Hummingbot is an open-source software program that allows you to create crypto bots using numerous advanced strategies. According to the developer, this system is specially designed for professional liquidity providers and it is trusted by thousands of individuals all over the world. In this HummingBot review, we are going to explore the various aspects of this system.
The parent company behind this platform is The Hummingbot Foundation, a non-profit organization based in the Cayman Islands, but the physical office is located in Mountain View, California. The company’s mission is to democratize high-frequency crypto trading by enabling community governance and decentralized maintenance. It was launched in April 2019, and today it is supported by world-class investors like StartX, Slow Ventures, Initialized Capital, etc. The key members of the team include CEO Michael Feng and CFO Gene Cheon.
Hummingbot quick summary
Here are the key aspects of this bot:
- More than 30 exchange connectors
- Advanced framework for developing bots
- Publicly available codebase on Github
- Arbitrage between decentralized and centralized exchanges
- Community help on Reddit and Discord
- Supports Python and Cython
- Multiple configurable strategies
- Attractive rewards for liquidity miners
Is it easy to use?
This system is compatible with operating systems like Linux, MacOS, and Windows. Technical users can set it up on the cloud and install the Docket version. This enables the platform to run 24/7. Users can run multiple bots installed through binary by running a new instance to open a new window.
The platform has a command line interface, so you can create and run trading bots without any coding skills. In the user interface, you can see an input pane where you enter the commands and an output pane that prints the output of your commands. For connecting to centralized exchanges, you need your API key, while blockchain protocols ask for your private key.
Hummingbot lets you check the status of your bot as well as the market. You can also use the history command to display the current duration of total past trades, market trading pair performance, value, and asset inventory. There are market-making, arbitrage, and utility strategies available on this platform. Beginners may not feel too comfortable using the command line interface, so the platform mainly caters to technical users.
There are no user reviews for this system on third-party websites. This tells us that not many people are currently using the platform for crypto trading. However, it is supported by top investors and advisors like John Wu, Taiyang Zhang, Rajiv Bhat, and Reuben Yap.
What crypto exchanges are supported?
You can connect to any centralized or decentralized exchange. The connectors try to standardize order types and trading logic across different exchanges. Connectors can handle different types of exchanges like Spot, Perp, and AMM.
This is a free software that you can download, install, and run at no cost. You only need to pay the exchange fees.
Security and privacy of Hummingbot
The platform cannot access your digital assets and you have full control over the code. Since it uses API keys, hackers will not be able to access your wallet.
What about customer support?
There is a contact form on the website that you can use to get in touch with the support team and the developer has also shared an email address.
Profitability of Hummingbot
Profitability depends on the strategy your robot is based on, as well as the market sentiment.
Deposits, withdrawals and fees
The platform does not have permission for deposits and withdrawals and there are no trading fees.
Advantages of Hummingbot
Here are the advantages:
- Liquidity mining
By mining liquidity using a market-making bot, you can earn rewards. Rewards are distributed equally for each minute during a reward period.
- Auditable code
Since the code is open-source, you can edit it and suggest improvements.
- Paper trading
You can test out your strategies in a simulated market environment instead of placing real orders on exchanges.
Disadvantages of Hummingbot
The disadvantages are as follows:
- Not beginner-friendly
This platform has several complex functionalities and strategies that are not suitable for beginners. The user interface is based on the command line, which makes it difficult to navigate for non-technical users.