Definition

API Integration refers to the process of securely connecting two software systems so they can communicate and exchange data automatically. In crypto trading, this typically means linking your exchange account to a trading platform or bot using an Application Programming Interface (API).

Through API integration, a platform can retrieve market data, account balances, and open positions, as well as place or manage trades on your behalf according to your configured settings.

Permissions are typically customizable, allowing users to enable trading access while restricting withdrawals for additional security.

Example in Context

A trader generates an API key from their exchange account and connects it to a trading bot platform. The platform uses the API to monitor balances, read price data, and execute trades automatically without requiring the trader to log in manually each time.

FAQs

Is API integration safe?

API connections can be secure when configured properly. Many exchanges allow users to disable withdrawal permissions and restrict access by IP address to reduce risk.

Does API integration give full control of my funds?

API permissions are configurable. Most trading integrations only require trading access and do not require withdrawal permissions.

Do I need technical knowledge to set up an API?

Basic familiarity with exchange settings is helpful, but many platforms provide step-by-step setup guides.

Can I disconnect an API at any time?

Yes. API keys can typically be deleted or disabled directly within your exchange account.

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