Self-hosted vs hosted trading bots: which is safer?
When you shop for a trading bot, the biggest question isn't the strategy — it's who holds your keys and funds.
Hosted bots
A "hosted" bot runs on someone else's server. For it to trade, it needs your private key on that server. That means the operator can move your money — which is custody. If they get hacked or disappear, your funds go with them. For prediction markets it also raises serious legal problems (custody + operating a regulated activity).
Self-hosted bots
A self-hosted bot runs on your own machine. Your private key stays on your disk and is never sent anywhere. You keep full control; the software just signs the orders you configured. Same principle as a hardware wallet: the key never leaves your side.
The takeaway
- If a bot asks you to deposit funds or hand over your key to their site — walk away.
- Prefer software you run yourself, with a clear "we never see your keys" design.
- Bonus: self-hosted keeps you in control of legality and risk, where it belongs.
Automate this with POLBOT
Self-hosted bots for prediction markets. Your keys, your machine, no custody. Sniper and copytrading, with a live demo.
See POLBOT →This article is informational, not financial advice. Trading prediction markets carries a risk of total loss. Check that using it is legal in your jurisdiction.