Freqtrade needs to run 24 hours a day. A laptop that sleeps or a home connection that drops will miss trades, so most people rent a small virtual private server (VPS). This guide covers how big the server needs to be, where it should be located, and how to set it up safely.
How much server do you need?
The freqtrade README recommends at least 2 GB RAM, 2 vCPUs and 1 GB of disk. In practice:
| What you run | Suggested size |
|---|---|
| One bot, 5–20 pairs, 5m–1h timeframe | 2 vCPU, 2–4 GB RAM |
| Several bots, or FreqUI plus Telegram | 2–4 vCPU, 4 GB RAM |
| Hyperopt runs on the server | 4+ vCPU, 8 GB RAM |
| FreqAI (machine learning) | 4–8 vCPU, 8–16 GB RAM |
A good approach is to run hyperopt and heavy backtests on your own computer and keep the VPS small, used only for the live or dry-run bot.
Use Ubuntu 24.04 LTS unless you have a reason to choose something else; it is what most freqtrade tutorials and the Docker setup assume.
Location matters more than brand
Two things decide where your server should be.
1. The exchange must allow the server's location. Exchanges block API access from countries they do not serve. Binance and Bybit, for example, do not serve the United States, so a US-based VPS can fail with access or region errors even if you live elsewhere. Pick a data centre in a country your exchange supports.
2. Closer to the exchange is faster. For bots on 5m candles or longer, a few hundred milliseconds rarely matters. For scalping strategies it can. Many large exchanges run their matching engines in Asia, commonly reported as Tokyo for Binance and Singapore for Bybit, so a server in Singapore or Tokyo usually gives the lowest latency for those exchanges. European locations work well for European exchanges.
Providers people commonly use
These are widely used, reliable providers with hourly or monthly billing. Prices change often and vary by region, so we list what each is good for rather than exact prices. Check the current price for a 2 vCPU / 2–4 GB plan before you buy.
| Provider | Good for | Notes |
|---|---|---|
| Hetzner Cloud | Low cost in Europe | Very good value historically; raised prices in 2026 and some small plans have been out of stock. Data centres in Germany, Finland, the US and Singapore |
| DigitalOcean | Ease of use | Clean interface, good documentation, Singapore and many other regions |
| Vultr | Location choice | Many regions including Tokyo and Singapore; hourly billing |
| AWS Lightsail | Proximity to exchanges | Simple fixed-price plans in AWS regions such as Tokyo and Singapore |
| Contabo | Most RAM per dollar | Large plans cheaply; performance and support are less consistent |
Some of these links are affiliate links; see our disclosure. For most single-bot setups, expect to pay roughly the price of a couple of coffees per month. If a plan looks dramatically cheaper than the rest, check its CPU and network limits.
Setting up the server securely
Your server will hold exchange API keys, so treat it seriously.
- Use SSH keys, not passwords. Add your public key when you create the server, then disable password logins.
- Create a normal user and run freqtrade as that user, not as root.
-
Turn on the firewall and allow only SSH:
bash sudo ufw allow OpenSSH sudo ufw enable -
Keep FreqUI private. Do not open port 8080 to the internet. Reach it through an SSH tunnel, as described in our Docker guide.
-
Enable automatic security updates:
bash sudo apt install unattended-upgrades sudo dpkg-reconfigure -plow unattended-upgrades -
Check the clock is synchronised with
timedatectl status. Exchanges reject requests from servers with the wrong time. - Restrict your API key to the server's IP in your exchange account, and never enable withdrawals. Our Bybit setup guide shows how.
Quick pick. For Bybit or Binance, a 2 vCPU / 4 GB server in Singapore or Tokyo from Vultr or DigitalOcean is a sensible default. For the lowest price in Europe, look at Hetzner.
After the server is ready
Step-by-step server setup guides: freqtrade on Vultr and freqtrade on DigitalOcean.
- Install freqtrade with Docker
- Connect your exchange
- Set up Telegram alerts
- Run in dry-run for a few weeks before trading real funds
Frequently asked questions
Can I run freqtrade on a Raspberry Pi? Yes, for a single bot. It is slow for hyperopt and some dependencies are harder to install on ARM, so Docker is the easiest route.
Can I run it on my home computer? Yes, if it never sleeps and your internet is stable. A VPS is more reliable and keeps your keys off your personal machine.
Do I need a Windows VPS? No. Freqtrade runs best on Linux, and Linux servers are cheaper.
Ready to connect an exchange?
Freqtrade needs an exchange account with API access. Bybit supports both spot and futures in freqtrade and offers a demo mode for testing.
Affiliate link: we may earn a commission if you sign up, at no cost to you.
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