Read, trade and withdraw are different powers
Read access exposes balances and activity. Trade access can buy, sell or cancel orders. Withdrawal access can move assets out of the account and is normally unnecessary for an external trading bot.
Trade-only does not mean harmless: an attacker can still create losses, fees or unfavorable fills.
Use least privilege
Create a dedicated key for one service, disable withdrawals and unrelated products, use a subaccount, and set conservative exchange limits. Coinbase documents distinct API permission levels; the exact names vary by venue.
Restrict and rotate
IP allowlists limit where a key can be used, though they require stable provider or server addresses. Delete dormant keys and rotate after suspected exposure, migrations or support sessions.
Cloud and self-hosted storage
Cloud bots need a way to use the secret when placing orders. Self-hosted bots can keep it local but expose it to local malware, files, backups and remote dashboards. Ask for architecture detail, not just the word encrypted.
Related product research
These profiles illustrate different architectures and evidence limits discussed in this guide.
Sources
Coinbase Exchange API authentication — Coinbase Developer Platform, accessed August 19, 2026.
Security in Altrady — Altrady Support, accessed August 19, 2026.
Gunbot security and privacy basics — Gunbot, accessed August 19, 2026.
Educational disclaimerThis guide is informational, not financial, investment, legal or security advice. Product and exchange controls change; verify current settings directly.