TheBuzr
Cryptocurrency trading borrows from foreign exchange trading and public trading of securities for listed companies. Initially, trading was a hectic, manual process. If you wished to buy or sell a security in the stock exchange market, you had to use a phone to call your coordinator at the exchange market and instruct them on the trade move you wished to make.
Fast forward to the age of the Internet, and the tables have turned. The trading process of buying and selling securities in an exchange market shifted to an online platform, from where manual processes were replaced by automated responses. Automation of trading has been the main advantage used by advanced traders to maximize their earnings for both stock exchange and cryptocurrency traders. The automation of such processes is made possible through the creation of APIs.
What Is an API?
API is an acronym for Application Programming Interface. It is a program that is designed to enable one application to communicate with another. The API assumes the role of a messenger. You use it to communicate your executable message to a system and wait for a response back.
APIs can be in the form of a web-based system, computer software or a database system. We use them in quite a number of online interactions every day. For instance, when you use an application like Trip Advisor to compare prices for a flight ticket or a hotel room in a country you plan to visit, Trip Advisor plays the role of an API.
For a price comparison, Trip Advisor uses details such as your place of departure, destination, date of travel or days to be spent in the hotel, to compare ticket prices from different airlines or hotels. What you get on your end is a summarized comparison of the prices.
There are also exists APIs that allow booking from selected systems. They communicate your request for a flight ticket to the airport and the request for a hotel room to the hotel management. The airport and hotel systems use the details in the request to make your bookings and send the receipts and details of your booking back to you through the API.
APIs in Cryptocurrency Trading
Now that you know what an API is, let us now make the connection to cryptocurrency trading for you. APIs in crypto trading are designed as trading terminals. They are the platforms that traders use most when interacting with the trading system of their choice. In other words, API trading terminals allow you to buy and sell cryptocurrencies and perform other executable actions directly to your exchange of choice.
How API Terminals for Trading Save Your Time
- Automation & Repeatability
Given the repetitive nature of trading, APIs come in handy when automating some of the processes involved. Traders have to constantly track the dynamic crypto market, perform market analysis, identify arbitrages and make trade moves depending on the market conditions. It is a tiresome process, especially for advanced traders that interact with multiple trading systems. APIs perform most of such processes in the background and present you with summarized information, such as prices or charts, that can be used for decision making when trading.
- Real-Time Information
Before APIs, traders had to screen for trading opportunities in one platform then use a separate channel to place a trade with their broker. With an API, traders can use algorithmic models on each of their trading systems and receive up to date information concerning the trade; such as live prices and arbitrages in real time. The user can also trade directly from the API, as it bridges the gap by allowing to perform executable actions right from the terminal. This eliminates the time wasted when switching platforms to compare prices and to place orders.
A trader can choose to set executable trades to occur automatically once certain parameters are met. Alternatively, if the trader wishes to execute the trade manually, the API sends a notification and a user then decides what to do next.
- Data Management
The crypto market is dynamic. Traders rely on years of market data analysis to run tests on their strategies. A comprehensive market analysis is based on past data, which can be time-consuming when done manually. APIs have superior data management capabilities which save traders from the agony of manual data compilation and analysis.
Saving Time with Superorder
By accessing automated systems, traders can facilitate their experience. Take Superorder. It is an advanced terminal that allows traders to interact with multiple systems on one clean user platform. It collects data and performs market analysis for you, lifting that heavy burden from your shoulders.
Superorder does the heavy lifting, leaving users free to explore other markets or even relax. It fits both newcomers and master traders, generally.
