We described the installation of a specific bot and its automatic restart via systemd in our article. Crypto trading bot on a VPS: How to keep your bot running 24/7Here we focus on two practical issues that arise after deployment and determine whether the bot operates reliably and securely: why a laptop is fundamentally insufficient, which VPS parameters to select according to the bot type, and how to configure exchange API access so that key leakage does not result in loss of funds.
Why a laptop is not the solution, even if it would theoretically "suffice
The argument "I have a powerful enough laptop" misses the point of the problem: bots on laptops fail for reasons unrelated to performance:
- Sleep mode and lid closure - a laptop set to energy-saving mode simply stops working, even if it appears to be on
- Dynamic IP address - Home connections change their public IP address upon each router restart or as determined by the provider. If you have an IP whitelist configured on the exchange, the bot will cease to function after the IP change until you manually update the whitelist.
- Shared environment - using the same laptop for work with a browser running dozens of tabs and background updates, any of these can slow down or crash the system.
- Physical accessibility - the laptop must remain switched on and continuously connected to the network, which in practice means carrying it everywhere or leaving it unattended at home.
VPS solves these problems simply by running independently of your device, with a fixed public IP address and without competing processes.
What parameters does a VPS bot actually need?
Performance requirements vary significantly depending on the type of strategy, not on how much capital the bot manages.
| Boot type | CPU/RAM requirements | Recommended plan |
|---|---|---|
| Grid bot / DCA bot on 1-2 pairs | Low: operates according to simple rules, low frequency of inquiries | BASIC (2 vCPU, 3 GB RAM) |
| Bot monitoring multiple pairs or multiple exchanges simultaneously | Medium: more parallel connections and more frequent data processing | STANDARD (2 vCPU, 4 GB RAM) |
| Strategy with proprietary backtesting or indicators applied to historical data | Higher: calculation is performed locally on the server | PRO (4 vCPU, 8 GB RAM) |
| A bot with a machine learning model running in real time | High: training or inference places a constant load on the CPU. | ULTRA (8 vCPU, 16 GB RAM) |
Cryptocurrency exchanges are also usually based outside Europe, so absolute latency to them is typically higher than with forex brokers, for strategies sensitive to execution speed, it is still worth checking where you connect to the exchange from. The principle of measurement and what affects latency are described in the article. Latency in Forex: Measuring and Causes of Delay - the same logic applies to cryptocurrency exchanges.
Securing API keys: a fundamental aspect often underestimated
An API key grants a bot access to your exchange account. If it is compromised, the damage depends entirely on the permissions you have granted it, therefore, configuring the key is just as important as the bot's strategy itself.
Most exchanges (Binance, Kraken, Coinbase and others) allow you to select specific permissions when creating an API key. Grant the bot only the right to... read data and trade. Right select funds (withdrawal) Never activate it: the bot does not need it for its function, and even if the key is leaked, the funds will remain on the exchange where they can be frozen.
- IP whitelist - configure the API key to be valid only from a specific IP address of your FastVPS. Without a whitelist, the key can be used from anywhere in the world; with it, only from one location that you control.
- Principle of least privilege - grant only the permissions the bot actually uses (spot trading, and futures if the strategy relies on them), nothing more.
- Storing the key separately from the code - The key must be stored in environment variables or an encrypted configuration file, never hardcoded in the strategy file, which could end up in a shared repository.
- Regular rotation - Invalidate the key periodically and generate a new one, especially if anyone else had access to the VPS.
- Two-factor account verification for the exchange - does not depend directly on the bot but protects the entire account to which the key belongs
A static IP address for the VPS makes the whitelist practically maintenance-free. You set it up once and it works reliably as long as you do not change the VPS, unlike a home connection with a dynamic IP.
Summary
Laptops fail when running crypto bots due to issues unrelated to performance - sleep mode, fluctuating IP addresses, and shared environments. A VPS with a static IP address eliminates these problems while allowing precise configuration of permissions and API key whitelisting. Choose server parameters based on the strategy type, not the volume of traded assets - a simple grid bot will suffice with the lowest plan, while more demanding calculations require a higher tier.
VPS with a static IP for crypto bots
A server with a predictable IP address for configuring the exchange whitelist, available from the BASIC plan onwards. The installation of the systemd service is described in a follow-up to this article.
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