Bybit is a popular cryptocurrency derivatives exchange that offers a powerful API for automated trading. The Bybit API allows traders to interact with the exchange programmatically, enabling them to build custom trading bots, execute complex strategies, and integrate Bybit’s functionality into their own applications. In this article by Finestel, we’ll dive into the essentials of Bybit API trading and guide you through the process of getting started.
What Are APIs and API Keys?
An “Application Programming Interface” (API) is a communication between two or more pieces of software, applications, computers, or a combination of all that they talk to each other through. So, just like “User Interfaces” (UI) help us interact with computers, APIs allow interoperability between computers, machines, and programs.
APIs may implement a single task or perform numerous actions depending on their applications and design sophistication.
According to Wikipedia, API connections were in use since the 1940s – were they connecting tanks together?!? – but the term didn’t come out until the 1960s and 70s. Nowadays, API connections mostly refer to Web APIs that establish communications between computers over the internet.
What Are API Keys?
API keys are unique identifiers that verify the connection between the parties and also determine the actions that the parties should take. In other words, API keys are a sort of security token to guarantee certain access between the connected parties.
That guarantee could be for a single task like authentication or be as complex as “trade replication executions” between a number of exchange accounts; more on that further below.
What Are API Connections Used for in the Crypto Industry?
Almost all crypto-related applications and platforms (wallets, exchanges, etc.) support API connections. Some of those API connections are to call for extracting simple pieces of data such as price indicators, some others can execute proportional trade replications between exchange accounts or even perform crypto transactions.
The API key grants access for requesting certain actions from the other end of the API connection.
Introduction to Bybit API
The Bybit API is a set of protocols that facilitate communication between external applications and the Bybit trading platform. It provides a wide range of endpoints for various functionalities, including market data retrieval, order placement, position management, and account information access.
Bybit offers two types of APIs:
- REST API: The REST (Representational State Transfer) API allows you to interact with Bybit using HTTP requests. It supports common HTTP methods like GET, POST, PUT, and DELETE1.
- WebSocket API: The WebSocket API enables real-time data streaming and allows you to receive updates on market data, order status, and account balance without the need for constant polling
Bybit API Key Permission Levels
There are two main permission levels for Bybit API keys:
- Read-Only API Keys:
- Read-only keys only allow viewing of account data, balances, and transaction history.
- They do not give access to place trades or move funds.
- This is the recommended permission level when connecting to third-party apps like tax software or portfolio trackers that only need to import historical data.
- Read-only is the safest option as it limits the API key’s abilities if compromised.
- Read-Write API Keys:
- Read-write keys allow full access to your account via the API, including viewing data, placing orders, and managing positions.
- This permission level is needed if you want to use third-party platforms to execute trades on your behalf, such as trading bots or services like copy trading.
- It’s important to be cautious with read-write keys and only provide them to trusted applications, as they could potentially make unwanted trades if compromised.
- When creating a read-write key, you can restrict the IP addresses allowed to access it for added security.
In summary, read-only keys are safer and should be used when you only need an application to view your Bybit account data, while read-write keys are necessary for apps that need trading access but come with additional risk. It’s crucial to only grant the minimum permissions required for the intended use case.
Setting Up Your Bybit API Key
To start trading with the Bybit API, you first need to create an API key. Here’s a step-by-step guide:
- Log in to your Bybit account and navigate to the API Management page.
- Click on the “Create New Key” button.
- Choose the “Connect to Third-Party Applications” option and select the desired application (e.g., Bybit) from the dropdown menu.
- Set the appropriate permissions for your API key, such as “Orders” and “Positions” for trading, and “Read-Only” for market data retrieval.
- Click on “Submit” and enter your two-factor authentication (2FA) code.
- Your API key and secret will be generated. Make sure to copy and store them securely, as the secret key will only be displayed once.
Bybit API Keys + Finestel = Automated Crypto Asset Management
One of the best and most recent groundbreaking applications that API connections have made possible in the crypto investment management environments is automated crypto asset management. Let’s tell you what Finestel is and how pro traders use it for API trading and crypto portfolio management.
What is Finestel?
Finestel is a leading crypto copy trading software that specializes in offering advanced copy trading technology solutions for profitable traders. It provides a comprehensive suite of services designed to facilitate efficient management of clients’ funds and offers services under traders’ own brands and websites.
Finestel is divided into two main plans: the Copy Trading Bot and the White-Label Copy Trading Software, catering to traders with varying needs and assets under management. Additionally, Finestel offers supplementary services such as portfolio trackers, automated billings, and performance analytics.
The platform also features a private strategy marketplace for investors to discover profitable strategies and for traders to showcase their track records and attract more capital. Finestel emphasizes efficiency, reliability, and customization, making it a valuable tool for traders and investors looking to leverage copy trading technology in the cryptocurrency market.
How to Connect Bybit to Finestel Using API Key
The initial screen you encounter upon signing into your Finestel account is the back office dashboard. This is where you link trader-type (master) Bybit accounts using read-only API keys for purposes such as copy trading, portfolio tracking, and reporting.
To add a new Bybit account, navigate to the “My Exchanges” section and click on “Add Exchanges”. On the following page, choose Bybit and proceed by clicking “Next”.
Give the new Bybit account a name and optionally select your country. You have the option to add the account as spot only, futures only, or both. If you opt for “Both”, two exchange account cards will appear on your dashboard – one for your Bybit account’s spot and another for its futures.
The next step is to generate a read-only API key within your Bybit account or subaccount. Read-only API keys enable Finestel to access trading data and actions from the linked exchange account, which is necessary for portfolio tracking, reporting, and copy trading functionalities.
Bybit offers an advanced API configuration interface, which will be covered in more detail under the “API Key Configurations”. Once you have created the API key, copy the API credentials (key and secret) and paste them into the corresponding fields in your Finestel account. Finally, click “Next” to complete the process and start Bybit copy trading on Finestel.
Conclusion
The Bybit API is a powerful tool for traders looking to automate their trading strategies and build custom applications. By understanding the API’s functionality, setting up your API key, and exploring the various endpoints, you can unlock a new level of trading efficiency and flexibility.
Remember to always prioritize security when working with APIs. Keep your API key and secret confidential, and follow best practices for secure API usage. With the Bybit API at your disposal, you can take your trading to the next level and explore endless possibilities in the exciting world of cryptocurrency derivatives trading.
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