Crypto APIs have been climbing the popularity ladder recently for professional crypto traders who use trading software. So are crypto APIs really worth your time? And if so, which one is the best choice? Come, let us have a look.

What is a Crypto API?

An Application Program Interface, also known as API, defines how two software components interact with one another. It is also used for coding Graphic User Interface (GUI). Simply put, many APIs integrated together is an application. API plug-in consists of a set of packages that provides the developer what he/she needs to construct a program making his/her job a lot easier. A good example of an API is Apple API which is used to recognize the touchscreen interactions.

The most commonly used APIs in crypto-asset markets are price API and trade execution API. All the digital asset exchange markets with high reputation proffer price APIs. Price APIs allows the user to retrieve all the previous and the current price information from the trading platform. Trade execution APIs let its users trade using third-party platforms.

Major Users who use Crypto APIs

Most frequent users who use crypto APIs are experienced traders, cryptocurrency wallets, hedge funds, and data analytics platform. 

Users like experienced traders, hedge funds and prop trading desks use properly trained and developed trading bots to execute automated trading strategies. In order for these trading bots to function in a fully-automated way, real-time pricing and live execution APIs are needed. Price APIs, as well as Execution APIs, are required for algorithmic trading. 

Cryptocurrency wallets use real-time price APIs to let their users know how much worth of their fiat currency they hold as digital assets. Cryptocurrency wallets generally make use of a single price API from a highly reputable exchange.

Data analytics platforms make use of any API that feeds data into their platform.

What are all the features a good API provides?

Each and every APIs out there are unique. There are a lot of aspects to consider before deciding what API to use in your application software. 

The first and most important factor that a good API provides is the data quality of an API. If the data provided by an API is not accurate, then the entire point of using that API is pointless.

Following data quality, the next most important feature a good API should provide is low latency. The ability to deliver a large number of data with so little delay is referred to as low latency. Low latency is considered important especially for APIs like live execution API. As the trades take place in real-time in a trading platform, it all comes down to whether the API is of high quality or not in deciding if the trade is a profitable trade or an unprofitable trade.

Also, a good API should let its users make as much data requests that they want. In some trading scenarios, when inexperienced traders make a crypto asset trade they often tend to make mistakes. So an API should allow as many as data request possible for such cases.

API documentation in simple terms is guidelines to effectively use an API and integrating it. A good API should have API documentation which is detailed and easily understood by others so that the integration of the API into the user’s software is easier. 

Crypto API use cases

Crypto APIs help in developing prediction software. In order to build a prediction software, you will need a pre-existing data set and analyze the dataset. The crypto API will take care of the data set that you need. 

Using Crypto API developing a mining tool that requires Blockchain and Crypto Market data has never been easier and quicker.

Crypto APIs make developing Arbitrage software a walk in the park with the help of Arbitrage WebSocket and Wallets Account Management API.

Crypto API also has other use cases like developing Crypto Lending, Crypto/Blockchain signals, Crypto exchange, and so on.

APIs and current market scenario

Over the past few years, cryptocurrency bot trading has been increasingly attracting enough attention. Their primary objective is to make the utmost profit to its operators. 

According to a recent report, most blockchain technologies are still almost a decade away from truly reaching the mainstream market. Crypto API has been the root key for the development of the cryptocurrency trading environment. As the cryptocurrency trading still continues to grow exponentially, the usage of APIs is also increasing proportionally.
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Posted By

Abishek Dharshan


Abishek is an Entrepreneur, Digital Nomad, Student, and ICO Marketing Manager currently based in Berlin & Champaign. He is actively involved in the Blockchain space and has worked in numerous projects in the Silicon Valley since 2017. His interests revolve around Finance, Consulting, and Blockchain Research.


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