How to earn passive income with a Binance Trading Bot
1. INTRODUCTION
Recently, the trading volume in Bitcoin and other cryptocurrencies has skyrocketed, partly due to positive developments like ETFs and increasing safety through regulation. This increase in market participation has also led to the emergence of many new crypto millionaires, although there are still far more people who lose than win.
Do you also want an opportunity to benefit from the crypto market but don’t have the time or desire to constantly monitor it like a hawk? Oxido Solutions’ Binance trading bot might be just what you need. It’s designed to find top-notch trading opportunities on Binance, the most popular cryptocurrency trading platform. You can then automatically turn these signals into trades. This way, you can generate passive income, giving you more time for the things that matter the most in your life. Learn more about our Binance trading bot software in this LinkedIn article. For your convenience, we’ve organized the information into five easy-to-understand sections:
✓ ABOUT US
✓ DEFINITION
✓ FEATURES
✓ PROS & CONS
✓ SERVICES
2. ABOUT OXIDO SOLUTIONS
Oxido Solutions, based in Amsterdam, specializes in crypto trading bot solutions. Jarno de Vries and Guido Lassally founded the company in 2020. De Vries, the technical genius at Oxido, is responsible for creating the Binance trading bot and other bots for platforms like Binance and Bybit, as well as their technical infrastructure. What drove him? Alongside his IT career, Jarno was trading cryptocurrencies manually, often through the night, which became overwhelming. The birth of his daughter prompted him to focus on trading bots to generate passive income. After creating several profitable crypto trading bots, he joined forces with Guido Lassally to bring Oxido Solutions to the market. Our clientele now includes high net-worth individuals, family offices, hedge funds, and even crypto market makers.
3. WHAT IS BINANCE?
Founded in 2017 by Canadian-Chinese Changpeng Zhao, better known as “CZ,” Binance has rapidly grown into the world’s largest cryptocurrency platform under his guidance. On average, more than $100 billion is traded daily across over 400 cryptocurrency pairs. The platform boasts over 170 million users. In 2024, leadership transitioned to Richard Teng, the former Head of Global Market at Binance. Oxido Solutions enjoys a strong partnership with Frederic Volpe, Michela Silvestri and other members of Binance’s institutional division team, giving us valuable insights into the company’s operations. Following a challenging period, Binance has successfully shifted its focus from growth to compliance with international crypto regulations, a move that has particularly attracted institutional players, cementing its status as the leading platform in the crypto market.
4. WHAT IS A BINANCE TRADING BOT?
A Binance trading bot is a software tool that automates trading on the Binance platform according to specific, predetermined rules. It’s engineered to detect and execute buy and sell opportunities, making the trading process more efficient and integrating smoothly with other systems. A well-designed Binance bot can boost your capital growth and minimize trading risks. Selecting the best Binance trading bot involves understanding its fundamental components. At Oxido Solutions, we highlight these components as:
4.1. Exchanges
Binance provides a variety of products that cater to different trading needs, divided into two main categories: Binance Spot and Binance Derivatives.
4.2. Approach
Building a Binance trading bot can be approached in various ways, such as through technical analysis, fundamental analysis, or a blend of both, depending on the strategy that fits your trading style.
4.3. Data
A Binance bot uses trading data to analyze and identify potential trading opportunities on Binance. This includes information on market trends, historical data, and other significant factors.
4.4. Technology
The technical setup of your Binance trading bot, including the choice of programming languages, backtesting tools, and middleware, should be in line with your investment objectives and strategies.
BINANCE
5. OUR BINANCE TRADING BOT PHILOSOPHY
As experts in crypto bot technology, Oxido Solutions knows all the common trading methods. Through a lot of testing and practical use over the years, we’ve blended these insights with our creativity to make a unique trading vision. This vision forms the bedrock of our Binance trading bot, which is built on four key principles:
✓ MARKETS ARE CYCLICAL
✓ RISK MANAGEMENT IS PRIORITY ONE
✓ NO MANUAL TRADING
✓ THE TREND IS YOUR FRIEND
5.1 Markets are cyclical
At Oxido Solutions, we understand that markets move in cycles—a key part of our trading philosophy. Each cycle has its own difficulties and opportunities. We think the best Binance trading setup should handle all types of market cycles and their related price actions, such as: BULL MARKET: This market has rising prices, high confidence, and optimism in this upward trend. BEAR MARKET: This market has falling prices and pessimism, and requires caution and strategic planning. SIDEWAYS MARKET: The market fluctuates within a range, without a clear direction, and requires careful analysis.
5.2. Risk management is priority one
We think risk management should be the core of every Binance trading strategy. It means identifying potential risks, assessing their probability and impact, and taking steps to minimize them. Here’s why risk management is important:
AVOIDING BIG LOSSES: Like a car’s safety features, risk management in Binance bots is essential. Not setting a trade loss limit is like driving without seatbelts, risking big financial damage. Setting limits on trade losses is crucial for preserving investments.
HELPS YOU STAY IN THE GAME: Good risk management can enhance the risk-reward ratio of your trading strategy. It’s about managing how much you risk on each trade to avoid losing your capital through a few bad trades.
MAKING SMARTER DECISIONS: Staying calm is important for trading on Binance. With set rules for acceptable losses, you can make smart, rational decisions instead of acting out of fear or greed, which can spoil your trading strategy.
5.3 No Manual trading
At Oxido Solutions, we firmly believe in the superiority of automated trading methods over manual ones for success in Binance bot trading. Most of the trades are now done by bots, which are enhanced with advanced technologies like AI. This shift towards automation means manual traders on Binance face more challenges. Main reasons for our focus on automation are:
ACCURACY: Manual trading on Binance, especially at medium or high speeds, is difficult because of the human limit in processing data fast. Automated bots can process a lot of data quickly and do more precise trades. They work all the time, adjusting to market changes right away, something hard for manual traders.
CONSISTENCY: Trading can be emotional, with fear and greed often causing different outcomes. Automated trading eliminates these emotional biases, ensuring trades follow a set, rational strategy. This discipline helps achieve long-term profits and avoid big losses.
ADAPTATION: Manual traders may have trouble adapting to new market conditions, while automated systems are good at this. They can look at market data in real-time, making smart decisions fast. This speed lets our Binance trading bots use new opportunities right away, staying ahead in the changing market.
5.4 The trend is your friend
At Oxido Solutions, our strategy is to capitalize on the inefficiencies in the crypto market, embracing the mantra ‘the trend is your friend.’ This approach suggests that trading in sync with the market’s current direction tends to yield better outcomes than going against it. The rationale behind this is that market trends, fueled by momentum and investor behavior, often persist for a considerable duration. Hence, leveraging these trends is generally safer and more straightforward than guessing when they might shift.
Here are additional reasons why we focus on trend-based trading bot software:
VIABILITY: Markets are naturally cyclical and influenced by trends. While the causes for new trends may change, there are always opportunities for trend-following traders as long as price movement exists.
TWO-WAY GAINS: A trend-following strategy, specially designed for derivatives, allows for trading in both rising and falling markets, making profits from both upward and downward trends.
VOLATILE-FRIENDLY: A trend-following method is very effective in active markets like the cryptocurrency market, where trends can be seen even during periods of high volatility.
LET’S TALK
6. FEATURES OF OXIDO’S BINANCE BOT
You’re familiar with what a Binance bot is, the platform’s evolution into a significant trading hub, and our trading vision for Binance. In this chapter, we’ll show you how we’ve transformed that vision into a tangible product, our very own Binance trading bot, and we’ll outline its key features.
6.1. Our Binance Strategy
The Binance trading bot is a trend-following bot that relies solely on technical analysis, making its decisions based on hard numbers. It adopts a dual-strategy method, utilizing two variations of the ATR indicator, integrated with our unique trend-following algorithm. Each version employs breakout strategies, triggering buy or sell signals when prices breach a predetermined range. With one ATR set for an 8-minute timeframe and another for 9 minutes, they offer a hedging mechanism, ensuring a balanced performance in varying market scenarios.
6.2. Trading Pairs
The Binance trading bot was initially developed for two types of Bitcoin perpetual futures: Standard Bitcoin Perpetual Futures and Bitcoin Inverse Futures. Standard Perpetual Futures let traders bet on Bitcoin’s future price without an expiration date, settling in fiat currencies or stablecoins like USDT. Bitcoin Inverse Futures, also without a set end date, settle directly in Bitcoin. These instruments provide flexibility in strategy and risk control in the dynamic crypto market. Since February 2024, the bot has expanded to include both perpetual futures for Ethereum and key altcoins like Solana, Polkadot, and Cardano.
6.3. Risk Levels
Our Binance trading robot offers three risk levels: low, medium, and high, matching risk exposures of 2%, 3%, and 4% of the trading capital per trade, respectively. It’s important to note that these calculations do not include slippage, which is the difference between the expected price of a trade and the price at which it is actually done. The low-risk level aims for smaller profits but also has smaller losses, providing a more cautious approach to bot trading.
6.4. Isolated Margin
Oxido Solutions’ Binance trading bot supports isolated margin, a useful feature that helps in managing the risk of each individual trade. It’s like setting aside a specific amount of money for different expenses. With isolated margin, you set a certain amount of funds for each trade and use only those funds for that trade. This makes sure that a bad trade won’t affect your other trades on Binance, giving you more control over your risk management.
6.5. Sideways Filter
A major hurdle for trend-following trading bot strategies is their underperformance during weak trends. Oxido Solutions has tackled this with its innovative sideways filter. This tool quickly identifies when prices are moving sideways. Consequently, our trading system sidesteps weak trends and jumps in only when the trend is strong, reducing losses and boosting profits.
6.6. Double Stop Loss
Our dual trailing stop loss mechanism is a cornerstone of our risk management approach. Here’s what sets it apart:
PRIMARY TRAILING STOP LOSS: This is activated immediately when a trade is opened. Set at a significant distance from the entry point, it adjusts with price changes. The set distance varies with market conditions and the size of the position, taking into account the user’s risk preference. Initially, the trade is exposed to a maximum risk of 2% (low risk), 3% (medium risk), or 4% (high risk), not including slippage, via this primary stop loss.
SECONDARY TRAILING STOP LOSS: This is engaged only when the trade becomes profitable. It starts when the price moves in the intended direction. Following this, the trailing stop loss moves upward with the price and closes the position if there’s a slight drop. We mainly use limit orders to close positions, which helps avoid slippage and additional Binance trading fees, with market orders as a fallback if the limit order isn’t executed.
6.7. Alpha Shifter
To make sure buy and sell signals from a Binance trading bot get to Binance fast and accurately, middleware software is essential. Middleware acts as a bridge for sharing data between different systems or applications, playing a vital role in the operation of a Binance trading bot. At Oxido Solutions, we saw that the current middleware options didn’t suit our specific needs. So, we made Alpha Shifter, our own advanced middleware trading system that efficiently sends trading signals to Binance and other leading crypto trading platforms.
PERFORMANCE
7. BINANCE BOT RISKS & SOLUTIONS
At Oxido Solutions, we’ve faced many challenges in launching our Binance trading bot services. It’s key to understand the potential risks and our solutions. These include – but are not limited to – IT risks, market risks, and regulatory risks.
7.1. IT Risk
Developing and running a trading bot involves technical aspects that could cause IT-related issues, such as wrong or missing input, coding errors, or server outages. These problems can prevent the generation of accurate buy and sell signals, leading to possible financial losses. To reduce IT risks, Oxido Solutions has built a strong IT infrastructure. Every component goes through rigorous testing and regular software and hardware updates to ensure their reliability. Our error management system quickly detects and fixes any errors, minimizing their impact.
7.2. Market Risk
The success of your Binance trading bot depends on market conditions and the bot’s ability to adapt. Market risks can come from volatility, economic changes, or unexpected events. We can’t control market conditions, but our Binance trading bot has advanced risk management features to adapt to changes. These features limit losses per trade, use dynamic stop-loss mechanisms, and have a chop filter to avoid trading in bad conditions. Our goal is to lower losses from unexpected market events.
7.3. Regulatory Risk
Using a Binance trading bot comes with the challenge of staying in line with the financial market laws and regulations, which might limit access or require specific licenses. Oxido Solutions maintains a strong connection with Binance, other trading platforms, and regulators worldwide to stay informed about the latest changes. We adjust our services to meet these regulations and can guide you to experts who can advise on any local restrictions or licensing needs. While we don’t provide financial advice, we’re here to answer any IT-related questions you might have.
8. ADVANTAGES BINANCE TRADING ROBOT
When you use Oxido Solutions’ Binance trading robot, you’ll join a competitive field with thousands of other bots in the cryptocurrency market. So, what benefits does our Binance bot have over other investment options? Let’s look at the 6 main advantages.
Passive Income
The Binance trading bot can help you create a passive income stream by automatically finding trading opportunities based on set rules and strategies.
Less stress
Our bot gives traders a way to avoid the emotional stress of manual trading in unstable markets, while still having the opportunity to make profits from the cryptocurrency market.
Save time
With the Binance trading bot, you can work on other things or activities while it runs in the background, possibly making profits from the cryptocurrency market without needing your constant attention.
Save Costs
Our Binance trading bot can find buy and sell opportunities with lower transaction costs than manual trading, thanks to its fast data processing skills.
MORE EFFICIENT
The Binance can run non-stop, letting you take advantage of market opportunities and possibly make profits even when you’re not at your computer. This leads to more efficient and productive trading.
Diversification
A Binance trading bot can help you diversify your investments by finding trading opportunities for multiple cryptocurrencies and trading pairs at the same time.
9. SERVICES
You’ve just gotten a deep dive into the Binance bot. Hopefully, the blog has provided you with valuable insights for your research, or maybe you’re already convinced of the benefits of Binance and the trading bot that we have developed for this platform. Rest assured, you are not a guinea pig. Every day, numerous institutional investors and high net worth individuals reap the rewards of our risk-focused trading bot. If you’re interested in seeing the proof, we can grant you access to our data room and special read-only API keys. Eager to give it a shot? We offer several services and products for the Binance trading bot, all tailored to your investment profile, background, and location.
