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REST API Explained: Design, Use Cases & Best Practices

Understand REST API fundamentals, design patterns, security, and observability. Practical guidance for engineers building scalable APIs and integrating services using modern best practices.
Token Metrics Team
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REST APIs are the backbone of modern web and mobile integrations. This guide breaks down core concepts, practical design patterns, and operational practices so engineers and product teams can evaluate, build, and maintain resilient RESTful services.

What is a REST API and why it matters

Representational State Transfer (REST) is an architectural style for distributed systems. A REST API exposes resources—typically represented as JSON or XML—over HTTP using standard verbs such as GET, POST, PUT, PATCH, and DELETE. The simplicity and ubiquity of REST make it a go-to choice for connecting microservices, mobile apps, and third-party integrations.

When assessing a REST API, focus on clarity of resource modeling, consistency of endpoints, and predictable use of HTTP semantics. Well-designed REST APIs reduce onboarding friction, simplify client code, and enable easier testing and monitoring across a heterogeneous environment.

Core principles and design patterns

Apply a few core principles to make a REST API robust and maintainable:

  • Resource-first design: Model nouns (users, orders, transactions) as resources with clear URIs, e.g., /api/v1/users/{id}.
  • Statelessness: Each request should contain all information needed to process it. This simplifies load balancing and scaling.
  • HTTP semantics: Use status codes (200, 201, 204, 400, 401, 404, 429, 500) appropriately and document their meaning for each endpoint.
  • Versioning: Prefer explicit versioning (/v1/) or content negotiation to avoid breaking clients when you evolve APIs.
  • Pagination and filtering: For list endpoints, implement cursor-based pagination and consistent filtering/query parameters to keep payloads bounded.

Pattern-based approaches—such as HATEOAS (hypermedia links), idempotent write operations, and resource representations optimized for client needs—help balance flexibility with performance. Choose patterns that align with your ecosystem and developer experience goals.

Authentication, rate limiting, and error handling

Security and reliability are non-negotiable. Common authentication options include API keys, OAuth 2.0 bearer tokens, and mutual TLS for service-to-service communication. For public APIs, use scopes and granular permissions.

Rate limiting and throttling protect backend systems from spikes and can be implemented at API gateway or service mesh layers. Communicate limits via headers (e.g., X-RateLimit-Remaining) and return 429 responses with retry guidance.

Error handling should be consistent and machine-readable. A common pattern is a top-level error object with code, message, and optionally a trace or documentation URL. For example:

  1. Return 4xx for client errors with actionable messages.
  2. Return 5xx for server-side failures and include correlation IDs for debugging.
  3. Document idempotency behavior for POST/PUT when retries are possible.

Practical use cases and integration patterns

REST APIs are used across many scenarios. Typical patterns include:

  • Backend-for-frontend (BFF): A thin API tailored to a specific client type (web, mobile) to aggregate multiple services.
  • Service composition: Use REST endpoints to compose business flows across microservices with clear contracts and fallbacks.
  • Event-driven hybrid: Combine REST for synchronous queries and webhooks or message queues for asynchronous events.

When integrating third-party REST APIs, perform a compatibility audit: authentication model, rate limits, data formats, error semantics, and SLA expectations. Automated contract tests (e.g., Pact) and API specifications (OpenAPI/Swagger) reduce integration risk and speed up CI/CD pipelines.

Testing, monitoring, and observability

Operational maturity for REST APIs comes from layered testing and observability:

  • Contract and regression tests: Use OpenAPI to generate tests and validate responses against schemas.
  • Load and chaos testing: Validate behavior under realistic and degraded conditions, including simulated rate-limit breaches and latency spikes.
  • Tracing and metrics: Instrument endpoints with request latency, error rates, and throughput. Distributed tracing helps correlate calls across services.

Expose health checks (liveness, readiness) and use alerting thresholds anchored to business metrics (e.g., error budget, p95 latency). Observability data enables root-cause analysis and informs capacity planning.

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FAQ: What is REST and how does it differ from other styles?

REST is an architectural style emphasizing resources exposed over HTTP with stateless interactions and use of standard verbs. It differs from RPC (remote procedure call) in its resource orientation and from GraphQL in its single-endpoint query flexibility versus REST's multiple resource-oriented endpoints.

How should I version a REST API?

Common strategies include URI versioning (/v1/) and header-based versioning. URI versioning is explicit and simpler for clients; header-based supports smoother evolution. Choose a strategy early and document migration steps.

What are best practices for securing REST APIs?

Use TLS, enforce authentication/authorization, rotate credentials, implement least privilege, validate inputs to prevent injection, and rate-limit to mitigate abuse. For machine-to-machine traffic, consider mTLS or OAuth 2.0 client credentials flow.

How do I monitor and troubleshoot APIs in production?

Collect metrics (latency, error rates), logs, and traces. Correlate these with business KPIs and use correlation IDs to trace individual requests. Automated synthetic monitoring can detect endpoint regressions before users are impacted.

When should I choose REST vs GraphQL or gRPC?

Choose REST for simplicity, widespread tooling, and resource-centric models. GraphQL fits use cases where clients need flexible queries and reduced round-trips. gRPC excels at low-latency service-to-service calls with strict typing. Evaluate client needs, network constraints, and ecosystem tooling.

Can AI-driven tooling improve API development and research?

AI tools can accelerate schema design, generate client SDKs, detect anomalous traffic patterns, and prioritize technical debt. Platforms that combine market and on-chain data with API access can help teams prototype integrations and analyze usage patterns—explore platforms like Token Metrics for AI-driven insights relevant to crypto data APIs.

Disclaimer

This article is for educational purposes only. It explains technical concepts related to REST APIs and operational best practices. It does not provide investment advice, recommendations, or endorsements. Evaluate tools and architectural choices independently based on your requirements and constraints.

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Recent Posts

Crypto Basics

Best Crypto Exchanges for July 2025

Token Metrics Team
6 min

Cryptocurrency adoption has surged in 2025, with Bitcoin reaching over $118,000 and Ethereum climbing above $3,000. Whether you’re a beginner or an advanced trader, choosing the right exchange or trading app is critical. But while exchanges handle your transactions, it’s tools like Token Metrics that give you the edge—using AI to deliver real-time analytics, trading signals, moonshot altcoin picks, and price predictions.

In this guide, we’ll cover the top exchanges and apps for July 2025, along with Token Metrics, the best platform for AI-powered crypto research and trading.

🔝 Top Crypto Platforms for July 2025

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🧠 Token Metrics: Best AI Crypto Trading Platform

Token Metrics stands out not as an exchange, but as an AI-powered research, analytics, and trading platform. It gives retail and institutional investors data-driven insights to make smarter trades across any exchange.

Why Token Metrics is #1 for AI Crypto Trading:

  • AI-Generated Buy/Sell Signals
    Token Metrics’ signals dashboard uses over 80 data points to issue bullish or bearish calls on top tokens. For example, the AI turned bullish on Bitcoin on June 28, just before it surged past $118,000.

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  • Moonshots for Early-Stage Altcoins
    The Moonshots tab identifies low-cap altcoins with 10x–100x potential based on momentum, AI scores, and liquidity—long before they hit mainstream exchanges.

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  • Price Forecasting Models
    Token Metrics predicts short-, medium-, and long-term prices for major tokens. Bitcoin’s 2026 forecast, for example, ranges between $150,000–$230,000, based on ETF flows, supply on exchanges, and macroeconomic signals.

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  • Custom Alerts
    Users can set alerts based on price, trader grade, or AI signals, delivered instantly via Email, Telegram, SMS, or Slack.

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  • Integrated Swap Widget
    You can research, analyze, and buy tokens directly via Token Metrics’ swap widget—all in one dashboard.

Whether you’re trading on Kraken, Coinbase, or Binance, Token Metrics plugs into your strategy and helps you trade with confidence, using real-time AI insights.

⚙ Top 5 Crypto Exchanges for July 2025

đŸ„‡ Kraken – Best for Low Fees

  • Maker Fees: 0.00%–0.25%
  • Taker Fees: 0.10%–0.40%
  • Minimum Deposit: $10
  • Crypto Offered: 300+

Kraken is ideal for fee-sensitive traders. It’s available on web, mobile, desktop, and Kraken Pro. However, it's not available in all U.S. states and lacks FDIC or SIPC insurance.

đŸ„ˆ Gemini – Best for Security & Experienced Traders

  • Maker Fees: 0.00%–0.20%
  • Taker Fees: 0.03%–0.40%
  • Minimum Deposit: $0
  • Crypto Offered: 70

Gemini is the most secure exchange in 2025, with FDIC insurance, crypto insurance, and advanced features through its ActiveTrader terminal. But it has a complex fee structure and limited assets.

đŸ„‰ Coinbase – Best for Beginners

  • Maker Fees: 0.00%–0.40%
  • Taker Fees: 0.05%–0.60%
  • Minimum Deposit: $0
  • Crypto Offered: 240

Coinbase is ideal for newcomers with its clean UI, beginner-friendly tools, and educational content. It’s available in 172 countries, though advanced traders might want more features.

đŸ“± Crypto.com – Best Mobile App & Bitcoin Trading

  • Maker Fees: 0.00%–0.25%
  • Taker Fees: 0.05%–0.50%
  • Minimum Deposit: $20
  • Crypto Offered: 417

With a sleek mobile app and support for Bitcoin options and futures, Crypto.com is perfect for on-the-go traders. However, it only supports a hot wallet and has limited global access.

đŸȘ™ BitMart – Best for Altcoins

  • Fees: Varies by tier (0.04%–0.60%)
  • Minimum Deposit: Not disclosed
  • Crypto Offered: 1,700+

BitMart is the best place to find rare altcoins. With copy trading and BitMart Academy, it’s useful for altcoin hunters. But its lack of transparency on security is a concern.

✅ Why Token Metrics Complements These Exchanges

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⚠ Reminder: Crypto Is Risky

Crypto markets are volatile and speculative. While these exchanges and tools can improve your strategy, always do your own research (DYOR) and consult professionals when investing.

Final Thoughts

If you want to trade crypto in July 2025, pair a high-quality exchange like Kraken or Coinbase with a research powerhouse like Token Metrics. Exchanges execute trades—but Token Metrics tells you what to trade, when to trade, and why.

Crypto Basics

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

Token Metrics Team
6 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

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

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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

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🔄 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.

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