Back to blog
Crypto Basics

Initial Coin Offering (ICO) Explained - A Complete Guide

Learn everything about Initial Coin Offering (ICO) in this guide. This guide will help beginners to understand the fundraising process using cryptocurrencies.
Sumit Meghani
9 Minutes
Want Smarter Crypto Picks—Free?
See unbiased Token Metrics Ratings for BTC, ETH, and top alts.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
 No credit card | 1-click unsubscribe

In the world of cryptocurrency, Initial Coin Offerings (ICOs) have emerged as a popular method of fundraising for startups and projects. But what exactly are ICOs, and how do they work?

In this definitive guide, we will explore the concept of ICOs, their history and evolution, the benefits and risks of participating in ICOs, and the factors to consider before investing in an ICO.

What is an ICO?

ICOs, also known as Initial Coin Offerings, are a form of crowdfunding where companies issue digital tokens or coins to raise funds for their projects. 

These tokens are usually built on existing blockchain platforms, such as Ethereum, and can represent various assets or utilities within a project's ecosystem.

Unlike traditional fundraising methods like Initial Public Offerings (IPOs), ICOs allow companies to bypass the lengthy and costly process of going public. 

Instead, they can directly sell their tokens to the public, offering early investors the opportunity to buy tokens at a discounted price before they are listed on cryptocurrency exchanges.

History and evolution of ICOs

The concept of ICOs originated with the launch of Mastercoin in 2013, which raised over 5000 Bitcoin (BTC) in its crowdfunding campaign. This success paved the way for other projects to adopt the ICO model, leading to a surge in popularity in the following years.

In 2017, ICOs reached their peak, with numerous projects raising millions, and sometimes even billions, of dollars in a matter of days. 

However, this period was also marked by a lack of regulation and oversight, resulting in many fraudulent projects and scams that left investors high and dry.

How do ICOs work?

Project Development

Before an ICO, the project team develops a whitepaper. This document outlines the project's purpose, technical aspects, the amount of capital required, how many tokens the project team will hold, the type of money accepted, and the timeline of the ICO campaign.

Token Sale

Once the whitepaper is ready, the project team will announce the ICO date and begin the token sale. Early project enthusiasts, also known as the 'early bird investors,' will buy tokens in this phase. 

If the money raised does not meet the project's requirements, the ICO is deemed unsuccessful, and the money is returned to the investors.

Token Distribution

If the ICO campaign reaches its funding goal, the tokens are distributed to investors, and the project team uses the funds to further the project development.

In return for their investment, participants receive a certain number of tokens, which can later be traded on cryptocurrency exchanges or used within the project's ecosystem. 

The value of these tokens can fluctuate, offering investors the potential for significant returns if the project succeeds.

Benefits and risks of participating in ICOs

Participating in ICOs can offer several benefits for investors but it also comes with few risks. Let’s understand the key benefits and risks of ICO investments.

Benefits

1. Investment Opportunity: ICOs present an opportunity to invest in promising projects at the ground level. If the project succeeds, the token value can rise substantially, leading to significant returns.

2. Democratized Funding: ICOs allow anyone in the public to contribute to the project. This is unlike traditional investment methods, often limited to accredited investors.

3. Fostering Innovation: ICOs provide a platform for innovative projects to get the funding they need to develop their ideas.

Risks

1. Lack of Regulation: While some regulation exists, the ICO space still remains somewhat unregulated, which can expose investors to fraudulent projects.

2. Market Volatility: Cryptocurrencies are known for their volatility. The value of tokens bought during an ICO can decrease significantly.

3. Project Failure: As with any investment in a new project, there's always the risk that the project will not succeed, leading to a loss of investment.

Factors to consider before investing in an ICO

Before investing in an ICO, there are several factors that you should consider to make an informed decision. 

Firstly, evaluate the project's whitepaper and roadmap to understand its goals, vision, and feasibility. Look for a strong team with relevant experience and a clear plan for execution.

Additionally, consider the market potential of the project and its competitive advantage. Does the project solve a real-world problem or offer a unique solution? Assess the project's token economics and distribution model to ensure fairness and long-term sustainability.

Lastly, pay attention to the project's community and investor relations. A strong and supportive community can contribute to the project's success, while poor communication or lack of transparency can be red flags.

Where to find initial coin offerings?

Keeping track of new coin launches in the dynamic world of cryptocurrencies can be a challenging task, but with the right tools and resources, you can stay up-to-date. 

Various cryptocurrency exchanges like Coinbase, Gemini, and Kraken often list new tokens and provide updates about upcoming launches on their platforms. 

Crypto market data aggregators such as CoinGecko and CoinMarketCap serve as comprehensive resources for information about new coin listings.

Remember, investing in ICOs involves risk. The suggestions are not investment advice, but merely resources to monitor. Always conduct thorough research and due diligence before investing in any ICOs.

Tips for successful participation in ICOs

Participating in an ICO can be an exciting and potentially lucrative opportunity, but it's important to approach it with caution and follow some best practices. Here are some tips for successful participation in ICOs:

  • Conduct thorough research: Read the project's whitepaper, evaluate its team and advisors, and assess its market potential before making any investment decisions.
  • Diversify your investments: Spread your investments across multiple ICOs to mitigate risk. Avoid putting all your eggs in one basket.
  • Stay informed: Keep up-to-date with the latest news and developments in the cryptocurrency industry. Follow reputable sources and join communities to stay informed about upcoming ICOs and market trends.
  • Set a budget: Determine how much you are willing to invest in ICOs and stick to your budget. Avoid investing more than you can afford to lose.
  • Use secure wallets: Store your tokens in secure wallets to protect them from hacks and theft. Consider using hardware wallets for added security.

ICO regulations and legal considerations

With the rise of ICO scams and fraudulent projects, regulatory bodies around the world have started taking action to protect investors and promote transparency in the ICO market. 

Countries like the United States, Switzerland, and Singapore have issued guidelines and regulations for ICOs, imposing stricter requirements on projects and enhancing investor protection.

Before participating in an ICO, it's crucial to familiarize yourself with the regulatory landscape in your jurisdiction. 

Understand the legal considerations and requirements for both the project and the investors. This will help you make informed decisions and avoid potential legal pitfalls.

Future of ICOs in 2023 and beyond

As we look ahead to 2023 and beyond, the future of ICOs remains uncertain. While ICOs have revolutionized fundraising in the cryptocurrency space, they have also faced criticism and regulatory scrutiny due to the prevalence of scams and fraudulent projects.

In response to these challenges, we can expect to see increased regulation and oversight in the ICO market. 

Regulatory bodies around the world are working to establish guidelines and frameworks to protect investors and weed out fraudulent projects. 

This regulatory clarity could help to restore confidence in the ICO market and attract more traditional investors.

Furthermore, we may witness the emergence of new fundraising models that address the shortcomings of ICOs. 

Security Token Offerings (STOs) and Initial Exchange Offerings (IEOs) are already gaining traction as alternative fundraising methods that offer increased investor protection and compliance with existing regulations.

Frequently Asked Questions

Q1. How are ICOs different from STOs and IEOs?

While ICOs (Initial Coin Offerings), STOs (Security Token Offerings), and IEOs (Initial Exchange Offerings) are all fundraising methods in the crypto space, they differ in their regulatory frameworks and the rights they offer to investors.

Q2. Are all ICOs legal?

The legality of ICOs depends on the regulatory framework of each country. Some countries have banned ICOs, while others have regulated them. It's essential to check the legal status of ICOs in your country before participating.

Q3. What happens to the funds if the ICO doesn't reach its target?

Typically, if an ICO does not reach its funding target, the raised funds are returned to the investors. This process, known as a "refund," is usually outlined in the project's whitepaper.

Q4. How can I participate in an ICO?

To participate in an ICO, you typically need to create an account on the ICO's official website, go through a Know Your Customer (KYC) process, and then send your investment (often in the form of Bitcoin or Ethereum) to a designated address.

Q5. Are ICOs a good investment?

Investing in ICOs can be high-risk, high-reward. While some ICOs have delivered impressive returns, others have led to significant losses. It's crucial to conduct thorough research and consider your risk tolerance before investing in an ICO.

Q6. Can ICOs make you rich?

While it's true that some investors have made substantial profits from successful ICOs, it's essential to understand that investing in ICOs is not a guaranteed way to get rich. Many ICOs fail or are scams. Due diligence and a solid understanding of the project are crucial before investing.

Q7. What's the role of a token in an ICO?

The token issued in an ICO often serves as the utility token for the project's ecosystem. They can represent access rights to a service provided by the project or can be used for transactions within the project's platform.

Q8. How can I spot an ICO scam?

Signs of a potential ICO scam can include unrealistic promises of returns, lack of transparency, an anonymous or inexperienced team, lack of a comprehensive whitepaper, and lack of third-party audits or involvement of recognized crypto exchanges.

Conclusion

ICOs have played a vital role in the growth of the cryptocurrency industry by providing an innovative way to fund new projects. 

However, like any investment, they come with their risks. With proper due diligence and cautious judgment, participating in an ICO can be an exciting way to engage with the crypto world.

Keep in mind that this guide is only the start of your ICO journey. Always strive to deepen your understanding, stay informed about industry changes, and make decisions that align with your risk tolerance and investment goals. 

Happy investing!

Disclaimer

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such.

Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

Build Smarter Crypto Apps &
AI Agents in Minutes, Not Months
Real-time prices, trading signals, and on-chain insights all from one powerful API.
Grab a Free API Key
About Token Metrics
Token Metrics: AI-powered crypto research and ratings platform. We help investors make smarter decisions with unbiased Token Metrics Ratings, on-chain analytics, and editor-curated “Top 10” guides. Our platform distills thousands of data points into clear scores, trends, and alerts you can act on.
30 Employees
analysts, data scientists, and crypto engineers
30 Employees
analysts, data scientists, and crypto engineers
30 Employees
analysts, data scientists, and crypto engineers
Want Smarter Crypto Picks—Free?
See unbiased Token Metrics Ratings for BTC, ETH, and top alts.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
 No credit card | 1-click unsubscribe
Token Metrics Team
Token Metrics Team

Recent Posts

Research

Free APIs: Practical Guide for Crypto & AI Developers

Token Metrics Team
5

Free APIs unlock data and functionality for rapid prototyping, research, and lightweight production use. Whether you’re building an AI agent, visualizing on-chain metrics, or ingesting market snapshots, understanding how to evaluate and integrate a free API is essential to building reliable systems without hidden costs.

What a "Free API" Really Means

Not all "free" APIs are created equal. The term generally refers to services that allow access to endpoints without an upfront fee, but differences appear across rate limits, data freshness, feature scope, and licensing. A clear framework for assessment is: access model, usage limits, data latency, security, and terms of service.

  • Access model: API key, OAuth, or anonymous endpoints determine how you authenticate and control usage.
  • Usage limits: Calls per minute/day, concurrency limits, and burst policies affect feasibility for real-time applications.
  • Data latency and granularity: Historical snapshots versus streaming updates change how you design ingestion and caching.
  • Licensing and redistribution: Check whether you can store, display, or redistribute data; free tiers often restrict commercial redistribution.
  • Support and SLA: Free tiers rarely carry guarantees—plan for graceful degradation and rate-limit handling.

How to Evaluate Free APIs: A Practical Checklist

Use a methodical approach to compare options. Below is a pragmatic checklist that helps prioritize trade-offs between cost and capability.

  1. Define requirements: identify throughput, freshness, and fields required. A small set of critical fields reduces bandwidth and simplifies caching.
  2. Measure performance: run latency and error-rate tests from your target regions. Free endpoints can be geo-constrained.
  3. Examine rate limits: build sample load tests to confirm call quotas and how the provider enforces throttling.
  4. Check data provenance: verify how data is sourced and updated; for derived metrics, inspect calculation methods and versioning.
  5. Review terms: confirm allowed use cases, retention rights, and attribution requirements.
  6. Plan fallbacks: design multi-source strategies and caching layers to mitigate outages or caps.

For crypto-specific datasets, platforms such as Token Metrics illustrate how integrated analytics and API endpoints can complement raw data feeds by adding model-driven signals and normalized asset metadata.

Integration Patterns and Best Practices

Free APIs are most effective when integrated with resilient patterns. Below are recommended practices for teams and solo developers alike.

  • Client-side throttling: implement token buckets or leaky buckets to smooth bursts and reduce 429 errors.
  • Edge caching: cache responses at the CDN or application edge, with TTLs determined by acceptable staleness.
  • Incremental syncs: prefer delta queries where supported to limit payload sizes and conserve rate limits.
  • Graceful degradation: show cached or approximate data when the API is unavailable to preserve UX continuity.
  • Monitoring & observability: track request counts, error rates, and latency; alert on policy limit warnings rather than only on failures.
  • Security: never embed API keys in public repositories; use vaults or server-side proxies for authentication.

Use Cases and Scenario Analysis

Understanding where a free API fits in your architecture depends on the scenario. Consider three common patterns:

  1. Rapid prototyping: Free API tiers let teams validate hypotheses quickly. Favor simplicity and low setup friction here; strict rate limits are acceptable for early tests.
  2. Research and backtesting: Historical endpoints with bulk download capabilities are valuable. For reproducible experiments, verify dataset completeness and snapshot timestamps.
  3. Light production workloads: Small applications can rely on free tiers if architects combine caching, retry strategies, and multi-source redundancy to manage availability risks.

When working with AI agents or automated analytics, instrument data flows and label data quality explicitly. AI-driven research tools can accelerate dataset discovery and normalization, but you should always audit automated outputs and maintain provenance records.

Build Smarter Crypto Apps & AI Agents with Token Metrics

Token Metrics provides real-time prices, trading signals, and on-chain insights all from one powerful API. Grab a Free API Key

FAQ: Common Questions About Free APIs

What limits should I expect on a free API?

Limits vary by provider but often include reduced daily/monthly call quotas, limited concurrency, and delayed data freshness. Review the provider’s rate-limit policy and test in your deployment region.

Can I use free APIs in production?

Yes for low-volume or non-critical paths, provided you incorporate caching, retries, and fallback logic. For mission-critical systems, evaluate paid tiers for SLAs and enhanced support.

How do I secure API keys for free tiers?

Store keys in environment-specific vaults, avoid client-side exposure, and rotate keys periodically. Use proxy layers to inject keys server-side when integrating client apps.

Are free APIs reliable for historical data needs?

Some free APIs provide robust historical endpoints, but completeness and retention policies differ. Validate by sampling known events and comparing across providers before depending on the dataset.

How can AI tools help when using free APIs?

AI tools can assist with data cleaning, anomaly detection, and feature extraction, making it easier to derive insight from limited free data. Always verify model outputs and maintain traceability to source calls.

What should I monitor after integrating a free API?

Track request volume, error rates (429/5xx), latency, and data staleness metrics. Set alerts for approaching throughput caps and automate graceful fallbacks to preserve user experience.

Is it legal to store and redistribute data from a free API?

Legal permissions depend on the provider’s terms. Some allow caching for display but prohibit redistribution or commercial resale. Always consult the API’s terms of service before storing or sharing data.

How do I plan for scale from a free tier?

Design with decoupled ingestion, caching, and multi-source redundancy so you can swap to paid tiers or alternative providers without significant refactoring.

Can multiple free APIs be combined?

Yes. Combining multiple sources improves resilience and data quality, but requires normalization, reconciliation logic, and latency-aware merging rules.

Disclaimer

This article is educational and informational only. It does not constitute financial, legal, or investment advice. Evaluate services and make decisions based on your own research and compliance requirements.

Research

Understanding REST APIs: Design, Security & Best Practices

Token Metrics Team
5

Modern web and mobile applications rely heavily on REST APIs to exchange data, integrate services, and enable automation. Whether you're building a microservice, connecting to a third-party data feed, or wiring AI agents to live systems, a clear understanding of REST API fundamentals helps you design robust, secure, and maintainable interfaces.

What is a REST API?

REST (Representational State Transfer) is an architectural style for distributed systems. A REST API exposes resources—often represented as JSON or XML—using URLs and standard HTTP methods. REST is not a protocol but a set of constraints that favor statelessness, resource orientation, and a uniform interface.

Key benefits include simplicity, broad client support, and easy caching, which makes REST a default choice for many public and internal APIs. Use-case examples include content delivery, telemetry ingestion, authentication services, and integrations between backend services and AI models that require data access.

Core Principles & HTTP Methods

Understanding core REST principles helps you map business entities to API resources and choose appropriate operations:

  • Resources: Model nouns (e.g., /users, /orders) rather than actions.
  • Statelessness: Every request should contain all information to process it; avoid server-side session state.
  • Representation: Use consistent formats such as JSON:API or HAL for predictable payloads.
  • HTTP Verbs: GET for retrieval, POST to create, PUT/PATCH to update, DELETE to remove. Idempotency and safety semantics matter when designing retries and error handling.
  • Status Codes: Use standard HTTP status codes (200, 201, 204, 400, 401, 403, 404, 429, 500) to communicate outcomes clearly to clients.

Adhering to these constraints makes integrations easier, especially when connecting analytics, monitoring, or AI-driven agents that rely on predictable behavior and clear failure modes.

Design Patterns and Best Practices

Building a usable REST API involves choices beyond the basics. Consider these patterns and practices:

  • Versioning: Use URI (e.g., /v1/) or header-based versioning to avoid breaking clients when evolving schemas.
  • Pagination and Filtering: Support limit/offset or cursor-based pagination and flexible query filters to keep responses performant.
  • Hypermedia (HATEOAS): Optionally include links to related resources to improve discoverability for advanced clients.
  • Idempotency Keys: For non-idempotent operations, accept idempotency keys so retries don’t create duplicates.
  • Documentation and SDKs: Maintain OpenAPI/Swagger specs and generate client SDKs to reduce integration friction.

For teams building APIs that feed ML or AI pipelines, consistent schemas and semantic versioning are particularly important. They minimize downstream data drift and make model retraining and validation repeatable.

Security, Monitoring, and Scaling

Security and operational visibility are core to production APIs:

  • Authentication & Authorization: Use OAuth 2.0, JWTs, or API keys depending on risk profile. Apply least-privilege principles to tokens and scopes.
  • Transport Security: Enforce TLS for all traffic and HSTS where applicable.
  • Rate Limiting & Throttling: Protect against abuse and ensure fair usage. Return clear retry-after headers to guide clients.
  • Observability: Emit structured logs, request IDs, and metrics (latency, error rates) and hook them into dashboards and alerting systems.
  • Schema Validation: Validate payloads at the boundary to prevent invalid data from propagating into downstream services.

Scaling often combines stateless application design, caching (CDNs or reverse proxies), and horizontal autoscaling behind load balancers. For APIs used by data-hungry AI agents, consider async patterns (webhooks, message queues) to decouple long-running tasks from synchronous request flows.

Build Smarter Crypto Apps & AI Agents with Token Metrics

Token Metrics provides real-time prices, trading signals, and on-chain insights all from one powerful API. Grab a Free API Key

FAQs

What distinguishes REST from other API styles like GraphQL?

REST emphasizes resources and uses HTTP verbs and status codes. GraphQL exposes a flexible query language letting clients request only needed fields. REST is often simpler to cache and monitor, while GraphQL can reduce over-fetching for complex nested data. Choose based on client needs, caching, and complexity.

How should I version a REST API without breaking clients?

Common strategies include URI versioning (/v1/) and header-based versioning. Maintain backward compatibility whenever possible, provide deprecation notices, and publish migration guides. Semantic versioning of your API contract helps client teams plan upgrades.

What are practical steps to secure a public REST API?

Require TLS, use strong authentication (OAuth 2.0 or signed tokens), validate inputs, enforce rate limits, and monitor anomalous traffic. Regularly audit access controls and rotate secrets. Security posture should be part of the API lifecycle.

How can REST APIs support AI-driven workflows?

APIs can supply training data, feature stores, and live inference endpoints. Design predictable schemas, low-latency endpoints, and asynchronous jobs for heavy computations. Tooling and observability help detect data drift, which is critical for reliable AI systems. Platforms like Token Metrics illustrate how API-led data can support model-informed insights.

When should I use synchronous vs asynchronous API patterns?

Use synchronous APIs for short, fast operations with immediate results. For long-running tasks (batch processing, complex model inference), use asynchronous patterns: accept a request, return a job ID, and provide status endpoints or webhooks to report completion.

Disclaimer

This article is educational and technical in nature. It does not constitute investment, legal, or professional advice. Evaluate tools and architectures against your requirements and risks before deployment.

Research

Practical Guide to Building Robust REST APIs

Token Metrics Team
5

REST APIs power much of the web and modern integrations—from mobile apps to AI agents that consume structured data. Understanding the principles, common pitfalls, and operational practices that make a REST API reliable and maintainable helps teams move faster while reducing friction when integrating services.

What Is a REST API and Why It Matters

Representational State Transfer (REST) is an architectural style for networked applications. A REST API exposes resources (users, accounts, prices, etc.) via predictable HTTP endpoints and methods (GET, POST, PUT, DELETE). Its simplicity, cacheability, and wide tooling support make REST a go-to pattern for many back-end services and third-party integrations.

Key behavioral expectations include statelessness (each request contains the information needed to process it), use of standard HTTP status codes, and a resource-oriented URI design. These conventions improve developer experience and enable robust monitoring and error handling across distributed systems.

Core Design Principles and Endpoint Modeling

Designing a clear resource model at the outset avoids messy ad-hoc expansions later. Consider these guidelines:

  • Use nouns for resources: /users/123/orders, not /getUserOrder?id=123.
  • Support filtering and pagination: query parameters like ?limit=50&cursor=... prevent heavy payloads and improve UX.
  • Version with intent: /v1/ or header-based versioning can be used. Document breaking changes and provide migration paths.
  • Return consistent error shapes: include machine-readable codes, human messages, and optionally documentation links.

Model relationships thoughtfully: prefer nested resources for clarity (e.g., /projects/42/tasks) but avoid excessive nesting depth. A well-documented schema contract reduces integration errors and accelerates client development.

Authentication, Authorization & Security Practices

Security for REST APIs is multi-layered. Common patterns:

  • Token-based auth: OAuth 2.0 bearer tokens or API keys for service-to-service calls.
  • Scopes and RBAC: scope tokens narrowly to minimize blast radius; implement role-based access control for complex domains.
  • Transport security: always require TLS (HTTPS) and enforce secure headers (HSTS, CSP where relevant).
  • Validate inputs: server-side validation and strict schema checks prevent injection and logic errors.

Also consider rate limiting, token expiry, and key rotation policies. For APIs that surface sensitive data, adopt least-privilege principles and audit logging so access patterns can be reviewed.

Performance, Caching & Reliability

Latency and scalability are often where APIs meet their limits. Practical levers include:

  • HTTP caching: use ETags, Cache-Control, and conditional requests to reduce payloads and server load.
  • Pagination and streaming: avoid returning entire datasets; prefer cursors or chunked responses for large collections.
  • CDN and edge caching: cache public or semi-static responses at the edge to reduce origin traffic.
  • Graceful degradation and circuit breakers: fallback behaviors for downstream failures keep core features available.

Instrument your API with observability: structured logs, distributed traces, and metrics (latency, error rates, throughput). These signals enable data-driven tuning and prioritized fixes.

Testing, Tooling & Developer Experience

Quality APIs are well-tested and easy to adopt. Include:

  • Contract tests: verify server responses meet the documented schema to prevent regressions.
  • Integration and end-to-end tests: test authentication flows, error handling, and rate-limit behaviors.
  • Interactive docs and SDKs: OpenAPI/Swagger specs, Postman collections, and generated client libraries lower friction for integrators.
  • Mock servers: let front-end and AI agent teams iterate without waiting on back-end deployments.

Automate CI checks that validate linting, schema changes, and security scanning to maintain long-term health.

REST APIs for Crypto Data and AI Agents

When REST APIs expose market data, on-chain metrics, or signal feeds for analytics and AI agents, additional considerations apply. Data freshness, deterministic timestamps, provenance metadata, and predictable rate limits matter for reproducible analytics. Design APIs so consumers can:

  • Request time-series data with explicit timezones and sampling resolutions.
  • Retrieve provenance (source, block number, or snapshot id) to allow historical reconstruction.
  • Subscribe to webhooks or use polling efficiently to keep agents synchronized without exceeding quotas.

AI-driven workflows often combine multiple endpoints; consistent schemas and clear quotas simplify orchestration and reduce operational surprises. For example, Token Metrics demonstrates how structured crypto insights can be surfaced via APIs to support research and model inputs for agents.

Build Smarter Crypto Apps & AI Agents with Token Metrics

Token Metrics provides real-time prices, trading signals, and on-chain insights all from one powerful API. Grab a Free API Key

Frequently Asked Questions

What is the difference between REST and RESTful?

"REST" refers to the architectural constraints defined by Roy Fielding. "RESTful" is an informal adjective describing APIs that follow REST principles—though implementations vary in how strictly they adhere to the constraints.

How should I version a REST API?

Use semantic intent when versioning. URL-based versions (e.g., /v1/) are explicit, while header-based or content negotiation approaches avoid URL churn. Regardless, document deprecation timelines and provide backward-compatible pathways.

When should I use REST versus GraphQL?

REST is simple and cache-friendly for resource-centric models. GraphQL excels when clients need flexible queries across nested relationships. Consider client requirements, caching strategy, and operational complexity when choosing.

How do I handle rate limiting and quotas?

Expose limit headers, return standard status codes (e.g., 429), and provide retry-after guidance. Offer tiered quotas and clear documentation so integrators can design backoffs and fallback strategies.

What tools help document and test REST APIs?

OpenAPI (Swagger) for specs, Postman for interactive exploration, Pact for contract testing, and CI-integrated schema validators are common choices. Combine these with monitoring and API gateways for observability and enforcement.

Disclaimer

This article is for educational and technical reference only. It is not financial, legal, or investment advice. Always evaluate tools and services against your own technical requirements and compliance obligations before integrating them into production systems.

Choose from Platinum, Gold, and Silver packages
Reach with 25–30% open rates and 0.5–1% CTR
Craft your own custom ad—from banners to tailored copy
Perfect for Crypto Exchanges, SaaS Tools, DeFi, and AI Products