The digital asset world is getting even more exciting each year. You wonder how you can also participate and gain a bit of value from the sector. Bitcoin used to be obscure, where only a few portions of people knew about it. Now, it is in the limelight and so are Ethereum and other digital assets.
People appreciate this sector because it is all about decentralization and bringing back value to where it must be, in the hands of the people. If it is able to accomplish this goal, that would be fantastic.
You would know that to enter the sector, it would be best to have several items. The first is that it is great to have a digital asset wallet. The second is to be at an exchange that you respect and are comfortable within the long term. The third is that you would need a healthy amount of capital to really make a difference and to capture value.
Now, the most critical aspect is to really look at the exchange that you are using.
When choosing between renowned cryptocurrency exchanges, you have your work cut out for you. But even within the sea of exchanges that hold a significant level of overall popularity, the name of Binance stands out of the crowd.
If you are in the U.S., using Binance may mean that you will be accessing it through Binance.us. This version of Binance works as an independent entity in order to comply with U.S. financial regulations regarding cryptocurrencies.
But following financial regulations does not affect the exchange’s support for automated bots. In case you aim to use trading tools with your cryptocurrency funds, you will be delighted to hear that you can still utilize trading bots on Binance.us with ease. But in order to start automated trading on Binance.us, you need to keep a few points in mind.
Let us take a look at a few of these key points so that you can make sure to have a great experience moving forward. As you work to ensure you have a great experience, you will account for risk management, risk mitigation, and more so that you preserve and perpetuate your capital.
Here is what you need to know about bots and speculative tools that can help you to streamline your experience with a top-notch entity like Binance.us.
✅ Are You Allowed to Use Trading Bots on Binance.us?
You are definitely allowed to use trading bots on Binance.us. Similar to other popular cryptocurrency exchanges, Binance.us allows the connectivity of third-party bots while keeping its security intact.
This allows you to access a variety of popular automated trading bots for Binance.us. These solutions include but are not limited to those that range from more popular tools to those that some people have not heard about because they are fairly new.
It is important to look at this as you are thinking about the entity that you want to use for your trading purposes. The more options that are available to you, the better it will be for experimentation.
In turn, you can rest assured that your automated trading bot experience remains full of comfort, thrill, and opportunity at the same time.
🤷 Binance VS Binance.us: What Is the Difference?
Binance.us fully complies with U.S. financial regulations that treat certain cryptocurrencies as securities. Due to this reason, the exchange operates as a separate entity from the main Binance exchange, which is operational in every other country of its service, except for the U.S.
This difference came about in 2019 when Binance decided to create a separate subdivision that exclusively catered to U.S. audiences. Since then, both Binance and Binance.us have been operating as different exchanges.
To help you get a firm grasp over their offerings, here’s a quick lowdown on the differences between them.
Binance.us Offers Fewer Cryptocurrencies
Binance is known for offering a vast range of cryptocurrencies across the globe. But Binance.us offers fewer cryptocurrencies in comparison. With that being said, you can still find major cryptocurrencies and tokens on Binance.us without any issues.
Binance.us is Managed Independently
In order to maintain its organizational integrity, Binance.us is managed as a separate entity from Binance. This means that despite being a member of the Binance family, it is run by an independent team. However, this does not affect the service quality of the organization for its clients.
Binance.us Has a Smaller Liquidity Pool
In terms of trading and financial transactions, a liquidity pool refers to an entity or marketplace’s ability to entertain various transactions at once. While Binance.us has a smaller liquidity pool than Binance, it is still able to cater to new, experienced, and even many institutional traders with ease.
💻 Do You Need to Download Special Software?
You do not need to download special software to use Binance.us for trading. However, when you want to combine automated bots with the exchange’s platform, the answer depends on the type of trading bot solution that you end up choosing.
Similar to Binance.us that runs a cloud-based or web-based application, many cryptocurrency trading bots also run on web-based portals. This means that you do not have to download any software to your computer in order to access them. You just need to visit the website of these bots and start using the application right from your browser.
On the other hand, some bots do require you to download software or apps to your computer or mobile devices. However, with the emphasis on modern functionalities, the presence of these bots is getting scarce. Since many modern and popular bots let you access their solutions right through your browser, you do not need to worry about installing additional software to use Binance.us bots.
🛡️ Are Binance.us Trading Bots Safe?
Any Binance.us trading bots that come from reliable sources are completely safe and do not pose extensive threats to your security. But that is where it gets critical that you only use those trading bots that hold up to this quality from the get-go.
Binance.us itself allows you to use cryptocurrency trading bots through application programming interface (API) keys. This functionality lets your chosen trading bot platform connect to your Binance.us account without the bot provider knowing your password. Instead, the API key connectivity exchanges information between the exchange and the trading bot in the background and lets you connect with your account right away.
However, it is important that when you are using any cryptocurrency bot, you do not give its API key permission to withdraw funds from your exchange account. This automatically gives you more protection and ensures that your funds remain safe.
Apart from this, you should also make sure that the crypto bot you are choosing comes from a reliable source, has good reviews, and holds an overall respectable reputation within the cryptocurrency community. This ensures that you are only performing your trades through a solution that treats your privacy and security with the importance that it deserve.
👌 Are There Any Free Binance.us Bots?
There are not many free Binance.us bots, especially those with a graphical user interface (GUI). It is because creating such software calls for intensive efforts from a variety of developers and designers, which negates the possibility of such software being available for free. While open-source applications are popular, they only come with a command-line interface.
On the other hand, a handful of modern cryptocurrency trading bot solutions offer limited usability within their free version. If you simply want to check out their solutions before making a decision to spend your money on them, you can move forward with doing so.
It is also important to note that many modern crypto trading bots steer clear of sky-high prices from the get-go. Instead of asking you to pay intensely high costs from the start, these solutions come with a monthly or yearly subscription model. This provides you with easy accessibility to these solutions and allows you to utilize the latest functionalities without paying a small fortune in return.
💰 How Much Money Do I Need to Start?
In order to start with automated bot trading, you need to have sufficient money to buy some cryptocurrency, pay trading fees, and also cover the license or subscription charges of your crypto trading bot. Apart from these costs, you also need to pay additional charges such as a conversion fee for any cryptocurrencies that you are trading.
When you add up these costs, they can easily go over hundreds or thousands of dollars at once. This means that if you want to start your cryptocurrency trading with pocket change, that would not be a good idea. Even when you are on a budget, it is better to start with a few hundred dollars in your bank account.
You also need to remember that cryptocurrency trading does not guarantee instant profit. There may be times where you may incur some losses, and there could be instances where you might make a significant income. However, the unpredictable nature of the market keeps you from saying anything for certain at all.
This means that if you are aspiring to make a profit through crypto trading, you need to have some funds that you can afford to lose. This ensures that if you make profits, they add to your financial wellbeing; but if you experience any losses, they do not cause to lose your life savings or all that you hold dear.
📊 What Pairs Can You Trade With the Bot on Binance.us?
Binance.us allows you to trade a variety of pairs that range from highly popular cryptocurrencies to niche tokens. At the time of writing, these pairings are available across more than 65 cryptocurrencies.
Many cryptocurrency trading bots allow you to trade across all the available pairs that are available on Binance.us. On the other hand, other trading bots take a different route and only let you access a limited number of pairs through their solutions.
Needless to say, those trading bots that give you full flexibility reign supreme in this regard. But that is where you need to make an informed decision. Many of the trading bots that give you access to all trading pairs may lack in other areas such as user interface or overall reliability. On the other hand, other trading bots may give you limited access to trading pairs, but still, surpass their counterparts in terms of overall functionality.
Keeping this in mind, you should consider all aspects before you move forward with picking a trading bot based upon its trading pair support alone.
📢 Conclusion
It is quite easy to use trading bots on Binance.us. But you still need to be vigilant about a few factors before you start utilizing specific trading bots on the platform. As long as you are checking the credibility, functionality, and reliability of the trading bot, you can be confident in your choice.
And while you are doing that, you should also ensure that you are trading using funds that you can flexibly use apart from your monthly expenses. This helps you rest assured that you may have a good experience with using a trading bot on Binance.us.