📌Understanding APIs and API trading
🔵If you are already a user of the OneExBit terminal, then you know that it uses API to connect you to almost 10 of the biggest crypto exchanges on the market. You can trade on several exchanges simultaneously and even use several accounts on the same exchange – all in the same terminal, without having to switch between multiple browser tabs.
🔵But what is an API exactly? We find APIs everywhere: from Facebook to banking apps, from Google maps to crypto trading. It is such a common buzzword that many users never stop to think about what the word API even means. In this article, we will provide a clear explanation.
🔵API is an abbreviation for “Application Programming Interface”. We are used to program interfaces designed for humans, with pictures and text. However, machines and programs need to interact with each other, too – and of course, they do not require pictures, verbal instructions and so on. An API provides a way for two machines to talk to each other in a language they both understand. One machine or program will send a request for a service (an API call), and the other will provide it.
🔵There is a well-known illustration of an API, invented by David Berlind, chief editor of the website Programmable Web. Think of any home appliance that uses electricity. The energy comes from a power station and eventually arrives by wires to your house. To make an appliance work, you just need to plug it into the wall. All appliances in the same country have standardized pins, so that any plug you have in your home will do. (Sure, some devices – like laptops – need power adapters, but that’s not the point: the pins that go into the wall are still the same.)
🔵In this example you can think of the appliance and the power station as two machines, and the wall plug becomes the interface. The electricity is the service provided to appliances. The power station and the plug both do not care what kind of appliance you connect to the mains – it can be a fridge, a computer, or a hair-dryer. The act of connecting a device to the plug is the API call, resulting in the provision of the service – electric energy.
🔵APIs are already in almost all the programs we use. They can power such simple functions as providing a weather forecast on a hotel-booking website, or providing instant translation of a web page you are reading, or integrating a location on Google Maps into a social media post. Crypto exchanges use APIs in many ways: to allow you to buy and sell cryptocurrency, obtain current and historical exchange rate data, generate blockchain addresses, and even accept payments for goods and services in crypto.
🔵In order to trade on an exchange via a terminal like OneExBit, you need to obtain the API keys (one public, one private) from a special section on the exchange website. Keeping your API keys safe is crucial. In our next article, we will discuss API security – stay tuned!
Best regards,
❤️ Onex Team
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