Hummingbot Review: Is It Safe?

Hummingbot Review: Is It Safe?

Hummingbot, debuted in 2019, allows users to create automatic trading bots that can be used on any exchange, including CEX and DEX. It works on all systems like Windows, Linux, Raspberry, etc. The code is written in Python and Cython, enabling you to develop unique strategies and connectors. A vast community of traders exists on Telegram, Discord, and other platforms to discuss the available issues. We will analyze its performance, security measures, features, pricing, fees, etc., to determine if it is profitable and safe to use in 2022.

Hummingbot Review: Is It Safe?

What is Hummingbot?

Hummingbot is a platform for creating high-frequency cryptocurrency trading bots. It is freely available on Github under the Apache 2.0 license for traders and developers. 

How does Hummingbot help traders?

Hummingbot executes multiple strategies such as Avellaneda, Arbitrage, Hedge, Cross-exchange, uni swap-v3 LP, etc. You can customize your trading approach to meet your needs. The two basic robots on the platform are:

  • Market making: It offers liquidity to a trading pair on an exchange,
  • Arbitrage bots: It exploits price disparities between trading pairs on different exchanges. 
  • Utility for other strategies

Hummingbot main features

Hummingbot is packed with the following tools and features:

  • Both centralized and decentralized cryptocurrency exchanges are supported
  • The platform has a governance token, HBOT
  • Test your system on the web before installing the software
  • It’s open-source software that anyone on Github can audit
  • Develop fully customized and automated bots with Python and Cython
  • Community members can create, utilize, and maintain Hummingbot modules independently

Ease of use

Hummingbot is designed for liquidity providers and professional traders. Traders unfamiliar with Python and Cython may be unable to use the platform, resulting in the loss of their funds.

Settings

Traders can configure the parameters of their strategies in one of two ways:

  • To check the current strategy settings, run config. To change the value of a parameter, use the command config [parameter name]
  • You can modify the strategy configuration file directly in a text editor outside the Hummingbot client and then import it later

Safety and security

For security concerns, Hummingbot does not allow withdrawals or deposits. It connects to exchanges using APIs and private keys. 

Customer support

You can reach out to Hummingbot’s customer service team via email or join the Hummingbot community on other social media platforms such as Telegram. A contact form on the website is available to ask any questions.

Customer support

Public feedback

No public opinion about HummingBot is at hand, raising questions about the reliability and trustworthiness of the platform. 

Profitability

There are no credible records of past trading results with Hummingbot, and the developer does not promise profitability. Its website lacks backtesting and trading records that can be utilized to examine the bots’ drawdown and win rate.

What does it cost to use Hummingbot?

Hummingbot is free software for traders and developers. You can download, install, and run it without paying any amount. Keep in mind that there are exchange fees (e.g., maker, taker, and withdrawal fees).

Hummingbot supported exchanges

Hummingbot is compatible with both centralized CEX and decentralized DEX exchanges, namely:

  1. CoinZoom
  2. Crypto.com
  3. Digifinex
  4. dYdX Perpetual
  5. FTX
  6. Gate.io
  7. Himalaya
  8. HitBTC
  9. Huobi Global
  10. KuCoin
  11. Kraken
  12. Liquid
  13. Loopring
  14. MEXC
  15. NDAX
  16. AltMarkets
  17. AscendEX
  18. Balancer
  19. Beaxy
  20. Binance
  21. Binance Perpetual
  22. Binance US
  23. Bitfinex
  24. BitMart
  25. Bittrex Global
  26. Blocktane
  27. Bybit Perpetual
  28. Coinbase Pro
  29. OKX
  30. Perpetual Protocol
  31. ProBit Global
  32. ProBit Korea
  33. Uniswap
  34. Uniswap V3
  35. WazirX
Supported crypto exchanges

Deposit & withdrawal requirements

There is no requirement for a minimum deposit to start trading on the platform. Withdrawals and deposits are not possible on the site due to security concerns.

Deposits and withdrawals
Deposits and withdrawals

How to get started on Hummingbot?

Traders typically use AWS or another cloud provider to deploy the Docker image version. They can then add their API key or private keys, allowing them to customize and run one of Hummingbot’s pre-built strategies on a variety of exchanges. The image below shows the system requirements to run the software.

System requirements of Hummingbot

The core team of Hummingbot

The HBOT Board of Directors supervises the foundation and its employees and manages the HBOT treasury in a multi-signature wallet. The team of developers include Michael Feng, CEO, CoinAlpha, and Gene Cheo, CTO, Hummingbot Foundation.

Board members at Hummingbot

Advantages of using Hummingbot

Hummingbot has the following benefits for developers and traders:

  • Download and install the software for free

Disadvantages of using Hummingbot

Hummingbot has the following flaws:

  • Not beginner-friendly
  • Utilizes only Python and Cython for coding.
  • Lack of demo-trading feature and no verifiable results on the website.
  • No customer testimonial on trusted platforms.

Final verdict for Hummingbot

Final verdict for Hummingbot
5 10 0 1
Trading software for liquidity providers. After reviewing all of Hummingbot's essential features, we've come to the conclusion that the platform is best suited for traders with advanced coding skills. For newcomers, the settings and commands may be confusing. Some fundamental flaws, such as the lack of user feedback and the paper-trading feature, raise concerns about the software's credibility and security.
Trading software for liquidity providers. After reviewing all of Hummingbot's essential features, we've come to the conclusion that the platform is best suited for traders with advanced coding skills. For newcomers, the settings and commands may be confusing. Some fundamental flaws, such as the lack of user feedback and the paper-trading feature, raise concerns about the software's credibility and security.
5/10
Total Score
  • Key Features:
    5/10 Neutral
  • Price:
    8/10 Very good
  • Security and Reliability:
    4/10 Passably
  • Customer Support:
    5/10 Neutral
  • Public Experience:
    2/10 Very bad
Total
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