Introduction
As a developer working with cryptocurrency platforms such as Coinsquare, you need secure, reliable access to APIs and developer portals. This guide walks through modern authentication strategies — from user login hardening to secure machine-to-machine access — with code examples and operational best practices.
Who this is for
This article is written for backend engineers, DevOps professionals, and security-minded developers who manage API credentials, integrate with exchange APIs, or operate services that interact with trading platforms.
Quick links (10 useful links)
1. Coinsquare (official)
2. Coinsquare Developer / API Docs
3. GitHub Docs: OAuth Apps & Apps
4. OAuth 2.0 (RFC 6749)
5. JWT Debugger & Spec
6. Azure AD Authentication
7. Google Identity Platform — OAuth2
8. Stack Overflow — dev community
9. npm — packages for SDKs and auth helpers
10. Microsoft Office / Office 365
Overview: Authentication & Access Models
Developer access typically falls into two categories:
- Human login — developer or operator signs into a dashboard to create keys, approve integrations, or manage settings.
- Machine access — services and bots authenticate to the API programmatically with API keys, OAuth client credentials, or signed requests.
Security principles to follow
- Least privilege: give each credential only the permissions it requires.
- Short-lived tokens: prefer tokens that expire quickly and can be rotated.
- Audit & monitoring: all issuance and use of developer credentials must be logged.
- Secure storage: never embed secrets in source control; use vaults and environment-level secrets managers.
- MFA/SSO: require multifactor authentication and single sign-on for human accounts.
Common auth methods
1. OAuth 2.0 (recommended for web integrations)
OAuth 2.0 provides delegated access and is ideal for applications requiring user consent. Use Authorization Code flow for apps with user contexts and Client Credentials flow for backend services.
2. API Keys (simple but risky)
API keys can be used for machine access but must be treated as secrets. Protect with IP allowlisting, usage quotas, and fine-grained scopes when the platform supports them.
3. Signed requests (HMAC)
Many exchanges require HMAC-signed requests combining a secret key and a nonce/timestamp to prevent replay attacks. This is common for trading endpoints.
Hardening Human Login (developer portal)
Human accounts require stronger protections because a compromised developer account can create keys, drain funds, or alter integrations.
Require Multi-Factor Authentication (MFA)
Enforce MFA for all developer portal users. Use TOTP (Google Authenticator/Authenticator apps), hardware keys (WebAuthn / FIDO2), or SMS as a secondary factor only if stronger options aren't available.
Use SSO for enterprise teams
Single Sign-On with an identity provider (Azure AD, Google Workspace, Okta) allows centralized control of authentication policies and easier offboarding. Prefer SAML or OIDC SSO integrations.
Role-based access control (RBAC)
Ensure the portal supports RBAC so you can create roles like admin, developer, read-only, and assign the minimum role required.
// Example: administrative rules (pseudo)
{
"roles": {
"developer": ["read:keys", "create:api-keys"],
"ops": ["read:logs", "manage:rotations"],
"admin": ["*"]
}
}
Secure Machine-to-Machine Access
Client Credentials (OAuth2)
For M2M, use the OAuth 2.0 Client Credentials flow. Register an OAuth client for your service and request tokens scoped narrowly to the operations required.
// Example: curl to get a client_credentials token
curl -X POST "https://api.coinsquare.com/oauth/token" \
-u "CLIENT_ID:CLIENT_SECRET" \
-d "grant_type=client_credentials&scope=trade:read"
Rotate credentials frequently
Automate rotation of client secrets and API keys. Use a secrets manager (HashiCorp Vault, AWS Secrets Manager, Azure Key Vault) and integrate rotation with your CI/CD pipelines.
IP allowlisting & VPC endpoints
Where possible, restrict API credentials to known IP ranges or use private networking (VPC endpoints) to reduce attack surface.
Token scope & expiry
Issue tokens with minimal scopes (read vs write) and short lifetimes. Prefer refresh tokens for delegated user sessions and short TTLs for machine tokens.
HMAC-Signed Requests and Nonces
Many exchange APIs ask clients to sign requests to protect integrity and authenticity. The general pattern:
- Create a message from HTTP method, path, timestamp, and body
- Create an HMAC using the secret key
- Send signature in a header (e.g.,
CB-ACCESS-SIGN)
// Node.js (pseudo) example: create HMAC signature
const crypto = require('crypto');
function signRequest(secret, verb, path, timestamp, body){
const prehash = `${timestamp}${verb}${path}${body || ''}`;
return crypto.createHmac('sha256', secret).update(prehash).digest('hex');
}
Nonce & replay protection
Use monotonically increasing nonces or server-verified timestamps. Reject requests that are too old or reuse a nonce.
Secrets Storage and CI/CD
Never store secrets in source control
Use environment secrets and vaults. If accidental commits happen, rotate secrets immediately and invalidate the leaked credentials.
CI/CD integration
Keep runtime credentials in the CI provider's secure secrets (GitHub Actions secrets, GitLab CI variables). Limit who can modify CI pipelines to reduce risk of secret exposure.
Example: GitHub Actions usage
# .github/workflows/deploy.yml (snippet)
secrets:
COINSQUARE_API_KEY: ${{ secrets.COINSQUARE_API_KEY }}
COINSQUARE_SECRET: ${{ secrets.COINSQUARE_SECRET }}
Auditing, Monitoring & Incident Response
Visibility matters. Audit every time a key is created, used, rotated, or deleted. Log the actor, IP, timestamp, and action.
Detect anomalous usage
- Unexpected high-volume calls from a single credential
- Requests from new IP ranges or geographies
- Calls to sensitive endpoints outside maintenance windows
Prepare an incident playbook
Steps should include: revoke keys, perform forensics, rotate affected credentials, and notify stakeholders (internal + regulatory if needed).
SDKs, Libraries & Example Integrations
Use official SDKs when available
Official SDKs reduce the risk of signing mistakes and help maintain compatibility. If you must implement your own client, follow the exchange's recommended signing and resend rules strictly.
Example: Minimal Typescript client (pseudo)
import fetch from 'node-fetch';
async function callApi(path, method, body, apiKey, secret){
const ts = Date.now().toString();
const signature = signRequest(secret, method, path, ts, JSON.stringify(body || {}));
const res = await fetch(`https://api.coinsquare.com${path}`, {
method, headers:{
'Content-Type':'application/json',
'CB-ACCESS-KEY': apiKey,
'CB-ACCESS-SIGN': signature,
'CB-ACCESS-TIMESTAMP': ts
}, body: body ? JSON.stringify(body) : undefined
});
return res.json();
}
Top 12 Best Practices — Quick Checklist
- Enforce MFA & SSO for developer portal access.
- Use OAuth or short-lived tokens where possible.
- Restrict API keys with scopes and IP allowlists.
- Store secrets in a vault — automate rotation.
- Implement HMAC-signed requests with nonces/timestamps.
- Log and audit all credential operations.
- Monitor for anomalous traffic and rate limit abuse.
- Use RBAC for least privilege model.
- Test and review third-party SDKs before trusting them.
- Rotate compromised keys immediately and perform post-mortem.
- Limit token lifetimes and avoid long-lived static secrets.
- Document on-call and incident playbooks for credential compromise.
FAQ & Troubleshooting
Q: My API key stopped working — what should I check?
Check timestamp sync (if API uses timestamps), IP allowlist, scope changes, whether the key was rotated or deleted, and whether usage exceeded rate limits. Look at server logs and the developer portal.
Q: Should I store a refresh token in a serverless function?
Store refresh tokens in a secure secrets manager and grant access only to the service principal that needs them. Avoid embedding refresh tokens in ephemeral or client-side storage.
Q: How often should keys be rotated?
Frequency depends on risk: rotate client secrets quarterly for moderate risk, monthly for high risk, and immediately on any suspected exposure.
Conclusion
Secure developer access is a layered effort — combining strong human authentication (MFA/SSO and RBAC), secure machine authentication (OAuth, HMAC-signed requests, short-lived tokens), vault-backed secret management, observability, and incident preparedness. Applying these principles to your Coinsquare integrations reduces the risk of credential misuse and helps keep both your users and systems safe.
Ready to implement? Start by enabling MFA and SSO for your developer accounts, move credentials into a vault, and then migrate machine clients to short-lived OAuth tokens.