Coinbase Exchange Trading Bot in Python

This guide shows how to build a Coinbase Exchange trading bot in Python with LumiBot, for both AI agent trading and algorithmic trading. LumiBot connects to Coinbase Exchange through CCXT, the open source library that talks to more than 100 crypto exchanges. You will create a Coinbase Exchange account and API key, connect it, and run two examples: a simple algorithmic trading bot and an agentic trading bot where an AI agent makes the calls.

Coinbase Exchange at a glance

CCXT exchange id

coinbaseexchange

Markets

Spot

Testnet (sandbox)

Yes

Credentials

API key, API passphrase (CCXT calls it password), API secret

Live data streams

prices, order book, trades, your orders

CCXT request spacing

about 100 ms between requests

Official site

https://coinbase.com/

API docs

https://docs.cloud.coinbase.com/exchange/docs/

Fees

https://docs.pro.coinbase.com/#fees

What is Coinbase Exchange?

Coinbase Exchange is Coinbase’s spot exchange for businesses and qualified individuals, with REST, FIX and WebSocket APIs for trading and market data. Coinbase says most individuals should use a regular Coinbase.com account instead.

Sign up for Coinbase Exchange

  1. Apply for a Coinbase Exchange account at https://accounts.coinbase.com/pick-your-account. Coinbase’s onboarding team reviews the application and contacts you with next steps.

  2. When approved, open the email from Coinbase, create your password and sign in. You must set up 2-step verification with a mobile phone number the first time; Coinbase recommends a security key or Google Authenticator after that.

  3. For practice, also create a separate account on the Coinbase Exchange sandbox at https://public.sandbox.exchange.coinbase.com. Sandbox logins and keys are separate from your real account.

Open a Coinbase Exchange account

Create a Coinbase Exchange API key

  1. Sign in to the Exchange dashboard (https://exchange.coinbase.com/) and select API at the bottom of the left sidebar.

  2. Select + New API Key in the top-right corner.

  3. Choose the Portfolio the bot will trade in. Each key works with one portfolio only.

  4. Pick the permissions (see below) and create a passphrase.

  5. Enter the IP address of the machine that runs your bot. Coinbase requires an IP whitelist; separate more than one address with commas.

  6. Select Create API Key and confirm with 2-step verification. Save the key, secret and passphrase right away; Coinbase shows the secret and passphrase only once and cannot recover them.

Which permissions to turn on: Turn on View and Trade. Leave Transfer off: Coinbase says a Transfer key can move money in and out of your account and skips 2-step verification. Leave Manage off too, since a bot does not need to change account settings.

Warning

Never turn on withdrawals for a Coinbase Exchange trading bot key. Bind the key to your server’s IP address when Coinbase Exchange lets you, keep the secret out of your code and out of Git, and delete the key if it ever leaks.

Connect Coinbase Exchange to LumiBot

The simplest way: put these lines in a .env file next to your strategy. LumiBot loads the file, sees TRADING_BROKER=coinbaseexchange and connects to Coinbase Exchange for you, so your strategy needs no broker code.

TRADING_BROKER=coinbaseexchange
COINBASEEXCHANGE_API_KEY=your_apiKey
COINBASEEXCHANGE_API_PASSPHRASE=your_password
COINBASEEXCHANGE_API_SECRET=your_secret
COINBASEEXCHANGE_SANDBOX=true   # testnet; remove this line for your live account

LumiBot reads exactly the fields CCXT needs for Coinbase Exchange (apiKey, password, secret). If one is missing, LumiBot stops at start-up and names the variable you still need.

You can also build the broker in code. This is handy when one script talks to more than one exchange, or when you need extra CCXT options. The keys in the config are CCXT’s own credential names for Coinbase Exchange:

import os

COINBASEEXCHANGE_CONFIG = {
    "exchange_id": "coinbaseexchange",
    "apiKey": os.environ.get("COINBASEEXCHANGE_API_KEY"),
    "password": os.environ.get("COINBASEEXCHANGE_API_PASSPHRASE"),
    "secret": os.environ.get("COINBASEEXCHANGE_API_SECRET"),
    "sandbox": True,  # testnet first; set False for your live account
}

from lumibot.brokers import Ccxt

broker = Ccxt(COINBASEEXCHANGE_CONFIG)
# then: MyStrategy(broker=broker, ...)

Either way, LumiBot turns on CCXT’s built-in rate limiting for you.

Practice on the Coinbase Exchange testnet

Coinbase Exchange runs a public sandbox at https://public.sandbox.exchange.coinbase.com with fake funds you can add yourself. It has only some of the real order books, and you must make separate API keys there (profile menu, API, New API Key). Set COINBASEEXCHANGE_SANDBOX=true (or "sandbox": True in a code config) to use it.

CCXT sends sandbox requests to: https://api-public.sandbox.exchange.coinbase.com. Testnet and live accounts use different keys.

Algorithmic trading example: a simple Coinbase Exchange bot

This bot buys about 50 USD of BTC on Coinbase Exchange once and then holds it. It is a starting point to check that your keys, balances and orders work. If the exchange’s minimum order is larger, raise the amount.

from lumibot.entities import Asset
from lumibot.strategies import Strategy


class CoinbaseexchangeBuyOnce(Strategy):
    """Buy a small amount of BTC once, then hold it."""

    def initialize(self):
        self.sleeptime = "1H"
        self.set_market("24/7")  # crypto trades all day, every day

    def on_trading_iteration(self):
        coin = Asset("BTC", asset_type=Asset.AssetType.CRYPTO)
        if self.get_position(coin) is not None:
            return  # already holding BTC
        price = self.get_last_price(coin, quote=self.quote_asset)
        if price:
            quantity = round(50 / price, 6)  # about 50 USD worth
            order = self.create_order(coin, quantity, "buy", quote=self.quote_asset)
            self.submit_order(order)


if __name__ == "__main__":
    # LumiBot reads TRADING_BROKER and the keys from your .env file.
    strategy = CoinbaseexchangeBuyOnce(quote_asset=Asset("USD", asset_type=Asset.AssetType.CRYPTO))
    strategy.run_live()

Agentic trading example: an AI agent that trades on Coinbase Exchange

Agentic trading means an AI agent reads the market and decides what to do. In this example one LumiBot agent looks at prices and your Coinbase Exchange account, then places the orders itself. There is no Python logic in between: you set the rules in plain English in the prompt, such as what it may trade and how big each order can be. This follows the same pattern as LumiBot’s AI trading team examples.

from lumibot.entities import Asset
from lumibot.strategies import Strategy


class CoinbaseexchangeAITrader(Strategy):
    """One AI agent researches the market and places the trades itself."""

    def initialize(self):
        self.sleeptime = "4H"
        self.set_market("24/7")
        self.agents.create(
            name="trader",
            model="openai/gpt-6-luna",
            reasoning_effort="high",
            allow_trading=True,
            system_prompt=(
                "You manage a small crypto account on Coinbase Exchange. "
                "You may trade BTC and ETH against USD (asset_type 'crypto', quote_symbol 'USD'), or hold cash. "
                "Before every order, call account_portfolio, account_positions and "
                "market_last_price for that exact symbol in the same run. "
                "Keep each order under 10% of the account value. "
                "Explain each decision in one short paragraph."
            ),
        )

    def on_trading_iteration(self):
        self.agents["trader"].run(
            task_prompt="Review recent BTC/USD and ETH/USD prices and your current holdings, then decide whether to buy, sell or hold.",
            context={"exchange": "Coinbase Exchange", "quote": "USD", "date": self.get_datetime().isoformat()},
        )


if __name__ == "__main__":
    # LumiBot reads TRADING_BROKER and the keys from your .env file.
    strategy = CoinbaseexchangeAITrader(quote_asset=Asset("USD", asset_type=Asset.AssetType.CRYPTO))
    strategy.run_live()

The agent needs a model key such as OPENAI_API_KEY in your environment. See the AI agents quickstart for models, tools and memory.

What you can trade on Coinbase Exchange through CCXT

Market

Listed by CCXT

Spot

Yes

Margin

No

Perpetual swaps

No

Dated futures

No

Options

No

CCXT lists these order features for Coinbase Exchange: market orders, limit orders, stop orders, editing open orders, canceling orders.

Coinbase Exchange tips

  • Coinbase Exchange keys need three values: the key, the secret and the passphrase you chose. In CCXT the passphrase is called password.

  • This page is for Coinbase Exchange (CCXT id coinbaseexchange). A regular Coinbase.com account with Advanced Trade uses the separate coinbase id and Coinbase Developer Platform keys instead.

  • Your computer clock must be within 30 seconds of Coinbase’s server time, or Coinbase rejects the request as expired. Keep the clock synced.

  • Each key is tied to one portfolio (profile). To keep a key from reading other portfolios, turn on portfolio isolation under Settings, Security. Using a separate portfolio per bot keeps bot trades apart.

Frequently asked questions

Can I build a Coinbase Exchange trading bot in Python?

Yes. Install LumiBot (pip install lumibot), set your Coinbase Exchange keys and use the coinbaseexchange CCXT exchange id as shown above.

Does Coinbase Exchange have a testnet?

Yes. Set COINBASEEXCHANGE_SANDBOX=true and use keys from the Coinbase Exchange testnet.

Which API permissions does a Coinbase Exchange bot need?

Turn on View and Trade. Leave Transfer off: Coinbase says a Transfer key can move money in and out of your account and skips 2-step verification. Leave Manage off too, since a bot does not need to change account settings.

Can an AI agent trade on Coinbase Exchange by itself?

Yes. The agentic example above gives one agent permission to trade. You control what it may trade and how much through its prompt.

Can I trade Coinbase Exchange perpetual futures with LumiBot?

CCXT does not list perpetual swaps for Coinbase Exchange, so use spot markets.

Is LumiBot free?

Yes. LumiBot is open source on GitHub at https://github.com/Lumiwealth/lumibot. You pay only your exchange’s trading fees and, for AI agents, your model provider.

Run it in the cloud with BotSpot

Do not want to keep a computer running for your Coinbase Exchange bot? BotSpot is the hosted home for LumiBot strategies and AI trading agents: build with AI, backtest, connect a broker, and watch every trade with logs and alerts.

Try BotSpot

Sources