I want to know, is this possible, i wanted to build a steering button hub with arduino board
I moved your topic to an appropriate forum category @mintjoker .
In the future, please take some time to pick the forum category that best suits the subject of your topic. There is an "About the _____ category" topic at the top of each category that explains its purpose.
This is an important part of responsible forum usage, as explained in the "How to get the best out of this forum" guide. The guide contains a lot of other useful information. Please read it.
Thanks in advance for your cooperation.
Please post a link to the encoder datasheet.
Before knowing if it is possible, we need to see a drawing of the physical device showing all your devices and how they are positioned on your steering button hub. I don't think it is possible unless you have a ship's steering.