Reviewed guide | 2026-10-02
API keys and third-party tools: permissions to grant and permissions to refuse
Portfolio trackers, tax tools and trading bots often ask for an exchange API key. Which permissions they really need, which to refuse and how to review keys over time.
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Connecting a third-party tool to your exchange account is convenient. A portfolio tracker can show all your balances in one place, a tax tool can import your history automatically and a trading bot can execute a strategy while you sleep. All of them work through API keys, and each key is effectively a set of instructions about what that tool may do with your account. Granting more than necessary is one of the quietest ways to lose funds. This guide explains how to issue keys on Binance, OKX, Bybit or Bitget with the least access possible.
Match permissions to the job
Before creating a key, write down what the tool actually needs to do. A tracker or tax tool only needs to read balances and history, so read-only access is enough. A trading bot needs permission to place orders but almost never needs permission to withdraw. If a tool insists on withdrawal access without a convincing reason, do not connect it. Check the help centre of your exchange for the current names of each permission, as they vary between platforms.
Add restrictions where available
Most major exchanges let you restrict a key to specific IP addresses. If your bot runs on a server with a fixed address, use that restriction, so a leaked key cannot be used from elsewhere. Create a separate key for each tool and give it a descriptive label with the tool name and the creation date. That way you can revoke one without disturbing the others.
Store secrets carefully
The API secret is usually displayed only once. Store it in a password manager or in the protected configuration of the server that needs it. Never paste it into chat messages, support forums, shared documents or screenshots. When asking for help with a tool, remove the key and secret from any logs or configuration you share.
Review keys regularly
Once a month, open the API management page and delete keys you no longer use. Confirm that remaining keys still have the minimum permissions. Compare recent account activity with what you expect each tool to do. If anything looks unfamiliar, revoke the keys immediately, change your password and contact official support through the help centre.
Risk boundary: Exchange Cost Lab
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Scenario checkpoint
- Grant read-only access to trackers and tax tools
- Never enable withdrawal permission for a third-party tool without a clear reason
- Restrict keys to fixed IP addresses where possible
- Create one labelled key per tool
- Delete unused keys during a monthly review
Digital assets are volatile and derivatives can amplify losses. This website has no login, wallet connection, deposit form or customer-support chat.