What is an API key and how to use it?
An API (Application Programming Interface) is a software intermediary that enables a stock trader to seamlessly communicate and interact with diverse programs.
To put it another way, an API refers to a solution for interconnecting the apps. his technology is not limited to the blockchain sphere. APIs can facilitate working with data sets, file systems, and integrate social networks with analytical websites and applications.
Cryptocurrency traders use APIs to connect their exchange accounts to specialized terminals, configure trading strategies, and create their own trading bots.
So, what are API keys and what types of keys exist?
An API key is a special user ID for a particular application, like a username and password. It is a unique code (or even several codes) that traders use to authenticate themselves and identify their data within the application.
There are two types of API keys:
● Public keys are used for data encryption and signature generation;
● Private (secret) keys are only known to the website owner and the user. In fact, the private key decrypts the public key data.
Encryption types
Two types of encryption are used to sign data through the API:
● Symmetric encryption uses the same key for data verification and signature. This makes the connection to third-party software faster and easier, while also using a minimum of the device's computing power. The most common symmetric encryption key is HMAC;
● Asymmetric encryption uses two types of keys (public and private). This significantly boosts security by distributing the tasks for generation and verification of the signature between two different keys. Furthermore, several private keys allow users to set a password.
Where to get API keys and how to connect to apps?
API keys can be generated on many cryptocurrency exchanges, including WhiteBIT, OKX, Bybit, and others. It is available in the "API" section.
To connect to programs:
● the user creates their own API key;
● by opening the desired application, the exchange-generated API key is pasted into the corresponding window.;
● If there are no sync problems, the software automatically retrieves the user's data from the trading platform's server. The user can now conduct trading on the exchange through other apps.
Creating your own API key (WhiteBIT)
Traders often connect exchanges to scalping terminals like Tiger Trade, CScalp, 3Commas.
Security guidelines
It's important to remember that an API key grants access to personal and confidential data. Hence, the security measures you take with an API key should be the same as those you use with passwords and SEED phrases for wallets. Here are some guidelines to follow:
● Periodically change your API keys and reconnect to sites with new data;
● Use different API keys, while working with different platforms;
● Avoid storing the API key digitally, whether on social media, messages or photos. Instead, it’s better to keep the key in a safe place without internet access, such as writing it down in a notebook;
● Do not disclose your keys to third parties;
● Create a "whitelist" of IP addresses so that you can visit websites without repeatedly entering queries in the search bar.
