Is it safe to give a trading bot your API keys?
It can be, if the key cannot withdraw. A trade-only key lets a bot place and cancel orders but not move money out, so the worst case is bad trades, not stolen funds. Turn withdrawals off, restrict the key to known IP addresses if you can, fund the account only with what you are prepared to trade, and delete the key when you stop.
What can a bot do with an API key?
Exchange keys usually carry three separate permissions:
- Read: see balances, positions and history.
- Trade: place and cancel orders.
- Withdraw: send funds out of the account. A trading bot never needs this.
A trade-only key still carries real risk: a bad strategy or a bug can lose money through trades. It removes the worst risk, which is money leaving your account.
A checklist before you connect any bot
- Create a new key just for that bot, never a key you use elsewhere.
- Turn withdrawals off.
- Restrict the key to the bot's IP addresses if the exchange and the bot support it.
- Keep only the capital you intend to trade in that account or sub-account.
- Ask how the bot stores keys, and whether it refuses withdrawal-enabled keys.
- Check there is a kill switch you can reach from your phone.
- Delete the key on the exchange as soon as you stop using the bot.
How AI Trading Fleet handles keys
- Withdrawal-capable keys are refused at connection.
- Keys are encrypted at rest.
- The Fleet never holds your funds; it only places and cancels orders on an account you own.
- Every order passes
propose(), a pure risk check against the limits you set. - Every decision is written to a hash-chained audit log, so a changed record shows.
Questions
Can a trading bot steal my crypto with an API key?
Not with a trade-only key: without withdrawal permission, the key cannot send funds out. It can still lose money through bad trades.
Should I enable withdrawals for a trading bot?
No. A trading bot only needs read and trade permissions.
What should I do if a bot behaves strangely?
Hit its kill switch, then delete the API key on the exchange. Deleting the key cuts access immediately.
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Trading involves risk of loss. Nothing here is investment advice. Read the risk disclosure.