Research

How to Choose the Right API: Decision Frameworks & Best Practices

Explore proven frameworks and best practices for selecting the right API for crypto and AI projects. Learn how smart tools and structured analysis can simplify your API decision process.
Token Metrics Team
6
MIN

In a landscape shaped by rapid technological change and increasing demand for real-time data, APIs (Application Programming Interfaces) are the connective tissue for building innovative apps, platforms, and AI agents—especially in the fast-paced crypto and AI sectors. But with hundreds of APIs available, each promising flexibility, deep data, or robust security, making the right choice is both crucial and challenging. If you’re wondering "Choosing an API. What's your go to?"—this guide breaks down the frameworks, considerations, and strategies you need to make a confident selection.

Why APIs Matter: The Backbone of Modern Apps

APIs are essential for bridging the gap between complex systems, enabling everything from portfolio trackers to trading bots and DeFi dashboards. In crypto markets, they empower developers by delivering live prices, historical charts, blockchain analytics, and more into their applications.

  • Innovation: APIs enable developers to rapidly build, iterate, and pivot, speeding up time-to-market.
  • Interoperability: They connect disparate services—wallets, exchanges, analytics, NFT platforms—into seamless user experiences.
  • Scalability: APIs allow platforms to handle large data loads and user requests without reinventing the wheel.

For data-driven sectors like crypto, the right API can differentiate an average product from a market leader.

API Selection Criteria: Core Factors to Consider

When facing numerous API choices, relying on a structured evaluation framework is key. Here are the essential factors to weigh during your decision process:

  1. Reliability & Uptime
    Stable APIs with high uptime ensure your application runs smoothly, even during market volatility. Look for SLAs, status pages, and real-world uptime statistics.
  2. Data Quality & Coverage
    Comprehensive, accurate, and up-to-date data are essential, especially in crypto. Evaluate the sources (on-chain, exchanges, news) and the breadth of data offered.
  3. Latency & Performance
    In trading or analytics, milliseconds matter. Check for low response times, efficient endpoints, and server locations close to your users.
  4. Security & Compliance
    Ensure robust authentication, encrypted endpoints (HTTPS), and clear data privacy statements. Regulatory compliance is vital for applications handling user data.
  5. Documentation & Developer Experience
    Clear, thorough API documentation and active developer support can dramatically shorten integration times and reduce errors.
  6. Pricing & Scalability
    Transparent pricing, free tiers, and scalable plans let you grow without sudden cost surprises.
  7. Community & Ecosystem
    APIs with vibrant user communities, SDKs, and public forums can accelerate troubleshooting and feature discovery.

The diversity of APIs reflects the wide array of use cases in crypto and AI development. Here are some common scenarios:

  • Market Data APIs: Stream real-time and historical price data, order books, trading volumes, and alerts.
  • On-Chain Analytics APIs: Access wallet balances, smart contract events, token transfers, and blockchain statistics to power dashboards or compliance tools.
  • AI-Driven APIs: Leverage sentiment analysis, natural language processing, or predictive analytics for smarter trading or portfolio decisions.
  • Trading APIs: Automate order execution, risk management, and portfolio rebalancing on centralized or decentralized exchanges.
  • Wallet & Custody APIs: Integrate secure wallet operations, user authentication, and multi-signature security features within mobile or web apps.

Selecting the right type of API depends on your application goals and the core problem you aim to solve.

Data-Driven API Comparisons: Practical Steps

How do you move from a long list of API options to a shortlist—and ultimately, the best fit for your needs? Here’s a practical approach:

  • 1. Define Your Requirements: Document the specific features, data endpoints, and performance needs for your app. Is real-time accuracy essential? How much historical data do you need? Do you require high-frequency updates?
  • 2. Demo and Test: Use sandbox or free API tiers to benchmark latency, data freshness, and error responses. Tools like Postman or cURL can help automate these checks.
  • 3. Scorecard Evaluation: Assign weighted scores to your main criteria (e.g., security, coverage, uptime). Compare options side by side.
  • 4. Community Insights: Check developer reviews, GitHub repositories, and forums for candid feedback about integration pain points or standout benefits.
  • 5. Evaluate Support and Updates: Prioritize APIs from providers that clearly communicate changelogs, roadmap updates, and offer responsive technical support.
  • 6. Monitor Long-Term Viability: Assess whether the provider is reputable and investing in continued infrastructure, regulatory compliance, and new features.

Combining technical due diligence with community feedback reduces the risks of costly mid-project API switches.

How AI Tools and Research Platforms Support Smarter API Choices

AI-driven research and analytics platforms have made it easier to analyze and compare APIs, especially for those without specialized technical backgrounds. Examples include:

  • Automated API benchmarking tools for latency, uptime, and data completeness.
  • Natural language search for finding relevant APIs using AI-powered documentation digests.
  • Platforms like Token Metrics that leverage AI to analyze on-chain data, predict trends, and integrate signals directly via API for smarter app and agent development.

The net result: Even development teams with limited resources can access robust, institutional-grade data and insights. AI also supports informed decision-making by highlighting anomalies, flagging downtime events, and even scoring APIs based on historical reliability.

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FAQ: Choosing the Right API

What is the difference between public and private APIs?

Public APIs are open for use by anyone and often serve broad developer needs, while private APIs are restricted—typically for internal or partner use, offering greater security and custom functionality.

How can I assess an API's security risk?

Look for secure authentication protocols (OAuth 2.0, API keys), encrypted endpoints (HTTPS), regular audits, and transparent vulnerability disclosures from the provider. Always test endpoints for data leakage and follow best practices.

What tools help measure API latency and reliability?

Popular tools include Postman, Pingdom, Uptrends, and custom monitoring scripts. Many major providers also publish real-time status dashboards with uptime statistics.

How can I smoothly integrate a new API into my application?

Prioritize APIs with SDKs in your preferred programming language, thorough documentation, and active developer support forums. Use staging environments to iron out bugs before going live.

Is it common to use multiple APIs in a single project?

Yes. Many advanced apps combine several APIs—such as price feeds, trading, and on-chain analytics—for richer functionality. Using multiple sources can also increase data reliability and coverage.

Disclaimer

This article is for informational and educational purposes only. It does not constitute financial or investment advice. Always conduct your own due diligence and consult with appropriate professionals before making technology or operational decisions in the crypto sector.

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Token Metrics Team
Token Metrics Team

Recent Posts

Crypto Basics

What Is an NFT? Complete Guide to Non-Fungible Tokens (2025)

Token Metrics Team
6 min
MIN

Over the past few years, NFTs (Non-Fungible Tokens) have exploded in popularity—revolutionizing the way we think about digital ownership, art, gaming, collectibles, and more. In 2025, NFTs continue to shape the future of the internet, transforming everything from music rights to virtual real estate.

If you're wondering “What is an NFT?” or how they actually work, this guide breaks it down for you. We’ll also explore how AI-powered tools like Token Metrics can help you identify high-value NFT-related tokens and investment opportunities.

🔍 What Does NFT Stand For?

NFT stands for Non-Fungible Token. Let’s break that down:

  • Token: A digital asset that exists on a blockchain.
  • Non-Fungible: It’s unique and cannot be replaced with something else of equal value. (Unlike cryptocurrencies like Bitcoin, where each BTC is the same.)

So, an NFT is a unique digital asset stored on a blockchain, representing ownership of a specific item—like artwork, music, a tweet, a game character, or a piece of virtual land.

🎹 What Can Be an NFT?

NFTs aren’t just limited to pixelated apes or JPEGs. In 2025, NFTs power a broad range of digital assets:

  • Digital Art: Artworks, animations, and generative art
  • Collectibles: Rare items like trading cards or profile picture (PFP) projects
  • Gaming Assets: In-game skins, weapons, characters, and land (e.g., in The Sandbox or Decentraland)
  • Music and Media: Songs, albums, and exclusive content drops
  • Virtual Real Estate: Land parcels in the metaverse
  • Domain Names: Blockchain-based domain ownership
  • Identity & Access: Membership passes, event tickets, or certification credentials

Each NFT has a unique identifier and metadata that distinguish it from any other asset.

đŸ› ïž How Do NFTs Work?

NFTs are built and recorded on blockchains, most commonly on Ethereum using ERC-721 or ERC-1155 standards. Here’s how they work:

  1. Minting: Turning a digital file into a token on the blockchain
  2. Metadata: Storing details like title, creator, image URL, and traits
  3. Ownership: A smart contract verifies the wallet that owns the NFT
  4. Transferability: NFTs can be sold, traded, or gifted using marketplaces

Because of blockchain immutability, ownership is transparent, verifiable, and permanent.

📈 Why Are NFTs Valuable?

Several reasons explain the rising value and popularity of NFTs:

  • Digital Ownership: You own the asset—not a platform
  • Proven Scarcity: Many NFTs are limited in supply
  • Creator Royalties: Artists earn fees on secondary sales
  • Utility & Access: Some NFTs unlock real-world benefits, games, or private groups
  • Social Status: PFPs like CryptoPunks or Bored Ape Yacht Club are digital status symbols
  • Speculation: Many treat NFTs as investments, betting on future appreciation

In 2025, NFTs have gone beyond hype to form the foundation of Web3 identity and ownership.

💰 How to Buy an NFT

To buy an NFT, you’ll need:

  1. A crypto wallet (like MetaMask)
  2. Some ETH or other supported crypto for payment and gas fees
  3. An NFT marketplace like OpenSea, Blur, Magic Eden, or Rarible

Steps to Buy:

  • Fund your wallet
  • Connect to a marketplace
  • Browse collections
  • Click “Buy Now” or place a bid
  • Approve the transaction

Once purchased, the NFT is transferred to your wallet and viewable on your profile.

⚠ Are NFTs Safe?

NFTs are secure if you follow best practices. However, scams and phishing attacks are common.

Security Tips:

  • Never share your seed phrase
  • Verify contract addresses before minting
  • Don’t connect your wallet to unknown sites
  • Use hardware wallets for high-value NFTs
  • Bookmark official sites

🧠 How Token Metrics Helps You Identify NFT-Related Investments

NFTs are not just collectibles—they’re tied to blockchain ecosystems and tokens. Platforms like Token Metrics help you identify high-potential NFT projects, gaming ecosystems, and utility tokens powering the space.

✅ How Token Metrics Helps:

  • AI-powered Grades: See which NFT-related tokens are trending with Trader & Investor Grades
  • Moonshots Tab: Find small-cap NFT tokens with 10x–100x potential
  • Thematic Indices: Invest in curated NFT indices powered by Token Metrics AI
  • Token Details Page: Dive deep into any NFT-related token’s fundamentals, holders, and performance

Whether it’s $IMX, $MAGIC, $APE, or a metaverse play like $MANA, Token Metrics gives you a data-driven edge.

đŸ§© Popular NFT Blockchains in 2025

NFTs are no longer limited to Ethereum. In 2025, several chains offer faster, cheaper minting and trading:

Token Metrics tracks all these chains, offering a cross-chain perspective for NFT investing.

đŸȘ™ What Are NFT Tokens?

Many NFT ecosystems have their own fungible tokens used for governance, staking, or ecosystem rewards. Examples include:

  • $APE (Bored Ape Yacht Club)
  • $MAGIC (TreasureDAO)
  • $IMX (Immutable X)
  • $LOOKS (LooksRare)
  • $BLUR (Blur marketplace)

These tokens can rise in value based on NFT trading volume, user adoption, and staking incentives. Token Metrics’ analytics help traders spot breakout opportunities early.

🚀 Future of NFTs in 2025 and Beyond

NFTs are evolving fast. In 2025, they’re used for more than art and gaming:

  • NFTs as IDs: Used for logging into apps and verifying reputation
  • Real-world assets: Tokenizing real estate, music royalties, and legal contracts
  • DeFi integrations: NFTs used as collateral in lending protocols
  • Event access: NFTs as tickets for IRL and virtual experiences
  • AI x NFTs: Generative AI tools minting and managing NFT metadata autonomously

Expect continued innovation, and stay ahead using tools like Token Metrics.

🧠 Final Thoughts: Are NFTs Worth It?

NFTs are more than a trend — they represent the digitization of ownership in the Web3 era. From art and identity to games and finance, NFTs unlock new possibilities for creators and collectors alike.

If you're looking to explore NFT opportunities beyond collectibles—Token Metrics gives you the data, AI tools, and insights you need to invest intelligently.

Crypto Basics

How to Create a Crypto Wallet: A Complete Beginner’s Guide (2025)

Token Metrics Team
6 min
MIN

As the popularity of cryptocurrencies continues to grow in 2025, more people are seeking safe and secure ways to manage their digital assets. The first step in your crypto journey? Creating a crypto wallet.

In this guide, we’ll explain:

  • What a crypto wallet is
  • Different types of wallets
  • How to create one (step-by-step)
  • Tips for securing your wallet
  • How Token Metrics can help you trade smarter after setup

đŸȘ™ What Is a Crypto Wallet?

A crypto wallet is a digital tool that allows you to store, receive, and send cryptocurrencies like Bitcoin, Ethereum, and thousands of altcoins. Instead of holding physical money, it stores your private and public keys, giving you access to your blockchain assets.

Two Major Types:

  1. Hot Wallets – connected to the internet (ideal for active users)
  2. Cold Wallets – offline and more secure (ideal for long-term storage)

Whether you're buying Bitcoin for the first time or diving into DeFi tokens, you'll need a crypto wallet to safely store and manage your coins.

đŸ”„ Hot Wallets vs. 🧊 Cold Wallets

‍

‍

Hot wallets are easier to set up and use, while cold wallets offer greater protection against hacks and malware.

đŸ› ïž How to Create a Crypto Wallet (Step-by-Step)

Option 1: Creating a Hot Wallet (e.g., MetaMask or Trust Wallet)

Step 1: Download the App or Browser Extension

Step 2: Create a New Wallet

  • Click “Create a Wallet”
  • Set a strong password

Step 3: Backup Your Recovery Phrase

  • Write down the 12 or 24-word seed phrase
  • Store it offline (NOT on your phone or computer)

Step 4: Confirm Your Recovery Phrase

  • MetaMask will ask you to re-enter it to ensure it's saved correctly

Step 5: Wallet is Ready

  • You can now receive, send, and store ETH, ERC-20 tokens, and NFTs

✅ Pro Tip: Connect your wallet to Token Metrics to explore trading signals, moonshots, and AI analytics directly.

Option 2: Creating a Cold Wallet (e.g., Ledger Nano X)

Step 1: Buy a Ledger or Trezor device

  • Always order from the official website to avoid tampered devices

Step 2: Install Wallet Software

  • Download Ledger Live or Trezor Suite

Step 3: Set Up Device and PIN

  • Follow the on-screen instructions
  • Create a secure PIN code

Step 4: Write Down Your Recovery Phrase

  • The device will show a 24-word seed phrase
  • Write it down and store it in a fireproof safe

Step 5: Start Receiving Crypto

  • Use Ledger Live or Trezor Suite to generate wallet addresses
  • Send crypto from exchanges or other wallets

✅ Pro Tip: Use your cold wallet to store moonshots and long-term assets, then analyze performance using Token Metrics Portfolio tools.

đŸ›Ąïž Tips for Securing Your Crypto Wallet

  1. Never share your seed phrase
    Anyone with your seed phrase can steal your funds

  2. Enable Two-Factor Authentication (2FA)
    For added protection on wallet apps and exchange accounts

  3. Use a strong, unique password
    Avoid reusing passwords across multiple accounts

  4. Avoid phishing sites
    Always double-check URLs before connecting your wallet

  5. Keep backups offline
    Use metal seed plates or paper stored in multiple safe locations

🔎 How Token Metrics Supports Your Wallet Journey

While Token Metrics doesn't create wallets, it integrates seamlessly with your Web3 wallets to help you maximize profits and minimize risks.

1. AI-Powered Ratings

Once your wallet is set up, use Token Metrics to find top-rated tokens across risk levels, market caps, and sectors.

2. Moonshots Dashboard

Explore early-stage tokens with massive upside using the Moonshots tab—only available to Premium members.

3. Real-Time Alerts

Set up alerts for price, investor grade, or bullish/bearish signals—and receive them directly to your connected wallet’s contact info.

4. Track Your Portfolio

Monitor wallet performance across tokens with a real-time dashboard powered by on-chain data.

📩 What Can You Store in Your Crypto Wallet?

Different wallets support different blockchains, so always check compatibility before sending assets.

đŸ“Č Best Wallets to Use in 2025

‍

🔄 Wallet Creation FAQs

Q: Is creating a crypto wallet free?
Yes, most wallet apps like MetaMask or Trust Wallet are free.

Q: Can I create multiple wallets?
Absolutely. Many investors use different wallets for different purposes (e.g., trading, staking, savings).

Q: What happens if I lose my recovery phrase?
You lose access to your wallet permanently. Always store it securely.

Q: Do I need a wallet to use Token Metrics?
No, but connecting a wallet enhances your experience by allowing you to monitor portfolios, moonshots, and alerts in real time.

🧠 Final Thoughts

Creating a crypto wallet is your gateway to the decentralized world of digital finance. Whether you’re a seasoned trader or a beginner buying your first token, having a secure wallet is non-negotiable.

By choosing the right wallet (hot or cold), securing your keys, and combining it with powerful tools like Token Metrics, you can build a smart, secure, and profitable crypto journey.

Crypto Basics

How to Store Cryptocurrency Safely in 2025 | Hot vs Cold Wallets

Token Metrics Team
6 min
MIN

Cryptocurrency offers unmatched freedom, but with that freedom comes responsibility—especially when it comes to how to store cryptocurrency securely. Unlike traditional banking, crypto is self-custodied. If you lose access to your wallet, your funds are gone forever.

This guide explains everything you need to know about storing crypto in 2025, including:

  • Why crypto storage matters
  • Types of crypto wallets
  • Hot wallets vs. cold wallets
  • Tips for securing your assets
  • How platforms like Token Metrics can help protect your investment

đŸȘ™ Why Is Storing Cryptocurrency Important?

When you buy crypto—whether it’s Bitcoin, Ethereum, or a promising moonshot altcoin—you receive private keys that give you access to your funds. Anyone with that key can spend your coins.

That’s why safe storage is critical. Without it, your assets are vulnerable to:

  • Hacks and phishing scams
  • Lost devices or forgotten passwords
  • Exchange collapses or rug pulls

You are your own bank, and your security strategy is your vault.

🔐 What Is a Crypto Wallet?

A crypto wallet is a digital tool that stores your private and public keys. It lets you send, receive, and manage your crypto.

There are two main types:

  1. Hot wallets – connected to the internet
  2. Cold wallets – offline and physically secured

Let’s explore both.

🌐 Hot Wallets: Convenience Meets Risk

Hot wallets are always online, making them easy to use for trading, DeFi, or daily transactions.

Types of Hot Wallets:

  • Web wallets (e.g., MetaMask, Trust Wallet)
  • Mobile apps (e.g., Coinbase Wallet, Phantom)
  • Desktop wallets (e.g., Exodus, Electrum)

Pros:

  • Quick access to funds
  • Easy integration with DApps and exchanges
  • Great for beginners and active traders

Cons:

  • Higher risk of hacks, malware, and phishing
  • Device or browser compromise can expose keys

Best Practices for Hot Wallets:

  • Use 2FA (Two-Factor Authentication)
  • Never store large amounts
  • Double-check URLs to avoid fake websites
  • Avoid public Wi-Fi while transacting

🧊 Cold Wallets: Ultimate Security

Cold wallets are offline storage solutions, ideal for long-term investors or large holdings.

Types of Cold Wallets:

  • Hardware wallets (e.g., Ledger Nano X, Trezor)
  • Paper wallets (QR code + private key printed on paper)
  • Air-gapped devices (old smartphones with no internet access)

Pros:

  • Immune to online hacks
  • Best for HODLing and large sums
  • You own full control

Cons:

  • Less convenient for daily use
  • Loss or damage without backups = permanent loss

Best Practices for Cold Wallets:

  • Buy hardware wallets directly from the manufacturer
  • Backup your seed phrase on metal plates or offline storage
  • Keep backups in secure, separate locations

🔄 Custodial vs. Non-Custodial Wallets

🏩 Custodial Wallets

Managed by exchanges (e.g., Binance, Coinbase). You don’t own the private keys.

Pros:

  • Easy to use
  • Ideal for beginners

Cons:

  • Not your keys, not your crypto
  • Vulnerable to hacks or platform failures

🔓 Non-Custodial Wallets

You own the keys. Wallets like MetaMask, Trust Wallet, or hardware devices.

Pros:

  • Full control and ownership
  • Safer long-term storage

Cons:

  • Losing your seed phrase = permanent loss
  • Requires more responsibility

Tip: Token Metrics recommends non-custodial wallets for storing long-term holdings and moonshot tokens.

🔐 How Token Metrics Enhances Crypto Security

Token Metrics is an AI-powered crypto research and trading platform trusted by thousands of investors. While it doesn’t store your crypto directly, it helps you manage risk and store assets wisely by:

1. Identifying Safe Assets

Token Metrics gives you AI-generated grades for tokens—helping you avoid scams and invest in credible projects worth storing long-term.

2. Trading Tools with Wallet Integration

You can explore tokens, assess moonshots, and initiate trades directly from your connected Web3 wallet without leaving the platform.

3. Portfolio Tracking with Security

Token Metrics allows you to track wallets and portfolio performance without requiring access to your private keys.

4. Educational Guidance

Through webinars, blog content, and investor resources, Token Metrics educates users on how to safely store their crypto in hot and cold wallets.

🧠 Tips to Keep Your Crypto Safe in 2025

✅ Use Hardware Wallets for Large Amounts

Your long-term Bitcoin, Ethereum, and moonshot tokens should live on a hardware wallet, not on an exchange.

✅ Store Your Seed Phrase Offline

Do NOT keep your recovery phrase in Google Docs or your phone. Use metal seed phrase storage or write it down and lock it in a safe.

✅ Use Multiple Wallets

Diversify storage:

  • Hot wallet for daily use
  • Cold wallet for savings
  • Separate wallet for DeFi

✅ Avoid Suspicious Links and Apps

Phishing is the #1 crypto threat. Double-check URLs, don’t sign unknown transactions, and avoid shady browser extensions.

✅ Monitor Wallet Activity

Use platforms like Token Metrics Alerts or Etherscan to track your wallet and get notified of suspicious activity.

đŸȘ™ How to Store Different Types of Crypto

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🧭 Final Thoughts

Storing cryptocurrency securely is just as important as choosing the right tokens to invest in. Whether you’re a day trader, long-term investor, or moonshot hunter, knowing when and where to store your crypto is key to protecting your wealth.

In 2025, the best strategy combines:

  • Cold wallets for large, long-term holdings
  • Hot wallets for convenience and trading
  • Non-custodial options to retain full control
  • AI tools like Token Metrics to identify trustworthy assets and avoid scams

When you store your crypto properly, you don’t just protect your assets—you gain peace of mind.

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