Trading software sends a request to buy a coin, but the reply never arrives. The purchase may have failed, or it may already be complete. This uncertainty is one of the practical problems behind automated trading.
A connection between software and the exchange
A crypto trading API, short for application programming interface, lets a program communicate with an exchange. It sets the rules for requesting information and sending instructions, such as buying a certain amount of a coin.
Teams building systems forcrypto api trading may work with exchanges such as Coinbase, WhiteBIT, Kraken, Binance, OKX and others. Each provider publishes its own instructions for developers. Request formats and available functions differ, even when the task looks the same.
A cryptocurrency API may provide public prices without access to a trading account. Buying or selling requires account access. This usually involves an API key, a code that identifies the software making the request.
The permissions attached to that key determine which account functions the software can use.
A request has several possible outcomes
An order is a request to buy or sell under specific conditions. Once the exchange accepts it, the order may remain open while waiting for a matching buyer or seller. Acceptance alone does not mean a trade has happened.
A purchase may also be partly completed. For example, a request for ten coins might result in four being bought while the remaining six wait. The software needs to distinguish this from a purchase of all ten.
Through a crypto exchange API, a program can request information about an order and any completed trades. A reference number connects these records to the original request. The names and formats used for these references vary between exchanges.
After a connection fails, a missing reply does not prove that the exchange rejected the request. Sending another purchase immediately may create a second order, depending on how the service handles repeated requests.
Some APIs offer ways to identify repeated requests. Their exact behaviour is defined in the provider’s documentation.
When information stops arriving
A crypto API also has limits on how many requests it accepts within a period. Software that exceeds them may receive an error or have requests temporarily blocked. Repeatedly asking for the same update can therefore delay other tasks.
For automated crypto trading, old information creates a separate problem. A program may keep using the last price it received after its connection stops working. Its rules need to account for missing updates as well as price changes.
The exchange records and the program’s own records may differ after an interruption. Comparing them shows which trades actually happened and which requests remain open. A restored connection alone does not settle those questions.
Disclaimer: This content is provided for informational purposes only and shall not be construed as financial, investment, trading, or any other form of professional advice. Nothing herein constitutes a recommendation or solicitation to engage in any transaction or investment activity.
