The Crypto Data

Guide For Traders

How to build better strategies with powerful data.

Covered in this guide:

Strategy Backtesting
Live Monitoring
Risk Management
Reporting

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Crypto Data Solutions
Trusted by Industry Leaders
Founded in 2014, Kaiko is the leading source of cryptocurrency market data,
analytics, indices, and research, providing businesses with industrial-grade
and regulatory-compliant data. For each enterprise client, Kaiko builds
custom data plans designed for use cases across the investment life-cycle.

100+ All Relevant >99%

CEXs and DEXs DeFi Protocols API uptime

Petabytes 10+ yrs 260,000+ BMR

of data available historical market data spot, futures, and options

Versatile Delivery 24/7 Support Regulatory-Compliant

Streaming, REST API and CSV Around the clock support in the Our indices and reference rates
file service for data consumption U.S., EU and APAC to ensure are BMR-certified in the EU, for
that matches your use case. maximum uptime. use within structured products.

Extensive Coverage Dozens of Data Types Industry Leader

All major exchanges, assets, and Tick-level, aggregated, and Providing trusted and neutral
instruments covered across the quantitative data empowers all data and research services since
DeFi and CeFi ecosystem. data use cases. 2014.

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The Crypto Data Guide For Traders

Better Data,
Better Trading Strategies
Navigating the world of cryptocurrency trading can be a daunting endeaver with
over 100 exchanges and 200,000+ active instruments. Due to the volatile and
unpredictable nature of these markets, access to the right data can make or
break a strategy. This guide will provide an introduction to the four key stages of
the investment lifecycle and the crypto data services that empower them.

Use cases covered in this guide:

Strategy Backtesting
How to select the right historical market data for your strategy.

Live Monitoring
How to monitor open positions with real-time data services.

Risk Management
Introduction to risk tools for hedging and portfolio management.

Reporting
End-of-day and intraday reporting on profits and market impact.

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The Crypto Data Guide For Traders

Strategy Backtesting
How to select the right historical market data for your strategy

Whether you are a hedge fund, prop shop, market maker, DeFi liquidity provider, or
OTC desk, high-quality data is the key to any successful trading strategy. When
selecting your data, the following questions should be asked:

What type of strategy?

Which exchanges will you trade on?

Which crypto assets and instruments?

What granularity of data is required?

How much history is needed?

Ex. ETH trades on 45+ exchanges and 200+ instruments

Different Data for Different Strategies

Quantitative traders will typically leverage tick-level trade and order book data to build
machine learning strategies. Less advanced traders might rely on OHLCV or VWAP to
test entry and exit points. Ultimately, historical data is key and the more data the the
more precise the strategy. Quality is also crucial, especially in crypto markets where
exchanges often lack vetting. When picking a data provider, attention to these points
will make or break the success of your strategy.

Relevant Data Types for Backtesting

Tick-Level Trades Order Book Data Aggregated Data

Every executed transaction, Bids and asks on an order OHLCV or VWAP data in
including price, volume and book, captured at tick-level granularities ranging from 1
trade direction. or snapshot. second to 1 day.

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The Crypto Data Guide For Traders

Live Monitoring
How to monitor open positions with real-time data services

Once a strategy is deployed, all positions must be monitored which requires access to
robust live data feeds. Some traders may decide to connect to exchanges directly for
data, but the benefits of working with a provider often outweigh the costs of data
management. Data providers ensure all data is normalized across exchanges and that
uptime is maintained, which is especially important when consuming large amounts of
trade or order book data.

Example: Monitor Liquidity Across Different Venues

There are currently 196 active BTC spot Spreads

markets across 46 centralized
exchanges, and depending on how many
of these markets you are trading, live
monitoring is a big task. With streaming
or API services, traders can monitor
spreads and market depth across
2% Depth
exchanges to adjust their positions.

Low-latency data distribution services

enable traders to pick up on rapid market
changes and adapt their positions.

Data Services for Live Monitoring

REST API Kaiko Stream Private Network

Real-time data available Live stream providing low Off-internet networks for
through 15+ endpoints, for latency coverage and maximal speed and privacy,
less time sensitive trading. highly-granular feeds. for advanced traders.

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The Crypto Data Guide For Traders

Risk Management
Introduction to risk tools for hedging and portfolio management

Crypto markets are highly unpredictable, which means all strategies should have
proper risk management in place. Risk management can incorporate several activities,
whether that is hedging with derivatives or adjusting portfolio composition. Strong risk
strategies require advanced analytics, similar to traditional finance.

Risk Management Requires Advanced Analytics

Optimize the risk/return profile of your portfolio by monitoring VaR

Stress-test your portfolio with historical market data

Forecast risk with implied volatility

Build hedging strategies leveraging derivatives market data

Monitor liquidity to anticipate price slippage

Ex: Monitoring a portfolio’s

VaR can help traders manage
capital requirements

Data Types for Risk Management

Value at Risk Implied Volatility Derivatives Data

Daily VaR estimator for single IV smiles and surfaces Market data, open interest
and multi-asset portfolio adapted for crypocurrency and other metrics, for
management. options markets. building hedging strategies.

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The Crypto Data Guide For Traders

Reporting
End-of-day and intraday reporting on profits and market impact

Professional traders and market makers require the right data to accurately report
their positions and profits.

P&L Reporting

Because crypto markets are 24/7, reporting often requires

both real-time and end-of-day data. This data must be
compliant and accurate, especially when computing profits
and taxes.

Liquidity Reporting

Market makers, a type of trader, must Market Depth on Binance

report to their clients on the success
of their liquidity strategies. For
example, if a token project asks a
market maker to provide liquidity on
Binance, the firm will need to show
evidence that they successfully
boosted market depth and volume.
This requires access to historical
market data.

Data Types For Reporting

Reference Rates Market Depth Trade Volume

High quality real-time and The quantity of bids/asks on All transactions for a traded
EOD price feeds at three an order book at intervals instrument, at tick-level or
daily fixings ranging from 1m-1d aggregated.