Understand what data API is and its importance in digital security

You have probably seen the term "Data API" on investment or brokerage websites, even on the Bitcoin Market itself. From a literal point of view, API means " Application Program Interface ". Despite this, the acronym does not tell us much about exactly what an API is, and how it can improve your investment experience and the security of using platforms.

What is an API

An analogy that we saw recently on the How-to Geek website and that can help a lot to understand the purpose of an API is that of a restaurant menu. When we enter a restaurant, we are usually presented with a menu that lists and describes the dishes available. When we choose, we notify the waiter, the kitchen prepares our order and he comes to us.

A data API generally works the same way. It lists the functions available to its users and a description of what each one does. The user makes a request, and his "order" returns to him. We usually say why, in some situations, the user himself must give data to the API in order for his order to be correct - we can think of a restaurant in which it is possible to ask the chef to change the dishes a little, adding or removing ingredients.

An API, therefore, is a request made to a program, with specific format and responses. When a request is made to an API, it returns with an expected action within the parameters. From the user's perspective, APIs allow actions to be completed without leaving the site. Most of the time, the API can be accessed from the user's own browser, allowing him to see the result on his own device.

Therefore, the API is important for almost any website and user, because it facilitates interaction with the data provided by the platform. We can also think of the API as a building material - with each function it allows to execute and consult being a brick. The user can take the bricks that interest him most and build the building that best suits his needs.

Practical examples

Payments API

A data API can serve purposes beyond investment.

Imagine that a person wants to start an online store, selling sneakers, to supplement their income. Receiving the money is not solved simply with a few lines of code - it is necessary to use specific programs, which integrate with credit cards, payment slip generation mechanisms and others. It must integrate its website with a program that processes these payments - this integration is done through an API.

This API will take some information from your site - specific parameters that will tell it what to do. The information includes who is buying, for what amount and what form of payment. With this information, the person's card will be validated or the ticket generated. That is, the API is a safe way to process payments correctly.

Bitcoin Market API

The Bitcoin Market offers a Data API publicly, so that anyone can access it. It is not necessary to create an account or perform any type of authentication. It works in the same way as the payments API - when the user enters specific parameters, the API returns the relevant data. The data can be presented in several possible ways, but the most common is in the browser itself, with the parameters being inserted in the URL itself.

Data API structure

The query for the Data API URL follows a specific structure. First, you need to make a request to the section of the website dedicated to the API, indicating that you want to access that specific part. The API is nothing more than a part of the website dedicated to the collection and availability of information. So this step tells the server that the user wants to use this service:

Next, we must indicate which cryptographic we want to extract the data from. Each crypto has a specific three-letter code: Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH), Ripple (XRP) and Ethereum (ETH). Using these codes, the server is able to know the data of which currency the user wants:

The third step of the structure is to indicate which command we want to give, which will determine what data will be shown on the screen. All commands are explained in detail on this page . We will insert the command "day-summary", which indicates a summary of all the past days.

In the case of the "day-summary" command, we have a fourth step, which is to insert the desired date. The format must be specific, that is, first the year, then the month, then the day. This, due to the nature of the code, which understands dates only in this way. The format looks like this:

Practical example - querying the Data API

One of the most common and useful queries of the Bitcoin Market Data API is the daily summary. The investor can know the main data of the day with a quick consultation, and compare the result with other days.

For example, one of the most important days for Bitcoin in 2020 was January 3, the day that Trump ordered the death of Iranian general Qasem Soleimani. Amid the panic, assets such as gold and Bitcoin have appreciated, and we can see this effect in the Bitcoin Market trades.

An increase of 6% in just one day! Thanks to the data API, we can see exactly the impact of certain events on specific days. The answer to a series of questions is easier:

How much has Bitcoin gone up in the last year? And since the beginning of the year? What was the volume traded in the last 10 days? What was the average price charged that day?

This only using the "day-summary" command. The Bitcoin Market Data API presents a wide variety of possible orders and results. The user gets several types of information that can help in his investment analysis. It is possible to consult all available services, as well as the step by step of making requests, here . With the Bitcoin Market Data API, the user is able to obtain information about the cryptocurrency market, in Brazilian currency, quickly and safely.