Data Scraping
Data scraping is the process of extracting data from websites or other online sources in an automated fashion. It can be used to extract data from large, complex websites and databases in order to analyze it for various purposes. Data scraping is a commonly used technique among cryptocurrency traders as they use it to gain insights into market trends and price movements.
Data scraping is usually done with computer programs that parse through webpages and extract useful information such as prices, volume levels, open/close times etc. This extracted data can then be analyzed using various statistical algorithms or visualized on charts for easy viewing. Data scrapers are also able to detect any changes made to the source website which allows them to stay up-to-date with real time changes in the cryptocurrency markets.
One of the most common uses of data scraping within cryptocurrency trading is tracking arbitrage opportunities between different exchanges. By collecting pricing information from multiple exchanges at once, traders can quickly identify potential profit margins by taking advantage of spreads across multiple markets simultaneously (known as ‘arbitrage’). Additionally, some automated trading bots use this type of technology so that they can execute trades whenever certain conditions are met without any manual intervention required from their user(s).
The software used for data scraping varies depending on what kind of information you need and how frequently you want it updated; however there are some popular tools available including Python Scrapy library, Kimono Labs API service, Octoparse desktop application etc., all designed specifically for making life easier when dealing with webscraping tasks related to cryptocurrencies.
