Telegram bot for copying trades: signals, copy-trading on VPS

To run a Telegram bot for copy trading, whether it's 3Commas, Cryptohopper, or a custom Python script, the optimal solution is to host it on a reliable VPS server, ensuring stability, low latency, and security for your copy trading bot VPS.

What is a copy trading bot VPS and why is it necessary?

A copy trading bot VPS is a virtual private server that serves as a reliable and continuously operating environment for your automated trading bot. In the world of cryptocurrencies and traditional financial markets, where speed and continuity are crucial, hosting your signals bot or copy trading bot on a local computer or unreliable hosting comes with high risks. A home PC can shut down, an internet connection can be interrupted, and delays can lead to missed profits or even losses.

Using a VPS provides:

• 24/7 Operation: Your bot runs 24/7 without interruptions, regardless of the state of your home computer or internet connection.
• Low Latency: VPS servers located close to exchange servers minimize ping, which is critically important for real-time trade execution. For example, a 10-20 ms delay can give an advantage over competitors. Read more about the importance of speed in our article: VPS for crypto arbitrage between exchanges: accelerating the 1-3 second window.
• Stability and Performance: Dedicated resources (CPU, RAM, NVMe SSD) guarantee stable operation even under high load.
• Security: An isolated VPS environment allows you to set up strict security rules, protecting your API keys and funds.
• Remote Access: Manage your bot from anywhere in the world via SSH or RDP.

Platform Choice: 3Commas, Cryptohopper, or custom Python trading bot?

The market offers many solutions for automated trading and copy trading. The choice depends on your experience, needs, and budget. Let's look at the main options that can be hosted on copy trading hosting.

3Commas for copy trading

3Commas is a popular platform for managing trading bots with a wide range of features: SmartTrade, DCA bots, Grid bots, and, of course, copy trading capabilities. 3Commas bots themselves run on their own servers, but for integration with external signals bots or for deeper customization and monitoring, you might need a VPS. For example, to run signal relay scripts or create local data copies for analysis. For direct work with exchanges, check out our article: VPS for Binance: setting up a trading bot with minimal latency.

Cryptohopper VPS: advantages and setup

Cryptohopper VPS is a frequent request, although Cryptohopper, like 3Commas, provides its own cloud infrastructure for bot operation. However, if you want to integrate Cryptohopper with your own signal sources, use proxies to bypass geographical restrictions, or run auxiliary scripts for market analysis, an external VPS becomes indispensable. Hosting such components on your own VPS gives you full control over the environment and security.

To set up auxiliary components on a VPS:

1. Choose a suitable VPS plan from Valebyte.
2. Install the necessary software (Python, Node.js, Docker).
3. Configure the firewall to protect the server.
4. Deploy your script or application.

Custom Python trading bot

Developing your own custom Python trading bot provides maximum flexibility and control. You can implement any trading strategy, integrate with any data sources and exchanges. For running such a bot, copy trading hosting in the form of a VPS is the de facto standard.

Example of a basic structure for a Python bot:

import ccxt
import time
import telegram
import asyncio

# Exchange settings
exchange_id = 'binance'
exchange_class = getattr(ccxt, exchange_id)
exchange = exchange_class({
    'apiKey': 'YOUR_API_KEY',
    'secret': 'YOUR_SECRET',
    'options': {
        'defaultType': 'future', # or 'spot'
    },
    'enableRateLimit': True,
})

# Telegram settings
TELEGRAM_BOT_TOKEN = 'YOUR_TELEGRAM_BOT_TOKEN'
TELEGRAM_CHAT_ID = 'YOUR_CHAT_ID'
bot = telegram.Bot(token=TELEGRAM_BOT_TOKEN)

async def send_telegram_message(message):
    try:
        await bot.send_message(chat_id=TELEGRAM_CHAT_ID, text=message)
    except Exception as e:
        print(f"Error sending message to Telegram: {e}")

async def fetch_balance():
    try:
        balance = exchange.fetch_balance()
        usdt_balance = balance['total']['USDT']
        message = f"Current USDT balance: {usdt_balance:.2f}"
        await send_telegram_message(message)
        print(message)
    except Exception as e:
        print(f"Error getting balance: {e}")
        await send_telegram_message(f"Error getting balance: {e}")

async def main():
    while True:
        await fetch_balance()
        # Your copy trading or signal analysis logic goes here
        # For example, receiving signals from an external source and executing them
        print("Bot is running...")
        await asyncio.sleep(60 * 5) # Check every 5 minutes

if __name__ == "__main__":
    asyncio.run(main())

For more advanced bots, including market making, consider Hummingbot on VPS.

VPS Requirements for Copy Trading: RAM, CPU, Storage, Network

Choosing the optimal VPS configuration is critical for the stable and efficient operation of your copy trading bot. Overstated requirements lead to overpayments, while understated ones lead to failures.

• CPU (Processor): For most bots, especially those that do not perform complex real-time technical analysis or backtesting, 1-2 vCPUs are sufficient. If your bot actively processes large volumes of data, uses complex ML models, or runs multiple instances, consider 4+ vCPUs.
• RAM (Random Access Memory): Python bots generally do not require much RAM. 1-2 GB is sufficient for one or several simple bots. If you use heavy frameworks, databases (e.g., PostgreSQL for storing trade history), or multiple bot instances, 4 GB RAM or more will be needed.
• Storage (Disk Space): NVMe SSD is a mandatory condition. Read/write speed is critical for the operating system, bot logs, and any temporary files. 20-40 GB NVMe SSD is usually sufficient.
• Network: A 1 Gbit/s port with unmetered bandwidth is standard for trading bots. Low latency to exchanges (up to 20-30 ms) is a key factor. Choose data centers located geographically close to the trading exchange servers.

Comparison of Valebyte VPS Plans for Trading Bots

We offer several configurations optimized for hosting a copy trading bot VPS:

API Key Security and Data Protection on VPS

The security of your API keys is the foundation of successful and secure trading. Compromising keys can lead to loss of funds.

1. Limit API Key Permissions: On the exchange, grant the key only the permissions necessary for the bot (e.g., reading balance, creating/closing orders), and NEVER grant permission for withdrawals.
2. Environment Variables: Store API keys not in the code, but in environment variables on the VPS.

   
   export API_KEY="your_api_key_here"
   export API_SECRET="your_api_secret_here"
           

   Then in the code:

   
   import os
   api_key = os.getenv('API_KEY')
   api_secret = os.getenv('API_SECRET')
           

3. Firewall (UFW): Configure UFW (Uncomplicated Firewall) to allow incoming connections only via SSH (port 22) and block all others.

   
   sudo ufw default deny incoming
   sudo ufw default allow outgoing
   sudo ufw allow ssh
   sudo ufw enable
           

4. SSH Keys: Use SSH keys instead of passwords for VPS access. Disable password login.
5. Regular Updates: Keep the OS and all packages up to date.
6. Log Monitoring: Regularly check bot logs and system logs for suspicious activity.

Monitoring Signals Bot and Management via Telegram

Integration with Telegram is standard for a telegram trading bot. It allows you to receive notifications about trades, errors, balance, and also send commands to the bot directly from the messenger.

To create a telegram bot:

1. Create a bot via @BotFather in Telegram. Get the token.
2. Find out your Chat ID (e.g., via @userinfobot).
3. Use the python-telegram-bot or aiogram library for Python.

Example of sending a message (as shown above):

import telegram
import asyncio

TELEGRAM_BOT_TOKEN = 'YOUR_TELEGRAM_BOT_TOKEN'
TELEGRAM_CHAT_ID = 'YOUR_CHAT_ID'
bot = telegram.Bot(token=TELEGRAM_BOT_TOKEN)

async def send_notification(message):
    await bot.send_message(chat_id=TELEGRAM_CHAT_ID, text=message)

# Usage
# asyncio.run(send_notification("Bot successfully launched!"))

For bot management, you can implement commands (e.g., `/status`, `/balance`, `/stop`).

How much does copy trading hosting cost and how much can it yield?

The cost of copy trading hosting on Valebyte starts from $7 per month for a basic VPS, which is suitable for one or two simple bots. More powerful configurations typically cost $15-30 per month, which is a reasonable investment for serious trading.

The potential income from a copy trading bot varies greatly and depends on many factors:

• Strategy Effectiveness: The most important factor. A successful strategy can yield 5-15% per month, but this is not guaranteed.
• Deposit Size: The larger the capital, the greater the absolute profit for the same percentage gain.
• Market Conditions: Volatility, trends, news — all these affect profitability.
• Commissions: Exchange commissions can significantly reduce profits, especially in high-frequency trading.
• Risk Management: Proper risk management helps preserve capital during drawdowns.

It is important to remember that automated trading, like any other form of investment, involves risks. There are no guarantees of profit, and you may lose part or all of your capital. A VPS is merely a tool for implementing your strategy, not a guarantee of success.

Step-by-Step Setup of a Copy Trading Bot on Valebyte VPS

Deploying a copy trading bot on a VPS involves several key steps:

1. Ordering and Configuring the VPS:
   • Choose a suitable plan on Valebyte.
   • Install Ubuntu Server (recommended) or another Linux distribution.
   • Obtain SSH access details.
2. Connecting to the VPS via SSH:

   
   ssh user@your_vps_ip
           

3. Updating the System and Installing Dependencies:

   
   sudo apt update && sudo apt upgrade -y
   sudo apt install python3 python3-pip git screen -y
           

4. Cloning the Bot Repository (if applicable):

   
   git clone https://github.com/your_username/your_bot_repo.git
   cd your_bot_repo
           

5. Installing Python Dependencies:

   
   pip3 install -r requirements.txt
   # Example: pip3 install ccxt python-telegram-bot
           

6. Setting Up Environment Variables:

   
   echo 'export API_KEY="YOUR_API_KEY"' >> ~/.bashrc
   echo 'export API_SECRET="YOUR_SECRET_KEY"' >> ~/.bashrc
   echo 'export TELEGRAM_BOT_TOKEN="YOUR_BOT_TOKEN"' >> ~/.bashrc
   echo 'export TELEGRAM_CHAT_ID="YOUR_CHAT_ID"' >> ~/.bashrc
   source ~/.bashrc
           

7. Running the Bot in the Background (e.g., using screen or systemd):

   Using screen:

   
   screen -S trading_bot
   python3 your_bot_script.py
   # Press Ctrl+A, then D, to detach from the screen session
           

   To re-attach: screen -r trading_bot

   Using systemd (recommended for production):

   Create the file /etc/systemd/system/trading_bot.service:

   
   [Unit]
   Description=My Trading Bot
   After=network.target
   
   [Service]
   User=your_username
   WorkingDirectory=/path/to/your_bot_repo
   Environment="API_KEY=YOUR_API_KEY"
   Environment="API_SECRET=YOUR_SECRET_KEY"
   Environment="TELEGRAM_BOT_TOKEN=YOUR_BOT_TOKEN"
   Environment="TELEGRAM_CHAT_ID=YOUR_CHAT_ID"
   ExecStart=/usr/bin/python3 your_bot_script.py
   Restart=always
   StandardOutput=append:/var/log/trading_bot.log
   StandardError=append:/var/log/trading_bot.log
   
   [Install]
   WantedBy=multi-user.target
           

   Then:

   
   sudo systemctl daemon-reload
   sudo systemctl enable trading_bot.service
   sudo systemctl start trading_bot.service
   sudo systemctl status trading_bot.service
           

8. Configuring Firewall (UFW):

   
   sudo ufw enable
           

Conclusion

Hosting a Telegram bot for copy trading, whether it's 3Commas, Cryptohopper, or a custom Python script, on a reliable copy trading bot VPS from Valebyte is a critically important step to ensure its stability, security, and minimal latency. Choosing the optimal plan with NVMe SSD and a 1 Gbit/s port, as well as strict adherence to API key security rules, will allow you to effectively manage your signals bot and maximize the potential of automated trading.