I Was Clueless About Trading Bots - Here's Exactly How I Installed Hummingbot

 

You’ve probably seen tweets or Telegram messages like

Just installed a Hummingbot market maker on my pair — up 7x in volume.

If you’re not running your bot, you’re exiting liquidity.

Don’t build a token without liquidity automation. Period.

Today, I’ll show you exactly how I installed and configured Hummingbot, step-by-step, no fake guru nonsense.

Why Hummingbot?

Before we install anything, you should know why this matters. Hummingbot is an open-source crypto trading bot. It automates market-making strategies — placing buy and sell orders on both sides of the market to create liquidity, volume, and (sometimes) profit.

What You’ll Need

• A laptop or VPS with at least 2GB RAM (Linux or Mac is ideal; Windows works too)
• Python 3.8+ installed
• Basic command line comfort (don’t worry, I’ll hold your hand)
• A CEX or DEX account (Binance, KuCoin, Coinbase Pro, or a DEX like Uniswap/Raydium)
• Some trading capital ($50–$500 is fine to start)

Step 1: Install Hummingbot

Let’s use the Conda installation method, as it’s stable and developer-friendly.

Install Conda:

#First Step
#If you don't already have Anaconda or Miniconda
->curl -O https://repo.anaconda.com/miniconda/Miniconda3-latest-Linux-x86_64.sh

->bash Miniconda3-latest-Linux-x86_64.sh

Create a Hummingbot environment

conda create -n hummingbot python=3.8
conda activate hummingbot

Clone and install

git clone https://github.com/hummingbot/hummingbot.git
cd hummingbot
./install

Then launch

./start

You should now see the Hummingbot console — kind of like a text-based cockpit.

Step 2: Connect an Exchange

Now let’s plug in your trading account.

Inside the Hummingbot console:

connect
connect binance

It’ll prompt you for your API key and secret. You can generate those in your Binance account (make sure to enable trading but disable withdrawals). Never use your main exchange account for bots. Create a sub-account or API-restricted wallet.

Step 3: Choose a Strategy

Now for the fun part. Hummingbot supports several strategies — from pure market-making to arbitrage. We’ll go simple for now:

create

Then choose:

pure_market_making

You’ll be asked a bunch of things. Here’s how to respond the first time:

1. Market BTC-USDT
2. Order Amount 0.001
3. Bid/Ask Spread 1.5%
4. Inventory Skew 50/50
5. Order Refresh Time: 60 seconds
6. Randomize Orders? Yes

The Beginner Guide To Setup Hummingbot on your server: How to Dominate the Crypto Market with Arbitrage Trading With DCA Strategy

Step 4: Start the Bot

You’ve made it. Fire it up:

start

And just like that, your bot begins trading — placing bids and asks based on your config, adjusting every 60 seconds. You’re now officially operating a crypto trading bot. You’re not just watching charts anymore. You’re participating.

What Nobody Tells You About Hummingbot

• Don’t go all-in. Run small trades until you trust the setup. You’ll mess up configs at first. We all did.
• It won’t get you rich overnight. This is not a “set and forget” profit machine. It’s a learning tool, a liquidity tool, and a visibility tool.
• VPS = peace of mind. For 24/7 uptime, consider deploying your bot on a VPS (such as DigitalOcean or Vultr).
• Logs matter. Always check your logs. Hummingbot writes out every trade and error. Read them like a diary.

Who Is This For?

• Indie token founders trying to bootstrap trading activity
• Creators who want to understand how market-making works
• Developers experimenting with DeFi bot logic

This isn’t just about trading. It’s about not being invisible in a market that rewards activity. You don’t need to be a coder to run a trading bot. You just need to:

• Get over the command-line anxiety
• Start with small, stupid-safe settings
• Let it run
• Learn and iterate

Crypto moves fast. But now you’ve got a bot that moves faster. And hey — if your chart’s going to go sideways anyway, you might as well look busy doing it.