Currency conversion can be a bit overwhelming, so here are some basic concepts to help you fully understand what’s going on.
- Currency conversion refers to the act of exchanging one currency for another. This can be done in a number of ways, but the basic principle is the same: both currencies must be converted into their base currency, and then from there, any differences are calculated.
- One of the most common methods of currency conversion is a spot transaction. In this case, the amount of one currency received in exchange for another is determined at the current exchange rate at that time. This means that the amount of currency exchanged will change if rates fluctuate before the transaction takes place.
- In a forward or futures contract, currencies are exchanged at some point in the future. In these cases, it is necessary to estimate what the future market value will be for both currencies for when the transaction occurs, which can lead to errors on behalf of both parties.
- Numerous factors can influence the value of your home currency during foreign transactions, including inflation, exchange rates, and import/export taxes and tariffs.
Why should you use APIs for currency conversion?
If you have consumers from all over the world, it’s critical to discover a trustworthy currency conversion API. Traditional currency converters are inconvenient to use and may not always update data quickly enough.
Understanding how to convert currencies from one form to another is an important component of business travel and foreign money expenditure. This article will go over the fundamentals of currency conversion as well as provide some advice on how to keep your money secure.
When converting currencies, it’s vital to remember that exchange rates are always changing. Because of market volatility, your money will not be worth the same amount tomorrow as it is today—and not by a little amount.
So, how can you convert currencies?
- Create an account at www.getexchangr.com to obtain your API key.
- Look for the symbols that you want to test (USD and EUR)
- Make the API call.
- The website can provide you with an API answer in a number of computer languages that you may customize and use however you like.
The response will look like this:
{"data":{"success":true,"timestamp":1645110720,"date":"2022-02-17","base":"USD","rates":{"EUR":0.879205,"USD":1}}}
Why use Exchangr for currency conversion?
Exchangr is a REST API that leverages the JSON data format to provide consumers and companies with accurate currency exchange rates and conversions.
To summarize, the API consists of five endpoints that may be modified for a wide range of applications.
- The current currency rates are displayed on the live endpoint.
- The history endpoint returns historical currency rates.
- The Convert endpoint supports a wide range of currencies.
- To get currency rates over a given time period, use the time-series endpoint.
- Finally, the fluctuation endpoint delivers each currency’s change parameters.
From all across the world, the Exchangr API accepts 164 different currencies and eight different cryptocurrencies. They get information from a variety of commercial currency data providers and organizations using an algorithm. They update the data in periods ranging from 60 minutes to 60 seconds.
You can sign up here to Exchangr’s Foreign Exchange API
Related posts:
How To Convert Euro To Dollar With A Free Forex API
Also published on Medium.