To say that the cryptocurrency market is booming is like saying nothing at all. Just ten years ago, there were around 50 different cryptocurrencies in circulation – now there are more than 13,000. Users can trade them on more than 600 crypto exchanges (according to Forbes). Only the largest of these, Binance, reached 170 million registered users worldwide in 2023. The Binance's daily trading volume is $22,573,063,014. The total market cap of all cryptocurrencies is $1.32 trillion and still growing.
Why does crypto data collection matter?
It’s therefore not surprising that more and more digital products related to cryptocurrency trading are emerging on the market: wallets, crypto trading bots, portfolio management solutions, crypto tax and accounting solutions, and more. Checking a crypto wallet to review transaction histories and locate lost cryptocurrency transactions is crucial.
Businesses want to provide their users with the most accurate insights so they can make informed decisions. Cryptocurrency markets have also become the subject of academic research and analysis. Hence, the question arises: how to get historical and real-time crypto data from multiple exchanges? As is usually the case, the answer depends on your needs and the purpose of the data collection.
The Importance of Historical Crypto Data for Market Analysis
Historical crypto data is a cornerstone for effective market analysis. By delving into past data, traders and investors can uncover trends, patterns, and correlations that are pivotal for making informed investment decisions. This data serves as a foundation for backtesting trading strategies, allowing users to simulate how their strategies would have performed in different market conditions.
Additionally, historical data is invaluable for evaluating the performance of various assets and optimizing portfolio management. In the ever-evolving cryptocurrency markets, having access to comprehensive historical data can be the difference between success and failure.
Data availability in crypto
Some data is easiest to find at the source, i.e. directly on a cryptocurrency exchange. So, if you need the current price of Bitcoin on Kraken, all you need to do is check directly on the platform. That was the easy part. The tricky one starts when you need aggregated historical data. It gets even more challenging when you explore multiple exchanges for different cryptocurrencies. And yet another challenge is sourcing crypto data in real time.
How to get historical and real-time crypto data?
There are three well-established methods to acquire complex crypto data. Below we outline which one to choose under the particular circumstances. It is important to ensure that your system meets the minimum requirements, such as specific OS compatibility, disk space, RAM, and internet upload speeds, before initiating the data collection process.
Method 1: Official APIs
Most cryptocurrency trading platforms provide official APIs, which give access to historical and current data about prices, trading volumes, and other relevant details. These APIs are typically well-documented and offer a dependable method for directly obtaining data from the exchanges. Advantages include direct access to both real-time and historical data, often available for free up to a specified usage limit, and are both reliable and secure.
However, this solution is only sufficient if you need data from one or at most two exchanges. Well, and if you have your software, and developer skills. Integration with an exchange and its maintenance can be complex and demands a lot of engineering hours.
Moreover, rate limits can restrict the amount of data you can fetch at once. And there is one more point to consider. By obtaining data from several exchanges, there is a risk that the data will be non-standardized, i.e. difficult to compare.
Read more: Crypto data standardization
Pros of official APIs
- Historical data
- Real-time data
- Helpful documentation
- Security
Cons of official APIs
- Long integration time
- High integration costs
- Non-standardized data
Method 2: Flat files
This solution is most often chosen by universities and analysts who don’t want to integrate via APIs. Flat files are a type of structured data file that groups certain relevant historical information and stores it in CSV format. This is the easiest way to get the data, as you simply enter what specific information you need and what period it should be from. Using flat files can save money by simplifying the data collection process. You then proceed to payment and receive the file. Flat Files allows you to access tick-by-tick data, which is essential for backtesting trading strategies and understanding past market conditions.
Pros of flat files
- Quick and easy
- No need for integration
- No need for developer hours
- Well-organized data
- A wide array of data types
Cons of flat files
- No real-time data
Method 3: Market Data API
In method one, we described connecting to exchanges via APIs, which is time-consuming when integrating with several platforms. Fortunately, you can use Market Data API instead. It’s a platform from a third-party provider like CoinAPI****that‘s already connected to hundreds of crypto exchanges. To access them all at once, you only need one API connection!
Read the full guide on CoinAPI’s cryptocurrency data API
Market Data API offers historical and real-time data from multiple exchanges. It provides quotes, trades, indexes, order books, and the ability to track many cryptocurrencies’ prices in one place. The data includes essential metrics such as opening, high, low, closing prices, and specifically, volume data. The data is standardized, which means it’s in a consistent format across different exchanges, making it easier to use and analyze.
Another advantage is that you don’t have to spend developer hours on integration and maintaining connections. CoinAPI connects to exchanges via REST APIs, Websockets, or the FIX protocol, regardless of which one the exchange supports. It’s also responsible for high-level maintenance and ensuring a minimum latency in the transfer of real-time data.
Pros of Market Data API
- Easy integration
- Access to multiple crypto exchanges
- Historical data
- Real-time data
- Helpful documentation
- Data standardization
Cons of Market Data API
- Choosing an unproven provider may result in downtime and risk of data breaches
Collecting Transaction History and Trade Data
Collecting transaction history and trade data is fundamental for thorough market analysis. This data can be sourced from cryptocurrency exchanges, blockchain explorers, and third-party data providers. Transaction history encompasses details of past transactions, including the date, time, amount, and price of each transaction.
On the other hand, trade data provides insights into trading activities, such as the volume of trades, the number of trades, and the average price of trades. Having access to detailed transaction histories and trade data enables traders to analyze market behavior and make data-driven decisions.
Best Practices for Secure Transaction History Management
Ensuring the secure management of transaction history is crucial to prevent data breaches and maintain data integrity. Here are some best practices for secure transaction history management:
- Secure Protocols: Use HTTPS and encryption for data transmission and storage to protect sensitive information.
- Access Controls: Implement authentication and authorization mechanisms to restrict access to transaction records.
- Regular Backups: Regularly back up data to prevent loss in case of a disaster.
- Secure Storage Solutions: Utilize secure data storage solutions, such as cloud storage or external hard drives, to safeguard transaction histories.
- Data Validation: Implement data validation and verification processes to ensure the accuracy and integrity of transaction records.
By following these best practices, you can ensure that your transaction history remains secure and reliable.
What kind of historical data you can get
With the Market Data API, you get access to a wide array of data. Here they are:
- Quotes (the best bid and ask prices for a specific trading pair )
- Level 1, 2 & 3 order book data
- Transactions
- Exchange rates
- OHLCV (Open, High, Low, Close, Volume)
- Market cap
How to get historical and real-time crypto data without specific software?
Even if you don't have any specific software, you can still access an API connection. You can use simple tools like cURL or Postman, which are used to send requests to an API and receive responses. These tools are simple and don't require any specific software development skills.
With cURL, you can send a request directly from your command line. Here's a basic example of how you might use cURL to send a request to our API:
1curl -H "X-CoinAPI-Key: YOUR_API_KEY" https://rest.coinapi.io/v1/exchangerate/BTC/USD
In this example, replace “YOUR_API_KEY” with your actual API key. This request would return the current exchange rate between Bitcoin and US dollars.
If you prefer a graphical interface, Postman is a great tool. You can input the URL, headers, and other information about your request, and it will display the response for you.
Remember, to use our API, you'll need an API key, which you can get for free.
Challenges in Collecting and Analyzing Crypto Data
Collecting and analyzing crypto data presents several challenges that traders and investors must navigate. These include:
- Data Quality Issues: Crypto data can be noisy, incomplete, or inaccurate, which can compromise the accuracy of analysis.
- Data Volume: The sheer volume of crypto data can be overwhelming, making it difficult to process and analyze effectively.
- Data Variety: Crypto data comes in various formats, such as CSV, JSON, and XML, complicating integration and analysis.
- Data Velocity: The high velocity at which crypto data is generated poses challenges for real-time processing and analysis.
- Regulatory Challenges: Compliance with regulatory requirements, such as anti-money laundering (AML) and know-your-customer (KYC) regulations, can complicate data collection and analysis.
Understanding these challenges is the first step towards developing strategies to overcome them, enabling traders and investors to make well-informed decisions in the dynamic cryptocurrency markets.
Brand new: Crypto Indexes
Now, you can also obtain historical and real-time crypto index data using Indexes API (more than 7k indexes and 2k assets included). Indexes are a way to study the overall situation of the cryptocurrency market or a segment of it. Moreover, besides fetching data, you can create your custom index for your purposes.
Read everything you need to know about crypto indexes.
Summary
Collecting historical and real-time crypto data can be a complex task due to the vast number of sources and the dynamic nature of the data. However, CoinAPI provides efficient solutions for both in the form of flat files and API. Check again the pros and cons of each solution and choose the right one for you. And if you need assistance in making your decision, we are happy to help – contact us.
