Part 2. Using Binance bots Veles and risk management

In the previous part of this article, we learned about the exchanges, registration and the possibility of creating trading bots on Binance. In this part, we will look at how to start using automated solutions on the exchange.  

How to use trading bots

Let's go in order to fully understand how to set up and use bots for trading.

How to connect the Binance API to Veles

In order for bots to work on Binance, an API key is required. On Binance, this is done in the account management section:

• Generate a new API key.

• Name it, for example, “Veles_Bot”.

• Enable read and trade access.

• Be sure to disable withdrawals!

• Add IP restriction (if the bot works from a fixed server).

Once the keys are generated, you need to enter them in the Veles control panel. The Binance API allows you to securely transfer balance information, place orders and track trades.

Customizing Strategies

Setting up trading strategies on Binance, especially when using Veles' Binance bot, is an important element of successful automation and money management. Without a clear understanding of the logic of the algorithm and its settings, even the most perfect bot will not be able to provide a stable result. The cryptocurrency market is unstable and volatile, so the correct setting of the strategy is not just a matter of convenience, but a guarantee of risk minimization and resistance to market fluctuations.

The first thing that customization starts with is choosing the type of strategy. For spot trading, the most commonly used approaches are DCA (averaging), scalping or grid trading. For the futures market, trend and counter-trend algorithms, hedging and arbitrage between different assets are also relevant. A wide range of such strategies is available for the Veles bot, and each of them has its own parameters - order size, step between orders, position increase ratio, profit and loss targets.

Special attention should be paid to capital management. It is necessary to determine in advance the share of the deposit that will be involved in the strategy, set limits on the number of active orders, as well as limits on losses. For example, you can set a condition for the bot: if the profit falls below a certain percentage - temporarily stop trading or change the algorithm. This allows automated response to unpredictable market changes, which is especially important in conditions of high volatility.

The next important step is choosing a trading pair. Each pair has its own characteristics of liquidity, stack depth and volatility. Some strategies work well on popular assets like BTC/USDT or ETH/USDT, while others are focused on altcoins, where you can use increased price fluctuations in your favor. When working through the Binance trading interface and connecting via the Binance API, the bot is able to instantly analyze the market and adapt to current conditions, but it is you who determines the initial settings and logic for entering a trade.

It's also important to test a strategy before launching it. Veles offers the ability to backtest on historical data right inside the platform. This means that you can set all the parameters, select the desired trading pair and see how the strategy would have behaved over the last days, weeks or months. This not only helps to make sure that the algorithm works, but also allows you to refine the settings to the ideal state, which is especially valuable in the context of crypto trading 2025, when market cycles are getting shorter and the reaction must be instantaneous.

Tips on risk management

As we wrote in Part 1, it's especially important to be smart about risk management when trading bots:

• Balance delineation

Don't put the entire deposit under the bot's control.

• Stop Limits and Take Profits 

Set up automatic locking of losses and profits.

• Load testing 

Do not run several strategies on the same pair at once.

• Monitoring

Monitor the bot's performance and disable it in case of sudden market changes.

If you trade on Binance futures, additionally adjust the margin and leverage settings. This is important to prevent liquidations.

Conclusion

Crypto trading in 2025 requires flexibility, speed, and quality automation. The combination of Veles bot for Binance and Binance functionality allows you to create a system that works for you: analyzes the market, opens and closes trades, manages risks and most importantly brings profit.

If you want to start safely - start with Binance spot trading. Once you get the hang of it, move on to futures and more advanced strategies.

Automation is not a replacement for a trader, but a digital assistant. With Veles and Binance, you get the best tools to make cryptocurrency trading stable and efficient.