What is an API key? A Complete Guide to What It Is and How to Generate It on Trading Platforms

What is an API Key? Its Role and Importance

An API key is an encrypted token used to authorize communication between an application and a server. On trading platforms, this key is used to enable automated trading and API integrations. An API key acts as a second form of identification, similar to a secondary ID, and must be managed securely.

Things to Check Before Creating an API Key

As an important note, API keys can only be generated via the website (browser) and cannot be created through the mobile app. It is recommended to access the account settings page and proceed with the process in a secure environment.

Additionally, two-factor authentication (usually using Google Authenticator) is required for identity verification, so set this up in advance.

Step-by-Step: How to Generate an API Key

Step 1: Access the Account Settings Page

Go to the trading platform’s account settings URL or click the user icon in the top right corner of the browser screen and select the “API” option. If prompted, enter your login credentials.

Step 2: Generate a New Key

Once the “API Management” page appears, tap the “Create New Key” button on the right side. This will start the process of generating an API key.

Step 3: Customize API Key Settings

A popup window will appear, showing a screen to specify the trading activities that can be performed with this API key. Select the necessary permissions (trading, balance checking, etc.) and set any restrictions.

Step 4: Confirm with Two-Factor Authentication

Enter the code from your Google Authenticator and click the “Next” button to proceed. If authentication is successful, the API key will be generated.

Security: Tips for Protecting Your API Key

An API key is also a critical access credential to the platform. After generating it, pay attention to the following:

• Do not share your secret key: Never share your API key with others or post it on social media.
• Store securely: Save it in an encrypted environment, such as a password manager.
• Regularly review usage: Check for unauthorized access and review API activity logs.
• Delete unused keys: Promptly delete any API keys that are no longer needed.

Proper management of API keys is essential for the security of your account.