An application programming interface, or API, is a piece of code that allows two applications to share information.
A good example of an API is an aggregator site for hotel bookings. The aggregator site uses APIs to request information from different hotel chains in response to a customerโs request.ย
Blockchain, for example, provide free APIs that enable developers to access Bitcoin payment processing, wallet services, transaction data, and market data for use on their websites and applications.
Cryptocurrency exchanges also provide APIs. Traders can use these APIs to supply market data to trading bots, enabling them to make trades (according to preset instructions) on behalf of the traders. This form of trading is known as algorithmic trading (or bot trading).
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