The core success for any trade is time. Win those people who are investing quickly, because the market is not stable and has never been. Luckily, there are lots of new methods of predicting market changes and one of the most viral ones is trade bot.
Bots for crypto trade function by automating processes and algorithmic programs which usually relate to predefined strategies. These bots can fully cope with the tasks that were earlier conducted by traders, such as checking the data, executing trades, and even calculating the probable risks. The tasks aren’t restricted by those mentioned above.
VPS functions like the base for any trading bot. It ensures an uninterrupted and quick process. So, in this article, you will get a couple of great recommendations relating to the choice of perfect VPS.
Main Features about Virtual Private Servers (VPS) with Bitcoin
VPS operates like an individual machine that properly functions in a safe environment. So that all operations will be fully private and isolated from others.
The anonymity of the process also plays not the last role when talking about the virtual environment. The usage of Bitcoin makes your personal data fully secure and that is especially vital for the users of trade bots.
One more feature that comes together with the usage of the server is uninterrupted functioning. This means your bot can easily work at any time executing needed operations and monitoring the market. Uninterrupted workflow together with high speeds is a great combo for the currency market
The next bonus you get with this type of server is root access. This means that you as a customer can manage everything on your PC. For instance, you can change/delete files in the system, install needed soft, manage the processes on VPS, increase the server’s performance if necessary, and more.
Other features are such as:
- Reliability. There is a lot of data you can find about server providers before purchasing, and some of them are not limited by uptime guarantees, and other records of trustworthiness, and security. By investing the time into a small research, you are saving in the long run. With a reliable provider, you can be assured that your trade bot functions properly for the majority of the time.
- Support. This criterion is not a difficult one to check prior to the choice of the VPS. Just a couple of scrolls on the platform and you can see whether there is any support available, how quickly they react to your needs, how professional they are, and much more.
- Scalability. It means that you can increase or decrease your plan according to the requirements that might emerge later on during the usage of VPS for the trading bot. No one can predict everything that can probably occur, so the possibility of changing your plan is a good thing in any way.
Essential Criteria for a Crypto Trading Bot VPS
Identifying any kind of criterion for a trade bot is rather subjective. You cannot discuss all the requirements that will be perfect for all the users in trading. Depending on the variability of the functions that the bot performs, these points may slightly change:
- Power and memory. Those trade bots, which have more complex tasks to complete such as checking several markets at a time, or processing difficult strategies, need more resources for its functioning. You better check this point before choosing VPS.
- Uninterrupted Internet. Because most of the trade bots function 24/7, it is highly important to control whether the Internet is stable so the trade bot can actually execute the set commands. in such a way, the information which you will get will be more relevant.
- Compatible OS. You’d better figure out what system needs the trade bot, and then check if the virtual server also works on the same OS.
- Storage. Trade bots process tons of information, even historical data to determine the right strategy. Depending on the quantity of trade information the server requires, you are recommended to pay attention to this criterion.
- Availability of cryptocurrency. Coins should be accepted by the provider. In such a way, you are getting a simpler and easier process of purchasing and also it can minimize the cost of the transactions for the trading bot. When compared with regular bank transactions, you don’t need to wait and there are no fees for international transactions, and regular money operations are definitely cheaper.
The choice of the configuration for the server, whether you are planning to use it for trade bots or other purposes, may vary greatly. There are no identical tools as well as platforms online, the same is about trade bots. Here you will get some average commendations that will mostly suit moderately complex or simple trade bots.
Standard VPS Configuration for Bitcoin Hosting
- CPU: 2 cores. The choice of the processor that will work perfectly with all the tasks that trade bots need, is crucial. CPU is responsible for executing/interpreting instructions, processing information, and executing tasks. These processes are done hundreds of times in a second, and the number of instructions they can complete at once is restricted by the CPU’s size. We recommend starting with 2 cores for proper trade bot functioning and switching to higher if that won’t work properly. However, if you are not planning to have moderate trading and want high performance, then consider a more powerful option right away.
- Clock Speed. This characteristic includes the number of cycles which can be completed in one second. For trade bots, the recommended speed is an average 2.0 GHz. It will cover the needs of most trade bots.
- Storage. The recommended number for a proper bot functioning is an average of 30-50GB. However, in case you are planning to use trade bots with higher performance, you can try to calculate the server’s storage. Just take the number that is enough for the bot (soft, data, and OS) then add 10GB (it is required for any system updates) and you will get a relatively adequate number. A higher number than 50GB will be required for those bots that need a bigger amount of historical information for the calculations and analysis.
- RAM: 2GB. This number is usually enough for the functioning of a standard trade bot. More intensive data tasks might require more RAM. Requirements of the OS influence RAM greatly. For instance, in case you are using Ubuntu, such an operation system can work perfectly with 1GB. Windows OS usually requires more RAM for proper functioning. More space is also needed if you have difficult functions, several pairs of trading, and a huge data volume. In this situation, you will probably need 4-8GB for the smooth process. For getting specific information about the RAM, you’d better review the documentation about the bot or even contact developers for more detailed information on this topic.
Optimizing Latency: Choosing the Right Server Location
In the trading market, everything is changing so rapidly that even a couple of seconds can drastically change the trading process and your profitability. High-speed trading is crucial right now and any small delays can be harmful to the process. When speaking about latency, it characterizes the lag between the initial click and the completion of the order. Even minimal latency significantly impacts the trade experience.
To improve the trade process, you’d rather consider the geography of the virtual server in relation to the data center where the bot trades. More often than not, crypto operators have centers around the world, so you will have options to choose from. Of course, information transmission will take some time, and it is greatly influenced by the distances. The more closely the data center is to the virtual server geography the lower the latency.
When picking the geography of the virtual server, you should know the placement of the crypto data center. By shortening the physical space, you are minimizing the wasted time. In such a way, you are decreasing latency, and greatly increasing the speed during which the bot can actually complete the trade operations. By this small modification and choosing an appropriate geography, you can easily catch the cost-effective trade.
When lowering the latency, the other advantages also appear right away, they are specific resources, the safety of the trade, and 24/7 operation. The general trade area becomes more cost-effective and functional.