How can you make it in today’s cryptocurrency market? You can do this by choosing the right crypto trading tool or a crypto bot. Of course, not all bots get the profits flowing in. How do you determine which bot is profitable? Is Hummingbot one?
Traveling and trading crypto have a lot in common. It’s possible to do it all yourself without the need for any special tools other than your legs. This is fine as long as you don’t expect to travel far or fast. You need to be able to move quickly to get distances covered.
Walking is great for your health but not if you are looking to walk a lot and keep up with others. This is also true for crypto trading. Although you can easily get into the market with no special tools, it is not possible to make a serious profit or establish a career from it.
A crypto bot can reduce the time it takes to find deals and execute them. Bots are also able to work from anywhere, and do not require lunch breaks.
A cryptobot makes manual trading seem more like a hobby than a job. The right trading bot is essential. This review asks the difficult question: Is Hummingbot the right trade bot?
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Cryptocurrency assets are volatile in nature. Buy and trade at your own risk.
73% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
How to use Hummingbot
- Install Hummingbot
- Set up Your Password: After reading the welcome text, create your password and then re-enter it.
- Connect your exchange
Enter “connect” without the quotation marks and a list of exchanges along with their connector status will appear. Enter “connect” and the name of your chosen exchange to connect to it. After that, you’ll need your API key.
- Create a Market-Making bot (also known as crypto scalping robots):
To automate market-making, we need to create a bot.
- After entering the command “create”, you will need to create a market strategy. We want liquidity mining so enter: liquidity_mining
- After entering the strategy, you’ll have to create a spot connector. This is the exchange that you will use. Here you can enter the exchange of choice (e.g. “binance”).
- You now need to choose your market. The Hummingbot Miner page can help you get an idea of the markets available. Once you have determined which markets you wish to choose, you can enter the name “token1–token2” where tokens refer to two assets. For example, “BTCUSDT”. Separate multiple markets with a comma. For example, “BTCUSDT,ETHUSDT” You can only give liquidity to one token at a given time. All markets must have the same token.
- Next, select the token that you want to provide liquidity with. In this example it would be USDT. Then enter the order amount. You must have at least this amount in your wallet. Each exchange has a minimum amount, which you can find on the Hummingbot Foundation Page.
- Next, set your spreads. It is best to set your spread at a wide range, such as 1% for beginners. Otherwise, you may be risking a lot of trading fee charges. So enter “1”. Finally, enter your target base asset percentage.
- Save the bot by naming and pressing enter.
- All you need to do now is to enter “start”, and the bot will start trading. To load a saved bot, use the “import command” next time you start Hummingbot.
Features
Hummingbot’s current version includes many simple and advanced features. There are more in the future.
- Paper Trading Mode: This is a practice environment in which users can trade using dummy accounts. This allows you to familiarize yourself with the program, and/or test out trading strategies.
- Balance Limit: This setting allows Hummingbot to limit the assets it can use in exchanges or wallets. This setting is useful when you have multiple bots.
- Minimum Order Size: The user can set their own order size to meet their trading needs.
- Performance History: This simple feature displays trade history and details.
- Kill Switch: This optional feature is available for activation for users who wish to limit profit or loss. The bot will automatically stop the user from setting a limit.
- Arbitrage: Hummingbot monitors the prices of 2 exchanges and can spot profitable trades. It executes these trades when it is possible.
What is the cost of using Hummingbot?
This software is accessible to many because it’s free. Using it costs nothing and has a strong reputation. It is open source and you can download it directly from the official site. It will be free from viruses and other malicious elements that you should worry about.
This application is simple, open-source and free of charge. They can easily access crypto markets and participate in them. It also streamlines their bot operations.
Exchanges supported by Hummingbot
There are many prominent exchanges, including Binance, Coinbase Pro, Binance, Kraken, Liquid and Bittrex. This application also has connections to Huobi, KuCoin and Radar Relay. As the application progresses, you will also see that there will be more entities.
It is possible to link accounts with these entities to the bot application using an API.
These exchanges offer centralization and decentralisation. These entities are also in association with high-profile brands and are big hitters in their industry. Many people love and appreciate these entities for their unique offerings.
Hummingbot is not afraid to offer a variety of liquid entities, so you can take part and have little difficulty with liquidity.
Conclusion
Let’s return to the original question in the review: Is Hummingbot safe, stable, and profitable? It is not an easy answer. Although it has many advantages over its competitors, it is difficult to use and requires severe technical skills that make it impossible for most of us to use. A trading bot that is not usable loses its potential value as a trader.
Can this review ultimately recommend Hummingbot for a majority day traders? The definitive answer is no.
Hummingbot’s potential benefits outweigh the requirements. It is too costly to provide little return.
It would be a mistake to assume that all trading automation software is easy to learn or has complex tech requirements. As an example, take Bitsgap and Pionex. They are less tech-intensive and offer an incomparable ease of use and accessibility.
Pionex and Bitsgap make Hummingbot useless by their extensive support for beginners, premade bots, high performance potential, and powerful editors that allow for the creation of new features.
Do you really need to worry about the details when software is so much simpler? Exactly.
