What does API mean?
The acronym API stands for Application Programming Interface. Most large companies develop apis at some stage for customer or internal use.
Apis help various applications interact with each other. In everyday life, we often use apis, but we are not always aware that we are dealing with them.
Where is API technology used?
Web services create apis to interact directly with their users without using a browser. Apis work in two ways: users can access blockchain data api to get the necessary data and/or manage their accounts, and perform certain actions within these web services.
Here is an example of API usage:
- Sign up in an app with social media credentials. Each social network has its own API. Websites and applications that users log in to with their social media credentials use the social media API protocol. In addition, these websites and applications collect authorized user data through the same API.
Google uses apis to allow developers of various applications to access information from Google services and integrate it into their websites. For example, you can watch videos hosted on the YouTube platform on other websites or even apps.
Api is widely used by trading platforms and stock market analysis websites that collect data directly from exchanges and even create charts based on it. Previously, in order to get market information, traders and investors had to call real trading platforms and talk to brokers. Information is now readily available on the Internet.
Apis in crypto trading?
Various crypto services use apis to get up-to-date information about digital currencies and their prices. In particular, it can be:
Current pricing;
Trading volume data;
Opening and closing prices, high and low prices, etc. ;
Historical data on volumes and prices;
News sources and market information.
Cryptocurrencies are rated by volume, capitalization, etc.
Cryptocurrency trading robot
Professional traders create bots that use apis to trade on exchanges. In this case, the API allows you to set trading times, entry/exit points, profit and stop loss levels, etc.
Trading bot strategies can vary, but even the most sophisticated strategies can use apis. Some robots, for example, take advantage of market arbitrage. These bots monitor the markets of various exchanges through apis. If the bot finds that a cryptocurrency is undervalued on one exchange but overvalued on another, it will buy the cryptocurrency on the exchange with the lower price and sell it on the exchange with the higher price.
