Everyone knows Coinbase by now, right? At least most people are aware of this exchange. It is a digital asset trading firm that has a global presence. It is a remote-first entity that came about in 2012. The firm met several milestones by 2021 and has been able to serve as a significant cryptocurrency entity in the United States and abroad.
The firm was able to obtain initial funding from Y Combinator and started out with a simple wallet. It would also enable people to purchase and sell bitcoin in a simple fashion in late 2012.
It was a simple start but Coinbase would set itself up for success by taking the right actions each year and progressing in the right direction.
In 2013, the firm was able to obtain over $4 million in investment and that would be followed by an over $20 million investment. The rest, as they say, is history.
But you are here because you want to learn more about Coinbase Pro and its API key. This is a critical part of the Coinbase platform and helps it to extend its services to more entities. This way, more entities can deliver services that help people participate in the Coinbase ecosystem in a simple fashion.
Here is what you need to know about the Coinbase Pro API keys.
What Is Coinbase Pro?
Coinbase Pro is another part of the overall Coinbase platform. Coinbase Pro lets more interested parties take advantage of more digital assets, a more enhanced user interface, additional elements such as charts, data connected to the markets, and more fantastic asset watching and assessment aspects.
The key point here is that Coinbase is quite different Coinbase Pro and CP offers a bit more advanced features.
As such, you will notice that APIs attached to each of the segments will differ by what the underlying system is offering. For instance, if you are connecting to Coinbase, you get a certain benefit. If you are connecting to Coinbase Pro, you get more comprehensive benefits.
What is Coinbase Pro API Key?
It is first necessary to break down the concept of the API, then the API key and Coinbase Pro.
Let us remember a few aspects. First, the Coinbase Pro API is a simple technological component that enables the swift and automatic exchanging of digital assets on the platform through a base of code. The API is available to people in over 80 countries.
Does the Coinbase Pro API Cost Money?
It is necessary to note that establishing an account on the formidable entity that is Coinbase Pro does not cost you any money. Further, it is known that using the Coinbase API does not cost you any money either.
Of course, it is necessary to account for regular and general fees on the entity. For instance, as is the case on other platforms, Coinbase Pro will also have trading costs. The firm goes with the classic maker and take a method and has various costs associated with that specific model.
As many people are aware, the costs range based on a 30-day period. The higher amounts that you trade, the lower the cost structure.
At the same time, are you noted as a taker, where you have to incur costs around .04% and slightly higher if are you noted as a maker. Most people may not know that if it takes longer to process your order you are noted as a maker, if it is filled quickly, you are known as a taker.
If the order is only filled a little bit, you will incur fees that are reserved for takers at that specific portion of the order that is executed.
There is a benefit to patience in this setting as the fee structure declines and ranges between zero and fifty basis points.
Why Would Anyone Want to Use the Coinbase API?
The reason why people would want to use the Coinbase API is that they want to use the services of the asset platform indirectly. For instance, they might be a bot service provider that lets you automate your trades. This means that you can obtain simplicity, intuitiveness, safety, and security via technical aspects and regulation, more capital movement, and a basket of digital assets.
How Does an API Work?
We see that an API is a group of functions and processes that work to seamlessly bring about the creation of various use cases that connect the open components of an existing system or service.
You can see how these API can be beneficial in helping to ensure the proliferation of applications and connections.
Let us break it down even further. The API enables applications to connect to other applications within one context and share information. That means API’s can enable applications to access certain data sets and functions as allowed by the main provider.
Now we come to the idea of API keys.
What is an API Key?
An API key is similar to a new username that you create for an email, game, or something else. When you create that user profile, it then allows you to access the services of the application provider.
With the Coinbase Pro API key, you see that you have a specific API key created by Coinbase that attaches to your user profile that is sent over to the application requesting that specific access. The specific application that seeks that information will have specific data associated with you and will then be able to perform specific actions.
API Secret
Then we see the concept of the API Secret. What is that? The API secret or the private key is merely the code that comes with the key. If the API key is a username, it has to have a password, right? Well, the API secret is that code or password.
Coinbase is an entity that ensures to have that for the right level of safety and security with this process.
How Can You Use Coinbase Pro API
It is not too complicated to use the Coinbase Pro API. Most people will realize that all that is necessary is to follow a couple of simple steps.
- Remember to set up an account with this leading American company. It is best to go with the Coinbase Pro option as it affords you with more options and opportunities. You will have to go through the various registration processes like putting in your name, email, and verifying it. The firm may ask for more details based on your location and applicable laws. The firm may also want you to upload your photo verification with a government issued card like a drivers license or other official form with your picture on it.Then, you will want to link your bank account.
- Of course, if you already have an account with Coinbase, then you can just connect to Coinbase Pro with your regular credentials.
- Now that you are fully processed and in the system as an official Coinbase user, you can go ahead and now connect to different applications.
- Most people will connect to automated bot providers to conduct their speculative activities through these automations.
- There may be other use cases for the API, like collecting data but the more popular use case is to connect your Coinbase account to the automated trading tools and simplify your life.
How to Generate Coinbase Pro API
If you are looking to generate an API key that is associated with your specific Coinbase Pro user profile, then you must make sure to follow these steps.
- Navigate to the Coinbase Pro site.
- Then login.
- Move to the menu present on the upper right hand corner of the CP screen. Remember that it is best to do so on the site because it is not yet implemented in the mobile application.
- Move to the API segment.
- When you see a section called profile information, choose the API settings segment. Then go to the option where you can add a new API key.
- Associate it with your user profile and add the right settings, place the specific code phrase, then move to the 2FA part of the process.
- Then generate the API key to create a specific key to you. The information will now be present at the bottom of the page. Now, remember to grab this information and save it somewhere safe because you will not see it displayed regularly.
Remember to Stay Safe
The onus is on you, the user, to ensure that you keep it as simple as possible when you are online. The most simple action is to prioritize security above all. As you are aware, hacks, phishing, and other types of malicious activities take place online.
For instance, phishing is where different parties simulate original sites, like one site might pretend to be Coinbase or another site might pretend to be Binance.
The reason why they do it is that they can grab the legitimate credentials of these users and grab other information that is valuable.
Phishing sites are malicious websites that mimic an authentic site in order to trick visitors into entering their sign-in credentials or other sensitive information.
Now, you can also see that this is done through various forms that range from email to text messages and more.
Always be careful when you are navigating the web and dealing with everything from API keys to other aspects.
Are there any Limitations to Coinbase Pro API?
Yes. The firm notes that this technological set does have limits to minimize different forms of abuse. The idea is that they have certain request limits so that API quality does not diminish due to overuse. The limitation is that there can only be under 10K requests every 60 minutes.
What Are the Risks of Connecting via API?
There are a wide variety of risks when connecting through an API.
Improper Coding
We can see that bad coding can create a bad user experience but we have not seen any issues with Coinbase at this time or in the past. This is not a significant risk when thinking about APIs related to Coinbase.
Poor Validation
This is something that has to do with Coinbase and the parties requesting the API and seeking to connect to it. One would notice that if there were issues with this in the market. When it comes to validation, it seems that there is proper validation in the markets at this time.
Potential Security Risks
There are certain security risks present in this situation. Again, this is due to abuse and other aspects that it looks like Coinbase does have strong control over.
Awareness
It is necessary to be aware of security generally on the web. While you should expect better from developers, you must also take the right actions to protect yourself when using any technology.
Excessive Control by the Platform
This is another aspect that we see with different platforms. But we are not seeing any issues with Coinbase with regard to the API and excessive control.
These are some of the more critical risks to watch out for when it comes to APIs in general but at the same time, it is not so relevant for Coinbase users. There have been no reports of incidence and issues when it comes to the API.
The Coinbase PRO API is There For You
We do see that the application programming interface has had a significant impact on the world. It is no surprise that Coinbase Pro has its own respective technological tool that enables different people to gain value.
If you are looking to obtain value from using this technological tool and connection point, simply follow the instructions presented above.
Now, you are aware of what the API is, what it does for you, and how you can use it when dealing with various third-party applications.
Remember that you must always have fun, stay safe, and minimize your risk in every action when it comes to your funds.