The Most Popular API’s in Crypto Trading
Data is one of the cornerstones of any financial system, and everyone loves it. Data gives us a story of how things were in the past. However, data may never be precisely indicative of the future, but it can help us make projections and show us how the future might look like under several conditions. Access to robust data is required to construct any robust portfolio strategy.
Even though the cryptocurrency market has more data than you could ever hope to process out, it’s still an emerging space. Having an excess of data means reliability and precision matter more than ever, while unreliable data will make passing through the noise even more complicated.
Different API Trading Strategies
APIs rely on algorithmic trading to run and process complex mathematical formulas and automate and accelerate the crypto trading process. Algorithmic trading uses three types of trading strategies: Don't use plagiarised sources.Get your custom essay just from $11/page
Trend Following Strategy
It is considered the most straightforward trading strategy in which the API responds to direct market changes. Trend following strategy is effortless because it doesn’t require complex algorithms that need to factor in such things as predictive analysis etc.
Arbitrage
Crypto APIs use the arbitrage model in exploiting the differences in prices between the numerous cryptocurrency exchanges throughout the world.
Unlike fiat money that is centralized by the central banks to determine the price of the currency, cryptocurrency works on decentralized exchanges. For this reason, rates vary from exchange to exchange.
For example, South Korean exchanges have historically had a higher price than U.S ones, so offering good potential profits for anyone trading between the two.
Traders using Crypto trading APIs take advantage of this differential to trigger trades when reaching a specific price differential.
Market Making
Traders use the market making strategy to buy and sell high volumes of currency and profit from the spread. Traders using market making strategy rely on APIs to trade such amounts.
Each of these APIs comes with different tools for the job. Make sure you choose the right tool when assessing where to begin. Let’s look at some of the most popular cryptocurrency APIs to use.
Coinbase API
Coinbase offers a free API which includes Bitcoin and other Altcoins into both new and existing applications. It allows you to access the platform’s features through third-party apps, both new and already active ones. These API based solutions help crypto traders to make their websites support cryptocurrency transactions.
Coinbase API has a unique feature that helps detect a user that made a possible money transfer together with the receiver at the other end.
Also known as BNC, Brave New Coin is engaged in an in-depth analysis of blockchain assets in various fields of activity. Although it’s relatively young in the market, BNC has achieved considerable achievements and success and has emerged the leader of its industry.
It conducts cryptocurrency researches and offers programmers data to figure out trading ideas and concerns. Thus, it serves to build more significant web resources and applications.
It’s designed for programmers who need permanent online access to crypto market data for building their websites and applications.
Some examples of the data we’re talking about are:
- Exchange rate;
- Contact units;
- Stock quotes;
- Strike prices;
Crypto traders would prefer CoinAPI because it works with over 200 exchanges, supports about 7,000 assets and also offers over 50 TB of historical datasets.
Nomics
It is a crypto data API focused solely on data fundamentals. Nomics is a foundation for building additional resources, and they consider themselves the “data backbone for developers and professional crypto investors”. And this fits perfectly into their current product trajectory. The Nomics API is thought to have the highest frequency order book with a 100ms snapshot rare for at least some markets they support.
As nomics continues to evolve, it targets large traders who are eager to see the actual picture in the markets. Currently, it has recently launched the ‘transparent volume’ feature designed to show the percentage of reliability of trading volumes on cryptocurrency exchanges.
The API offers free features, but for maximum packages, you should choose a paid option to use the service.
Shrimpy API
It’s a bit difficult comparing Shrimpy to other data APIs because of their core purpose of providing APIs for robust app development. Shrimpy is not only trying to provide custom data, arbitrary statistics or creative endpoints, but it also connects every major exchange into a single set of parameters. Thus, combining the way developers interact with each trade.
Besides, the Shrimpy API provides transparency when it comes to their pricing model, what features they offer, or how to get an API key. Everything is openly discussed on their developer page.
CoinGecko
CoinGecko is most preferred by those who like to be updated on the latest news in the crypto sector. It provides an in-depth analysis of the industry key point. It began its operation in 2014, and since then, it has developed and offered the most accurate cryptocurrency data. With CoinGecko API, developers could use cryptocurrency details to their advantage. Including:
- A free-of-charge solution;
- Services provide a vast database with info on over 250 crypto exchanges;
- It gives a very diversified, accurate and reliable data.
CryptoCompare is a solution for those who want to manage their investment portfolio. It works well for people who invest in cryptocurrency and want to know the profitability of their deals and transactions. The API displays visual graphical and market analysis based on data from 65 of the best cryptocurrency exchanges around the world.
Thanks to CoinGecko, developers can build a website having full access to crypto rate stats. Also, it can calculate the profitability of a specific cryptocurrency.
Closing Thoughts
The crypto world continues to grow, and data has become an increasingly valuable asset. Traders and investors who have access to the most data will be on the safe side. Use of this data will bring about new ways of investing in cryptocurrencies. One of the discussed APIs will help you boost your website and application features.