If you’re an individual or manage a business that deals with various financial markets across the globe daily, you’ll need a tool that can convert and exchange currencies easily and quickly. It will enable you to run your businesses efficiently. This is where the exchange API comes in. With the help of these technologies, it becomes easier for companies to stay updated with current rates, and exchange or convert currencies with speed and accuracy.
This article will discuss what an exchange API is, why you need it, and ten easy tips about exchange APIs.
What is an Exchange API?
Currency exchange APIs, also known as application interfaces, are tools or programs developers can integrate into a website or application to enable currency exchange. This helps individuals and businesses easily stay updated with current market rates and convert different currencies, like the British Pound, US Dollar (USD) or the Euro, into other currencies.
Currency exchange APIs can support various data sources and currency types to fetch current and historical rates. Moreover, they include many features to make it easy to use the API, such as an intuitive dashboard, comprehensive documentation, and a user interface. They also support various file formats, like JSON, CSV, and XML, to return data.
Why Do You Need Exchange APIs?
The value of currency never stays the same; it keeps changing. And, if you are into global trade, you will need to have a good understanding of values to make sound trading decisions and trade currencies without any problems. Using an exchange API can help you achieve this. It also has various other benefits, including:
- You must know the current rates accurately if you deal with international markets. Using a good currency exchange API will get you periodically updated accurate data. Several APIs are available that refresh data every 60 seconds to have the most up-to-date, real-time exchange rates that you can put to use.
- Exchange APIs, in general, should have a large number of supported currencies. You can convert and trade currencies with only a few clicks. It will enable you to work with various markets globally and run your business operations.
- API providers ensure the API you use is secure and performs well, without causing trouble or security loopholes. Hence, they offer robust security features, such as enabling HTTPS connections and industry-grade bank-level encryption.
- Exchange APIs collect currency updates from hundreds and thousands of data sources from various financial institutions, financial providers, global banks, and other commercial sources. It includes accurate current data and historical data that may date back several months or years. This enables you to track the fluctuations in values and helps you make smart decisions.
- The API’s code snippets are easy to integrate into your website or applications. Your developers can follow detailed API documentation, simple API structure, and code examples. In addition, there are plenty of available features:
- Dashboard to access the tool
- Option to change parameters
- Switch currencies
- And many more!
What are 10 Quick Tips For Choosing An Exchange API?
Is It Secure Enough?
Security is one of the most critical aspects to focus on when deciding which exchange API you want to integrate into your application or website. You need to make sure it is secure and has well-built security protocols. Also, which encryptions does it use, and what connections does it permit? Ideally, a good exchange API permits only HTTPS connections and uses industry-standard bank-level encryption.
Can You Rely on It?
A good exchange API should support multiple currencies all in one place, so you don’t have to spend time searching for them on different exchanges. In addition, you have to ensure that all currency exchange data comes from credible sources, such as financial institutions, banks, and exchanges worldwide. With the help of the data, traders can observe past trends, analyze the current rates, and carefully predict if a currency is about to take a rise or fall.
Is It Cost-Efficient?
You must ensure that the chosen exchange API is an excellent value for money. It should provide a few added perks that no other currency exchange API offers. For example, some free monthly requests would be a great addition to the deal.
How Flexible Is It?
The exchange API should be easy to use and easy for your developers to incorporate into your application or website. In case of any technical difficulties, there should be thorough API documentation for the ease of developers. Furthermore, having some additional features, such as a dashboard and changing preset currencies, can make it more flexible to use.
How Does it Source its Data?
Exchange API should collect current and historical data from reputable sources. Getting automated alerts when a currency falls below certain thresholds would be a great perk.
Does it Allow Analyzing Past Trends?
Evaluating historical patterns plays a significant role in making well-informed judgments, negotiating trade arrangements, and placing bets on specific currencies to maximize profit. Hence, analyzing past trends is yet another essential feature you should ensure the chosen exchange API offers.
Does it Offer Technical Support?
Exchange APIs must provide detailed assistance and support to users in their API documentation. Moreover, having a dedicated support team available to help you with any difficulties you can’t resolve yourself would be great.
Do Several Brands Endorse It?
Endorsements have a significant impact. They prove that the product is trustworthy and dependable. So, when choosing an exchange API, you should check how many companies worldwide have endorsed it to help you decide whether it is trusted and worth investing in or not.
Is it Accessible?
Getting the free trial option would be of great benefit for you. It will help you get a feel of how it functions before committing to a paid subscription. You will also be able to judge whether or not it delivers on its promise.
How Accurate is it?
The currency’s value fluctuates regularly, irrespective of how steady it is. Therefore, it is better to make sure that you get reliable, up-to-date data. The chosen exchange API should update data every 60 seconds or one and a half minutes to ensure that you always have access to fresh data.
What Do You Get Out of Your Exchange API?
When it comes to finance and trade, the currency is a fundamental element. Businesses dealing with international markets need to have updated information about currencies and their fast-changing values. Exchange API provides you with correct data to make better decisions, and saves money and time on uncalled-for efforts. A good exchange API ensures secure and safe data streams, provides real-time updates in a minute or so, has a strong support team that can help you encounter any issues you face, and provides cutting-edge features at affordable prices.
After reading this, you must now know what to look for when choosing an exchange API. So, are you interested in taking your business profits to the next level by finding a suitable exchange API for your website or application? If yes, then head over to CurrencyLayer to learn what makes it the best choice for you. It provides a simple JSON-based REST API with all the mentioned features and benefits discussed above including real-time and historical exchange rates for 168 world currencies.
Are you ready to test out the trial version to see how well it meets your expectations? If yes, then head over to CurrencyLayer and sign up for FREE with no time limits!
Also Read: Things to consider while choosing your API Security Tool
