Wallets Management for Exchanges with Crypto APIs Webhooks

Wallets Management for Exchanges with Crypto APIs Webhooks

Blockchain Webhooks

Crypto APIs Team

Dec 3, 2019 • 3 min

Building a crypto exchange seems like an insurmountable task. A complex instrument constructed of many moving parts that need to fit and work perfectly together, like the workings of a Swiss watch. A constant flood of data that needs to be managed and wrapped in an easy to use interface. It’s heavily reliant on accurate and instant information running on numerous blockchains. But this is only the core of a crypto exchange worthy of its name. There is a whole other side to consider – managing the user’s accounts and transactions. Starting with the generation and management of wallets, the setup of notifications for different events, the forwarding of funds. 

Are you thinking to give up before you even start? Don’t!

Everyone can overcome challenges easily when they have the right friend by their side to help with the heavy lifting. And for such a complex case you can rely on Crypto APIs. 

Crypto APIs provides you with all the instruments you will need to build a crypto exchange quickly. There is no issue that can’t be resolved with our endpoints and webhooks. 

Let’s dig deeper into the problems and the solutions

Instant and reliable Blockchain data. 

Our Blockchain APIs allow you to access data on more than 10 coins and all ERC-20 tokens. Our API key will unlock a mindblowing amount of data that you can use to build the perfect crypto exchange quicker and cheaper. Node info Endpoint and block info Endpoint are just two of hundreds of endpoints that will make your development task much easier.

Generate unique hot addresses for every user. 

With the Generate Address Endpoint  you can generate private-public key-pairs along with an associated public address. An example of how to use this endpoint effectively, is to generate a pool of addresses that your database saves. Every user that wants to deposit funds will be assigned one of these pre-generated addresses. You can also setup a limit: when the addresses that are still not associated to any user are below a certain number, more can automatically be generated. This will ensure that you have a certain amount of available addresses per currency, at all times. 

Webhooks hook you up to the easy life. 

Webhooks are sometimes called “reverse APIs”. The reason behind this unusual nickname is that a Webhook, unlike an API, pushes data rather than waiting for you to poll. This simplifies life a lot! You will not need to check every few minutes or seconds to see if a certain event has happened. Instead, the webhook will notify you that this event has taken place, once all the defined criterias are met. 

Crypto APIs has a series of Webhooks that you can subscribe to and use. In this use case you can subscribe to the Create Transaction Confirmations Webhook. You get notifications every time there are incoming or outgoing transactions from one of the assigned hot wallets. You will not miss a single deposit or transaction. 

Better safe than sorry 

Once you have received the Webhook notification, you can easily double-check that the transactions has indeed happened. The best way to do it is with the Get Transaction Details By Transaction ID Endpoint.

Forward the funds

Another important thing Crypto APIs can take care of is the funds forwarding. Leaving funds in the user’s hot wallet is extremely risky. So once the user sends the funds and they reach the hot wallet, they can be automatically forwarded to a cold storage wallet (or anywhere else you decide). You can do this with the Create Payment Endpoint. Another quite handy thing you can setup is to forward a small % of the funds to a different wallet and keep it as your fee. 

We have developed the tools, so you don’t have to! 

Invest your time in developing your product and allow us to take care of the laborious and time consuming part. 

Explore all the possibilities that our APIs provide you with, check out our documentation

Related articles