APIs, or application programming interfaces, are gaining popularity among traders as a means to facilitate more transactions. APIs allow traders to gain instantaneous access to market data. If a trader wants to create their trading strategy, they can use API protocols to consolidate market data from a variety of sources. 

When a trader wants to automate the initial trading process, they can do it by integrating an API into a trading bot that will make trades according to a predetermined strategy or algorithm.

Despite the advantages that API trading may offer, many individual investors still prefer to place their trades manually. This could be because some crypto aficionados prefer to continue with a straightforward interface and simply purchase bitcoin with a credit card, while some people have only heard about European API trading platforms but are unfamiliar with its ins and outs. Let's examine the benefits and drawbacks of API trading to learn more about its popularity among investors.

Trading using API Has Many Benefits

  • Takes the Feeling out of the Calculation

Many investors face difficulties in sticking to a trading plan and maintaining self-control. Emotional variables such as FOMO and loss aversion can cause a loss of discipline, which is especially common during times of market volatility. When trading on emotion, one risks making rash choices and deviating from the plan.

Trading can be automated through the use of an application programming interface, which aids in maintaining discipline and removing emotional variables. Since orders are automatically executed when indices trading rules are met, the trading bot will not second-guess itself throughout the deal. Additionally, computerized trading aids traders by assisting those who are hesitant to make a final decision and reducing the likelihood of human errors such as incorrectly entering order requirements.

  • Allows for Faster Order Entry

As computers can trade cryptocurrencies considerably more quickly than human intelligence, traders can use API to greatly boost the speed at which they enter orders. If the trader has a great volume or the markets tend to be volatile, even a few seconds' advantages in entering or exiting a deal might make a significant impact.

Additionally, API can facilitate order administration, which in turn can aid dealers in increasing volume. If a trader has a significant trading volume, most platforms will offer them lower per-trade trading fees.

  • Backtesting

When evaluating the potential of a trading strategy or idea, traders often conduct backtests by applying trading rules to past data. Using the API, traders may retrieve primitive data from the crypto trading and exchange platform. They see if a particular trading strategy has been successful in the past. The expectation of a trading strategy is the average amount a trader can expect to win or lose for a given amount of risk. If you're a trader who wants to set up trading rules for trading bots or reevaluate your trading strategy, backtesting can help.

  • Promotes Variety

Manual traders focus on one or more markets at a time. In contrast, API enables traders to increase portfolio diversity by employing a variety of trading tactics across a wide range of markets. In addition, investors can rebalance their cryptocurrency portfolios by selling and buying Ethereum, Litecoin, Ripple, and many more assets simultaneously.

Traders can take advantage of the API's ability to aggregate data from various trading platforms to better analyze B2B email marketing data and identify trading opportunities. If you're an arbitrage trader, API can make your life considerably easier. Traders can take advantage of price fluctuations by placing orders on many exchanges at once. Traders can identify fresh trading opportunities that would be impossible to carry out manually by employing arbitrage trading and other sophisticated trading tactics.

Problems with API Trading

  • Monitoring

You can automate your trades with an API, but it doesn't mean you don't need to keep an eye on your automated trading systems. Anomaly transactions can occur in trading systems if there are network outages or bugs.

In contrast, if the system is being constantly watched and a robust and reliable API is being used, then any such incidents will be swiftly discovered if they do occur at all.

  • Having to rely on a Stable Internet Connection

Connecting the API to your computer trading system rather than the cash a foriegn cheque in Australia or crypto exchange's server requires a stable power supply. In the event of a disruption in internet service, orders may not be transmitted to the market, or unexpected trading results may occur. Using a server could prevent this kind of problem from occurring.

  • Over-Optimization

Over-optimization typically describes situations where traders "overuse" API data when formulating trading strategies. Some trading platforms, for instance, provide optimization tools that let traders try out multiple permutations of a given input to see "which one performs better." Trading plans that include too many hypothetical outcomes and permutations may look good on paper but underperform in real-world conditions.

Most over-optimization occurs when traders try to create the "ideal" trading plan. Some traders have the misconception that backtesting is the time to iron out any problems with a trading plan and only execute trades that result in a profit. Over-optimization demonstrates that traders may have analysis paralysis when confronted with a large quantity of data, especially if they are unsure of how to put the data to use in trading.

  • It's not uncommon for proprietary software to be both difficult and costly.

API is typically provided at no cost by trading platforms. Providers of cryptocurrency trading platforms would struggle to meet the needs of their clientele without access to an Application Programming Interface. To automate transactions, however, customers can develop their trading system or incorporate application programming interfaces (APIs) into proprietary software. Because of the high cost of third-party software or its focus on more advanced traders, API trading might be prohibitively expensive for many.

The Value of the CEX.IO API

  • Several Approaches to Using APIs

CEX.IO provides two APIs for automated trading in cryptocurrencies, appealing to both individual investors and institutional traders.

REST API- To quickly access CEX.IO market data and establish an automated trading system, traders can take advantage of the REST API.

WebSocket API – gives traders access to more market analysis as per request and more extensive trading functionality than the REST API.

Traders may tailor their API experience to their specific requirements and goals thanks to the wide variety of options available. Through the CEX.IO platform, you may integrate your trading platform with REST and WS APIs. Read our manual to learn how to implement the CEX.IO API.

  • Extremely high Request limits and Reliable Connections

At CEX.IO, you can make 600 queries every 10 minutes. Many large and medium-sized cryptocurrency exchanges provide this cap. You may be able to increase these restrictions if you have a proven trading technique and a lengthy trading experience on CEX.IO.

You can also make use of reliable server-based communication using the CEX.IO API, reducing your reliance on consistently fast network speeds and close oversight.

  • Integration with Existing and new Applications is a Breeze

Connecting your trading software to our trading platform is easy with the free CEX.IO API. The CEX.IO API lets you bring information into custom or automated trading programs. Because the CEX.IO API can be integrated with third-party applications with no technical know-how, automated trading systems, and trading strategies may be set up and developed quickly and easily.

CEX.IO has partnered with many external services, such as Shrimpy.io, Alpha Bot, HaasOnline, Coinigy, Trailingcrypto, and Cryptoview. Because of this, trading via the CEX.IO API is considerably more convenient.

Traders with experience who can create their trading systems from the start can simply copy and paste the required algorithms into the terminal or modify existing algorithms to suit their needs.

  • Possibility to use Cutting-Edge Trading Techniques

The extensive market data and indicators made available by the CEX.IO API are invaluable to traders performing backtests and developing personalized trading strategies. The data can be combined with market information from other sources and used with third-party software. In this manual, we cover the topic of API trading strategies in further detail.


If traders aren't familiar with API, it has the potential to dramatically alter their approach to the market. However, API has the potential to open up a wealth of new prospects for traders, which can be of benefit to novice and seasoned crypto aficionados alike. API, emotional regulation, and methodical approach may all prove useful to novices.

API can help seasoned traders gather additional data for a more thorough examination of the market and develop a trading strategy that can be included in automated trading systems. Recent API adopters on CEX.IO can experiment with a hybrid automated/manual trading approach to evaluate which yields better results.