crypto auto trading software on vps

Let It Work While You Sleep: The Ultimate Guide to Running a Crypto Trading Bot (Freqtrade) on a VPS

Applications, Crypto Currencies, Self Hosted Applications, Server Management

The crypto market never sleeps. It operates 24/7, 365 days a year. While you are sleeping, working, or spending time with family, Bitcoin might crash or Ethereum might rally. Human traders simply cannot catch every opportunity.

This is why Algorithmic Trading dominates the market.

For years, retail traders had to pay expensive monthly subscriptions to platforms like 3Commas or Cryptohopper. But why rent when you can own?

Meet Freqtrade: The leading open-source crypto trading bot written in Python. It’s free, highly customizable, and supports major exchanges like Binance, Kraken, and OKX.

In this guide, we will show you how to turn a cost-effective VPSPioneer VPS into a relentless money-making machine (or at least a very smart trading assistant) using Freqtrade.

Why You Need a VPS for Trading

Running a trading bot on your home laptop is a recipe for disaster.

  • Internet Dropouts: If your Wi-Fi blips during a trade, you could be left holding a “bag.”
  • Power Outages: A bot needs to run 24/7.
  • Latency: Every millisecond counts.

A VPSPioneer VPS solves all these problems. Our servers are located in state-of-the-art data centers with redundant power and blindingly fast internet connections, ensuring your bot executes trades instantly, day and night.

Step-by-Step Guide: Installing Freqtrade with Docker

We will use Docker to install Freqtrade. This is the safest and most stable method. It keeps the bot isolated and makes updates effortless.

Prerequisites

  1. A VPSPioneer VPS (Linux Ubuntu 22.04 or 24.04).
    • Recommendation: Our standard 2GB or 4GB RAM plans are perfect for running 1-2 bot instances.
  2. API Keys from your Crypto Exchange (e.g., Binance).
    • Security Note: When creating API keys, enable “Spot Trading” but NEVER enable “Withdrawal” permissions.

Step 1: Update Your Server

Log in to your VPS via SSH. First, ensure your system is fresh.

sudo apt update && sudo apt upgrade -y

Step 2: Install Docker

If you haven’t installed Docker yet, run this command:

curl -fsSL https://get.docker.com -o get-docker.sh
sudo sh get-docker.sh

Step 3: Set Up the Bot Directory

Create a folder where your bot’s strategies and data will live.

mkdir ft_userdata
cd ft_userdata

Step 4: Download the Docker Compose File

Freqtrade provides a ready-to-use Docker configuration. Download it directly:

curl https://raw.githubusercontent.com/freqtrade/freqtrade/stable/docker-compose.yml -o docker-compose.yml

Harika bir seçim! Kripto para ve pasif gelir konuları, blog trafiğini artırmak için “altın madeni” gibidir. İnsanlar uyurken para kazanma fikrine bayılırlar ve bir VPS bunun için zorunludur.

İşte VPSPioneer Blog için hazırladığım, Freqtrade odaklı, teknik derinliği olan ancak anlaşılır, İngilizce ve SEO uyumlu makale.

Let It Work While You Sleep: The Ultimate Guide to Running a Crypto Trading Bot (Freqtrade) on a VPS

The crypto market never sleeps. It operates 24/7, 365 days a year. While you are sleeping, working, or spending time with family, Bitcoin might crash or Ethereum might rally. Human traders simply cannot catch every opportunity.

This is why Algorithmic Trading dominates the market.

For years, retail traders had to pay expensive monthly subscriptions to platforms like 3Commas or Cryptohopper. But why rent when you can own?

Meet Freqtrade: The leading open-source crypto trading bot written in Python. It’s free, highly customizable, and supports major exchanges like Binance, Kraken, and OKX.

In this guide, we will show you how to turn a cost-effective VPSPioneer VPS into a relentless money-making machine (or at least a very smart trading assistant) using Freqtrade.

Why You Need a VPS for Trading

Running a trading bot on your home laptop is a recipe for disaster.

  • Internet Dropouts: If your Wi-Fi blips during a trade, you could be left holding a “bag.”
  • Power Outages: A bot needs to run 24/7.
  • Latency: Every millisecond counts.

A VPSPioneer VPS solves all these problems. Our servers are located in state-of-the-art data centers with redundant power and blindingly fast internet connections, ensuring your bot executes trades instantly, day and night.

Step-by-Step Guide: Installing Freqtrade with Docker

We will use Docker to install Freqtrade. This is the safest and most stable method. It keeps the bot isolated and makes updates effortless.

Prerequisites

  1. A VPSPioneer VPS (Linux Ubuntu 22.04 or 24.04).
    • Recommendation: Our standard 2GB or 4GB RAM plans are perfect for running 1-2 bot instances.
  2. API Keys from your Crypto Exchange (e.g., Binance).
    • Security Note: When creating API keys, enable “Spot Trading” but NEVER enable “Withdrawal” permissions.

Step 1: Update Your Server

Log in to your VPS via SSH. First, ensure your system is fresh.

Bash

sudo apt update && sudo apt upgrade -y

Step 2: Install Docker

If you haven’t installed Docker yet, run this command:

Bash

curl -fsSL https://get.docker.com -o get-docker.sh
sudo sh get-docker.sh

Step 3: Set Up the Bot Directory

Create a folder where your bot’s strategies and data will live.

Bash

mkdir ft_userdata
cd ft_userdata

Step 4: Download the Docker Compose File

Freqtrade provides a ready-to-use Docker configuration. Download it directly:

Bash

curl https://raw.githubusercontent.com/freqtrade/freqtrade/stable/docker-compose.yml -o docker-compose.yml

Step 5: Initialize Configuration

This is the most important step. We need to generate a config.json file. This file tells the bot which exchange to use, how much money to trade, and which strategy to follow.

Run this command to start the interactive setup wizard:

sudo docker compose run --rm freqtrade new-config --config user_data/config.json

Follow the on-screen prompts:

  • Do you want to download the sample strategy? Yes.
  • Exchange: Select your exchange (e.g., binance).
  • Currency: Select your base currency (e.g., USDT).
  • Operational Mode: Select Dry-run (Paper Trading) for now. Always start with fake money!

Step 6: Start Your Bot

Once the configuration is created, launch the bot in the background:

sudo docker compose up -d

Controlling Your Bot: The Web UI

You don’t need to stare at a terminal to watch your profits. Freqtrade comes with a beautiful dashboard called FreqUI.

To access it, you need to edit your config.json to enable the API server, or simply ensure port 8080 is open on your VPS firewall.

Open your browser and navigate to: http://YOUR_VPS_IP:8080

Here you can:

  • See live charts and buy/sell signals.
  • Start or Stop the bot.
  • Check your profit/loss history.
  • Change strategies on the fly.

The Secret Sauce: Strategy & Backtesting

Installing the bot is easy; making it profitable requires a good strategy. Freqtrade shines here because it allows Backtesting.

You can download historical data (e.g., the last 6 months of Bitcoin price action) and run your strategy against it to see how it would have performed.

To download data:

sudo docker compose run --rm freqtrade download-data --days 30 -t 5m 15m 1h

To backtest the default strategy:

sudo docker compose run --rm freqtrade backtesting --strategy SampleStrategy --timerange 20230101-

This simulation capability—powered by the high-speed CPU of your VPSPioneer server—is what separates gambling from professional trading.

Safety First: A Warning

Automated trading involves financial risk.

  1. Start with Dry-Run: Never put real money into a bot until you have watched it trade profitably in simulation mode (Dry-Run) for at least a few weeks.
  2. Secure Your VPS: Use strong passwords and consider setting up a firewall (UFW) to only allow connections from your IP address to the bot’s Web UI.
  3. Monitor: Automation doesn’t mean “abandonment.” Check your bot daily.

Ready to Automate Your Financial Future?

Stop letting your emotions dictate your trades. Stop missing pumps because you were asleep.

Deploy your own Freqtrade instance on a reliable, high-performance VPSPioneer server today. With our 99.9% uptime guarantee, your bot will never miss a beat.

📈 Get Your Trading VPS Now – Starting from $4.99

Frequently Asked Questions (FAQ)

Q: Is Freqtrade free? A: Yes! Freqtrade is 100% open-source and free software. You only pay for the VPS hosting, which is significantly cheaper than subscription-based bot platforms.

Q: Can I run multiple bots on one VPS? A: Absolutely. Freqtrade is very lightweight. On a standard VPSPioneer VPS, you can easily run multiple instances (e.g., one for BTC/USDT and another for ETH/USDT) using Docker containers.

Q: Does VPSPioneer have access to my crypto? A: No. Your bot runs on your private server. We provide the infrastructure; we do not have access to your files, API keys, or configurations.

Q: What happens if the server restarts? A: Because we used restart: always in the Docker configuration (default), your bot will automatically start up and resume trading immediately after a server reboot.