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What is digital currency API and what is its use?

What is digital currency API and what is its use?

The world of digital currencies is a big world where there are various opportunities to invest in it. Those who want to buy, sell and invest in digital currencies without getting into specialized and advanced discussions can start with a little simple training.

On the other hand, there are those who are looking for more ways to increase their capital after working in the world of cryptocurrencies for a long time. Methods such as mining, depositing, participating in initial supply, etc. are among these new opportunities that can be used to earn money in addition to buying and selling. We have talked about these methods in previous articles published on the site, and today we want to talk about API or application programming interface.

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In the end, you will understand how understanding and using this technology can increase your profitability and create new opportunities for you. Stay with us.

API or application programming interface

API stands for Application Programming Interface. The simplest definition that can be given for an API is that this technology is actually a piece of programming code that allows two separate programs to exchange information with each other.

For example, consider a site like “Coinmarketcap”, which is one of the best sites that provide statistics in the field of digital currencies. If you enter this site, you will see that the latest prices of various currencies from several exchanges are displayed in real time; Actually, what happens is that Coin Market Cap connects to various exchanges with the help of API and takes the latest price of the desired currency from them and displays it on its site.

In other words, let’s assume that you have entered the Bitcoin digital currency page on the Coin Market Cap site. What happens behind the scenes is that CoinMarketCap sends information such as the name of the digital currency, time frame and similar information to various exchanges using an API. Exchanges receive this request and take the requested information from their database and send it again to Coin Market Cap with the help of API. Then this site displays the data received from the exchanges on the page you entered.

API allows sites, programs and mobile applications to easily and quickly exchange different information with each other, even though they have different structures.

In the example above, exchanges have the role of API provider and Coin Market Cap also has the role of API user, because in the design and construction of exchanges, APIs are also programmed for them so that other programs like Coin Market Cap can use them.

Now that we are familiar with the concept of API or application programming interface, let’s talk about the new opportunities that this technology creates for us in the field of investing in the world of digital currencies.

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