Crypto trading bots are tools that traders use to automate their strategies and execute trades without any personal interaction. They help save time, incorporate complicated strategies, and complete redundant tasks that are easily automated. And for anyone looking to automate their trading activities with crypto trading bots, they know where to first look: Binance.
Binance is the world’s largest cryptocurrency exchange by trading volume. It is said that the exchange has more than 28 million users. For anyone developing a trading bot, it’s clear that integrating Binance is a must.
In this article, I’ll show you how to use a crypto trading bot for Binance and how to find one. I’ll also give you a quick overview of Binance, list the most popular bots that support Binance, and show you how to connect your exchange account with Shrimpy.
What is 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:
About Shrimpy Crypto Trading Bots
Shrimpy is a crypto trading bot that comes with automated portfolio management features. The platform mainly focuses on rebalancing, an investing strategy in which an investor periodically readjusts the allocations of his portfolio. Rebalancing helps maintain a healthy level of risk exposure by selling and buying assets that have drifted too far away from their allocations.
Shrimpy also acts as a portfolio manager that assists you with managing all your exchange accounts. In fact, the platform lets you connect with over 30 exchanges and digital wallets. And besides great connectivity, Shrimpy also features an intuitive and user-friendly interface.
You can also join hundreds of professional traders on Shrimpy’s social trading platform and copy trade profitable market participants. Or if you’re not a fan of rebalancing, you can try out other strategies such as dollar-cost-averaging, creating index funds, or setting up portfolio stop losses.
Shrimpy supports Binance. All it takes to connect your exchange account with Shrimpy is an API key that you can easily generate on Binance. After connecting, you’ll have access to these features and more:
Backtest automated strategies
Deploy portfolio stop loss
Create custom index funds
Manage all your linked exchange accounts
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.
How to use a Binance Crypto Trading Bot With Shrimpy
The first step to using a Binance crypto trading bot with Shrimpy is to generate your keys and linking them to your account. I recommend reading this help article on a detailed guide for connecting Binance API keys. If you’re a Binance US user, this article will be more relevant.
Don’t worry, since you’re already reading this article, I’ll give you a quick rundown of how to link your account. The first thing you should do is log into your Shrimpy account and head to the settings tab and click the ‘Link exchange’ button.
A new window will pop up where you can select the exchange you want to connect. It should look like this:
Click on Binance or Binance US (depending on which account you have) and click the select button. Doing so will lead you to another window where you can insert your API key along with your API secret key. Note that you should never publicly reveal your secret API key.
Now click save and your Binance portfolio will appear on Shrimpy within the next 15 minutes. I recommend refreshing the page if you can’t see your portfolio data yet. That’s it, you’ve now completed all the steps needed to connect your Binance account with Shrimpy – the market’s leading rebalancing crypto trading bot.
So how do you automate your portfolio now that your Binance account is linked? You can head to the dashboard to monitor your portfolio’s performance, activate rebalancing or stop loss orders, and view market data for individual assets held inside your portfolio.
To create your own rebalancing strategy or deploy other automated strategies, head to the automations tab. This section lets you create a custom index fund, rebalance your portfolio through either periodical or threshold-based rebalancing, or simply create new portfolios out of your assets.
Next up is the trading tab. The trading tab lets you swap tokens in just a few easy steps. All you need to do is select the asset you wish to trade, choose the asset you want to trade it for, and approve the trade. Shrimpy will automatically find the best liquidity for your trade and get you your new coins.
With Shrimpy, you can also copy trade other traders, view your trading history, and backtest rebalancing strategies. To learn more about using Shrimpy’s features, I recommend reading the following articles:
Marko is a crypto enthusiast who has been involved in the blockchain industry since 2018. When not charting, tweeting on CT, or researching Solana NFTs, he likes to read about psychology, InfoSec, and geopolitics.