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Hummingbot Arbitrage Trading: Definitive Guide

Hummingbot is an open source tool that can be used for automated market making and arbitrage trading in cryptocurrency markets.

If you’re interested in finding ways to automate investments in crypto online, you might have heard about Hummingbot. This open source software suite enables users to create bots and strategies to automate trades across crypto exchanges, which might be promising for those looking to leverage market inefficiencies across different exchanges–but how does it work? What can you do with Hummingbot, is Hummingbot profitable, and what are the pros and cons? We’ll discuss it.  

What is Hummingbot?

Humingbot is an open source software that’s designed to help users build trading automation tools–like trading bots that use preset trading strategies. Users can build trading bots to trade crypto very quickly. 

Users might aim to use Hummingbot made bots to add liquidity to crypto markets through market making with a Hummingbot miner. The idea behind some of these bots is that by using bots that can perform numerous quick transactions, users can take advantage of market inefficiencies across exchanges and potentially make a profit while reducing inefficiencies. It’s open source software, which is publicly available on GitHub. 

Using Hummingbot might require some skills and knowledge, however, since users will need to use a command line interface to set up their own trading strategies.

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What can you do with Hummingbot?

Hummingbot allows users to do many things. But, primarily, Hummingbot is used to create trading strategies and bots, and users can attempt to use those to find opportunities in market inefficiencies. Hummingbot is mostly used to automate the trading of crypto. Users might use Hummingbot in order to execute trades around the clock automatically based on predetermined rules. 

Since the market for crypto can be especially volatile, however, it can be especially important to keep track of the market and make changes as needed. Hummingbot users attempting to create the most efficient trading strategies might need to spend a lot of time monitoring the market, as well as a lot of time setting up their trading strategies and bots to work properly.

Is Hummingbot profitable?

The short answer is–it depends. Hummingbot might, for some users, at some times, be profitable. However, much of one’s success with Hummingbot might depend on factors entirely out of their control, such as market conditions, as well as factors such as their skill in creating trading strategies and building bots using Hummingbot. 

At the end of the day, Hummingbot is neither inherently profitable nor inherently not profitable. Whether or not Hummingbot is profitable for someone at a given time, it might not be for others or at other times. With a framework like Hummingbot, users are able to (or must) create their own bots and strategies, meaning that how well those bots perform can be wildly variable. As the market for crypto is inherently volatile, it can also be difficult, if not impossible, to predict what will happen.

What are the pros and cons of Hummingbot?

Some users might be especially interested in Hummingbot, but there are many drawbacks to be aware of, as well as benefits. We’ll discuss some of these pros and cons.


  • It’s open source. Since Hummingbot is an open source framework, you can freely download files and tinker with them.  
  • It’s highly compatible. Using the Hummingbot gateway, Hummingbot works across many crypto exchanges, which some users might find highly useful.


  • Hummingbot can have an extremely steep learning curve. Especially for beginners, Hummingbot can be difficult to understand and use.
  • Hummingbot’s success will depend on many factors. These might include the volatile crypto market, the user’s level of understanding, and how Hummingbot is used.  

The bottom line is that while Hummingbot has many potentially useful features, and it is free open source software, whether or not Hummingbot will work for you depends a lot on your skill level, as well as how much effort and time you put into creating strategies and bots, and sheer luck since the crypto market can be quite unpredictable. Hummingbot can be especially confusing or overwhelming for novice users or beginners who aren’t very familiar with both automated trading technologies and the crypto market.

How to automate the trading process with Haru Invest?

Users who want to find opportunities in market inefficiencies across crypto exchanges but who are overwhelmed by the learning curve or complexity of Hummingbot’s architecture and user interface might be wondering if there’s another way to seek automated trading solutions to help them take advantage of market inefficiencies. Fortunately, there are services like Haru Invest.

What is Haru Invest?

Haru Invest offers users automated crypto investment accounts and manages investments for you. Unlike other automated crypto investment accounts, Haru has a very low minimum investment amount of a mere $10usd. While with software frameworks like Hummingbot, investors will need to create their own strategies, monitor the market, and more, with Haru Invest, we can monitor the market, strategize, and invest for you. We use advanced algorithms, which are maintained and constantly monitored by our team of experts, leaving you the time to focus on other things. Learn more about Haru Invest’s investment strategies.

Risk Averse Strategies

Haru Invest uses trading strategies designed to make the most out of your investment while avoiding risks as much as possible. Using strategies such as arbitrage, market neutral strategy, and spread trading, we aim to minimize risk and protect investments.

Simple to use

One of the greatest benefits of Haru Invest is that it’s user-friendly, and you do not need to be an expert on automated trading algorithms, crypto, crypto markets, or strategies and bots in order to invest with Haru Invest. Instead, all you need is a minimum investment of $10, and we can take care of the rest for you.


Hummingbot is a free, open source, software framework that people use to create bots and strategies to make automated crypto trades. Users might do this in order to earn a profit through arbitrage or market making. Hummingbot offers users a lot of functionality and a large degree of control. But, for some, Hummingbot might be overly complex, and some might view DIY trading with Hummingbot to be too risky. Haru Invest, however, is user-friendly and does not require the same degree of expertise that Hummingbot might.

To learn more about Haru Invest and how it can be used, be sure to read about Haru Earn, or if you’re ready to take the next step, get started.


All investment strategies and investments involve risk of loss. Nothing contained in this website should be construed as investment advice. Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.

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