What is API

Majority of crypto traders have come across the concept of an API. But not everyone understands what it is. We have prepared a detailed article about API and API keys: what is API, how API keys work, and why they are needed in CScalp.

The guide has been prepared by the CScalp terminal team. You can get CScalp by leaving your e-mail in the form below.

API definition

API (Application programming interface) – software interface that provides communication between different programs. Simply put, this is a technical solution for the rapid interaction of applications with each other. An API can define the functionality that will be performed in a particular program.

The API is used when working with the file system, storing data, programming in social networks for integration with third-party sites and applications, etc. Thanks to the API, crypto traders get the opportunity to trade on the stock exchange through terminals and run trading bots.

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What API keys are

API keys are encrypted keys for the user authentication which is similar to login and password. There are two types of API keys:

1. Public keys (opened). Used to encrypt data while the application accesses the server.
2. Secret key (private). Known only to the user and owner of the site. Used to decrypt data sent by the application.

API keys are used for asymmetric encryption. This encryption ensures security: if a hacker gets the public key, the hacker still can’t authenticate without the private key.

Note: the secret key is displayed only once, at creation. If necessary, store it in a safe place. If the private key is lost, you can always regenerate the keychain.

Typically, API keys look like a long string of different characters. This makes keys difficult to hack.

How API keys work

When entering API keys in the application, a request is sent to the server. If there are no problems with request identification, the program starts receiving data from the server. API keys allow you to connect third-party programs to websites or exchange information between services.

API keys are used when connecting the CScalp platform to the exchanges:

• Binance
• Bybit
• BitMEX
• Bitfinex
• OKX
• dYdX

How it works. The user creates API keys in the personal account of the exchange. Then he enters them into the ApiKey and ApiSecret settings fields and connects to the exchange. The data flow from the exchange servers begins to flow into CScalp. The trader gets the opportunity to trade on the stock exchange through a completely “foreign” application.

API security

You risk your own funds by providing API key information to the third parties. Create a separate API keys pair for each application for the security purpose.

You don’t have to worry about the safety of API keys while using CScalp.

Conclusion

API is a convenient communication tool between programs. Today it is used everywhere. Most crypto exchanges have their own API. They provide the ability to connect applications from other companies, including trading platforms, to their servers via API keys.