The financial sector has seen endless innovation over the last two decades. In particular, Banks and other financial institutions have undergone a digital revolution. It is a revolution that has changed every daily business activity. Technology has shifted from paper records to cumbersome mainframes, to modern robust database technologies that carry out transactions with unprecedented speed, volume, and convenience. Despite these sweeping changes, no innovation has affected banking and finance as much as cryptocurrency will.
Cryptocurrency has ignited an era of digital trading that doesn’t need a bank to happen. Moreover, the potential profitability of cryptocurrency has sparked a never-before-seen level of interest and investment. But, like all investments, trading cryptocurrency successfully requires accurate information. Among that information, the cryptocurrency exchange rate is the most important.
If you want to be sure that your investment doesn’t suddenly take a hit, then you must constantly monitor cryptocurrency exchange rates. Many trading tools provide you with exchange rate information. To take it up a notch, tools like the coinlayer exchange rate API provide accurate, minute-by-minute cryptocurrency exchange rates. It is an excellent resource whether you want to automate trading or simply access up-to-date information on demand.
This article takes you through all the details of using a dependable cryptocurrency exchange rate API. It also lets you know what you should look for when you choose one for your own trading needs.
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How Could a Cryptocurrency Exchange Rate API come in Handy?
One of the advantages of trading digital assets like cryptocurrencies is that you can do it from anywhere, usually with a few clicks. Mobile apps put cryptocurrency asset management and trading in your pocket. You can keep your finger on the market’s pulse and make trades in an instant — no matter where you are. In addition, with the information most apps provide, you can analyze trends to help you make decisions.
Despite the convenience of these apps, monitoring them constantly is tiring. Not everyone has the time to give them their full attention. As a result, you may miss an important opportunity when you are not looking. That is why many people automate their cryptocurrency trades. There are plenty of intelligent tools, like powerful cryptocurrency APIs, that make this possible.
The right cryptocurrency API can simplify your cryptocurrency strategy through automation. For example, you could choose an API like coinlayer to notify you of changes to your cryptocurrency’s exchange rates. After all, exchange rates are the basis of most trading decisions.
Why Not Use Any Cryptocurrency Exchange Rates API?
After you decide to make a cryptocurrency exchange rate API an integral part of your strategy, the next challenge is selecting the right one. Given the hype that surrounds cryptocurrencies, there is no shortage of APIs on offer. But randomly choosing a tool for critical information like cryptocurrency exchange rates is risky.
Here is why.
Some cryptocurrency exchanges report incorrect trading volumes. This, in turn, affects the exchange rate they show by affecting the volume-weighted average price. Instead, you can avoid incorrect information by selecting a reliable cryptocurrency exchange rate API.
Next, when it comes to Fintech, security is a major concern. While all tools apply basic security measures to your transactions and assets, they may not be enough. When you choose a cryptocurrency exchange rate API, look for robust security measures like high-level encryption to protect your API requests and responses.
The crypto market is still evolving. Don’t blindly trust every available API. When you build your cryptocurrency strategy involve an API like coinlayer that you can use with confidence. Only then is your strategy secure. Without the right tools, you are always at the risk of receiving potentially harmful cryptocurrency information.
What Is The Ultimate Cryptocurrency Exchange Rates API Checklist?
To help you do your due diligence and select a risk-free cryptocurrency exchange rate API you need to know what characteristics make an API safe. Many APIs proudly boast sprawling lists of features, but those features are useless unless you need them.
Here are some questions you should ask when you are choosing a cryptocurrency exchange rate API.
Does It Provide Quality Data At Blazing Speeds?
First and foremost you want a cryptocurrency exchange rate API that gives you accurate rates. Because of this, you need to know what sources the API uses. You also need to know if they are trustworthy. Ideally, your API collects data from multiple reliable cryptocurrency exchange sources.
Because cryptocurrency rates are volatile, your API also needs to provide regular updates. Outdated data, even by a small margin, can lead to heavy losses. It only stands to reason that your API needs to have solid sources and a robust back-end so accurate data reaches you quickly.
How Extensive Is The Data It Provides?
In addition to data quality and speed, your cryptocurrency exchange API should provide you with an extensive rate history. The ideal API will allow you to query rate histories history of the exchange rates so you can factor them into your decisions.
Your API also needs to cover as many active cryptocurrencies as the market supports. New digital currencies appear almost daily and some old ones become obsolete disappear. Your API should keep a close track of this and ensure that you always get reliable information.
What Security Measures Does The API Provide?
Security is a massive factor in Fintech in general. Cryptocurrency exchange rate APIs are no different. The API you choose must enforce strict security measures to protect your information. The data your API fetches API needs to be immune to outsider attacks. To ensure top-notch security, your API needs to perform at the highest level.
How Does Coinlayer Check All Boxes In The Cryptocurrency Exchange Rates API Checklist?
The checklist for the ideal cryptocurrency exchange rate API may seem a bit extensive and hard to satisfy. You may even think that few cryptocurrency APIs fulfill these requirements. coinlayer confidently delivers on all of these requirements. It provides you with more than 385 different cryptocurrency exchange rates, all gathered from dependable exchanges.
Coinlayer has 256-bit HTTPS encryption to help protect your data. It also has a powerful cloud-based architecture to get you information instantly. Finally, it provides you with dedicated customer support if you face any issues. It even provides historical data as far back as 2011 when cryptocurrency was born.
Feel like upping your cryptocurrency earnings by investing in a reliable cryptocurrency exchange rate API? Head over to Coinlayer and see how it ups your crypto game.