How the CCi30 crypto index tracks cryptocurrencies using real-time crypto data API

With CoinAPI, CCi30 now has access to real-time crypto data API. This enables them to run their indexes in live time to track the dynamics of a cryptocurrency, covering a wide range of cryptocurrencies.

In today’s cryptocurrency industry, indices play a huge role in tracking the market dynamics of financial sectors. Despite the fact that digital currencies are vulnerable to enormous cost unpredictability and administrative vulnerability, among other problems, they have pulled in the enthusiastic consideration of a large number of speculators, making it difficult to disregard. In summary, digital forms of money can’t be disregarded any longer, and indices empower items around digital forms of money to dispatch and further develop their essence inside the conventional money-related biological system. 

Crypto indices give a simple method to get an outline of what’s going on in the crypto markets. This empowers crypto brokers and analysts to set aside time from expecting to search the whole market.

When it comes to investing, crypto indices offer a way to spread out risk by investing in a variety of cryptocurrencies simultaneously. While mutual funds and ETFs are not yet common in the crypto world, some people think that investing in an index is a good substitute, allowing traders to diversify their portfolios with just one investment. Indices also make the cryptocurrency market more approachable and improve liquidity. The fact that indices exist can make non-crypto investors more likely to take the crypto world seriously. 

In order for indices to be successful, they need access to reliable data, which is why CCi30 decided to use CoinAPI. To learn more about how the CCi30 crypto index tracks cryptocurrencies using real-time crypto data API, we spoke with Carlo Scevola, CEO of CCi30. 

The challenge

The market for cryptocurrency is one-of-a-kind, one that is consistently fluctuating, with new digital coins appearing and disappearing on a daily basis. Since cryptocurrencies have become a tradable asset class, the requirement for an index product has increased. CCi30 looked for a dependable real-time data stream at a sensible cost. CoinAPI provided them with precisely what they needed, a top-notch data feed that is always available. Furthermore, CoinAPI provides users with adjustable APIs that help them make the most of cryptocurrency data.

Here are the challenges CCi30 faced:

1.  Lack of real-time crypto data API

CCi30’s biggest problem was finding a market data API with instant access to real-time and historical data on cryptocurrencies. They required streaming market data, instead of being limited to pulling minute or daily bar data. 

2.  Spending a lot of time collecting data from various resources 

CCi30 was attempting to acquire critical information from a variety of locations and it was taking an excessive amount of time. They were searching for a partner who could be incorporated quickly and had the capability to supply all the essential data. It was a strenuous task to “attach” data from different free sources, collect it from various sources, and then try to make sense of it. This was an incredibly difficult and exasperating procedure and it would require lots of time.

3. Poor data quality

The poor quality of market data API is a significant problem for businesses that need reliable data to make decisions. The APIs are often unreliable, with incorrect pricing information or outdated data. On top of this, the APIs can be slow or have other technical issues that can make them difficult to use. All of this adds up to a market data API that is unreliable and difficult to work with.

The solution: real-time crypto data API

In order to remain relevant in a constantly changing industry, CCi30 needed a reliable real-time data feed for its index. This was an essential component of the index that had previously been lacking. Using CoinAPI’s real-time data feed has allowed CCi30 to offer their users an accurate index that is updated daily. 

The CCi30 Cryptocurrency Indices have been set up to bring more clarity to an ever-evolving market using a methodical approach. To assemble the indices, CCi30 Indices acquire pricing information from CoinAPI, a dependable market data API provider that offers state-of-the-art services for the crypto asset field.

CCi30 selected CoinAPI’s feed because it was not only trustworthy but also economical. The CoinAPI provides pricing information for more than 16k digital assets, numerous of which are cryptocurrencies—including the most traded ones such as Bitcoin, Ethereum, Tether, and Litecoin. Costs are calculated from over 300 digital exchanges, including the most extensive and reliable ones, which make up a major portion of market liquidity.

Results

CoinAPI provides high-quality real-time data to track the dynamics of a cryptocurrency, covering a wide range of cryptocurrencies. CoinAPI creates the most accessible and developer-friendly APIs for the world’s software developers, analysts, and fintech-driven companies.

CCi30 crypto price indexes aggregate real-time price data from major exchanges on nearly all distributed-ledger cryptocurrencies, providing the broadest and most accurate pricing benchmarks in the industry.

CCi30 tracks the 30 largest cryptocurrencies by market cap, including Monero, Bitcoin Cash, and Ethereum Classic. It also excludes stablecoins.

CCi30 was launched in 2017, created by a team of fund managers, mathematicians, and quantitative analysts. It has the most prominent cryptos index and other tokens such as Litecoin, Ripple (CRP), and Monero are also part of its index methodology. 

Here are the results CCi30 saw using real-time crypto data API:

1. Real-time stream of crypto data API

With quicker access to data, the CCi30 team can cover all financial reference, real-time pricing, historical pricing, and indices data relating to the trading of currencies, currency derivative instruments, short-term money market instruments, and interest rate derivatives. 

2. A reliable source of data

Finding reliable data is no easy task. Fortunately, there is a CoinAPI provider that can be trusted. CoinAPI is a trusted provider of real-time and historical data to the financial markets.

3. Have deep coverage of the cryptocurrency space

There are several indices that track the performance of the top cryptocurrencies, but they usually have a limited scope and do not offer the same level of diversification that comes with investing in a basket of stocks. The majority of cryptocurrency indices track just a handful of coins, which is not enough to offer a meaningful amount of diversification to investors. In addition, these indices are not constructed in a way that would allow them to provide a meaningful reflection of the entire cryptocurrency market. Thanks to CoinAPI, CCi30 could provide a view range of assets. 

4. Reduce the volatility of trading prices and present a more stable price point

The world of trading prices can be volatile and unpredictable. But with the right partner, CCi30 reduces the volatility and presents a more stable price point. This reduces the risk of large price fluctuations and helps to minimize the amount of downside risk, as the highest price that a buyer or seller is willing to pay is already predetermined.

Curious about how to use CoinAPI in your product? Here is the article explaining how our API works and what are the top features of Market data API.