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Localhost vs VPS: Hidden Risks Every Trader Should Know

Installing the Moontrader core locally on your PC or laptop may seem convenient, but it comes with major risks - from lost trades to compromised security. This article explains why using a Virtual Private Server (VPS) is not optional, but essential for secure and stable trading.
Moontrader
VPS
Localhost
Moontrader Team
April 29, 2025

For high-frequency and algorithmic trading, stability, security and speed are non-negotiable. However, many traders choose to run the Moontrader core locally - on their own computers or personal servers - for convenience or to reduce costs. While this may seem reasonable, it introduces a number of critical risks that could wipe out your profits - or worse. In this article we will look at the risks of installing the terminal locally (localhost).

Security at risk

Your local machine is vulnerable to viruses, crashes, cyber-attacks and even physical theft. In contrast, a well-configured VPS offers enterprise-level security, backup and availability. Losing control of your terminal at a crucial moment could cost you dearly.

Connection loss = Trade loss

Your internet provider may throttle or block trading traffic, or the exchange itself may restrict access. Any disruption can mean losing control of your trades, especially in volatile markets. With a VPS, such disruptions are much less likely.

Delays can affect the algorithm efficiency

Connection speed is crucial, especially for time-sensitive algorithms like Shot and Depth Shot. The further you are from the exchange servers, the higher the latency, leading to mistimed entries and exits. For manual traders, this means a complete loss of control. For algo trading it means wrong entry/exit points in a trading situation where everything is measured in milliseconds.

A home PC ≠ Server

Running Moontrader requires a resource-intensive, always-on setup. Home computers rarely offer this reliability. Any crash or system update can interrupt trading. A VPS provides uninterrupted performance without user intervention.

IP Addresses: another hidden risk

Your ISP may assign a dynamic IP, which can cause blocking, errors and constant reconfiguration of the API on the exchange, or even compromise the security of the account if allowing the API to be used from any IP address. With a VPS, you get a static, secure IP without these risks.

The cost of a mistake can be much more expensive than renting a VPS

The loss from a single technical failure can easily exceed the monthly cost of a VPS. When trading, it's better to invest in stability than to risk your entire deposit trying to save money.

How to choose the right VPS?

At Moontrader we use VPS hosting to ensure stable trading. When choosing a VPS you should prioritise proximity to the exchange:

  • Binance - Tokyo
  • Bybit - Singapore
  • OKX - Hong Kong

Algorithmic trading is a game of milliseconds - and the winners are those who prioritise stability, security and speed. A VPS is not a luxury, it's a tool that gives you a real advantage.

Want to avoid technical risks and focus on your strategy? Switch to a VPS today. For detailed instructions on how to open a port on a virtual private server (VPS), see this guide. https://docs.moontrader.com/opening-a-port-on-a-vps 

Haven't installed the terminal yet? Join through our referral links and get discounts on exchange commissions, bonuses and a free PRO licence of Moontrader.

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Disclaimer: Moontrader is not a regulated entity. Trading involves substantial risks, and past performance is not indicative of future results. The profits shown in product screenshots are for illustrative purposes and may be exaggerated. Only engage in trading if you possess sufficient knowledge. Under no circumstances shall Moontrader accept any liability to any person or entity for (a) any loss or damage, in whole or in part, caused by, arising out of, or in connection with transactions involving our software or (b) any direct, indirect, special, consequential, or incidental damages. By using Moontrader's services, you acknowledge and accept the inherent risks involved in trading and agree to hold Moontrader harmless from any liabilities or losses incurred. It is essential to review and understand our Terms of Service and Risk Disclosure Policy before using our software or engaging in any trading activities. Please consult legal and financial professionals for personalized advice based on your specific circumstances.
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