API Rate Limiting

API rate limiting in cryptocurrency refers to restricting the number of requests a user can make to an API within a specified time period. This limitation helps prevent system overload and abuse by limiting the frequency at which users can access data or execute trades on an exchange.

For example, an API may be configured to allow a user to make only 60 requests per minute. Once this limit is reached, the user will not be able to make any additional requests until the time limit has passed. This ensures fair access to the API for all users and helps maintain system stability.

Rate limiting can also be used to protect against potential security threats, such as denial of service attacks or brute force attacks. By limiting the number of requests a user can make, exchanges can mitigate the risk of malicious activities that could disrupt operations or compromise user data.

Overall, API rate limiting is an essential tool for managing traffic flow, preventing abuse, and safeguarding the security of cryptocurrency exchanges and platforms.

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