Getting your Kraken API keys configured correctly is one of the most important steps before running any automated trading bot. A misconfigured key can expose your account to unnecessary risk — and the right setup takes less than five minutes.
Why API Key Security Matters
Your API key is what allows a trading bot to place orders on your behalf without exposing your login credentials. The key point: always use the minimum permissions required. A bot that only needs to trade should never have withdrawal permissions enabled.
Step 1 — Log Into Kraken and Navigate to API
Go to your Kraken account, click your username in the top right, and select Security > API. Click Add Key to begin creating a new API key.
Step 2 — Set the Correct Permissions
For a trading bot, you need the following permissions enabled:
- Query Funds — allows the bot to read your account balance
- Query Open Orders & Trades — required for tracking active positions
- Create & Modify Orders — the core trading permission
- Cancel/Close Orders — needed for stop-loss and order management
Do not enable Withdraw Funds or Transfer Funds. No trading bot needs these, and enabling them creates unnecessary risk if the key is ever compromised.
Step 3 — IP Whitelisting (Recommended)
If you are running the bot from a fixed IP address — including a home desktop — you can whitelist that IP in the key settings. This means even if the key is leaked, it cannot be used from another location.
Step 4 — Copy and Store Your Keys Safely
Kraken shows your API secret exactly once. Copy both the API key and secret immediately and store them in a secure password manager. Never paste them into shared documents, chat apps, or version-controlled files.
Step 5 — Enter Keys in DennTech
Open DennTech, navigate to the API Keys panel in the right-hand column, select Kraken, and paste your key and secret. The bot stores these locally on your machine — they never leave your hardware. See the full setup walkthrough in the DennTech documentation.
Testing Before You Go Live
After entering your keys, use the balance fetch button to confirm connectivity before starting any strategy. If the balance loads correctly, your key is working. If you get an error, double-check that the Query Funds permission is enabled.
Ready to trade? Compare available strategy bundles on the Retro pricing page or view all supported strategies at strategies.