Topic: Where do dex/cex/analytics get real-time date from? (Read 112 times)
thanks everyone for the detailed responses!
You can divide it into two groups, data sources and analytics to display it.
The sources are the central platforms, which depend on supply and demand. Therefore, the liquidity lists, buy/sell orders are what determines the price. Therefore, you will find that each platform has a different price for Bitcoin, and the price is often close because the market is open and the liquidity will shift from the platforms that have a higher price to lower price or in other words arbitrage trading[1]
As for the display tools, they obtain data through APIs for the central platforms, and thus give an average that reflects a measure of the actual value of Bitcoin at that moment, from which you will find that the price of Bitcoin is different in CMC than cryptowatch.
The only difference between the analysis/price tracking platforms is how this average is calculated.
[1]
Source ---> https://www.investopedia.com/terms/a/arbitrage.asp#:~:text=Arbitrage%20is%20trading%20that%20exploits,difference%20between%20the%20two%20prices.
The sources are the central platforms, which depend on supply and demand. Therefore, the liquidity lists, buy/sell orders are what determines the price. Therefore, you will find that each platform has a different price for Bitcoin, and the price is often close because the market is open and the liquidity will shift from the platforms that have a higher price to lower price or in other words arbitrage trading[1]
As for the display tools, they obtain data through APIs for the central platforms, and thus give an average that reflects a measure of the actual value of Bitcoin at that moment, from which you will find that the price of Bitcoin is different in CMC than cryptowatch.
The only difference between the analysis/price tracking platforms is how this average is calculated.
[1]
Quote
Arbitrage is trading that exploits the tiny differences in price between identical assets in two or more markets.
Source ---> https://www.investopedia.com/terms/a/arbitrage.asp#:~:text=Arbitrage%20is%20trading%20that%20exploits,difference%20between%20the%20two%20prices.
Even if everyone use the same API, differences will never go away since every market has different volume and liquidity. It's just the way the market works. Those big exchanges won't like it if smaller exchanges can get similar volume like them so this kind of difference might be useful for them, for marketing at least.
You can build your own aggregate tools though, so you know the average price on the market right now.
You can build your own aggregate tools though, so you know the average price on the market right now.
The above posts explains it, it's all about the exchange's API they provided.
Exchanges get their data from their very own records to be shared via API to developers, analytics, etc. You might see high/short difference to other exchanges, some exchanges might alter this records (fraud exchanges do) to lure people to trade there but that's not the case here though.
Exchanges get their data from their very own records to be shared via API to developers, analytics, etc. You might see high/short difference to other exchanges, some exchanges might alter this records (fraud exchanges do) to lure people to trade there but that's not the case here though.
Different exchanges have market data APIs for one to stream prices, orderbooks, trade etc in real time and those APIs are readily available for the public
For example this the API documentation for Binance spot market data - https://github.com/binance/binance-spot-api-docs/blob/master/rest-api.md
So cryptowatch can use the API data from Binance, kraken, Kucoin to show market data of the different markets in different exchanges in their site.
Different markets in different exchanges have slightly different values because they have their own orderbooks and traders placing and filling orders.
For example this the API documentation for Binance spot market data - https://github.com/binance/binance-spot-api-docs/blob/master/rest-api.md
So cryptowatch can use the API data from Binance, kraken, Kucoin to show market data of the different markets in different exchanges in their site.
Different markets in different exchanges have slightly different values because they have their own orderbooks and traders placing and filling orders.
This requires some deeper understanding; if you look around on an engine for this sort of thing, all you're going to see is articles about where to find exchanges that can provide real time data.
But where do those exchanges and analysis tools get THEIR data from?
IE look at BTC/USDT charts on cryptowatch, there's 10+ charts from different exchanges. Some agree, some are slightly behind, some a little ahead.
But where do those exchanges and analysis tools get THEIR data from?
IE look at BTC/USDT charts on cryptowatch, there's 10+ charts from different exchanges. Some agree, some are slightly behind, some a little ahead.
Jump to: