What is Bitmex API?
Cryptocurrency has become a large market today that can boost your income in various ways. The key to earning money is buying and selling these digital assets by exchanges. The exchange connects buyers and sellers through the internet and receives a service fee. However, cryptocurrency exchanges offer much more services today. However, many of these services are done by bots.
The automation of many exchange services makes it possible to communicate with them by computer language. In other words, different software can be connected to large exchanges such as BitMEX and make processes easier and faster. It is done via the API. Join us to see what the API is and how it can be used.
What is BitMEX?
BitMEX is short for Bitcoin Mercantile Exchange, and, as the name implies, it is a cryptocurrency exchange platform that allows derivatives trading. Seychelles-based company HDR Global Trading Limited owns BitMEX but has offices worldwide. Founders Arthur Hayes, Ben Delo, and Samuel Reed established Bitex in 2014.
While BitMEX is best known for offering perpetual futures, the company did not provide the derivative product until 2016. After introducing the feature, many traders adopted BitMEX as their gateway platform, and by 2018, Ben Delo had become the first UK cryptocurrency billionaire.
The company had never been hacked and had a good track record until July 2019, when a Bloomberg report revealed that the Commodity Futures Trading Commission (CFTC) was investigating BitMEX. The CFTC suspected that the company had broken the law by allowing US citizens to trade using the platform.
What is BitMEX API Key?
An API key is a piece of code used to interact with your account programmatically. You can use this to interact with your BitMEX account without exposing your password and account name. If you share this API key with third parties, they will be able to perform (automatic) actions for you.
It will allow you to trigger certain actions both automatically and manually.
When you sign up for an exchange like BitMEX, the exchange keeps your information. Each account API is also unique. In other words, if you create two accounts in one exchange, the exchange will give you two different APIs.
Getting the API is completely free, and you can create an API for your account whenever you want. It is done by visiting the BitMEX exchange website, entering the settings section, and then the Create API KEY section.
You can automatically use API to add new orders and carry out more complex tasks.
However, today's most widely used API is connecting to trading bots. Professional traders perform their trades faster and with a much lower error rate by connecting a trading bot to an exchange through the API. However, this still requires a lot of experience.
What is a trading bot?
A trading bot is software that helps people to trade. There are different types of training bots, and they work with different algorithms. Some perform only a few simple tasks, such as set orders in an exchange office. In contrast, others can do more tasks such as technical analysis of the market and selection of entry and exit points.
The trading bot is one of several applications that connect to an exchange through the API. However, bots are the most used software, and in fact, there is no other way to use this software other than connecting to an exchange. Now you may ask why the API connects bots to an exchange. The reason for use is security.
How does the API secure the use of trading bots?
Security is a key issue in cryptocurrency because there is no secondary factor that cares about the security of wallets. In other words, the holders are responsible for maintaining the security of their wallets, and if the cryptos are stolen, it is not possible to pursue them legally.
A trading bot is software, and the people who use it have not read its code. Many software programs do things in the background that people do not realize due to a lack of programming knowledge and may even make financial losses through these malicious codes.
However, using a trading bot is safe. The API itself guarantees the security of using the bot. A trading bot does not have access to your cryptocurrency. Many people unfamiliar with bot trading think that using bot trading is dangerous, but this is not the case. When you use the trading bot, your money is in the exchange's wallet that only you have access to.
Exchange codes look at its API after receiving bot trading orders. The orders will be executed if the API is valid; otherwise, the order will not be executed. The trading bot is also not likely to withdraw money from the exchange because the exchanges have made arrangements that must be made before the cryptocurrency leaves the exchange. If the trading bot does this automatically and without your permission, you will be notified of the need for authentication.
Conclusion
In this article, we reviewed the BitMEX API and how it works. If you want to use the many services of this large exchange, using this API can make your various processes, such as trading, easier and faster. BitMEX Exchange has made it easier for traders by providing an API to connect to various bots. If you want to gain money by cryptocurrency trading, take the bot and connect it to an exchange through the API easily.