How do you make it in today’s cryptocurrency market? This is possible by using the right crypto trading platform or a cryptocurrency bot. However, not all bots make it to the top. How can you tell which bot is profitable? Is Hummingbot the one?
Trading crypto and traveling have many things in common. You don’t need any special tools to make it happen. As long as you don’t plan to travel fast or far, this is okay. To cover distances, you must be able to move quickly.
Walking is good for your health, but not if it’s a way to get around and keep up with others. The same applies to crypto trading. You can get in the market without any special tools but it is difficult to make a significant profit or build a career.
A crypto bot can cut down on the time it takes for deals to be found and executed. Bots can also work remotely and don’t require lunch breaks.
Manual trading can seem like a hobby with a cryptobot. It is crucial to choose the right trading bot. This review answers the hard question: Is Hummingbot the right trading bot?
Hummingbot: How to Use It
- Install Hummingbot
- Create Your Password After you have read the welcome text, create your password then re-enter it.
- Connect your exchange
You can enter “connect” without quotation marks to display a list with exchanges and their connector status. To connect to your exchange, enter “connect” along with the name of the chosen exchange. You’ll then need your API key.
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Trading forex or CFDs on margin involves a high degree of risk and may not be suitable for all investors. There is a possibility that you may suffer a loss equal to or greater than your entire investment.
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- Make a Market-Making robot (also known by crypto scalping bots).
A bot is needed to automate market-making.
- You will need to create market strategies after you have entered the command “create”. Enter liquidity_mining to get liquidity mining
- After you have entered the strategy, create a spot connector. This is the exchange you will use. This is where you can join the exchange of your choice (e.g. “binance”).
- Now you need to select your market. You can use the Hummingbot Miner page to get an idea about all available markets. After you have chosen the markets you want to use, you can enter “token1” and “token2”. Tokens refer to two assets. You could use “BTCUSDT” as an example. You can separate multiple markets by using a comma. One token can only be given liquidity at a time. The same token must be used on all markets.
- Choose the token you wish to provide liquidity. It would be USDT in this example. Next, enter the order amount. This amount must be in your wallet. You can find the minimum amount for each exchange on the Hummingbot Foundation page.
- Next, set your spreads. For beginners, it is best to set your spread at 1%. You could be subject to high trading fees. So enter “1” and then, enter your target percentage of base assets.
- Save the bot by pressing enter and naming it.
- Now all you have to do is enter “start” and the bot will begin trading. You can load a saved bot by using the “import command” when you launch Hummingbot.
Features
Hummingbot’s current version has many advanced and simple features. More features are planned for the future:
- Paper Trading Mode: In this mode, users can practice trading with dummy accounts. This is a great way to get familiar with the program and to test trading strategies.
- Balance Limit: Hummingbot can set this setting to limit how much money it can spend on exchanges and wallets. This setting is useful if you have multiple bots.
- Minimum Order Size: Users can choose their own order size to suit their trading needs.
- Performance History: This simple feature shows trade history and details.
- Kill Switch: This feature can be activated by users who want to limit profit and loss. The bot will stop users from setting limits.
- Arbitrage: Hummingbot can monitor the prices of two exchanges and spot profitable trades. These trades are executed when possible.
How much does Hummingbot cost?
Because it is free, this software is easily accessible. It is free to use and has a solid reputation. You can get it from the official website. It is free of viruses and other harmful elements you shouldn’t be concerned about.
The application is easy to use, free-of-charge and open-source. They can access the crypto markets easily and take part in them. It streamlines bot operations.
Hummingbot Supported Exchanges
Many prominent exchanges are available, including Binance and Coinbase Pro, Binance and Kraken, Liquid, Bittrex, Binance and Coinbase Pro. The application has connections to Huobi and KuCoin as well as Radar Relay. As the application progresses you’ll also notice that there are more entities.
An API allows you to link these accounts to the bot application.
These exchanges provide centralization and decentralisation. These exchanges are often in association with well-known brands and big players in their respective industries. These entities are loved and appreciated by many people for their unique offerings.
Hummingbot offers a wide range of liquid entities so that you can participate and have little difficulty accessing liquidity.
Conclusion
Let’s go back to the original question: Is Hummingbot stable, safe, and profitable? This is not an easy question to answer. It has many advantages over other trading bots, but it can be difficult to use and requires technical skills that are beyond most people’s reach. If a trading bot isn’t usable, it loses its potential as a trader.
Is this review able to recommend Hummingbot as a major day trader? The definitive answer to this question is no.
The potential benefits of Hummingbot outweigh any requirements. It’s too expensive to offer little return.
It would be wrong to assume that every trading automation software is simple to use or requires complex technical requirements. Take Bitsgap or Pionex as an example. They are more user-friendly and provide an unparalleled ease of use
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Hummingbot is rendered useless by Bitsgap and Pionex, which offer extensive support for beginners and premade bots with high performance potential. They also have powerful editors that permit the creation of new features.
When the software is so simple do you need to think about details? Exactly.
