Introducing LONG/SHORT Bots
No Brian — you can’t short an asset on the spot market! However we have good news for you — Upbots platform users now have access to a new feature: Futures trading bots, and that’s huge news !
What is Futures Trading, you may ask?
The crypto market is not always bullish and we would be wrong not to take the advantage of it, right? From now on, no more betting on the rise only, because futures allow us to short as well!
Shorting allows you to bet on the decline of an asset and make money when the market falls. From now on you will find such Bots on the platform. This only concerns the renting of algorithms.
And the best news is — we aren’t adding just one future platform, but two! Don’t worry, for those of you who prefer other platforms, Kucoin Futures and Binance Future are just the first of many to be added!
Binances futures offers a wide range of contracts against the USDT, with over 90 cryptos available for margin trading and one of the lowest transaction fees in the market. Kucoin platform also does very well with slightly higher transaction fees than Binance.
Connecting to the Futures exchange
It sounds complicated but it’s not at all. You just need to modify your existing Binance API a bit, and of course have enough UBXT to pay the performance fees. Kucoin does not widely differ, just check detailed guide below:
For Binance
1) Sign up for free on Upbots if not yet done
2) Create an API on Binance with future trading authorization
3) Connect your Binance account via this API
4) Make sure you have enough UBXT to pay performance fees
5) Find a bot that trades on Binance futures and activate it
For those of you who have been around for a while like Brian, just change your API authorization and you’re done!
- Connect to your Binance account
- Go to API management
- Click on edit restriction and check “future trading” boxes
- Save and you are done.
For Kucoin
1) Sign up for free on Upbots if not yet done
2) Create an API on Kucoin with future trading authorization
3) Connect your Binance account via this API
4) Make sure you have enough UBXT to pay performance fees
5) Find a bot that trades on Kucoin futures and activate it
Creating an API is not very complicated on Kucoin either, except that you are directly on Kucoin futures.
1) Login to your account
2) Go to API management
3) Create an API
4) Save and you are done.
Ahh, isn’t having choices great, Brian?
How it works
Want a little more detail Brian?
Futures trading is different from spot trading because unlike spot, you do not own the asset when you are in the position. In the futures market, you are buying a contract, not an asset.
Example: If you buy $10,000 worth of BTC on Binance spot, then you will “own” 0.25 BTC, at today’s price. With the same position in the futures market, you don’t own anything at all, but you are exposed to market fluctuations in the same way.
What about leverage?
You’re right to mention it Brian! Since we don’t own the asset we’re betting on, it’s sort of loaned to us, and we can use what’s called leverage.
The principle is simple: Let’s say you activate one of our bots available on Binance futures and you choose a leverage of 3. You still have the same capital as in the previous example but thanks to the leverage of 3, you will open a position 3 times bigger, of $30,000.
This is an extraordinary tool that multiplies the gains … but also the losses, so be careful!
Need some assistance getting set up? See a full walk through on setting up the algo bots here.
Have questions related to the algo bots or the platform in general? Come join our Discord server!
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