8304
5 min

API: A Complex but Important Tool in Simple Words

API: A Complex but Important Tool in Simple Words

The term API is widely used by software developers and those who has something to do with the “stuffing” of various platforms, and cryptocurrency exchanges are no exception. Let’s find out what API is, how this tool helps to connect different services, and how it is used in a blockchain environment.

What is an API?

The API abbreviation means Application Programming Interface. The technological world is at a stage where platforms need each other’s services to operate as efficiently as possible. API satisfies this need. In short, API is a set of ready-made functions of a particular platform that can be used by other platforms to gain and use the data from it or to cooperate with it.

Using popular applications such as Google Maps, we use an API that transmits data from satellites to the application. Without API, it would be impossible to use platforms that show the exchange rate of securities, currencies, and other commodities. Otherwise, investors would have to call the trading platform separately and get the necessary information from brokers.

API is created by developers and for developers, so that the platforms can interact with each other and bring as much benefit to their users as possible.

API and cryptocurrency

Crypto APIs provide important data on the current state of cryptocurrencies from professional platforms such as crypto exchanges. Let’s look at the list of information that can be obtained through a convenient API:

  • current cryptocurrency rate;
  • data on the trading volumes;
  • opening, closing, minimum and maximum prices;
  • the place of the asset in the cryptocurrency rating;
  • news from the world of cryptocurrencies and more.

Platforms that need such data can integrate it using the API of the selected cryptocurrency exchange. In addition, the tool allows professional traders to optimize trading manually or with special bots. Thus, API can help traders to make deals on the exchange, set the time of the transaction, manage the entry and the exit prices, and more. You can also use API to analyze the probability of making a profit by combining information about the value of the asset and trading history.

API and trading bots

Trading bots that use API are also used in trading. Let’s look at the examples.

  • Bots for arbitrage trading. Such bots analyze the value of cryptocurrencies on different trading platforms and help to catch the possibility of making a profit from the difference in prices on exchanges.
  • Trading bots that analyze the price movements. They use an API of crypto exchanges to forecast asset prices. Such bots study the impulses of a cryptocurrency development, analyze the possibility of profit, and place a relevant order.
  • The bots that determine the average price of cryptocurrency over a period of time. When the value of an asset differs from this indicator, the bot monitors its development and places an order when the price is about to reach its average position.

Is using API safe?

API is a tool that aims to optimize the users’ experience and keep their attention on the product. Convenient API opens up many opportunities for traders to obtain up-to-date information in a convenient and secure way.

The use of API is essentially the use of publicly available data, so the probability of conducting a fraud is very small. User security may be compromised if an attacker gains access to your wallet. As for trading bots, they may not take into account the indicators that are important for your trading strategy.

Wrapping up

API is a tool needed for the effective functioning of any modern platform. It enables the users to learn the necessary information without turning to direct sources. It is especially effective and applicable in cryptocurrency trading. Thus, a convenient API is the key to an optimal, efficient, and successful user experience.

Share to
Published by
Author: WhiteBIT WhiteBIT
The whole world of cryptocurrencies in your pocket
Always at your fingertips

Recent Articles

What is Blockchain Consensus Mechanisms?

Upon first encountering blockchain technology, one fundamental question immediately springs to mind: how ...

Understanding Crypto Cycle: A Practical Guide for Traders

The cryptocurrency market is constantly evolving — it moves in cycles, with fluctuations at every turn. U...

What is Total Value Locked in Crypto (TVL): Everything You Need to Know

Have you ever wondered how the success of a DeFi project is determined? Why do some protocols raise billi...

Real-Time Best Bid/Ask WebSocket Stream: Technical Overview

Access to real-time market data is a critical requirement in high-frequency trading and automated executi...

Your Card Just Became Even More Powerful

WhiteBIT Nova is more than just a card — it’s a tool that lets you manage cryptocurrency in a way that su...

More News

Go to the Category
Beginners Guide on How to Use WhiteBIT Crypto Exchange

Cryptocurrency trading might seem daunting at first, but with WhiteBIT, it doesn’t have to be. In this ar...

What is Vesting in Crypto Meaning: A Detailed Guide

Unlocking all tokens at once may cause market disturbance, high volatility, and even major sell-offs. Tha...

Unveiling the Future of Gaming: Exploring The World Challenge Game

In the ever-evolving landscape of Web3 gaming, staying ahead of the competition is paramount. Today, we d...

What is Solidus Ai Tech?

Solidus Ai Tech claims to be at the forefront of democratizing artificial intelligence by creating a full...

What Is Arbitrage Trading in Crypto?

With the ever-changing prices in the cryptocurrency markets, arbitrage is becoming a real boon for skillf...

Let your crypto work for you

Store assets with Crypto Lending and earn up to 18.64% annually. Minimum effort — maximum gain.

Download App

scan the QR code