Before the advent of the Internet, financial transactions were carried out mainly by telephone. For example, if you wanted to buy stocks, you had to call your broker and ask him to make a deal on your behalf.
Later, the purchase and sale of securities moved to the Internet, and this process has become much more efficient. In particular, APIs have received widespread development. What is crypto exchange API and how it is used in crypto trading, let’s dive!
What is API?
API (Application Programming Interface) — an interface that allows applications to interact with each other. You can imagine that the API is an instant messenger that accepts the request and reports it to the system, and then returns the answer to you.
Imagine that you book a vacation on any service that allows you to compare the prices of different hotels, for example, Booking. As soon as you enter the cities of destination, choose the price range, and the amount of rooms needed, the service looks at all the available hotels and offers suitable options — this is done using the API provided by all available websites of hotels.
What is Trading API?
Trading API, as the name implies, allows you to interact with the trading system, or, more precisely, to carry out transactions directly on the cryptocurrency exchange. This is especially useful for traders who use algorithmic models in their trading systems — they need prices that are updated in real time, as well as the ability to carry out transactions (manually or automatically) as soon as their model issues a corresponding signal.
Trading API is especially popular with hedge funds and privately-traded firms because they make extensive use of algorithmic trading, but even private investors can use the interfaces provided by online brokers — the same goes for cryptocurrency exchangers.
Most of the leading cryptocurrency exchanges offer their clients an API for trading, allowing them to support direct trading.
Advantages of Trading API
Trading API has become an integral part of the toolkit of professional cryptocurrency traders, and their appearance indicates the evolution of the ecosystem.
The more sophisticated investors come to the cryptocurrency market, the wider the use of API and algorithmic trading. Meanwhile, trading programs used for the most efficient arbitrage make the market more liquid and efficient, which, in turn, can attract new institutional investors to this new class of assets.
The more mature the cryptocurrency ecosystem becomes, the more features players coming to this market expect, and today we are moving toward the fact that the cryptocurrency market is slowly becoming part of the traditional financial markets. As soon as the issue of cryptocurrency regulation is resolved in the leading countries of the world, we will see an influx of money from institutional investors, and the development of complex and secure trading APIs will play a small but very important role in this.
ROKKEX will also provide our users with Trading API opportunity. Don’t miss this out!
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