I'm not sure what is API and how it works but I will try explain what I'm looking.
for example I have bitcoin faucet. Every people who came to my website and insert bitcoin address and getting free bitcoins in faucet wallet until reaching minimum amount to able for cashout.
Question is about how working API?
I open account in API provider and get wallet there? then deposit bitcoin to API wallet and see full list of all bitcoin addresses who been inserted in my faucet? Then I mark addresses and click send coins? Thats it?
Everything is remotely correct besides the last part.
The point of an API within this scheme (faucet) is to perform the process of sending Bitcoin to faucet users automatically.
When a user requests a withdrawal, your server will send a request to the API server which will automatically send out the bitcoins from your API wallet.
If you are making a faucet however, due to the nature of small withdrawal requests, you should probably use a service like https://www.microwallet.org/