is here to help. Binance provides a grid trading bot on the Futures market, which is more suitable for those who prefer perpetual futures trading.
Grid trading is an amazing strategy that sets you up to buy low and sell high to earn profits in volatile market conditions. Additionally, it also allows you to set a stop-loss for your grid positions. Once your crypto asset's price crosses below or above your defined stop loss range, your entire grid position will be closed. This will protect you from incurring outsized losses, if the market behaves unfavorably.
Benefits of using Grid trading bot Binance.
· The most trustworthy crypto trading strategy.
Grid trading is one of the most popular, well-established and profitable trading approach. It is best used in crypto trading due to extreme volatility.
· Adaptability.
This trading method applies the most fundamental trading concept involving buying low, selling higher, and earning the difference. This can be applied to nearly any market and generates profits effectively independent of the market behavior. One can determine the period and frequency of the trading strategy by selecting the number of grids and price range.
Grids in Binance Futures trading can be set up for the short term, getting hundreds of trades every hour to capture profit from even the minor changes. And, for the long term, by selecting the large range and leaving it for longer periods to gain profits.
· Usability.
The grid trading strategy is straightforward to understand and use as it doesn't contain any calculations, and market indications. And, it is quite simple to set up for the cryptocurrencies with no past experience in crypto trading market.
· Automates trading.
Grid trading with crypto trading bot Binance is considerably easier and more efficient than following strategies with the manual trading methods. It is one of the greatest methods for traders looking to take their initial steps towards automated strategies.
· Enhance risk management.
Picking the right grid strategy allows traders to control the risk/reward level more actively than any other type of trading. One may use grid trading bot for Binance to generate profits with a little risk, or one can take higher chances for massive rewards potentially.
TrailingCrypto is one of the best platforms that have also launched the Binance Futures grid bot designed for Futures, which will provide the highest possibility to 10x your profits. Binance provides grid trading bot for futures trading that allows traders to earn profits as long as the prices of cryptos are swinging.
How to create Binance Futures trading bot?
If you are the one looking for the best grid bot to earn profits on the grid strategy, try Binance trading bot.
To use this, you need to open a Binance Futures account first as this bot is available only on the Futures account. You may use TrailingCrypto for the Binance spot account grid bot. Once your Futures account is ready, click on Derivatives> USD(S)-M Futures.
Now, click on the Grid Trading tab which is adequately placed in the right corner of your trading page on the Binance app. Make sure to select the right pair, and then transfer USDT to your Futures wallet.
Here, you will see the settings which you need to configure to start setting up the Binance grid trading bot . Click on the create icon to start your first bot. you may click on the Active Grid tab anytime to see the results of the current running grid bot set by you.
We recommend you to start with smaller amounts and make sure to use less leverage when testing. This way, you can minimize the risks of losing funds. This trading bot works great for beginners.
Step by step guide to create grid bot on Binance.
· First, you need to sign up on Binance, open a Futures account, and create an API.
· Input API on the best crypto trading platform.
· Create Futures Grid Trading bot with Binance.
· Set Bot parameters.
After setting all such parameters, one can tap on the create button to start trading. This trading bot lets even the novice and professional traders to earn profit from both the rising and falling crypto market. The crypto trading bot Binance completely automates futures trading.
Why choosing Crypto Trading Bot for Binance is a profitable solution?
We all know that automated algorithms are useful in cryptocurrency exchanges, and the reason behind that is, the crypto trading market never sleeps and works 24x7. And, no trader can pay attention to the market all the time 24x7.
Additionally, normal order types like market order, stop loss, take profit, etc. are not enough if you are one of the traders looking to trade cryptocurrencies overnight or if you are away from the screen.
And, it is always tough and extremely risky to leave an order on Binance if you are not around. And, choosing crypto trading bot on Binance is the most effective solution. Trading bots allow you to create unlimited number of orders and then these orders will be executed instantly.
We all know that the usage of Crypto Trading Bot Binance is not free, and it is necessary to invest some money. While working with the crypto trading bot on Binance or any other exchange, you will immediately notice how much time is saved and how they work efficiently.
Are Binance trading bots safe?
Of course, yes! Binance trading bots are safe to use as these algorithms always use API which allows them to access relevant information which is required to trade. However, it is important that you should always choose the trusted platforms like TrailingCrypto when it comes to trading cryptocurrencies. Make sure to disable the withdrawal option while sharing API keys. Additionally, enabling 2-factor authentication is also recommended which will add an extra layer of protection to your account.
In the fast-paced cryptocurrency trading market, opportunities are abundant. Binance futures also supports leverage trading and Crypto Trading Bot lets you gain an edge over your competitors. TrailingCrypto has an extensive set of tools which enables traders to execute the most profitable strategies. Connected with the reliable crypto exchange Binance, TrailingCrypto tools make it possible for traders to achieve great trading results.
Grid trading parameters.
After choosing Grid trading on Futures platform, the traders can consider the below parameters:
· Choose a symbol.
The first parameter which one must select in Binance Futures trading via grid bots is the contract on which the bot is deployed.
· Select isolated/cross margin mode.
Determine the type of margin for the grid trading position, i.e. isolated or cross margin. In the cross margin mode, the margin is shared between all trading pairs in the futures account. On the other side, in isolated margin mode, the margin is independent in each trading pair.
· Lower and upper price.
Set lower and upper price on the grid. If any of the lowest or highest grid is exceeded, no more positions will be opened. For example, if the current BTCUSDT price is $50,000, the user judges that the price will fall when it reaches above $55,000, in this case, the upper price can be set to $55,000. After the price reaches $55,000, the grid will no longer open positions.
· Adjusting leverage.
In this parameter, the trader has to select the desired leverage amount. The leverage magnifies both profits and losses. With leverage, one can even magnify the smaller price movements to earn profits. The most important thing while using leverage is that it is a double-edged sword, and one has to use it wisely.
Binance Futures trading with TrailingCrypto.
If you choose a third-party profit or personalized strategy, you can not only automate it using Trailingcrypto platform's Crypto Trading Bot Binance but you can also earn more profits on it taking advantage of the leverage offered with Binance Futures. Using higher capital and leverage can maximize your returns.
The Futures trading with crypto trading bot Binance lets the traders divide their funds into smaller parts and buy the asset at fixed intervals.
You can make a personalized strategy or the third party strategies in TrailingCrypto.
With personalized trading, one may use technical indicators or any other tools, and automate trading of this strategy in TrailingCrypto. To trade with leverage with your bot, you can connect your account at the exchange platform to Binance Futures. Once an appropriate exchange is connected successfully, the bot will activate the leverage functions.
In the third party strategy, you can also automate trading with third-party signals and connect to the Future exchange to use leverage.
Step by step guide to trade futures with TrailingCrypto.
To trade on Binance Futures with TrailingCrypto, one must have the following settings in the correct place:
· Go to your Binance account>settings>manage API.
· In API settings, check if you have enabled Futures trading permission for that API Key.
· In the preferences section, make sure to select the position mode as a one-way mode.