The abbreviation API is a familiar word for many in the IT field, but what is it? API (Application Programming Interface) is an application programming interface that can be used to reduce risks for an investor and increase the transparency of interactions between both parties. This type of management is also called trust management, which came to the world of cryptocurrencies from financial, but in its essence has a number of significant differences.
It is important to note that the assets remain in the investor’s account and are not transferred to “gray” accounts. To transfer your crypto assets for management using the API, you must first create an API key on the exchange that supports this function. This method of managing crypto assets is rightfully considered very promising and the most convenient for both sides of the interaction. Choosing a broker/exchange – the presence of such functionality is a big plus and most investors give it a well-founded preference. And actually, the phrase “transfer” itself is not such, because it means that you are transferring the right to manage, and not the assets.
API Keys – Access Technology
Let’s list the main terms that will help you understand the very essence of the API request transmission technology:
- A public key is a kind of file that can be published in various places or simply transferred to someone in an open format. The public key (public) is useful for the sender to send an encrypted message.
- A private key is literally a key with which you can decrypt a pre-encrypted message sent to you. Authorship is confirmed using a private key, and therefore you need to keep such a key safe from prying eyes.
- Signing the transaction and checking the broker/exchange for validity: the message (API request) is sent to the exchange/broker in clear text. In order to confirm the right to form such a message, the sender signs the transaction. The recipient, in turn, having only the public key, can check whether the signature is valid for this message. The private key must also be included in the signature generation process, otherwise, the recipient of the message will not be able to use the public key to verify its validity.
With the help of a digital signature, you can verify the integrity and authenticity of digital data, in other words, this is the same handwritten data to which we are accustomed, but only the level of protection and security is many times higher. Such a signature is a confirmation that the document is genuine and not a fraudulent forgery.
The verification step helps to ensure that the author and sender is the same person. Otherwise, if another person takes possession of the private key, then he can easily conduct transactions on behalf of the owner of this private key. Therefore, the private key must be stored in a place where no one can get it. But what are the advantages of working through the API, managing the cryptocurrency assets of investors?
Benefits of working through the API
The distinctive advantages of working through APIs lie at the heart of their competitive advantages along with other management principles. For a deeper understanding, we propose to consider the main ones:
- Money remains on the balance of the investor and is not transferred to unknown accounts;
- increases the transparency of interaction between the asset manager and the asset holder;
- Minimization of risk in trust management;
- Instant withdrawal of funds if necessary.
These criteria are very important for everyone and the investor, and the choice of a company that could be entrusted with the management of an investment portfolio is very acute and for you, we have a solution.
Working with the company is simple and transparent, there is no lock-up period and no mandatory payments. FOBS Asset Management offers using the management API to significantly increase your assets since the company’s income is expressed as a percentage of the total profit and directly depends on the amount of earned assets for the investor. Only from the profit will the company’s percentage on the invoice be paid, which gives additional confidence to the investor that the company is interested in making a profit no less than the holder of the crypto asset. Choosing a company of FOBS Asset Management specialists – you choose the result!