Websocket API
A websocket API is a communication protocol that provides full-duplex, bidirectional communication channels over a single TCP connection. Unlike traditional HTTP requests where the client must ask for data, a websocket allows the server to push data to the client immediately as it becomes available.
This is the standard technology used for streaming real-time market data, such as price updates, order book changes, and trade executions. In the crypto industry, websocket APIs are critical for high-performance trading bots that require low-latency data to make split-second decisions.
It maintains a persistent connection, reducing the overhead of repeatedly opening and closing connections. This efficiency is vital for maintaining the speed required in modern financial markets.
Developers rely on these connections to build responsive interfaces and sophisticated algorithmic trading systems. It is the backbone of the real-time data ecosystem.