What Are the Security Implications of Using REST Vs. WebSocket APIs for Order Submission?
REST APIs typically require a new connection for each request, which can increase overhead but offers a clean, stateless interaction. WebSocket maintains a persistent, stateful connection, which is faster for continuous order updates but presents a larger attack surface if compromised.
Both require robust TLS/SSL encryption and HMAC-based request signing for authentication. The key risk for both is the secure management of API keys and preventing replay attacks.
Glossar
Order Submission
Execution ⎊ The order submission process, within cryptocurrency derivatives, options, and financial derivatives, represents the definitive transmission of trading instructions to an exchange or execution venue.
APIs
Interface ⎊ Application Programming Interfaces (APIs) within cryptocurrency, options trading, and financial derivatives represent standardized digital conduits facilitating programmatic interaction between disparate systems.