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Real-time Cryptocurrency Data API

5 min read • October 8, 2021

Introduction

Having access to the latest rates on crypto markets can make a huge difference. Innovation-driven by new technologies and digital presence will increasingly power the competitive edge for businesses and startups in the current market.

Features such as real-time cryptocurrency visibility, API integration, and transparency with in-depth data analytics will become essential. Let’s look at how you can view all the real-time fluctuations with an API.

Cryptocurrencies to Focus On in 2022

As of statistics of August 2021, the number of crypto coins was registered at 5,840. What this shows is that there are a lot of options for crypto traders to choose from. That being said, it would be difficult to trade with all coins and for this reason, many traders choose a few to focus on. Let’s briefly look at the five most popular coins today:

Bitcoin

Bitcoin was the first-ever cryptocurrency. Therefore, it makes sense that it is the most popular coin today. It has the highest market capitalization of $ 907 billion.

Ethereum

Ethereum is a blockchain platform that only ranks second to Bitcoin. Ether is the unit of exchange of this platform and has a market capitalization of $415 billion.

Cordano

Cordano is a blockchain platform that was developed by one of the creators of Ethereum. It currently has a market capitalization of $81 billion.

Binance

Binance has become one of the largest exchanges globally. The main exchange unit is called the Binance coin which has a market capitalization value of $ 73 billion.

Tether

Next is the stable coin is known as Tether. Stable coin value depends on the asset it represents and the current market capitalization of the crypto coin is $68 billion.

XRP

With a market capitalization of $52 billion, XRP (previously called Ripple) is a cryptocurrency that is making strides in facilitating online payments. It is another trend to keep your eye on.

What Do Crypto Rates Depend On?

We have already highlighted the fact that crypto markets are always fluctuating. What is the origin of this feature? Several reasons play a part in making cryptocurrencies volatile. Some of the most influential ones are listed below:

1. The News

Cryptocurrency rates are highly sensitive to news headlines. A great example of this is the aftermath of every Elon Musk tweet related to cryptocurrencies. Negative publicity usually leads to a drop in value and positive remarks increase its popularity and hence, its value.

2. Adoption

The popularity of a coin is determined by how many individuals have adopted it. Significant levels of adoption usually lead to a proportional leap in value.

3. Regulation

Regulation by government bodies on access to cryptocurrency also plays a major role in their value. In most cases, the more regulated a coin is the less valuable it becomes

4. Demand

When a coin has gained enough popularity it becomes highly sought after. A high level of demand will also lead to an increase in value. The value can spike exponentially.

Other contributing factors to market volatility include speculation, node count, and production costs.

Role of Real-time Data API in Crypto Trading

It helps to have the best tools to capitalize in volatile crypto markets. Today one such tool is called an API. By definition, an application program interface is software that creates a link between computers or computer programs.

APIs have been used extensively to enable individual traders and businesses to access the latest crypto rates. How do they do this?

APIs are connected to various centralized systems that play a part in influencing the value of cryptocurrencies. Through this link, any important events on the centralized platforms will be quickly registered in real-time on the blockchains platforms without any delay. Through analyzing both centralized and blockchain platforms, API is able to provide the following data

Live pricing for various coins
The coins fluctuation patterns can be used by traders to make predictions
The latest news from various channels that may influence the rates
Access to historical data that might be essential in determining future market trends
API can also provide access to the rankings of various exchanges to enable the trader to make better decisions on what actions to execute.

If you have decided to use an API, you have one of two options; you can either pay for one, or if you have programming skills, set one up yourself. Because APIs are highly valuable, you can easily find solutions with a simple search.

Some of the best providers of API for both small and large scale use are The Graph, Covalent, and Web3js. If you are familiar with Python, getting live rates can be achieved by working with programs such as the Yahoo Finance API.

Final Thoughts

APIs are highly reliable tools for any individual or organization interested in crypto trading. Although they have many valuable properties, one of the most useful ones is the ability to provide the trader with real-time data.

Having this access will enable anyone to make important and valuable decisions when it’s needed. As such, they will be able to make a profit when the numbers are right, Moreover, businesses can avoid losses and industries may cope with the impact of the outbreak on the operations.

You can get your Real-Time and Historical Cryptocurrency Data with Finage free Crypto Data API key.

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