Hummingbot provides crypto bots that work on centralized and decentralized exchanges. It is open-source software that helps you design arbitrate and market-making bots. The platform also provides a mining feature that allows you to earn rewards by providing liquidity. It is trusted by thousands of developers and traders worldwide.
Hummingbot overview
It is a modular framework designed to build crypto bots that can execute high-frequency trading. Due to the coding written in Cython and Python, the system is extensible, enabling users to create custom strategies and connectors.
| Best For | Experienced traders and developers |
| Pros | Open-source software |
| Works with DEX and CEX | |
| Cons | Commission fee is expensive |
| No verified performance proof | |
| Not for beginner traders |
Automated trading at Hummingbot: How does it work?
The service is designed for professional liquidity providers. It allows users to create bots using its institutional-grade framework. The platform has multiple integrated exchanges of centralized and decentralized types.
Hummingbot bot features
Important features of the platform are:
- It is a local software client, so your keys are not exposed externally. You can audit the entire codebase publicly on the Github site.
- For developers, bot components can be created in Cython or Python code, with the former being preferred for its speed and the latter for its user-friendly interface benefit.
- The service uses advanced strategies such as Avellaneda for liquidity providers and professional market makers.
- Arbitrage is enabled as the platform supports all the major centralized and decentralized exchanges.
Hummingbot trading strategy: Arbitrage, Market making, and utility strategies
Automated strategies are provided by the platform, and they include the arbitrage method that uses the differences between markets to earn profits and the market-making approach that provides market liquidity.
Steps to follow to trade with Hummingbot
The steps needed to start trading with the bot are:
- Install the Humming (Docker) from the official site
- Set up the software by creating a secure password
- Enter the exchange API keys
- Set up an ETH wallet and node
- Add the ETC gas station API key
- Create SSL Cert in the platform
- Install and configure the Hummingbot Gateway
- Choose a bot, configure it, and run it
Hummingbot fees & account minimum requirements
A maker fee of 0.25% and a taker fee of 0.25% are charged for the trades you execute. Override fees feature allows you to get a discount if you are on the VIP level with fees discount.
Exchanges compatibility
The service connects with multiple exchanges, including CEX and DEX. The major integrated exchanges are:
- Binance
- Huobi
- Coinbase
- dYdX
- Uniswap
- Terra
Coins supported
The vendor does not provide info on the crypto coins the platform supports.
Hummingbot performance
No verified proof of performance is present for the service, so we are unable to assess the performance.
How to withdraw your funds with Hummingbot?
The platform helps to connect with your exchange and does not have a withdrawal feature.
Is it a costly crypto trading tool?
With a commission of 0.25% for the maker and taker fee, the service is expensive when compared to other competitor systems.
Hummingbot security and safety
As per the vendor, the platform is a local software client, so your API keys remain safe. Further, the codebase is publicly auditable.
Hummingbot regulation and legitimacy
We could not find info related to the regulation and licenses the service has acquired for operating the bots.
Hummingbot team members
Founded in 2020, the platform is part of CoinAlpha, Inc. The company is a for-profit company supporting the Hummingbot ecosystem, including the Miner and Pro versions. The team members include a core team of 52 members, 123 Github contributors, and 18.7k Discord members.
Is Hummingbot customer support good?
For support, the vendor provides links to Discord, Twitter, Reddit, YouTube, and Github.
User experience
The user interface is designed for professional traders with some programming knowledge. For newbies with no coding experience, using the platform can be overwhelming.
Is choosing Hummingbot the right choice for you?
For professional traders with coding experience, the features and benefits of the service can be favorable.
Final thoughts on Hummingbot
Hummingbot is a command-line interface that helps avid coders and professional traders to build and run trading bots. The open-source type, liquidity mining, and integration with DEX and CEX are important advantages the platform offers. However, the commission fee is high, and installing and using the system can be complicated for a beginner trader. The platform is more suited for professional traders and developers.
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