Arbitrage is a race. Whether you're catching a price gap between two exchanges or landing a transaction in the next block before someone else does, the whole strategy is "be there first." And "there" has a physical location — an exchange's matching engine in one city, an RPC node in another. The distance between your server and that point is latency you pay on every single round trip, and it's the part of the setup people underestimate most.
So the interesting decision for an arbitrage or MEV bot isn't really CPU or RAM. It's where the box sits.
Location is the feature
We had a customer run exactly into this. Their bot was live on our German node, working fine, but their strategy targeted a venue that was better reached from Finland — so we moved the whole service to Helsinki, same plan, same setup, only the region changed. That's the kind of choice that actually moves an arbitrage strategy's numbers, far more than a spec bump.
Our nodes are in Germany and Finland, both close to where a lot of European matching engines and well-connected nodes live. If your strategy has a target venue, pick the region that's nearest it deliberately — don't let it land wherever by default. (Fair warning: our order flow doesn't yet let you choose the region at checkout; if you need a specific one, order and then ask us to place or move it — we do it by hand for now.)
What the box needs
Less than a backtesting rig, and the priorities are different from a market-making setup:
- A CPU that responds instantly, not a huge one. Arbitrage logic is light. What matters is that the machine isn't busy doing something else when the gap appears. A dedicated few cores beats a large but noisy box.
- Latency to your target. Covered above — this is the real spec.
- A stable, ideally dedicated IP. Exchanges that whitelist API keys by IP, and RPC providers that authorize or rate-limit by address, both want a fixed one. A dedicated-IP plan gives you that.
- Enough RAM for the streams. A mempool subscription, an RPC client, and a couple of exchange WebSocket connections together sit comfortably in 4 GB. Small ($8/mo) is the honest starting point.
Where a VPS is the wrong tool
Worth saying plainly, because plenty of pages won't. If your edge depends on being inside the exchange's own datacenter, microseconds from the matching engine, a shared VPS anywhere — ours included — will not get you there. That's co-location, a different (and far more expensive) game. What a well-placed server does win is the millisecond-and-block race: cross-exchange arbitrage, triangular arb, most on-chain MEV where you're competing on network position and reaction time rather than raw silicon proximity. That covers the large majority of people running these bots.
The crypto-native part
Your exchange already knows who you are. The server sending the orders doesn't need to. Sign up with an email, pay in USDC or USDT on Base, Ethereum or Polygon, and you've got root in about a minute — no card, no documents. For a bot whose whole job is moving value around, keeping the infrastructure itself off any KYC paper trail is just consistent.
Lock it down like it holds money: trade-only API keys with withdrawals disabled, the IP whitelisted where you can, the server hardened. And if you want the bot-agnostic view on sizing and setup, the VPS for crypto trading bots page covers the rest.
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