MagicTradeBot's Security Best Practices

MagicTradeBot is a self-hosted platform composed of two core components:

  • 1. MagicTradeBot Management App: A full-featured web interface connected to a backend database (supports SQLite, SQL Server, PostgreSQL, MySQL). It manages exchange APIs, stores sensitive credentials, and provides APIs for bot communication.
  • 2. MagicTradeBot Bot Instance: A standalone core service that connects to the Management App, scans market conditions, executes trades, and stores trading activity.

Given the sensitive nature of trading operations and user data, it is critical to follow robust security practices. Below are the recommended best practices to ensure your deployment is secure.

🛡️ 1. Server & Network Security

  • Use a dedicated VPS or cloud server with updated OS (e.g., Ubuntu LTS, Windows Server)
  • Enable a firewall (e.g., UFW, iptables) to allow only required ports (e.g., 443 for HTTPS, 5432 for PostgreSQL if remote)
  • Disable root login and use key-based SSH authentication
  • Regularly update system packages and perform security patches
  • Install fail2ban or equivalent to block brute-force login attempts
  • Use a reverse proxy (e.g., NGINX, Apache) with HTTPS and rate-limiting

🔐 2. API & Application Security

  • Use HTTPS only for all API and UI communications via TLS/SSL certificates (e.g., Let’s Encrypt)
  • Enable authentication and authorization for all API endpoints (use API keys or OAuth2)
  • Rotate API keys for exchanges regularly and store them encrypted in your database
  • Never expose exchange API keys to client browsers or public endpoints
  • Implement rate limiting and IP whitelisting where possible
  • Protect the Management API with JWT or HMAC-based signatures for Bot Instance communication

🗄️ 3. Database Security

  • Use strong, unique passwords for all database users
  • Disable remote database access unless absolutely required, or restrict it to specific IPs
  • Backup databases regularly and store backups securely (encrypt if stored offsite)
  • Apply database-level encryption for sensitive data fields (e.g., API keys)
  • Use ORM-based query layers to prevent SQL injection

⚙️ 4. Bot Instance Security

  • Run each bot instance with least privilege access and sandboxed environments (Docker is recommended)
  • Each instance should authenticate itself securely with the Management App
  • Configure environment variables instead of hardcoding sensitive keys in files
  • Ensure bot instances are token-validated and can only communicate with authorized endpoints
  • Monitor bot logs regularly and use centralized logging services like Datadog, Loki, or Sentry

🔍 5. Monitoring & Alerts

  • Enable application-level logging for trade events, system errors, and unauthorized access attempts
  • Set up external monitoring tools (e.g., UptimeRobot, Grafana, Prometheus) to watch server and app health
  • Integrate alerts via Slack, Email, or PagerDuty to respond to anomalies immediately
  • Audit logs frequently to detect suspicious activities

🧪 6. Updates, Testing, and Audits

  • Keep MagicTradeBot and its dependencies up to date with the latest security releases
  • Before upgrading, test changes in a staging environment
  • Use automated security scanners (e.g., OWASP ZAP, Snyk) to identify vulnerabilities
  • Periodically perform manual code and infrastructure reviews

✅ Summary

Following these best practices ensures that your MagicTradeBot deployment remains secure, stable, and scalable. As a self-hosted solution, you are responsible for all operational security. Protecting your API credentials, trade data, and infrastructure from misuse or compromise is essential to safe crypto automation.

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