Managing your funds on an exchange can be complicated. Exchanges typically don’t offer a wide range of asset management options, but rather focus on trading. Binance US is no different. Although they are partnered with the largest cryptocurrency exchange in the world, Binance US still doesn’t offer any major asset management features.

Essentially, traders deposit funds to the exchange and then personally manage the execution of trades between assets, calculate performance, and allocate their desired portfolio. This has become a tedious process that consumes an excessive amount of time.

As a result, the asset management process has become cumbersome. Rather than focusing on research or enjoying the process of constructing a portfolio strategy, traders have become bogged down with process.

Many traders have begun turning to 3rd party applications because of this issue. The crypto community has begun building options for ways you can simplify your asset management. Rather than manually executing every individual trade, calculating performance, and monitoring progress, there are trading bots and services that can do this for you.

Throughout the next section, we will discuss the different types of services that are available in the market and how they can help you begin automating the way you manage your portfolio.

Before we get into those details, we will need to discuss API keys and how these are used to allow 3rd party applications to connect to your exchange account.

Binance US API Access

Most traders probably know that the top exchanges all provide API access to your account. This allows you to connect 3rd party applications to your exchange account. The application then uses the APIs to collect data on your funds, execute trades, and access market data.

Binance US is no different. Traders can create API keys for their account. Once the API keys have been created, they should be safely stored and only input into trusted 3rd party applications.

Some common applications that may take API keys include trading bots, terminals, tracking apps, and portfolio management services. Each of these applications may use the API keys in different ways, for example, some may only collect data and not execute trades, but the concept remains the same.

Understanding the permissions that are required for different applications is important for protecting yourself and your funds. There are 3 main permissions that most exchanges allow for API keys. These are Data, Trading, and Withdrawal permissions.

Data Permissions