How to trade on Binance with Veles bots

Cryptocurrency exchanges offer the opportunity to trade not only manually, but also with the help of trading algorithms (bots), which are available thanks to the developed technical infrastructure. Binance exchange is a leader in providing favorable conditions for trade automation and further we will tell you how it can be used.

Trading basics and introduction to the Binance platform

Before you start working with bots, it is worth understanding the basics of trading and the structure of exchanges.

What is Binance

Binance is the largest crypto exchange offering advanced cryptocurrency trading infrastructure for beginners and professionals. It is a versatile platform where you can trade manually or run bots by connecting them through the Binance API. Binance supports a huge number of assets and offers one of the most user-friendly interfaces on the market.

Account Registration and Security

Registering and securing an account on Binance is the first and one of the most important steps for those who want to start trading cryptocurrency. It is especially important to understand these basic steps if you plan to use bots on Binance, which work through APIs and require trusted access to your account.

The registration process on the Binance crypto exchange is intuitive. You need to specify a valid email address or phone number, come up with a strong password and confirm the data. After that, the system will offer to pass basic verification (KYC) by providing a photo document and selfies.

Once the account is created, it is extremely important to set up its protection. The first thing to do is to activate two-factor authentication (2FA Binance). This can be Google Authenticator or SMS confirmation. It is best to use the app as it works even if you lose access to your phone number. Two-factor authorization will protect you from most login and password access attacks.

If you plan to connect the Binance trading bot via Veles, the next step is to generate API keys. It is important to realize that API allows the bot to interact with your account: receive information about your balance, open and close trades, and view trading history. That is why the issue of security is especially critical here.

In addition, it is recommended to activate IP restriction - this is a setting where the API key works only from specified IP addresses (for example, from Veles servers). Even if someone steals your key, they won't be able to use it from another device.

Deposit and Withdrawal

You can deposit and withdraw funds on Binance via cryptocurrency wallets or fiat gateways. You can deposit from a card, a third-party wallet, or via P2P. That said, be sure to turn off withdrawal permission in the API if you use a bot for Binance Veles - it's a simple but critical security measure.

Interface and order types

Binance's trading interface is one of the most user-friendly on the market: flexible customization, TradingView charts, fast switching between markets. 

In order to confidently trade manually and understand how the bot works, you need to understand Binance orders.

The most commonly used one is the Binance limit order, with its help you place an order at a predetermined price. There are also market, stop limit and stop market orders. These tools are used in the algorithms of alt-trading bots, including Veles.

Spot and futures trading

Understanding the differences between spot and futures is especially important if you plan to use a Binance trading bot, as each market requires its own automation and control logic.

Binance spot trading is a classic form of trading where you buy and sell cryptocurrency at the current market price. The transaction is executed instantly and the asset is transferred to your account. For example, if you buy BTC for USDT, you get real bitcoins that are stored in your exchange wallet. This format is ideal for cryptocurrency trading for beginners because there is no leverage involved, no contractual obligations, and less risk.

While spot trading is more suited for long-term holding and moderate trading, futures trading on Binance is for those who want to speculate on the price and profit both when the market rises and falls. Here, you are not working with the asset itself, but with a contract on it. You can long (on the upside) or short (on the downside) using leverage, which increases both potential profits and risks.

Binance futures offer flexible leverage settings - from 1x to 125x depending on the pair. This gives experienced traders the ability to utilize Binance's sophisticated trading strategies, including scalping, hedging, and arbitrage. However, it is important to realize that leveraged trading can quickly zero out a position, especially on highly volatile assets. Therefore, algo-trading bots are especially relevant here: they are able to react instantly to market changes, automatically set stop losses and take profits, as well as manage risk taking into account margin and collateral.

Integration with the Binance API allows the bot for making money on the exchange to work on both spot and futures. But before doing so, it is important to clearly understand which market you want to run the bot on. Futures offer more opportunities, but require a more serious approach to capital management and constant monitoring of the liquidation level.

To summarize the first part

Binance provides all the tools for manual and automated trading. You learned what limit orders are, how the Binance trading interface is organized, and what features spot and futures trading have. In the next part, we'll look at how to connect the Veles trading bot, manage risk, use the Binance API, and run automated strategies.