Interest in cryptocurrencies has grown drastically, recently. It all started with Bitcoin in 2009, and in the beginning, not many people knew about them. Many didn’t even think that cryptocurrencies were a real thing, calling them a “bubble.”
Cryptocurrencies are becoming part of the established global financial market. Blockchain is growing, and now it is being used by many other industries, other than the crypto industry. Cryptocurrencies are being taken more seriously as they keep expanding.
Before the internet, people used to do financial trading over the phone. If one wanted to buy stocks, they would have to call their broker and have them execute a trade on their behalf. Then, the internet changed the way trading worked, just like it changed almost everything else.
Now, buying and selling stocks has moved online, and sophisticated technology has made the process easier and more advanced. Moreover, the creation of trading APIs had a significant impact on the way trading is made.
What does API mean?
API stands for “Application Programming Interface.” API is like a messenger. It basically allows one software application to interact with one another. API takes the request, tells the systems what you want it to do, and it returns the system’s response back to you.
Think about when you book an airline flight. You put all your information such as the destination you want to go to and the dates you want to travel to. Then the comparison site searches through all available airline databases and gives you the options. This is done using APIs provided by each airline.
APIs and Cryptocurrency
For cryptocurrency trading, an API allows you to connect with your exchange, giving you access to real-time market data, to execute trades, and manage your account. APIs are an integral part of cryptocurrency trading, and they are proof of the evolution of the cryptographic asset trading ecosystem.
APIs are designed to make anyone’s cryptocurrency journey easier, whether they are crypto app developers, traders, or just passionately curious individuals for cryptocurrencies.
In the cryptocurrency ecosystem, a CryptoAPI allows access to market data on exchanges. The two most popular APIs are price and trade execution APIs. Cryptocurrency exchanges provide live price data and historical price data, all thanks to APIs. Also, most of the crypto exchanges proved live execution APIs.
Further, trade execution APIs enable traders to trade using third-party platforms. For example. crypto wallets with built-in exchange functionality or desktop trading terminals can be used without having to log on to the trading platform directly, thanks to trade execution APIs
The more the crypto asset trading ecosystem evolves, the more market participants can be expected. Therefore, as more sophisticated investors enter the crypto industry, the use of APIs and algorithmic trading will increase.