Kraken API Key Setup

You have quite likely heard about the Kraken exchange by now. If you are in the digital asset industry, and have been around since 2017 or at least have been around for a few months, you understand that there are a wide variety of cryptocurrency exchanges.

Kraken is one of these digital asset entities that enable you to purchase and divest tokens. It is an interesting and important company because it serves people all around the world.

The firm is appreciated because of the different features and offerings and the fact that it is based in the United States.

The key here is that the firm will likely take the right steps to ensure that it complies with the government, will have a certain level of transparency and safety, and will make sure people are able to transact seamlessly.

Remember that Kraken was founded in 2011, it means that it has been around for at least a decade. It also shows that the digital asset entity was one of the first providers of space to purchase and divest crypto assets.

The firm seeks to comply with the government but also seeks to stay true to the ethics of crypto, decentralization, and value creation. It is a tightrope to balance but the firm seems to be doing a fairly good job of it.

Meanwhile, it is also focusing on technological aspects to ensure that it stays up to par with its competitors. It also wants to make sure that it can provide consumers with simplicity in their speculative activities.

That is why it is no surprise that it has its own API program. Here is what you need to know about it.

The Kraken API

Whether you are connecting Kraken to a cryptocurrency bot or installing a portfolio management app, you need API keys to seamlessly connect your exchange account to these applications.

Since these API keys allow you to share relevant data without having to reveal your passwords, they have become a standard in carrying out trades and investments in the cryptocurrency industry. That is why, if you are dealing with an exchange as popular as Kraken, your first thought might be to set up its API keys.

While the process may seem a bit difficult, it is quite easy once you know what to do.  Let’s have a lowdown on the Kraken API key setup with different applications.

What is an API Key in Crypto?

An API or application programming interface is a set of programming codes and rules. When applied, the API allows safe, secure, and effortless transmission of confidential data without exchanging sensitive information. As a result, you don’t have to share your login details, secret questions, or other critical information in order to connect one app to the other.

In cryptocurrency trading, this functionality allows crypto exchanges to connect with a variety of other platforms such as trading bots, wallets, and portfolio management apps. Sometimes, this set of third-party applications may also use API keys to establish safe connections with one another.

This goal is achieved through API keys, which are used by different platforms to exchange required information with third-party software. These API keys are also distinct to every platform and each of its accounts. For instance, if you want to connect your Kraken exchange to a cryptocurrency trading bot, you will need to learn how to get a Kraken API key that is unique to your account.

In order to maintain security, many API keys also come with different levels of authorization. For example, if you are connecting a trading bot to your Kraken account, you can choose from options that range from No Access to Full Access modes. This allows you to set the level of control on both the platform-level and withdrawal-level access.  

How to Handle Kraken API Key Setup?

When you want to set up your Kraken API key, you have to generate unique API keys for your account. This means that any generic API keys that you find over the web will not work or provide the respective application access to your account. You can think of this as generating a unique QR code for your home’s Wi-Fi connection that has to be created specifically through your router.

Thankfully, the process does not require you to have an advanced level of skill at handling technical requirements. Instead, you can simply perform basic actions in order to achieve the needed results from your API keys.

But before you do so, you need to keep in mind that Kraken’s API allows you to choose between two different interfaces, namely REST API and WebSocket. While both REST API and WebSocket provide you with the same set of data and functionality, their execution is a bit different and suits distinct requirements for the users of the Kraken exchange.

By going through the following information, you can understand how to get the Kraken API key that suits your specific needs without any compromise.

Kraken REST API

The Rest API provides users with a response to their occasional or scheduled call for data. This means that details such as daily account balances or daily market average data can be updated once a day, or whenever the respective application makes a request through the REST API.

Kraken WebSocket

The WebSocket approach provides livestreaming of data to its users and applications. As a result, WebSocket can deliver real time results for market performance and cryptocurrency pricing to the respective platform that is connected to it through the API.

Choosing Between REST API and WebSocket

When performing Kraken API key setup, the choice between REST API and WebSocket is a daunting one. While REST API makes maintenance easier, WebSocket surpasses expectations with real-time connectivity. Due to this reason, many applications choose a combination of both approaches.

For instance, if you are using a platform that tells you your daily account balance but also shows you real-time data of your portfolio’s current market value, your application or service provider would require the usage of both API approaches.

However, several applications also use either REST API or WebSocket separately. For example, if you are using an app to access historic market data, REST API would be ideal for it. But if you need the latest market data to exchange your cryptocurrencies, WebSocket would be a better approach.

All of these details might be enough to make your head spin, especially if you have never used API keys beforehand. But that’s where the benefit of using reliable platforms comes into the picture.

When you are utilizing a user-friendly app or platform, your service provider tells you which API access they need in the first place. This leads you to simply following the instructions on how to get the Kraken API key that fulfills your needs.

How to Set Up Kraken API Keys

Similar to other exchanges, the API key setup in Kraken is segmented into two distinct steps. The first one is generating an API key through Kraken, while the second one is setting up that API into your third-party platform or app.

Generating an API Key

In order to generate Kraken API keys, you can use the following simple steps.

  • Login to your Kraken account.
  • Go to your profile.
  • Go to Security.
  • Go to API.
  • Select the Add Key option.

From there, you will see a variety of options that you need to configure before you can complete your Kraken API key setup. These requirements include the following.

Key Description

You can set this to be a custom title or description for your API key. It allows your API keys to be easily identifiable by you.

Key Permissions

These permissions are distributed into different sections, namely Funds, Order & Trades, and Other.

Funds

  • Checking the Query Funds option lets your third-party application keep a track of your  balances.
  • Marking the Deposit Funds box allows you to use automatic deposit mechanisms with the respective software.
  • Choosing Withdraw Funds enables your chosen application to withdraw your funds. This is an extremely risky option from a security point of view and should remain unchecked, unless you trust the third-party app that you want to establish a connection with.

Orders & Trades

These options are quite standard. If you are generating your API key for trading, you can select the following options that are self-explanatory.

  • Query Open Orders & Trades
  • Query Closed Orders & Trades
  • Modify Orders
  • Cancel/Close Orders

Other

These options relate to different account management requirements and include the following fields.

  • Query Ledger Entries. This is required for historical data.
  • Export Data. This is needed to export your account ledger.
  • Access WebSocket API. This lets you access private feeds for the WebSocket API.

While learning how to get the Kraken API key, you can choose between other options such as setting an expiration limit to your API key, or configuring the amount of historic data that can be accessed by the respective platform. By keeping these points in mind, you can easily generate an API key.

This key is divided into two parts, which comprise the Kraken API key and the private key (also called a secret key). You need both keys to set up your third-party software. The private key is only visible at this step and becomes inaccessible afterwards. That is why you need to store it in a careful manner and in a way that makes it safely accessible for you in the future.

Connecting the API Keys

After you have your Kraken API key and private key handy with you, you can move forward with entering both keys into your third-party software. Once these keys are entered, you can use your third-party app the way that you want.

What Points Should I Remember While Generating API Keys?

Before you move forward with the Kraken API key setup, you need to determine a few things.

  • Is the platform that you are connecting to reliable and credible?
  • Does the platform ask for you to enable withdrawal access for no good reason?
  • Does the platform you are connecting to actually need your exchange account information to perform its functions?

These basic questions allow you to steer clear of any bad actors. In turn, you can secure your funds from malicious parties who are looking for a chance to manipulate your finances or steal your money. As a result, whenever you use your knowledge about how to get the Kraken API key, you don’t put your safety on the backburner during the process.

Unless you are using a platform that you trust to an incredible degree, you should also never share your withdrawal access with it through the API key. This means that in Kraken, you should keep this setting at “No Access” instead of “Full Access.”

The final decision on how to move forward with setting up your Kraken API key is completely up to you. With that being said, you should take all available precautions and consider these points before sharing your account’s access with any platform or app.

Be Vigilant About Choosing Third-Party Platforms

The steps outlined above let you easily set up your Kraken API key the way you want. At the same time, you should also practice vigilance and only utilize this information with trustworthy service providers or third-party apps.

This allows you to stay away from increased exposure, while also letting you reap the rewards of solutions such as automatic trading, analysis, and portfolio management. As long as you remain careful about this aspect, you can utilize your Kraken API without putting your funds in harm’s way.