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Dec 10, 2025
6:40 PM
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Automated trading allows strategies to be executed 24/7 with lightning speed, removing human emotion and latency from the decision-making process. To unlock this capability on Bybit, the world’s third-largest crypto derivatives exchange, you need to master the setup of the Bybit Application Programming Interface (API).
Many advanced traders leverage specialized programs for better fee structures and rebates. If you are serious about automated trading, considering options that maximize your returns, like the
Backcom Bybit
program, should be part of your comprehensive strategy.
Understanding the Bybit API: What It Does
The Bybit API acts as a secure communication bridge between your personal trading software (or third-party bots) and the Bybit exchange servers. It allows your software to:
- Fetch real-time market data (prices, order book, historical data).
- Check your account balance and open positions.
- Place, modify, or cancel orders instantly.
- Manage margin and risk settings.
Step-by-Step Guide to Generating Your Bybit API Keys
Generating your API keys is the first and most critical step. This process requires strict attention to security.
Access the API Management Page
Log in to your Bybit account. Navigate to the top right corner of the dashboard, hover over the profile icon, and select API Management.
Create New Keys
On the API Management page, click the Create New Key button. You will be prompted to make crucial configuration choices:
API Key Usage: Select System-generated API Keys for external trading software or bots.
Key Name: Give your key a descriptive name (e.g., "My Trading Bot 1" or "Grid Strategy").
Configure Key Permissions
This is where you define what your trading bot is allowed to do. You must apply the principle of least privilege: only grant the permissions absolutely necessary for your bot to function.
Read-Only: This allows the bot to view market data and account status but cannot place trades.
Active Orders & Positions:
This permission is essential for automated trading. It allows the bot to place, modify, and cancel orders and manage positions.
Transfer & Withdrawal:
Crucially, never enable this permission for a trading bot. Keep this box unchecked for security; your bot should never have the ability to move funds out of your account.
IP Restriction (Security Best Practice)
This is the most important security measure you can take. Bybit allows you to restrict API access to specific IP addresses.
Binding IPs: If your bot runs on a specific Virtual Private Server (VPS), find the VPS’s public static IP address and enter it here. This ensures that even if your secret key is compromised, it can only be used from that specific IP address.
Recommendation: Always bind your API keys to a static IP address.
Read more:
Finalizing and Securing Your Keys
After configuring the settings, click Submit. You will need to pass security verification (2FA). Bybit will then generate two crucial pieces of information:
API Key: This is the public identifier.
API Secret: This is the private, cryptographic key. Treat this like your password.
Warning: The API Secret will only be displayed once. You must copy it immediately and store it securely. If you lose it, you must delete the key and create a new one.
Integrating the API into Your Trading Software
Once the keys are generated, the integration phase begins:
Connecting Your Software
You will input the API Key and API Secret into your chosen trading platform, bot software (e.g., HaasOnline, 3Commas), or custom code (using languages like Python or JavaScript).
Testing the Connection
The first action your bot should perform is a simple, non-intrusive read-only test, such as fetching the current market price or your account balance. This confirms the connection is successful and the permissions are correctly set before executing any trades.
Going Live
After successful testing, you can deploy your automated strategy, allowing your bot to interact with the Bybit exchange according to the logic you programmed.
By following these steps, you establish a secure and efficient connection, transforming your trading from a manual effort into a scalable, automated operation driven by the robust infrastructure of the Bybit API.
Author: Backcom App
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