Create Your Own Binance Trading Bot for Free

OVIDIU POPESCU

01 February 20227 min read

Binance is one of the largest cryptocurrency exchanges in the world, making it an excellent choice for your trading needs. According to conservative estimates, though, approximately 90% of crypto traders lose money. Most traders even quit within their first year of trading!

While there are many reasons for such poor outcomes, one of the biggest mistakes that traders make is not leveraging the power of automated trading bots. If it sounds like new tech, then think again: Wall Street has been using automated trading for decades. It’s simply faster, more reliable, and more profitable than trying to stay disciplined and time volatile crypto markets yourself, which is why every trader should be using algorithmic trading.

But choosing the best trading bot for Binance can be time-consuming and confusing. How many times have you heard or read that creating your own trading bot is difficult, cumbersome, and highly technical? Maybe you’re new to code and can’t create a Python Binance bot yourself. Or maybe you’re just looking for a free Binance trading bot to test the waters and gain some experience with crypto trading bots.

Automated trading made easy

Whatever your goals or experience, the following guide will walk you through the process of automated trading with Binance. Located in the heart of the Austrian capital and one of Europe’s leading automated trading platforms, we here at Trality emphasize the bot-creation process, from generating ideas to rigorous backtesting, and encourage our users to develop their own unique algorithms, which are guaranteed to outperform cookie-cutter trading bots offered by others.

If you’re a complete beginner, then choose Trality’s Rule Builder, a drag-and-drop graphical interface that allows you to create without coding.

Or if you’re a Python guru, then opt instead for Trality’s Code Editor, the world's first browser-based Python Bot Code Editor, featuring a state-of-the-art Python API and end-to-end encryption, among other features.

What is a Binance trading bot?

A Binance trading bot is simply a trading bot that you create on Trality and then deploy on Binance. You really only need two things to get started right away: 1) a FREE account on Binance and 2) a FREE account with Trality – that’s it!

Once you’ve created your free Binance trading bot, you’ll be among the 10% of smart traders who stand to profit from the many advantages of automated trading. By communicating with cryptocurrency exchanges directly 24/7/365 and placing orders for you based on conditions which you determine in the bot-creation process, your Binance trading bot will outperform manual trading each and every time as long as it’s been optimized correctly.

How does a trading bot actually work?

Automated trading bots communicate with crypto exchanges and place orders based on predefined settings. Among their many advantages are exceptional speed and efficiency, fewer errors and emotionless trading.

For bots to trade on an exchange such as Binance, they must be authorized to access your account via API keys (Application Program Interface). However, you are in full control – access can be granted or withdrawn at any time.

Broadly, trading bots work in four essential stages: data analysis > signal generation > risk allocation > execution.

  • Data is king, which is why data analysis is crucial to the success of a crypto trading bot. Unlike humans, machine learning-enabled software can identify, gather, and analyze mountains of data faster, smarter, and better.

  • Once the data analysis has been completed, signal generation by a bot essentially does the work of the trader, making predictions  and identifying possible trades based on market data and technical  analysis indicators.

  • Risk allocation is where the bot distributes risk according to a specific set of  parameters and rules set by the trader, which typically includes how and  to what extent capital is allocated when trading.

  • Execution is  the stage in which cryptocurrencies are actually bought and sold based  on the signals generated by the pre-configured trading system. In this  stage, the signals will generate buy or sell orders, which are sent to  the exchange via their API.

How can I create a Binance bot with Trality?

Now it’s time to create your bot with Trality. For the sake of this article, we’ll use Trality’s Rule Builder.

Check out the Trality Rule Builder, a state-of-the-art tool that allows you to create your own crypto trading bots without writing any code.

Connecting your Trality trading bot to Binance

Congratulations! You’ve successfully created and tested your own Binance trading bot with Trality. Now it’s time to let it do its magic in the real world of live trading!

Your first step is to add Binance as one of your exchanges. Simply navigate to “Settings” in your Trality account, which is located at the bottom left of the dashboard (or click the three dots to reveal the Settings button).

At this point, you should be in the “Exchanges tab.

  1. Select “Add new exchange” in the upper right

  2. Choose whether you want to add a virtual exchange account for paper trading (simulation) or a live account (real money) with your Binance account

  3. If you want to add a live account, then you will need to prepare API keys (and potentially passphrases) beforehand on Binance itself. Check out Binance’s handy guide on how to generate an API key and passphrase.

With your new Binance exchange now linked with Trality, the actual deployment of your trading bot is just a few clicks away.

In “Bots” on the left of the dashboard, choose the bot you wish to deploy.

After selecting the Binance account that you just linked, you’ll be greeted with a couple of questions. Read through them and then confirm that you wish to deploy the bot.

Voila, you now have a free Binance trading bot created with Trality. That wasn’t so difficult, now was it!

Benefits of a Binance trading bot

If you’re trading manually on Binance then that’s fine. But that’s about it. The more you read into automated trading, the more you will understand that it’s simply not the best way to trade when there are other, more effective solutions available. Bots are superior traders in virtually all aspects of investing. Let’s get into it:

Bots don’t get emotional

The old statistic goes that more than 80% of private investors aren’t making money at all. In fact, they are losing money due to a variety of factors. It’s hard to not get emotional on the wild rollercoaster that is the cryptocurrency market and traders are inclined to get FOMO (fear of missing out) or FUD (fear, uncertainty and doubt) which leads them to make decisions that are not based on hard mathematical calculations.

Bots simply don’t have emotions and therefore use only cold, hard data to make their choices and usually - they are right.

Instead of being one of those 80% who are losing. You can make the change to be one of the 20% who are effectively using bots to invest profitably.

They’re faster

As we mentioned before, bots can execute far more trades than you can at any given moment. This is beneficial to any trader who knows that getting in and out of positions quickly can be the difference between making profit and losing. Are you beginning to understand why Wall Street institutions have been using this tech for decades?

You can test your bot without using real money

This is one of the greatest advantages that bot traders have over manual traders. On Trality, you can automate your strategy, build a bot and backtest it on historical data until you are happy with it. In fact, you can also test it on current data via our awesome virtual trading feature that allows you to run your bot in a virtual environment therefore risking none of your valuable cryptocurrencies.

Why is this so important? Well, you can test and refine your bot to the point where you feel assured that it will perform.

You can diversify risk

There is no getting rich quick in the crypto markets. Unless, that is, you have the luck of the Irish. Trading bots are not about being a money-making machine but instead about minimizing your risk and not banking on big bets. Running a couple of trading bots on different symbols allows you to spread out any risks associated with your strategy and try out different techniques while keeping your assets safe.

Bots are more disciplined

To achieve anything in life, you need discipline. But that is easier said than done especially when it comes to trading. Automating your strategies will help you attain some form of discipline over your investments because you won’t be doing it - your pre-trained bot will handle that.

Trade smarter with Trality

Knowledge is power. Sure, it might be cliché, but it’s true. If you’re not careful, you can easily lose your shirt or even get rekt when trading crypto, but there are safeguards that can transform risky trading into profitable trading.

Join the millions of smart traders who are taking advantage of the collective knowledge and experience of one of Europe’s leading FinTech companies by adding bespoke automated trading bots to your strategy. Trality has revolutionary tech that aims to level the playing field by bringing professional-grade trading tools to everyone.

And since we’re located in Austria, we’re sticklers for details. Actually, we’re obsessed with the details, which means that you can be absolutely confident that you are choosing the best performing bots on the market today.

But don’t take our word for it. Sign up today for free and see for yourself!

Create your own Binance trading bot

Minimize risks, limit losses and grow profits!

BEFORE YOU GO!

Create your own Binance trading bot for FREE!

Minimize risks, limit losses and grow profits.

  • Curated, pre-defined strategies

  • No coding knowledge required

  • Blazing-fast backtesting module

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