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Best Approach to Handle API Rate Limiting in a Microservices Architecture?

Hi all,

I’m working on a microservices-based system where multiple services consume third-party APIs with strict rate limits. I’m trying to figure out the best strategy to manage and coordinate API calls across services to avoid hitting those limits.

Some questions I have:

Should rate limiting be handled individually within each service or centralized through an API gateway or proxy?

Are there any libraries or tools that you recommend for distributed rate limiting?

How do you deal with retry/backoff strategies without causing cascading failures across services?

Would love to hear about real-world approaches or any design patterns that have worked well for you.

Thanks!
– Alex

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