API key: your digital pass into the crypto world

Do you know what the commonality is between the password to your home and the API key? Both can cost you all your possessions if they fall into the wrong hands! Believe me from my experience...

An API key is a unique digital code that acts as your personal ticket to the world of software interfaces. Essentially, it's your digital passport that allows the system to understand: "Yes, it's really you, not some hacker from the basement of the neighboring house."

What kind of beast is the API key?

When I first encountered this thing, I thought it was just another convoluted abbreviation. But in reality, it's simple: imagine you need to get the current prices for Bitcoin for your website. You reach out to a service with data, and it says, "And who are you anyway?" That's where the API key comes in handy - your identification in the digital world.

Moreover, on some trading platforms, this security system is so paranoid that it requires not one, but several keys! One for identification, another for signing requests... Honestly, it would be easier to submit fingerprints and a DNA sample.

Why You Shouldn't Share Keys

I remember a case when my acquaintance "in secret" shared his API key from a major trading platform with a "reliable" friend. A week later, all his trading balance mysteriously vanished into thin air. The "reliable friend" disappeared along with the money.

Sharing your API key is like giving a stranger the keys to your apartment, the PIN code to your card, and saying: "Just don't steal, okay?"

Symmetric and Asymmetric Signatures

It's all like in spy movies. Symmetric keys are when you and I have the same secret code. Simple and fast, but if it's stolen - both of us have problems.

Asymmetric means that I have a private key and you have a public key. I sign the message with my private key, and you verify the signature with your public key. Sounds complicated? It is! But it is much safer.

My personal experience: how I almost lost all my savings

Once I left my API key in the code that I uploaded to GitHub. I thought, who needs my little project? It turned out that special bots scan all of GitHub looking for such "gifts". An hour after the upload, strange operations started happening on my account. Luckily, I noticed in time and revoked the key! Since then, I've become paranoid about key storage.

How to protect yourself?

1. Change your keys as often as your underwear. At least once a month.
2. Use a whitelist of IP addresses. Let the key work only from your computer.
3. Separate the powers between different keys. One for viewing the balance, another for trading.
4. Store your keys in an encrypted form, not on a sticky note attached to the monitor.
5. Never, NEVER share your keys! Not even with your beloved grandma.

This system is not perfect, but the alternative is to lose all your crypto savings. And in our crazy world, where Bitcoin soars to the skies and then falls into the abyss, we definitely don't need any additional security issues!