Understanding the Power of Crypto Indices: Insights from Carlo Scevola, CEO of CCi30

Cryptocurrency indices are crucial in monitoring the market dynamics of financial sectors in today's industry. Despite their vulnerability to significant cost unpredictability and administrative vulnerability, digital currencies have captivated the attention of a vast number of investors, making them impossible to ignore. In summary, digital currencies are here to stay, and indices allow products related to digital currencies to launch and enhance their presence within the conventional financial ecosystem.

Crypto indices offer a simple way to get an overview of what is happening in the crypto markets. This saves time for crypto brokers and analysts who would otherwise need to search the entire market. For investors, crypto indices provide a way to diversify risk by investing in multiple cryptocurrencies at once. While mutual funds and ETFs are not yet prevalent in the crypto world, some people believe that investing in an index is a good alternative, allowing traders to diversify their portfolios with just one investment. Indices also make the cryptocurrency market more accessible and improve liquidity. The existence of indices can make non-crypto investors more inclined to take the crypto world seriously.

CCi30, in order to be successful, needs access to reliable data, which is why they 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 cryptocurrency market is unique and constantly changing, with new digital coins emerging and fading away on a daily basis. As cryptocurrencies have become a tradable asset class, there has been a growing need for an index product. CCi30 sought a reliable real-time data stream at a reasonable cost, and CoinAPI delivered just that - a high-quality data feed that is always accessible. In addition, CoinAPI offers customizable APIs that enable users to maximize their use of cryptocurrency data.

“It was imperative to have access to dependable real-time data related to the index at a reasonable cost. This was essential for us because we wanted to provide our users with an accurate reflection of crypto market trends. Additionally, we were looking for a straightforward way to incorporate this information into our service without having to program it ourselves or hire someone else who would require a long period of instruction before being able to commence work.” Carlo said.

Here are the challenges CCi30 faced

Lack of real-time crypto data API

CCi30 faced a major challenge of procuring a market data API that could provide instantaneous access to both historical and real-time data on cryptocurrencies. They needed a streaming market data solution that could offer more than just minute or daily bar data.

Spending a lot of time collecting data from various resources

CCi30 was struggling to gather necessary information from multiple sources, which was proving to be a time-consuming process. They were on the lookout for a partner who could join them quickly and provide all the required data. The task of combining data from different free sources, gathering it from various locations, and then making sense of it was challenging and frustrating. It would take a considerable amount of time to accomplish this task.

Poor data quality

The market data API's poor quality is a major issue for businesses that require trustworthy data to make informed decisions. These APIs are frequently unreliable, providing incorrect pricing information or outdated data. Furthermore, they may be slow or have other technical problems that make them difficult to work with. This all contributes to an unpleasant and unreliable market data API experience.

The solution

CCi30 had to find a dependable real-time data feed to stay current in their ever-evolving industry. This was a crucial aspect of their index that was previously missing. With the help of CoinAPI’s real-time data feed, CCi30 can now provide their users with a precise index that is refreshed daily.

“To be successful in the index industry nowadays, it is essential to have the capacity to analyze a huge amount of data from numerous sources and to calculate it accurately and quickly. Fortunately, there has been improvement in this area, and CCi30 is one of the major actors in the indices arena. Through CoinAPI, CCI30 can access thorough prices and market understanding of a wide selection of assets.” Carlo said.

The CCi30 Cryptocurrency Indices were established to bring transparency to the constantly evolving market in a systematic manner. To create the indices, CCi30 Indices collected pricing information from CoinAPI, a dependable market data API provider known for its advanced services in the crypto asset industry.

CCi30 opted to use CoinAPI's feed due to its reliability and affordability. CoinAPI provides price data for over 16,000 digital assets, including many cryptocurrencies such as Bitcoin, Ethereum, Tether, and Litecoin. The pricing data is sourced from more than 300 digital exchanges, which include the largest and most trusted ones, providing a significant portion of market liquidity.

Results

“CoinAPI's up-to-date data feed has helped us to make the cryptocurrency market more transparent by supplying accurate details about the behavior of individual digital currencies and the influence they have on other tokens in this ever-changing landscape.”

CoinAPI provides real-time data to track the dynamics of various cryptocurrencies, making it easily accessible for software developers, analysts, and fintech-driven companies.

They cover a wide range of cryptocurrencies and aim to create the most user-friendly APIs for their clients.

CCi30 aggregates real-time price data from major exchanges on almost all distributed-ledger cryptocurrencies, making it the most comprehensive and accurate pricing benchmark in the industry. It tracks the 30 largest cryptocurrencies by market cap, excluding stablecoins such as Monero, Bitcoin Cash, and Ethereum Classic.

Launched in 2017, CCi30 was created by a team of fund managers, mathematicians, and quantitative analysts. It is the most prominent index for cryptocurrencies and includes other tokens such as Litecoin, Ripple (CRP), and Monero in its index methodology.

Here are the results CCi30 saw using CoinAPI

Real-time stream of crypto data API

The CCi30 team can now efficiently retrieve all financial reference, real-time pricing, historical pricing, and indices data related to trading currencies, currency derivative instruments, short-term money market instruments, and interest rate derivatives. This faster access to data enables the team to cover all aspects of trading comprehensively.

A reliable source of data

It can be quite challenging to come across dependable data. Luckily, there is a trustworthy CoinAPI provider available. CoinAPI is a reputable source that offers both real-time and historical data to the financial markets.

Have deep coverage of the cryptocurrency space

There are many indices available that measure the performance of the leading cryptocurrencies. However, these indices typically only cover a small number of coins and do not offer the same level of diversification as investing in a portfolio of stocks. This can make it difficult for investors to achieve meaningful diversification. Furthermore, these indices do not necessarily provide an accurate representation of the entire cryptocurrency market. Fortunately, the CCi30 index, powered by CoinAPI, is able to offer a broader range of assets for investors to consider.

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

The prices in the trading market can be highly unstable and uncertain. However, with CCi30 as your partner, the volatility is mitigated, and a more consistent price point is presented. This ensures that the risk of significant price swings is minimized, and the downside risk is reduced since the maximum price that a buyer or seller is willing to offer is already predetermined.

“We are absolutely delighted to be partnered with CoinAPI. It is a firm that is driven by engineering and is highly focused on creating products. Their primary target is to offer the simplest and most convenient APIs to software developers and tech-savvy investors. If you are looking for real-time information sourced directly from all marketplaces, then CoinAPI is the way to go.“