How to Build ‘Cryptocurrency Trading Bot’

The economics arena has added up with a new medium for secure financial transactions known as cryptocurrency. I hope you all are a bit familiar with this digital asset system cryptocurrency. Nowadays, our society transforming into a cashless economic state. Day by day everyone is focusing more on E-banking and Cryptocurrencies. While comparing these two, Cryptocurrencies have some benefits over E-banking. Which includes:

● Transaction Speed

● Cryptocurrencies are global currencies/Global acceptance

● Secure Payment information

● Immutable transactions

● No Inflation

● Less /No transaction fees

● Anonymity

● No restriction on payments

● The government cannot demonetize

While the cryptocurrencies being popular, they introduced a new business arena too, that is ‘Cryptocurrency Trading’. That opened up a wide-ranging business opportunity for people; they can invest in it and can trade these cryptocurrencies just like what our share market does. More than 2000 cryptocurrencies are currently available in the market, which is tradable.

The major advantage and disadvantage of cryptocurrency are it’s “Inconsistent rate”. That is the rate of the cryptocurrency will grow up and down suddenly. The rate variation can cause great profit or loss unexpectedly. There is no strict demand-supply rule to define the exchange rate of cryptocurrencies. So we can’t predict the rates of cryptocurrencies. The rates on cryptocurrencies may increase or decrease within seconds.

Let’s Just make a comparison between the Bitcoin rate and Gold rate.

In the above graph, you will get a clear picture of cryptocurrency rate variations. This kind of unexpected falling in currency rate will cause a huge loss for those who invested in cryptocurrencies. To overcome this scenario we can use ‘Trading Bots’. Trading Bots are autonomous computer programs, that work with the trading systems to do trading without human interaction. Which can be embedded with the cryptocurrency trading sites.

There are many cryptocurrency trading sites are available. You can add trading bots over these websites for automating the cryptocurrency trading. The only thing You require is an account in that particular trading website. You can embed your own trading bot to that account with certain trading strategies to control your cryptocurrency tradings.

Binance, Bittrex and BitMex are some of the major cryptocurrency trading sites. And they are providing Public Rest APIs to create cryptocurrency trading bots. These APIs will provide an interface for the BOTs to interact with the trading environment.

Now I will be considering the Trading website ‘Binance’ only for our further discussion.

Trading Bot with Python Binance API

As I already said, The cryptocurrency Trading Bots will trade cryptocurrency on an exchange on behalf of us to maximize the profit by reducing risk. The Trading Bot software solution can manage your investments in cryptocurrency markets. They can buy, sell and hold cryptocurrencies to increase your profit in an easily managed, highly reliable way.

The main motivation for the development of this trading bot is to create an open-source autonomous cryptocurrency trading software that anyone can download edit and customize with their own trading strategies.

Once you implemented a trading bot on a currency exchange all your currency trading on that account will get automated. And the bot will recognize all the trends in the crypto market and can automatically execute the trades based on the trends. Here I will introduce you the easiest method for ‘building a cryptocurrency trading bot”.

Let’s check the possibilities of the API and the Python packages for building a cryptocurrency trading bot. First, you have to Install the python-binance python package as follows

pip install python-binance

After installing this package you can develop your own trading bot. For that, you need an API key, which can generate from your Binance account. if you don’t have an account in Binance you can create it from the following https://www.binance.com/register.html.

once you create the account you can see the API key generating option there.

You have to just click on the ‘Enable’ button to generate the API key

Here you will get the API private key. Now you can develop your own trading bot with the help of a client object which has access to your account. You can initialize the client in your python program, by just passing your API Key and Secret code to the ‘Client’ function.

frombinance.client import Client

client = Client(api_key, api_secret)

Before using these Binance APIs you need to read the API documentation carefully to understand the API calls and limits for the client requests. These limits are sufficient enough for a common user. You can create 10 requests per second, 1200 requests per minute and 100000 requests in 24 hours, from an API client.

python-binance uses the requests library for managing the request setting for the client.

Using library functions you can set custom requests parameters as follows, for all API calls while creating a client.

client= Client(“api-key”, “api-secret”, {“verify”: False, “timeout”: 20})

You may also pass custom requests parameters through any API call to override default settings or the above settings specify new ones like the example below.

# this would result in verify: False and timeout: 5 for the get_all_orders call

client = Client(“api-key”, “api-secret”, {“verify”: False, “timeout”: 20})

client.get_all_orders(symbol=’BNBBTC’, requests_params={‘timeout’: 5})

Now you are all set with the client programs to manage your trading bot. Now you are well set for trading bot development. You can create your trading bots with the best ever trading strategies to track your cryptocurrency trading than anyone else. Think well before applying the trading strategies, they should be capable to track the market well and execute trading to generate profit. A trading bot with a rigid strategic algorithm will only assist the trader for a limited duration as the cryptocurrency market is dynamic. So no permanent trading strategy can be established. You have to change them at certain intervals.

Your cryptocurrency bots are promoted as an easy way to make a profit as the bot will run on autopilot with the best marketing strategy. Create the best trading bots and relieve the stress of looking into the crypto market. Where you can see the magic of marketing and technology working hand in hand to give you successful cryptocurrency trading experience. Make a try today itself to create your own cryptocurrency trading bots and discover the new cryptocurrency trading trends.

Blockchain and Odoo-ERP developer. I started my career as a Python developer. Working as Odoo ERP developer But my curious mind caught up in the Blockchain too.