What is Algo Trading Bots?
Algorithmic trading bots need to run 24/7 with minimal latency — crypto markets never close. Self-hosting your trading bot on a VPS ensures your strategies execute around the clock, even when your personal computer is off, with sub-millisecond network latency to exchange APIs.
Freqtrade is the most popular open-source crypto trading bot, offering powerful backtesting, strategy optimization with machine learning, and a web UI for monitoring. Hummingbot specializes in market-making and arbitrage strategies with connectors to 40+ centralized and decentralized exchanges.
A VPS eliminates the single biggest risk in algo trading: downtime. Your bot keeps running through power outages, ISP issues, and system updates. With Docker deployment, you can run multiple strategies on a single server and manage everything remotely via Telegram.
$ apt list --installable
Popular Algo Trading Bots Software
Top open-source tools you can self-host on your VPS.
Freqtrade
The most popular open-source crypto trading bot. Backtesting, ML-powered optimization, dry-run mode, and Telegram integration. Supports 11+ spot and 6 futures exchanges.
Official siteHummingbot
Open-source trading framework for market making and arbitrage. Connectors to 19 centralized and 24 decentralized exchanges. Apache 2.0 licensed.
Official siteJesse
Python framework for researching and trading crypto strategies. Advanced backtesting with detailed performance reports and live trading support.
Official siteOctoBot
Open-source trading bot with a web interface. Supports technical analysis, social trading, and DCA strategies. Easy setup with Docker.
Official siteVPS Specifications
What you need to run algo trading bots workloads.
$ top --providers --for=trading-bots
Best Providers for Algo Trading Bots
Hand-picked based on specs, pricing, and suitability for algo trading bots workloads.
Vultr
25 global locations for low-latency connections to exchange APIs worldwide
Get Started
Hetzner
Excellent price-to-performance with reliable uptime for always-on trading
Get Started
DigitalOcean
Consistent network performance and easy Docker deployment for trading stacks
Get Started$ man trading-bots
Frequently Asked Questions
Why run a trading bot on a VPS instead of my PC?
A VPS runs 24/7 with 99.9%+ uptime — crypto markets never close. You avoid risks from power outages, ISP issues, and OS updates. VPS providers also offer lower latency to exchange servers than typical home connections.
How much RAM does Freqtrade need?
Freqtrade runs comfortably on 2GB RAM for live trading. Backtesting and hyperparameter optimization with machine learning can use more — 4GB is recommended if you backtest frequently on the same server.
Can I run multiple trading bots on one VPS?
Yes. With Docker Compose, you can run multiple Freqtrade or Hummingbot instances on a single server. Budget 1-2GB RAM per bot instance. A 4GB VPS handles 2-3 bots easily.
Is it safe to store exchange API keys on a VPS?
Yes, with proper security: use SSH key authentication, enable a firewall, restrict API key permissions to trading only (no withdrawals), and use IP whitelisting on your exchange account. Both Freqtrade and Hummingbot encrypt API keys locally.
Which is better — Freqtrade or Hummingbot?
Freqtrade excels at backtesting and strategy optimization with excellent documentation. Hummingbot is better for market-making and supports more decentralized exchanges (24 DEXs). Both are free and open-source.
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