Hummingbot is an automated trading solution designed to help token makers, exchanges, and investors profit from the crypto market. It’s an open-source trading platform where users can see and use coding skills to make their crypto bots. The software is built on Cython (Python compiled into C language). Read this review to know more detailed information about this software, its strengths, and weaknesses.
What is Hummingbot?
Hummingbot helps traders to build high-frequency market-making bots. The platform is integrated with many exchanges and can work with multiple currency pairs. The software also offers liquidity mining options where users can get tokens as a reward for providing liquidity. Arbitrage strategies can also be employed., which means capitalizing on the price difference between various exchanges.
Features of the Hummingbot platform
Following are the features of Hummingbot:
- The platform supports 30+ both centralized and decentralized cryptocurrency exchanges.
- It is an open-source program.
- It’s free to use and install.
- Multiple strategies are available.
How does the Hummingbot operate?
Traders can use Hummingbot to get their hands-on AMM (automated market-making), arbitrage, PMM (pure market-making), TWAP, etc., strategies. According to the authors, it requires only 10 minutes to build a system from zero for users with no developing experience. The steps are as follows:
- Download the software client
- Configure the AMM bot
- Run the algorithm on paper trading mode
Hummingbot does not require any registration. The following steps should be made to install and start using the software:
- Installation of Hummingbot
Users can find the download link from the developer’s official website.
- Setting up the password
After successful installation, open the software and set up your new password.
- Connecting the exchange
Traders can connect their desired exchange to integrate.
Is it easy to use Hummingbot?
Using Hummingbot does require you to have a good grip on both Python and C language. This tool is made for market makers and professional traders, so if you are new, you might face hurdles in using the interface of this platform.
Hummingbot fees, commissions, limits, and payment options
Hummingbot is completely free. The platform does not deduct any commissions, and there are no hidden charges. The customers can download, install, and use this software without spending a penny.
The Hummingbot does not claim any withdrawal rights. It only has access to trading rights on your funds at the respective crypto exchange.
How much should you deposit to start trading with Hummingbot?
As mentioned before, the software is free to use and does not require any initial deposit amount for its users. Traders can choose the amount of funds they wish to allocate for trading with Humming bot.
Partnered exchanges and brokers
Hummingbot collaborates with many critically acclaimed centralized and decentralized cryptocurrency exchanges and brokers. As mentioned before, more than 30 exchanges in Hummingbot are integrated with the platform. Some notable ones are Binance, BitMart, FTX, Huobi Global, KuCoin, Kraken, Uniswap, and WazirX.
Is it beginner-friendly?
Hummingbot uses Python compiled with C language (Cython), which can be complex for newbies. Things can get risky if the trader isn’t familiar with technical knowledge of the markets and programming language.
Is it a profitable system?
As mentioned before, the software is open-source, free of cost, and publicly auditable on GitHub. The platform’s profitability depends on your strategy, risk management, and the ability to code properly.
Security & regulation
Safety and security are the utmost priority of the provider in the crypto market. Even though the code is available to the public, the developers have full control over the data transferred to public domains. The API keys and user private keys are saved in encrypted form.
CoinAlpha Inc is behind the development of Hummingbot. The project was first launched in 2019, and the firm’s headquarters are located in the USA. The current advisors include John Wu as the working president, Rajiv Bhat as CEO & co-founder, Reuben Yap as project steward, and Taiyang Zhang as a venture partner.
Should you trade with Hummingbot?
Trading is only advised if you have a proper market and programming knowledge. The platform is best for professional traders with good crypto market knowledge who can code strategies without any problem. Things can get complicated if you are a beginner and unfamiliar with technical coding terms.