Binance Setup

This guide walks you through setting up your Binance account for automated trading.

Account Creation

1. Register Account

1. Visit Binance.com
2. Sign up with email and create a strong password
3. Complete email verification
4. Enable Two-Factor Authentication (2FA)
   • Use Google Authenticator or Authy
   • Store backup codes securely

2. Identity Verification (KYC)

1. Navigate to “Identification” in account settings
2. Select your country of residence
3. Complete Basic Verification:
   • Provide personal information
   • Upload government ID (passport, national ID, driver’s license)
   • Complete facial verification
4. Wait for approval (typically 1-24 hours)

Funding Your Account

For Kenya Users (M-Pesa)

1. Go to “Buy Crypto” → “P2P Trading”
2. Click “Payment Methods” → Add M-Pesa
3. Verify your M-Pesa number
4. Make a test purchase:
   • Select “Buy” → “USDT”
   • Filter by “M-Pesa” payment method
   • Choose reputable seller (high completion rate, good reviews)
   • Start with small amount ($20-50) to test process
   • Follow M-Pesa payment instructions
   • Confirm USDT receipt in Spot Wallet

For Other Regions

• Bank Transfer: Direct deposit to Binance
• Credit/Debit Card: Instant purchase with fees
• P2P Trading: Local payment methods vary by region

API Key Setup

⚠️ Critical Security Settings - Follow these exactly:

1. Create API Key

1. Go to “API Management” in account settings
2. Click “Create API”
3. Set label: FreqtradeBot or similar

2. Configure Permissions

Enable these permissions:

• ✅ Enable Reading (required)
• ✅ Enable Spot & Margin Trading (required)

DISABLE these permissions:

• ❌ Enable Withdrawals (NEVER enable)
• ❌ Enable Futures (unless specifically needed)

3. IP Restrictions (Recommended)

• Set IP restriction to your server’s IP address
• If using dynamic IP, leave unrestricted but monitor closely
• Consider VPS with static IP for production use

4. Save Credentials Securely

1. Copy API Key and Secret Key
2. Add to your .env file:

   BINANCE_API_KEY=your_api_key_here
   BINANCE_API_SECRET=your_secret_here
   

3. Never commit .env to version control
4. Store backup in secure password manager

Security Best Practices

API Key Security

• Rotate keys every 90 days
• Monitor API usage in Binance account
• Disable immediately if suspicious activity
• Use separate keys for different bots/purposes

Account Security

• Enable withdrawal whitelist (if available)
• Set up anti-phishing code
• Use strong, unique password
• Regular security reviews

Monitoring

• Check account activity regularly
• Set up email alerts for trades and logins
• Monitor API call limits

Testing Your Setup

1. Verify API Connection

# Test API credentials (dry-run mode)
./docker-launch.sh

# Check logs for connection success
docker logs freqtrade-ReinforcedAverageStrategy | grep -i "successfully"

2. Test Market Data Access

# Should return market information
curl "https://api.binance.com/api/v3/exchangeInfo" | jq '.symbols[0]'

3. Verify Permissions

Your bot logs should show:

• ✅ “Exchange connector init”
• ✅ “Validating configuration”
• ❌ No permission errors

Common Issues

API Key Problems

ERROR - Unable to authenticate

Solution: Double-check API key and secret in .env file

Permission Errors

ERROR - Insufficient permissions

Solution: Ensure “Enable Reading” and “Enable Spot & Margin Trading” are checked

IP Restriction Issues

ERROR - IP address not allowed

Solution: Check IP restrictions in Binance API settings

Rate Limiting

ERROR - Rate limit exceeded

Solution: The binance-proxy (setup automatically) handles this

Live Trading Preparation

Before switching from dry-run to live trading:

1. Test thoroughly in dry-run mode (minimum 1 week)
2. Start with small capital ($100-200)
3. Understand your chosen strategy thoroughly
4. Set up monitoring and alerts
5. Have emergency stop plan ready

Next Steps

With Binance configured:

• Set up Telegram notifications (optional)
• Launch your first strategy
• Learn about monitoring

Emergency Procedures

If something goes wrong:

1. Disable API key in Binance immediately
2. Stop all trading bots: docker stop $(docker ps -q --filter name=freqtrade)
3. Review account activity in Binance
4. Check bot logs for errors: docker logs container_name