Cryptocurrency markets operate 24/7, as do crypto trading bots—automated tools designed to execute trading strategies around the clock. These bots can track market movements and place trades with speed and precision far exceeding human capabilities, making them essential for many traders. To run efficiently, however, they need a stable and continuously available environment—exactly what Virtual Private Servers (VPS) provide. In this comprehensive guide, we’ll explain what crypto trading bots are and how they work, explore popular bot platforms (like 3Commas, HaasOnline, Gunbot, etc.), discuss the technical requirements to run them, and show why using a VPS is often better than using your PC. We’ll also highlight key VPS features (such as stability, global locations, and latency testing) crucial for crypto trading.
Crypto trading bots automatically execute cryptocurrency trades based on predefined rules and algorithms. In simple terms, a trading bot connects to your exchange account and can buy or sell assets on your behalf when certain conditions are met. For example, a bot might be programmed to buy Cryptocurrency if the price drops by 5% in a day, or to execute an arbitrage trade if it detects a price difference between two exchanges. Once set up, bots run continuously without human intervention – they can react in milliseconds and trade 24 hours a day, seven days a week. This means a well-configured bot could capitalize on market moves at 3 AM while you’re sleeping, something a human trader could never do alone.
How Trading Bots Work: Most crypto bots analyze market data (prices, volume, indicators) and follow a strategy script. The user either sets the strategy parameters or uses built-in presets. When market conditions match the bot’s criteria, it will send trade orders via the exchange’s API (Application Programming Interface). For safety, the bot uses API keys with permissions to trade (but usually not to withdraw funds). Different bots pursue different goals – some are coded for high-frequency scalping, others for trend following, grid trading, or arbitrage. Regardless of strategy, the common advantage is speed and tirelessness: bots can monitor the market without breaks and react faster than humans. Of course, a bot’s effectiveness still depends on the strategy and settings given by the user, and it’s not a guarantee of profit. But used wisely, trading bots have become valuable assistants for many traders, helping to automate routine tasks and execute strategies systematically.
Types of Crypto Trading Bots: There is a wide variety of crypto trading bots in use as of 2025, ranging from simple to highly complex. Some common types include: arbitrage bots (which exploit price differences across exchanges), trend-following bots, market-making bots, grid trading bots, and portfolio rebalancing bots. For instance, an arbitrage bot might simultaneously buy and sell a coin on two different exchanges to lock in a price discrepancy. In contrast, a grid bot might place a series of buy and sell orders at preset intervals to profit from a volatile sideways market. Many modern bots even incorporate dollar-cost averaging (DCA) strategies or use AI and machine learning to refine their trading decisions. The key takeaway is that “crypto trading bot” can mean many things – from a few lines of script automating a basic strategy, to an advanced piece of software managing dozens of trading pairs with complex algorithms.
Users can choose from general-purpose frameworks to specialized commercial platforms when choosing a trading bot. Below, we highlight a few popular crypto trading bot solutions in 2025, each with its own approach:
3Commas: 3Commas is a well-known cloud-based crypto trading platform offering automated trading bots and tools. Because it’s cloud-hosted, you don’t need to run the bot software on your machine – you connect your exchange accounts via API keys on the 3Commas web interface. 3Commas provides pre-built bot strategies like DCA bots, Grid bots, and options for copy-trading. It’s beginner-friendly (with a convenient interface and mobile app) and supports many major exchanges. Remember that 3Commas is a subscription service, and while it’s convenient, you rely on its cloud; there are no local hardware requirements since everything runs on 3Commas’ servers. The upside is ease of use; the downside is monthly fees and trusting a third-party with your API keys.
HaasOnline (HaasBot): HaasOnline is a veteran trading bot platform known for its advanced features. Unlike 3Commas, HaasOnline’s TradeServer can be self-hosted on your hardware or VPS, and it supports Windows, Linux, and macOS. HaasBot offers various technical indicators, bot types (arbitrage, market making, trend bots, etc.), and a scripting language for custom strategies. Because of its complexity, HaasOnline is favored by more experienced traders. System requirements: HaasOnline is more resource-intensive than many cloud bots – it recommends at least a multi-core CPU (4 cores) and 2 GB of RAM, plus a stable internet connection (around 5 Mbps or better) for proper performance. If you plan to run HaasBot on a VPS, ensure your plan meets these specs (we’ll discuss VPS specs shortly). The platform is subscription-based (with tiers offering different features), and you maintain control by hosting it yourself or using their cloud option.
Gunbot: Gunbot is a popular general-purpose trading bot software you run on your machine or VPS. It’s known for having a one-time purchase license (no recurring fees) and a supportive community. Gunbot can trade on numerous exchanges and comes with many built-in strategies (ranging from simple market making to advanced trend strategies). One advantage of Gunbot is its relatively light footprint, which is designed to be efficient with resources. System requirements for Gunbot are modest: at minimum, about 2 GB of RAM, and any modern 64-bit CPU should suffice. It doesn’t use much disk space either (a few GB is plenty). Gunbot runs on Windows, Linux, or macOS so that you can choose a VPS with your preferred OS. This flexibility makes hosting on a Linux VPS easy and saves costs. Gunbot is a good option if you want control over the bot software without ongoing subscription fees, and you don’t mind doing initial setup and updates yourself.
Other Bots and Frameworks: Many other crypto bot solutions exist beyond the above. Cryptohopper is another popular cloud-based bot platform (similar to 3Commas in offering web-based management and pre-made strategies). Pionex is a cryptocurrency exchange with free built-in trading bots (like grid and DCA bots) for its users – an option if you prefer an all-in-one exchange + bot solution. For more tech-savvy users or developers, open-source frameworks like Freqtrade (a Python-based trading bot framework) allow you to code and customize your strategies and run them on a VPS. These general-purpose frameworks often require more technical skill but give you maximum flexibility. The crypto bot landscape is rich, so choose a bot that fits your skill level, budget, and trading goals. Just remember that any bot you use will have specific software/hardware requirements and may need a stable server environment to run optimally.
Running a crypto trading bot doesn’t usually demand extreme hardware, but you do need to meet some basic technical requirements for smooth operation. Here we’ll outline the typical VPS specifications and setup required to host most trading bots:
CPU (Processor): A modern multi-core CPU is recommended. A 2-core processor at ~2.0 GHz or higher is sufficient for most bots. Trading bots are generally not very CPU-heavy; they spend most of their time waiting for market data or sending orders, which is not CPU-intensive. Even a single core can run a simple bot, but if you plan to run multiple bots or very complex algorithms (e.g., heavy backtesting or AI models), consider 4 cores or more to be safe. For example, HaasOnline specifically recommends a quad-core CPU for its TradeServer software, whereas lightweight bots like Gunbot can run on practically any modern processor.
RAM (Memory): Sufficient RAM is essential to keep the bot and OS running without slowdowns. At least 2 GB of RAM is a common minimum for one or two bots. This covers the operating system and the bot application comfortably in most cases, especially if using a lean OS like Linux. If your bot setup involves multiple trading pairs, running several bots simultaneously, or using a GUI interface, you might want 4–8 GB of RAM to ensure smooth performance. Remember that Windows-based bots generally need more memory (Windows OS itself might use 2+ GB idle), whereas Linux can run the same bot on less RAM. Always check the bot’s documentation; for instance, using a web-based interface or database with your bot could increase memory usage.
Storage: Crypto bots do not typically require large storage space. You’re not storing blockchain data (unless you’re running a node, which is a different scenario); you only need space for the OS, the bot software, log files, and perhaps some historical price data or configuration files. Around 20–50 GB of disk space is usually plenty. Even a minimal VPS disk (say 30 GB) is fine for most, as long as it’s an SSD or NVMe drive for speed. The main thing is to have reliable storage so your bot’s database or logs don’t get corrupted. If you plan to store extensive historical market data for strategy analysis, adjust accordingly, but most users won’t need a big disk for bot operation.
Operating System: Ensure the VPS can run the required OS for your bot. Many trading bots are cross-platform (Windows, Linux, Mac). Linux (Ubuntu, Debian, etc.) is a popular choice on VPS due to its low resource usage and cost-effectiveness. All the bots mentioned above can run on Linux, and many provide easy installation guides. If you prefer a Windows VPS (perhaps for a Windows-only bot or a familiar interface), remember to allocate more RAM/CPU as needed. The OS choice may also affect cost (Windows licenses can make VPS plans more expensive).
Network & Internet Connection: A trading bot must have a reliable internet connection to receive price updates and send orders instantly. Network stability is crucial – even a brief outage can cause missed trades or synchronization issues. Luckily, VPS data centers typically provide very reliable connectivity and uptime. Bandwidth needs are relatively low (trading bots mainly send small API requests), but low latency to exchange servers is beneficial (we’ll discuss latency soon). As a baseline, having at least a few Mbps of bandwidth is enough (HaasOnline suggests ~5 Mbps minimum), which any VPS will offer. What’s more important is low latency and uptime, not raw bandwidth. Also, ensure your VPS has no restrictive firewall blocking Exchange APIs.
Additional Software: Check if your bot has any software prerequisites. For example, some open-source bots might require Python, specific libraries, Java runtime, etc. Most commercial bots are self-contained. Ensure your VPS can install those dependencies (which is usually fine on a full OS).
Running one or two crypto trading bots doesn’t require a high-end server. A typical moderate setup might be a VPS with 2 vCPU, 2–4 GB RAM, 30 GB SSD running Linux. This would comfortably run bots like Gunbot or a couple of Freqtrade instances. For heavier use (multiple bots or memory-heavy strategies), scale up to more RAM or CPU as needed. Always refer to your specific bot’s documentation for any special requirements, and remember you can start small and upgrade your VPS later if necessary.
If your crypto bot can run on your home computer, you might wonder: why use a VPS at all? There are several key benefits to running trading bots on a VPS rather than on a local machine:
24/7 Uptime: A VPS ensures your bot runs continuously, which is critical since crypto markets operate 24/7. You don’t have to keep your computer on all day (which can be noisy, costly, or impractical). The VPS will keep your bot online around the clock, seizing opportunities irrespective of the state of your local machine. This uninterrupted operation means your strategy never takes a coffee break – the bot is always there to catch that midnight price dump or early-morning rally.
Reliability and Stability: Quality VPS providers offer high uptime (often 99.9% or better) and stable power and network infrastructure. This is far more reliable than a typical home setup, which could suffer from power outages, ISP downtime, or computer crashes. With a VPS, you benefit from a professional data center environment – redundant power, cooling, and network connectivity, resulting in fewer interruptions. In short, your bot is less likely to go offline at a critical moment. As a bonus, you avoid wear and tear on your hardware.
Lower Latency to Exchanges: Using a VPS can significantly reduce the latency (delay) between your bot and the exchange’s servers, especially if you choose a VPS geographically close to the exchange’s data center. Lower latency means your orders and data fetches execute faster, which can be an edge in trading (for example, in arbitrage or scalping strategies, milliseconds matter). By strategically selecting a VPS location, data can travel shorter distances. Even milliseconds of delay can impact profitability in high-speed trading. Many traders will test ping times from different VPS locations to their exchange before choosing a host, aiming to minimize that delay.
Performance and Dedicated Resources: A VPS provides a dedicated slice of server resources just for your bot. Unlike running on a shared home PC (where other apps or general internet usage might interfere), a VPS isolates your trading operations. Many VPS plans also feature high-speed internet connectivity and enterprise-grade hardware, which can help your bot execute orders swiftly and handle data efficiently. A good VPS host's advanced security and robust infrastructure better protects your trading operations from threats and system failures than a typical home setup.
Access from Anywhere: Because your bot is on a remote server, you can access and manage it from anywhere with an internet connection. This is convenient for checking on your bot via SSH or remote desktop from your phone or laptop without needing to be on your home PC. A VPS centralizes this in the cloud if you travel or want to run bots for different accounts.
Security and Privacy: Hosting on a VPS can be more secure in some ways – you don’t expose your home network to any potential malware a bot might encounter. Good VPS providers have measures like DDoS protection and secure data centers. You still must secure your bot (use strong API key permissions, enable 2FA where applicable, keep the server updated, etc.). But a VPS adds a layer of separation between your trading environment and your devices.
A VPS offers a professional, always-on environment for running automated trading strategies. It ensures your bot isn’t hindered by local outages, can react to the market in real-time, and remains accessible and secure. These advantages often translate to more efficient and potentially more profitable bot operations.
Not all VPS providers are equal, and for running crypto trading bots, you’ll want to choose your host carefully. Here are essential features and considerations when selecting a VPS provider:
Stability and Uptime: Look for a provider with a strong uptime track record (99.9 %+ uptime guarantees) and reliable infrastructure. Read reviews to ensure they don’t have a history of frequent outages. Your bot’s effectiveness depends on the VPS being online continuously.
Performance (CPU/RAM/Storage): Ensure the provider offers plans that meet the specs you need (as discussed earlier). VPS with modern CPUs and fast SSD/NVMe storage will help your bots run smoothly. Some providers specifically advertise high-performance plans suited for trading applications. For example, NVMe SSDs can improve database access times for bots that store a lot of data.
Geographic Locations: Geographic diversity is a big plus. Ideally, the provider has data centers in multiple regions (North America, Europe, Asia, etc.) so you can choose a server closest to your target exchange or yourself. If you trade on a U.S.-based exchange, a VPS in the U.S. might yield lower latency; if you use a Europe-based exchange, an EU data center could be better, and so on. Having options also lets you spread bots across regions or find a location with the best connectivity.
Low Latency Network: Beyond just location, check if the provider’s network is optimized with good internet backbone connections. Some VPS providers cater to traders with low-latency networking and even direct peering with major exchanges or financial hubs. You might find benchmarks or user reports on latency.
Latency Testing Tools (Looking Glass): Many reputable hosts offer a “Looking Glass” or test IP that allows you to check latency and network routes to their data centers. A looking glass is a tool or page where you can run ping or traceroute from the provider’s server, or download test files, to evaluate network speed. For example, Bacloud provides looking glass URLs for each location (Lithuania, Netherlands, Chicago, UK, etc.) so you can test the latency from those locations. Utilizing such tools helps you pick the optimal location for your bot before you deploy – you can ensure you’re getting a fast connection to your exchange.
Security Features: Verify what security measures are in place. DDoS protection is important because if your bot server is targeted or caught in a wider attack, you don’t want it to go down. Also consider providers that allow you to easily set up firewalls, have two-factor authentication on accounts, etc., to protect your VPS access.
Operating System Support: Ensure the provider supports the OS you need. Most will offer a variety of Linux distributions and sometimes Windows VPS plans. If you need Windows for a specific bot, you can choose a provider that offers it (and check if the license cost is included).
Scalability and Flexibility: It’s useful if the provider allows easy upgrades or downgrades. You might start with a small VPS and later need more power – scaling up CPU or RAM without migrating to a new host is convenient. Some providers even have hourly billing, which can be cost-effective for testing.
Customer Support: Since your bot might be handling real money trades, you want a host with responsive support in case something goes wrong with the server. 24/7 support or at least quick ticket response times can be crucial if you encounter an issue at an odd hour.
Payment Options: Minor point, but if you’re deep in crypto, you might appreciate a provider accepting cryptocurrency as payment. Many do (including some that target crypto traders specifically), which can make billing easier and more private for you.
In essence, look for a VPS provider that emphasizes reliability, performance, and low latency – these will directly benefit your trading bot operations. The good news is that in 2025, VPS services will be tailored for crypto and trading use cases, so you have plenty of choices.
Automated crypto trading offers both great potential and unique challenges. Trading bots allow you to run strategies at any time of day, instantly responding to market movements without human delay or exhaustion. Hosting your bot on a VPS ensures uninterrupted performance, free from local device issues, internet outages, or system slowdowns. In 2025, using a VPS to run crypto trading bots has become a standard approach among experienced traders and enthusiasts, combining intelligent automation with the reliability of professional-grade infrastructure.
If you’re a beginner, start by picking a bot that suits your skill level, test it on a reliable VPS with a small amount of capital, and gradually tweak your setup. The combination of a well-configured trading bot and a stable VPS can help you take advantage of the 24/7 crypto markets while you focus on strategy (or even get some sleep!). Remember, even the best bot and server can’t guarantee profits – prudent strategy and risk management are key. With that in mind, leveraging a VPS for your crypto trading bot can provide the speed, uptime, and peace of mind to help your automated trading journey run smoothly. Good luck and happy trading!