What are the advantages and disadvantages of using websockets vs rest api in the cryptocurrency industry?

3 answers

• Christian OrtelliJan 23, 2023 · 3 years ago
  Websockets offer real-time data updates, allowing traders to receive instant notifications about price changes, order book updates, and other market events. This can be especially useful for high-frequency trading strategies that require up-to-the-second information. However, websockets require a persistent connection, which can put a strain on server resources and may not be suitable for all trading platforms. Additionally, websockets may introduce security risks if not properly implemented and secured. On the other hand, REST API is a more traditional approach that uses HTTP requests to retrieve data from a server. It is widely supported and easy to integrate into existing systems. REST API is generally more scalable and can handle a larger number of concurrent requests compared to websockets. However, REST API has a delay in data updates as it relies on periodic polling. This delay can be a disadvantage for traders who require real-time data for their trading strategies. In summary, websockets provide real-time data updates but require a persistent connection and may introduce security risks. REST API is more scalable and widely supported but has a delay in data updates. The choice between websockets and REST API depends on the specific requirements of the trading platform and the trading strategies employed.
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• Ac3eSep 19, 2022 · 3 years ago
  Using websockets in the cryptocurrency industry can provide traders with real-time data updates, allowing them to react quickly to market changes. This can be particularly advantageous for day traders and algorithmic trading strategies that rely on up-to-date information. However, websockets require a continuous connection, which can be resource-intensive for both the server and the client. Additionally, websockets may pose security risks if not properly implemented and secured. On the other hand, REST API offers a more traditional approach to data retrieval using HTTP requests. It is widely supported and easy to integrate into existing systems. REST API is generally more scalable and can handle a larger number of concurrent requests compared to websockets. However, REST API has a delay in data updates as it relies on periodic polling. This delay can be a disadvantage for traders who require real-time data for their trading strategies. Overall, the choice between websockets and REST API depends on the specific needs of the cryptocurrency trading platform. Traders should consider factors such as the need for real-time data, scalability, and security when deciding which approach to use.
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• KitsuneKurizMay 22, 2022 · 3 years ago
  In the cryptocurrency industry, websockets and REST API are two common methods for retrieving data from exchanges. Websockets offer real-time data updates, providing traders with immediate access to market information. This can be beneficial for traders who rely on real-time data for their trading strategies. However, websockets require a persistent connection, which can be resource-intensive and may not be suitable for all trading platforms. Additionally, websockets may introduce security vulnerabilities if not properly implemented and secured. On the other hand, REST API is a more traditional approach that uses HTTP requests to retrieve data from exchanges. It is widely supported and easy to integrate into existing systems. REST API is generally more scalable and can handle a larger number of concurrent requests compared to websockets. However, REST API has a delay in data updates as it relies on periodic polling. This delay can be a disadvantage for traders who require real-time data for their trading strategies. Ultimately, the choice between websockets and REST API depends on the specific requirements of the cryptocurrency trading platform. Traders should consider factors such as the need for real-time data, scalability, and security when deciding which method to use.
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