Q1. What is API trading in Crypto?
Ans: API trading in the context of cryptocurrencies refers to the practice of using APIs provided by crypto exchanges to automate trading activities. These APIs allow traders to programmatically interact with the exchange's trading platform, enabling them to execute trades, retrieve market data, manage their portfolios, and implement trading strategies without the need for manual intervention.
It's important to note that API trading carries risks, including technical glitches and market volatility, so it's crucial to exercise caution and conduct thorough testing before deploying automated strategies in live trading environments.
Q2. Why should I trade through API in Crypto?
Ans: There are several reasons to consider using APIs in crypto trading:
1. Access to real-time data
2. Enhanced Security
3. Automation and Efficiency
Q3. What is arbitrage trading?
Ans: Arbitrage trading is a strategy used in financial markets to take advantage of price differences for the same asset on different exchanges or markets. In simpler terms, it involves buying an asset in one market where the price is lower and simultaneously selling it in another market where the price is higher.
The goal of arbitrage traders is to profit from these price disparities, often making quick and low-risk trades to capture the price differential. Arbitrage opportunities may arise due to variations in supply and demand, trading volumes, or inefficiencies in the market.
Q4. Which are the current exchanges that we have on PRO?
Ans: As of now, CoinSwitch PRO offers trading options on the following exchanges:
For INR market:
- CSX: CoinSwitch's in-house exchange, providing access to various crypto assets and trading pairs.
- WazirX: A well-known crypto exchange that offers a wide range of trading options.
For USDT market:
- Binance: Binance has a well known name as an international exchange, opening up even more opportunities for your crypto trading.
Q5. When do we go live with Binance?
Ans: Traders can access Binance on PRO via API trading interface starting from October 5, 2023.
Q6. Will binance be available for all the traders?
Ans: Initially, Binance trading on CoinSwitch PRO will be accessible to API traders. We are actively working to expand access to all users in the future. Our aim is to gradually roll out this exciting feature to ensure a smooth and secure trading experience for everyone. Stay tuned for updates on when Binance trading will become available to all traders on Coinswitch PRO platform.
Q7. Why is binance not visible to the Coinswitch PRO UI interface?
Ans: Current release is for API trading interface for PRO customers, our aim is to gradually roll out this exciting feature to ensure a smooth and secure trading experience for everyone. Stay tuned for updates on when Binance trading will become available to all traders on all interaces.
Q8. List of Coins which will be supported on Binance?
Ans: As we are keep adding new pairs to help making money to our customers, we recommend to use API interface to fetch the latest support coin list and stay updated with latest listing of coins pair on PRO platform
Q9. How can we trade on Binance through PRO?
Ans: Currently, Binance trading on CoinSwitch PRO is accessible to API interface, please go and check the documentation to get access to the all new pairs on PRO platform.
Q10. Why do prices on Binance move earlier than in India?
Ans: Prices on Binance, like many global crypto exchanges, can move earlier due to several factors few are like:
1. Global Market Dynamics
2. Higher Liquidity
3. Arbitrage Opportunities
4. Time Zone Differences
Q11. How many trading pairs will be available on the platform?
Ans: Initially, we are launching 20+ trading pairs on the platform. These trading pairs have been carefully selected to cover approximately 80% of the trading opportunities for CoinSwitch PRO traders. We will be gradually adding more pairs, and stay updated with the list via API interface.
Q12. Explain arbitrage trading scenario using the API on CoinSwitch PRO
Ans: Let's say you're an arbitrage trader who has accounts on both CSX and Binance, and you're using CoinSwitch PRO's API to automate the arbitrage process.
Step 1: Monitor Price Discrepancies
Using CoinSwitch PRO's API, you can monitor the prices of a specific crypto pair (e.g., BTC/ETH) on both CSX and Binance.
Step 2: Identify a Price Discrepancy
You notice that the price of BTC on CSX is slightly lower than on Binance. For instance:
BTC price on CSX: INR 2,42,950
USDT Price on CSX: INR 86
BTC price on Binance: USDT 25,000
a*b-c = delta
Step 3: Place a Buy Order on CSX
You use the CoinSwitch PRO API to place a buy order for BTC using INR on CSX at the lower price of $24,950. You specify the amount of BTC you want to purchase, taking into account any fees and slippage.
Step 4: Place a Sell Order on Binance
Simultaneously, you use the CoinSwitch PRO API to place a sell order for the same amount of BTC on Binance at the higher price of $25,000.
Step 5: Execute the Arbitrage Trade
As soon as both orders on CSX and Binance are executed, you have successfully completed an arbitrage trade. You've bought BTC at a lower price on CSX and sold it at a higher price on Binance, making a profit from the price discrepancy.
Q13. What is TDS and GST in crypto trading?
Ans: a. TDS (Tax Deducted at Source) is a tax deducted from your crypto when you buy it.
b. GST (Goods and Services Tax) is a tax applied to the fees you pay during crypto transactions.
Q14. How does TDS work when I'm buying crypto (e.g., BTC with USDT)?
Ans: When you buy crypto, let's say 10 BTC using 1000 USDT, your wallet will first be debited with 1000 USDT.
Additionally, fees and GST are charged on this transaction. Fees are calculated based on the 1000 USDT you spent, and GST is applied to the fees collected.
Your wallet will be debited with (1000 + Fees + GST) USDT.
TDS is deducted from the destination crypto (in this case, BTC). So, you'll receive (100 - 0.01 * 100) BTC.
Q15. How does TDS work when I'm selling crypto (e.g., BTC for USDT)?
Ans: When you sell crypto, such as 10 BTC, and receive 1000 USDT, the actual value you receive is calculated as follows:
Subtract the fees and GST from the 1000 USDT you receive.
Deduct TDS from the USDT amount.
So, your final value will be [1000 - (Fees + GST) - 0.01 * 1000] USDT.
Q16. How are fees and GST calculated?
Ans: a. Fees are calculated based on the total amount you're spending or receiving in the transaction.
b. GST is applied to the fees you pay during the transaction.
For more information please visit API-Trading page or connect with our customer delight officer.
Q17. How is my portfolio value calculated in crypto trading?
Ans: There is no change for traders, portfolio values will be calculated based on the value of your holdings in Indian Rupees (INR) at the time of buying or selling crypto.