From Front Office to Back: Crypto Data Aggregators Support the Full Trading Lifecycle

Crypto Data Aggregators Support the Full Trading Lifecycle | Amberdata

With hundreds of exchanges and thousands of trading pairs, the digital asset landscape presents a unique challenge for institutional participants: fragmented data. Not only does every exchange and trading pair generate its own data, but the split between decentralized and centralized exchanges adds an additional source of data fragmentation. Gathering the necessary information for institutional market participants demands substantial resources, beyond even the capacity of many industry leaders.

CEX and DEX data aggregation APIs seamlessly consolidate digital asset data into a normalized time-series. By leveraging crypto data aggregators, financial institutions and crypto natives alike can power applications ranging from portfolio management to market intelligence and risk analytics without having to build a massive data infrastructure to integrate data from hundreds of CEX and DEX.

Essential Features of a Crypto Aggregator

When assessing crypto data aggregators to determine whether they provide the enterprise-grade data you need, consider the following key features:

DEX and CEX data. By utilizing a DEX/CEX aggregator, organizations can effortlessly access data from both decentralized and centralized exchanges from a single API, eliminating the need for multiple vendors and avoiding unnecessary bloat in their tech stack. This streamlined approach empowers users to optimize their workflows, particularly when it comes to DEX/CEX arbitrage trading and backtesting, where real-time CeFi and DEX data is necessary to capitalize on narrow arbitrage windows.

Data for multiple instruments. To effectively participate in digital assets, institutional investors require coverage for multiple instruments and asset classes. A robust aggregator meets this need by offering comprehensive data across spot markets, options, swaps, futures, and stablecoins. This empowers the development of research applications that enable users to monitor vital market metrics such as trading activity, volatility, and liquidity across both centralized and decentralized exchanges.

Data for full trading lifecycle. Obtaining the data required for each function, from front to back office can be challenging when trying to aggregate and normalize data from multiple exchange APIs. Price discovery, for instance, can be difficult due to the number of exchanges and volatile nature of cryptocurrencies. DEX/CEX aggregators offer unparalleled market visibility and transparency, significantly simplifying data management. 

Addressing Common Data Infrastructure Issues Through a Crypto Aggregator

Investing in an enterprise-grade crypto data aggregation solution is primarily driven by the need to source data from numerous trading venues and blockchains, as previously mentioned. Crypto data aggregators simplify data management and operations for financial institutions entering the digital asset class. By eliminating the requirement for organizations to run their own blockchain nodes, access numerous CEX APIs, and build costly and resource-intensive data infrastructure, a crypto data aggregator minimizes the time needed to develop and implement internal solutions as well as customer-facing digital asset products.

To learn more about how Amberdata’s aggregated DEX/CEX data and analytics can solve your team’s unique challenges, contact us to book a demo.