There has been quite a bit going on with the cryptocurrency space and it has taken off. Thankfully, it is a more seamless experience for many people who participate in the digital asset markets.
But remember that participating in these markets requires you to learn and to know more.
In the present era, thanks to technology, you can take advantage of bots, signals, and other mechanisms to make sure that you are having a better time in the markets. Of course, these will not be the end all be all, meaning that these tools will support you in your journey of discovery.
When setting up your bots, you want to make sure to understand the different processes involved in connecting to the exchange.
While connecting your trading bot or portfolio management app with your Bitfinex account, you require an API key to complete the process. But if you have little to no experience in performing Bitfinex API key setup, it can be a bit complex to manage it all by yourself.
However, a little guidance can go a long way. When you know exactly what steps to follow, you can breeze through the setup process with the utmost ease. This not only helps you set up your third-party applications the first time but also prepares you to handle the process yourself in the future.
To assist you during this task here is how to get Bitfinex API key setup with your trading bot or other cryptocurrency third-party apps.
How to Manage Bitfinex API Key Setup?
Bitfinex boasts a user-friendly interface that makes it easy to navigate through many of its functions. Even if you are a novice trader, you just need a few hours on the platform in order to know your way around it. This also makes it relatively easy to set up your Bitfinex API key without any additional assistance.
But before you move forward with the actual setup phase, you need to learn about a few best practices that help you reduce risks and add more comfort to the process. This boosts your account’s safety, while also shortening the time it takes for you to set up your trading bot, portfolio app, or any other third-party solution.
You Have to Generate the API Key From Your Account
First and foremost, it is crucial to understand that whenever you have to use an API key to connect your exchange account with any application, that API key has to come from your account-specific page. This means that the API key you are using cannot come from another account, website, or platform. Until you specifically generate it through your own Bitfinex account, it will not work for you.
It is because your API key is as unique to your account as your username and password combination. If you enter someone else’s info, the exchange will simply prohibit the key from accessing your account information even through a software backdoor.
Keeping this in mind, make sure that you don’t fall for generic websites that vow to perform the Bitfinex API key set up for you through a universal key. This is especially true if such bad actors ask for your login or other personal details. You should steer clear of anyone who asks for your sensitive information.
You Should Never Give Withdrawal Access to an App
As you learn how to get the Bitfinex API key, you have to keep in mind that the process provides you with different levels of access to your account. Typically, these permissions are segmented into two sections, namely “read” and “write.” But in Bitfinex, these permissions are labeled a little differently due to the extensive customization that is available for several options.
The complexity of selecting different options aside, you need to bear in mind never to select the “withdrawal” option to be on. This option allows your third-party app to transfer money out of your account and towards any wallet of its choosing. Even when you are using a credible cryptocurrency trading or management app, this option spells out risk in bold letters.
In Bitfinex, this option reads as “Create a new withdrawal.” Make sure its switch is turned off before you move forward with the rest of the settings. Additionally, you should turn the “Edit account information” switch off as well.
You Will Need to Set Up 2FA
Similar to many other cryptocurrency exchanges and modern apps, Bitfinex provides you with the security feature of two-factor authentication (2FA). This mechanism makes it a point to verify your identity through different avenues, including your computer as well as your phone. For the latter, it uses the Google Authenticator app. You can install the app from the App Store or from the Google Play Store.
If you do not have the app installed on your iOS or Android device, you will need to do so and set up Bitfinex 2FA with Google Authenticator. Otherwise, you will have to follow the process during your Bitfinex API key setup. This could add more time to your overall setup process on top of learning how to get the Bitfinex API key.
Since 2FA is a highly safe and necessary measure, it is better that you have it set up from the get-go. This way, you only have to verify your identity while you move forward with setting up your API key for your third-party app. This makes the process quite easier to go through.
Make Sure You Never Share Your Bitfinex API Key Publicly
Another highly necessary tip that you should keep in mind is not to share your API key with anyone. Even when you use it at the third-party app’s platform, make it a point not to show it to support staff. Instead, enter it directly through the interface and complete the setup phase all by yourself.
It is because the API key is nothing less than a backdoor key to your exchange account. If you share it with bad actors, it could compromise your account. Due to this reason, keep it safe with yourself and only use it on the third-party application’s system.
This holds true for both the API key and the secret key that is generated for you. The best way to complete this process is to do it side by side. That is to say, as soon as you get your keys from the exchange, you should perform your Bitfinex API setup with the third-party app right away. This reduces your risk by a large margin while also adding significant convenience to the process.
Always Be Careful And Do Your Due Diligence
Remember that it is important to preserve your capital and to generate more capital over time.
If you are looking to preserve and perpetuate capital in the cryptocurrency markets, it is best to understand the basics, learn the processes, and use the right tools. We have talked about the various aspects of the Bitfinex API and how it matters to you.
If you are looking to try it out and set up more seamless trading, don’t hesitate, choose the right application, connect it, and see how the automation can work for you.
Always stay careful, set everything properly, and succeed.