How to Build a Crypto Trading Bot for Binance Using Python

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Binance and trading bots are a match made in crypto heaven. The exchange has become a hub for automated trading, catering to institutions, high-net-worth individuals, and retail investors alike. This guide will walk you through building your own Python-based trading bot for Binance, covering everything from market data collection to trade execution.

Prerequisites

Before diving into bot development, ensure you have:

  1. Python installed (3.7+ recommended)
  2. Basic understanding of cryptocurrency trading
  3. A Binance account with API access

Installing Required Libraries

First, install the Shrimpy Python library using pip:

pip install shrimpy-python

👉 Need help setting up Python? Check out this beginner's guide

Setting Up API Connections

Binance API Keys

  1. Log in to your Binance account
  2. Navigate to API Management
  3. Generate new API keys
  4. Store them securely:
exchange_public_key = 'your_binance_api_key'
exchange_secret_key = 'your_binance_secret_key'

Shrimpy API Keys

  1. Sign up for Shrimpy Developer APIs
  2. Generate your Shrimpy API keys
  3. Store them securely:
shrimpy_public_key = 'your_shrimpy_api_key'
shrimpy_secret_key = 'your_shrimpy_secret_key'

Market Data Collection

Accurate market data is crucial for any trading bot. We'll explore two methods:

REST API Ticker

import shrimpy

client = shrimpy.ShrimpyApiClient(shrimpy_public_key, shrimpy_secret_key)
ticker = client.get_ticker('binance')

Websocket Ticker (Real-time)

def handler(msg):
    print(msg['content'][0]['price'])

client = shrimpy.ShrimpyWsClient(error_handler, api_client.get_token()['token'])
subscribe_data = {
    "type": "subscribe",
    "exchange": "binance",
    "pair": "eth-btc",
    "channel": "trade"
}
client.connect()
client.subscribe(subscribe_data, handler)

👉 Learn more about websocket connections here

Order Book Management

REST API Order Book Snapshot

orderbooks = client.get_orderbooks(
    'binance',
    'ETH',
    'BTC',
    10  # limit
)

Websocket Order Book (Real-time)

def handler(msg):
    print(msg)

subscribe_data = {
    "type": "subscribe",
    "exchange": "binance",
    "pair": "eth-btc",
    "channel": "orderbook"
}
ws_client.subscribe(subscribe_data, handler)

Account Management

Linking Binance Account

create_user_response = client.create_user('Your Bot Name')
link_account_response = client.link_account(
    user_id,
    'binance',
    exchange_public_key,
    exchange_secret_key
)

Retrieving Account Balances

balance = client.get_balance(
    user_id,
    account_id
)

Trade Execution

Simple Market Order

create_trade_response = client.create_trade(
    user_id,
    account_id,
    'BTC',
    'ETH',
    0.01  # amount
)

Smart Order Routing

smart_order_response = client.create_trade(
    user_id,
    account_id,
    'BTC',
    'ETH',
    0.01,
    True  # enable smart routing
)

Data Visualization

Candlestick Charting

candles = client.get_candles(
    'binance',
    'ETH',
    'BTC',
    '1d'  # interval
)

Building a Complete Trading Bot

Here's a complete example that monitors BTC-USDT and executes trades:

def handler(msg):
    price = msg['content'][0]['price']
    if float(price) > 10000:
        client.create_trade(
            user_id,
            account_id,
            'BTC',
            'USDT',
            btc_balance,
            True
        )

subscribe_data = {
    "type": "subscribe",
    "exchange": "binance",
    "pair": "btc-usdt",
    "channel": "trade"
}
ws_client.subscribe(subscribe_data, handler)

FAQ Section

What's the minimum Python version required?

Python 3.7 or higher is recommended for this implementation.

How often should I update my API keys?

For security, rotate your API keys every 60-90 days.

Can I use this bot for other exchanges?

Yes! Shrimpy supports multiple exchanges with similar implementations.

Is there rate limiting on the API?

Yes, Binance and Shrimpy both enforce rate limits. Check their documentation for specifics.

👉 For more advanced trading strategies, visit our expert guide

Conclusion

Building a Binance trading bot with Python opens up exciting possibilities for automated trading. Remember to:

  1. Start with small trades to test your bot
  2. Implement proper error handling
  3. Monitor your bot's performance regularly
  4. Stay updated with API changes

The crypto market never sleeps, and neither should your learning. Continue exploring more advanced features like:

Happy coding!

The Trading Bot Guide Team


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