Binance still holds the leading position in the crypto industry in terms of market share by controlling over 21% of the total trading volume. It is one of the most popular CEX platforms in North America and Europe. The massive scale of its operations is the reason why a Binance auto trading bot is in such demand across continents.
Automation is a staple of contemporary retail trading. While just a decade ago it was something available only to Wall Street brokers, it is now a product that can be purchased for a couple of bucks per month.
How to set up trading bot on Binance
The platform itself has a couple of automation options, but they are very limited in functionality and cannot be called flexible. Using a third-party provider of automation services is a much better idea for the vast majority of retail traders who want to use a versatile tool usable on any exchange.
One such platform is Wundertrading, an innovative automation vendor that allows thousands of users to use advanced robots to trade on various crypto markets.
How to use trading bot on Binance?
- You will need a functioning and valid trading account on this CEX platform (margin or spot).
- Go to the Wundertrading official website and create a new account.
- Connect a trading account on Binance using the API (you will need a special key obtained in the Binance app).
- Go to the dashboard and click “My Bots”.
- Create a new bot for Binance.
You will need to read the Binance trading bot tutorial. While connecting two platforms is very easy, finding the right strategy to use is a completely different story. First and foremost, you will need to use the TradingView platform, one of the best charting tools on the internet. This tool is essential if you want to explore the full potential of automation.
A Binance trading bot is free at Wundertrading as long as you keep the number of separate bots under five which is quite enough for most traders. However, to test a large variety of strategies, you will need more. A TradingView account is also free, but you may want to consider upgrading to a paid account to access more tools.
Why do you need Tradingview?
This analytical platform not only offers a rich selection of different analytical tools like indicators, graphical overlays, and complex strategies but can also seamlessly connect to many automation service providers such as Wundertrading. The integration is quite simple and offers a multitude of interesting automation options to people who understand technical analysis.
You can create a Tradingview Binance bot and make it efficient if you have a valid strategy that can be automated. The Tradingview platform has its proprietary script editing language called Pine. It is easy to learn and can be copy-pasted to Wundertrading. Simply go to the forum and search for top user-rated strategies to use on TV.
While there are bots that do not require any fiddling with Tradingview, they are way too limiting to experienced traders who usually want to explore a wider variety of trading strategies and options.
How to use Binance trading bot
Automation should never be your main or only trading tool. Diversify your tools just like you diversify the assets you work with. If you prefer working on Binance, having a bot that trades on the platform is a good idea, but do not put all your eggs in one basket.
A trading bot is good when you have a reliable strategy that can be repeated consistently and relies only on a handful of easy-to-interpret signals. For example, DCA bots are simply buying assets at predetermined prices over specific time frames and creating stop-loss orders to minimize potential losses. This approach works excellently as an addition to your main strategy.
Some strategies can be automated too. A swing system based on using RSI and Stochastic has distinct signals that can be used by bots. At the same time, the setup process is quite easy and the strategy does not have an overly complicated code in the Pine Editor on Tradingview.
You can automate trading on any Binance platform. Whether you prefer Europe or Asia, or North America, you will be able to use automation products. A trading bot for Binance.us is a great tool since this exchange is the biggest in the world and offers opportunities for money-making every single second!
Advantages of automation for beginners
A trading bot for Binance is a good choice for newcomers to the industry who do not have any prior experience with the crypto market. It is quite complicated and has thousands of assets with new ones appearing on a weekly basis. Sorting everything out is a daunting task that many experts fail to complete.
If you want to learn more about the market and make a couple of mistakes yourself, using automation is a great start. Try preset robots and play with numbers to get a better understanding of what works and what does not. Interact with different assets and search for the best strategy without exposing your portfolio to extreme risks.
Using a free account at Wundertrading is a great start for newbies. The basic free plan offers you up to five bots and access to the whole platform. It is a risk-free starting point for people testing the waters of the crypto ocean!