Binance Futures is one of the most popular derivative markets in the world, and it offers traders a simple way to invest in the crypto market. It also provides a capital-efficient return profile without taking on significant capital risk. However, the cryptocurrency market is highly volatile and unpredictable, so it is important to trade smartly in order to reduce risks.
Trading Bots on Binance
When looking for the best trading bot for Binance, you need to look for a transparent, customizable alternative that can meet your investment goals and risk tolerance. Unfortunately, most crypto trading bots on the market are generic black-box options with no clear explanation of how they work. These bots are not likely to meet your specific trading needs, and they’re not even likely to be created by crypto experts.
Fortunately, there are some trading bots out there that are proven to deliver returns, and you can easily create them yourself. Some of the most popular bots are 3Commas, Bitsgap, and SMARD.
3Commas is one of the top trading bots for Binance, offering Smart & Copy trading capabilities as well as Automated portfolio rebalancing.
Its DCA (Decentralized Adaptive Trader) bot works on any trending market, boosting your profits by averaging down your entry price when the market goes against you and automatically adjusting take profit to reflect the current size and entry price of your position. This is a great bot for beginner-friendly traders who want to increase their PnL without spending too much time watching the market.
This trading bot allows you to trade on a wide range of assets, including cryptos and currencies. It also offers an extensive catalog of trading pairs, easy-to-understand analytics, and a minimum 0.1% fee for exchanges.
You can use this trading bot on Binance Futures Bot or Bitsgap, and it supports a variety of currencies and trading strategies. It is suitable for beginners who want to test their skills in the futures market.
Another popular trading bot for Binance is the Combo Bot, which combines spot and futures trading to maximize your profits. This bot is based on leverage and allows you to trade both long and short positions, which makes it ideal for investors who wish to gain exposure to both up and down trends.
It is important to note that trading with a leveraged instrument increases your risk of losing money, but it also gives you the potential for huge returns. This is why you should only trade with a small amount of funds.
Creating Your First Bot for Binance Futures
To start trading with the Futures bot, you need to create a futures account on Binance and an API key. You will also need to be a Maximum plan subscriber.
After creating your account, you can launch the bot from the Futures trading panel. Choose a currency and the type of contract to trade.
Then, you can set up a grid trading strategy. This strategy is a perfect way to trade futures in both up and down trends with leverage.