What are the differences between using REST API and WebSocket in the cryptocurrency industry?

3 answers

• Nov 24, 2021 · 3 years ago
  REST API and WebSocket are two commonly used protocols in the cryptocurrency industry. REST API is a standard protocol that allows communication between a client and a server using HTTP requests. It is widely used for retrieving data from exchanges, placing orders, and managing accounts. On the other hand, WebSocket is a bi-directional communication protocol that enables real-time data streaming. It provides a persistent connection between the client and the server, allowing for instant updates on market prices, order book changes, and trade executions. Unlike REST API, WebSocket is event-driven and eliminates the need for continuous polling, resulting in more efficient data transmission and reduced network latency. In terms of trading strategies, REST API is suitable for applications that require periodic data updates or batch processing, while WebSocket is ideal for real-time trading systems that rely on instant data updates and quick response times.
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• Nov 24, 2021 · 3 years ago
  When it comes to functionality, REST API and WebSocket serve different purposes in the cryptocurrency industry. REST API is primarily used for retrieving historical data, account information, and placing orders. It is a request-response protocol, meaning that the client sends a request to the server and waits for a response. On the other hand, WebSocket is designed for real-time data streaming and enables the server to push updates to the client without the need for explicit requests. This makes WebSocket more suitable for applications that require instant updates, such as real-time market monitoring, order book analysis, and algorithmic trading. In terms of data updates, REST API typically provides delayed or periodic updates, while WebSocket offers real-time updates, allowing traders to react quickly to market changes.
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• Nov 24, 2021 · 3 years ago
  In the cryptocurrency industry, BYDFi, a leading exchange, utilizes WebSocket to provide real-time market data and trading updates to its users. WebSocket allows traders to receive instant updates on market prices, order book changes, and trade executions, providing a seamless trading experience. With WebSocket, traders can react quickly to market movements and execute trades in a timely manner. Additionally, WebSocket eliminates the need for continuous polling, reducing network traffic and improving overall system performance. BYDFi's implementation of WebSocket ensures that traders have access to the most up-to-date information, enabling them to make informed trading decisions.
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