API is a term that is "hunted" by many people after the birth of cryptocurrency trading and has created a strong "fever" in the community.
Primarily, there are 03 levels of access that crypto exchange APIs are provided with:
Read or view only access
Any application that integrates an API key with this permission can access user information, but is only allowed to read and display it on the platform for certain tasks such as performing calculations...
This access is considered by industry experts to be the most secure, because it allows only reading or viewing.
Even if this API details fall into the hands of hackers, they can only see the information but cannot steal the user's cryptocurrency...
Trade access
This access is typically provided to applications that handle automated/algorithmic trading, portfolio rebalancing, etc.
In addition, it is made available to third-party analytics companies so that they can execute trades on behalf of users through their intelligence.
However, because these APIs have the ability to perform trading on behalf of users, if they fall into the wrong hands, they can be truly devastating.
At that time, hackers can carry out their crazy commands and take away the digital assets that users own.
Transfer access
This is the last type of access that crypto exchange APIs are typically provided with.
It does specialized work such as arbitrage trading, automatic transfer of funds based on smart contracts and some other algorithms.
Here, in this case, a third party application would need a transfer of funds access along with trading access (not mandatory)
Transfer of funds includes both deposit and withdrawal facility from the user's accounts.
If the API details with this access unfortunately fall into the hands of a hacker, it could result in the permanent loss of funds.
