Best Crypto APIs for Trading
Security is a crucial factor in crypto trading. Today, when choosing a platform, traders pay attention not only to the number of instruments for trading or top cryptocurrency exchanges but also to the storage of API keys. In most cases, users want to be sure that their accounts will not be hacked and that their API keys are not available to third parties. Indeed, the crypto industry is very attractive to hackers who are in pursuit of profit. For example, a recent case with the 3Commas platform made users think about their safety while trading on various crypto platforms. A database, containing 3Commas users’ personal information, including exchange API keys, has been hacked. The company does not store user funds; they “only” store the client keys that allow the user’s trading bots to connect to the exchanges via APIs (Application Programming Interfaces).
To avoid such situations and take full advantage of trading in the cryptocurrency market, you must consider all the conditions for storing the exchange APIs. We will talk about the basics of the API and how to use these tools to secure yourself in the crypto market.
What are Exchange APIs?
API keys are used to authenticate users and determine which account an automated program is accessing.
There are two important elements in an API key: a public key and a private key.
When a trader requests access to his account, the program will use a secret key to sign requests. This tells the exchange that the program has permission to access the traders’ exchange account and execute transactions that are supported by the API key.
API keys allow traders to automatically access their exchange account so they can open orders without logging into a crypto exchange.
Crypto traders can use third-party services to trade, manage their assets, store information about their accounts, and implement complex trading strategies with API keys.
It is worth noting that each crypto exchange has unique API keys that give traders the ability to manage their accounts in different ways. The most common exchange API functions include placing orders, collecting account information, and accessing market data.
How to connect to exchange APIs?
Many exchanges have a process for connecting an account to third-party software solutions. Subject to certain exceptions, all crypto exchanges allow users to create API keys and connect those keys to the crypto platform.
To connect your exchange account to another platform, you need to log into your account and determine where the exchange provides access to the “API Management” functions. Sometimes this section is under the security and profile sections or exchange account control settings.
Once you have found the section to create API keys, follow the process of generating new API keys on the crypto exchange account. Then, the exchange will provide you with public and private API keys. These keys should be kept in a safe place that only you can access.
Note. Some crypto exchanges only display the private key once. After that, the exchange will never provide this information again. This implies that if you lose your private key, you will have to start the process from scratch and create new exchange APIs.
When prompted to choose permissions for your API keys, you must select all options for reading information from your account. If you also want to trade via the API, you must enable trading permissions as well.
Typically, exchanges break permissions into three main categories:
Data – With this permission, the API keys gain access to your account information such as your balances, trade history, and open orders. These operations are intended for read-only. This implies API keys cannot modify your account.
Crypto trading – With this permission, API keys can open and close orders. These are write operations. Basically, the program can amend your account.
Withdrawal – With this permission, the API keys can withdraw money from your account. So, the program will be able to transfer your funds without your approval.
Do not allow anybody to withdraw your funds.
You must remember that legal crypto trading platforms never ask for permission to withdraw your money using the exchange’s APIs. If they do, we highly recommend not using this trading service. On the contrary, you can lose your money forever.
What is the most secure crypto trading platform?
The best and most secure crypto trading platform is considered Cryptorobotics. This cryptocurrency platform allows its users to use not only a wide range of tools for trading cryptocurrency on the largest exchanges but also to securely create and store their own API keys. Let’s take a look at the process of creating and storing exchange APIs.
Why is it safe to use and store API keys on the Cryptorobotics platform?
- After the user adds an API key to the platform, it is immediately transferred to the server and removed from the interface.
- The server divides the API and Secret key into several parts.
- All parts of the API key are encrypted using 256-bit hash encryption.
- All encrypted parts of the API key are placed in different stores in the database.
- The data is transmitted via an encrypted protocol of interaction with the exchange.
- The key is collected together and decrypted by the system only at the time of the transaction.
- The decryption algorithm is in a binary file that is not open source.
The Cryptorobotics cryptocurrency platform allows its users to trade on the best crypto exchanges such as Binance, Bybit, OKX (OKEX), Kraken, KuCoin, Huobi, Gateio, EXMO, etc. Let’s take a closer look at how to create an API key to integrate into the Cryptorobotics platform and start trading on the best crypto exchanges through a single interface.
How to Integrate Exchange Account into Cryptorobotics with API Keys?
- Create an account on the Cryptorobotics platform.
- Create an account on the crypto exchange for which you will trade.
- Generate API Keys (More detailed instructions on how to create API keys for each exchange available on the platform can be found here).
- Next, you need to integrate your crypto exchange account into the Cryptorobotics platform using API keys. To do this, you need to implement the following actions:
4.1. Go to the “Account” menu, and then select the “Exchange Accounts” tab.
4.2. Select Add a new exchange
4.3. Choose a crypto exchange
4.4. Add API and Secret key.
4.5. Come up with a name for your key.
4.6. Press the button – Add.
After you complete these steps, your API key will be integrated into the platform and you can start trading on any crypto exchange using the trading terminal and Cryptorobotics algorithmic tools.