API is known as one of the technologies that assist businesses to develop products and services, increasing the business’ efficiency, as well as enabling businesses to reach the users and target groups.
This article has compiled everything you need to know about API, such as API’s definition, its importance, and how to do API trading. Read through the end to learn more.
What is API?
Application Programming Interface (API) is a software medium that allows users and exchanges to communicate through the programming language.
Why is API important for exchanges?
There are two main reasons why API is important for digital asset exchanges.
- It pulls data from the digital asset exchanges: Investors can use the data to analyze the investment and make faster, more timely trades that have a higher level of accuracy. However, it depends on each exchange’s terms and the permissions given for the API service.
- Trading orders can be sent automatically: API connects users on the exchanges to the system directly, resulting in a prompt trading process.
What is CCXT?
CCXT is a library of programs used to write commands in a programming language to customize the project according to the users and the API service providers. CCXT is the standard of how several cryptocurrency exchanges’ connect to the API and it is also used by Zipmex.
More details about CCXT: https://github.com/ccxt/ccxt
How Zipmex connects to API
- Install CCXT
- Setup parameters
- Connect
The example below is how to install CCXT with Python (For different programming languages, click here.)
Install CCXT:
- Start installing the program library on Python with “pip install ccxt” command through Terminal or Command line
pip install ccxt
- Use !pip install ccxt command to work on Jupyter notebook
!pip install ccxt
- When the installation is complete, the connection stage will start. Fill the information with the received API as an example below
import ccxt
Zipmex_exchange = ccxt.zipmex({
‘apiKey’: ‘YOUT_API_KEY’,
‘secret’: ‘YOUR_SECRET_API_KEY’,
‘uid’: ‘YOUR_USER_ID’,
‘login’: ‘YOUR_LOGIN_EMAIL’,
})
Who is API good for?
API is perfect for many types of investments. We can separate them into three trading styles as follows;
- Qualitative trading: Quantitative traders focus on Robot trading or Algorithmic trading which implements API to accurately send trading orders.
- Algorithmic trading: This type of trading is similar to qualitative trading as it uses API to send accurate and immediate trading orders
- Arbitrage trading: API makes arbitrage traders process their transactions immediately which is very beneficial for traders as arbitrage trading requires short exchange time to get the expected return.
Frequently asked questions about API
- What does API stand for?
API stands for Application Programming Interface
- What is API documentation?
API documentation is a collection of references, lessons, and tutorials to help developers use API effectively. It is the primary set of information to explain API’s possibility and how to get started.
- What are the differences between SDK and API?
API is a set of data used to create the main language for external use, while SDK is a set of tools developed to assist API usage.
- What languages should be used to write API?
Developers can use almost every modern programming language to write the API codes, such as JavaScript, Ruby, Python, and Java.
- What is API trading?
API trading is a feature that helps users connect two applications together. For example, you can connect an IG account (Forex broker) to a custom-built trading platform.
- What are API’s advantages?
- More efficient workflow: As API is controlled by the computer, the workflow and management are simpler and faster. Data can be shared with the target groups in every channel thoroughly.
- More innovations for developers: Developers work better by reusing complex codes under well-structured steps.
- More valuable outcome: API implementation is considered one of the factors that attract more customers.
Conclusion
An API is an intermediary tool that connects user commands with the service providers. API implementation is significantly beneficial for businesses because it enhances the service system. Meanwhile, from a retail investing or trading perspective, investors can use APIs to analyze their investments and make faster and more accurate trades. Therefore, understanding API technology can be useful and advantageous for both businesses and individuals. To learn more about how to use Zipmex’s API, see below.
Disclaimer:
The content of this article has been compiled from various reliable financial sources. To provide preliminary knowledge to the general public only. However, every investment involves risk. Investors should study and understand asset characteristics. Return conditions and the risk of that asset including assessing risks before making investment decisions
