How To Use An API To Spot Crypto Gems?

In this article, I’m going to use the FMP crypto API to automate some analysis. The goal is to show you how to make data-driven decisions based on public crypto data online. Let’s dive in.

1. What is the FMP API?

The FMP APIs are a set of APIs that I’ve used in the past for stocks to get realtime and historical data about markets. Usually, I use them to build predictive machine learning models.

Recently they’ve developed a new endpoint for cryptocurrencies:

As you can see the API returns the list of cryptocurrencies with interesting data like the tokens average price of the last 50 and 200 weeks:

2. How to use the API?

First of all, get yourself a free API key here:

And then call that URL after replacing YOUR-API-KEY by the key you just created:

https://financialmodelingprep.com/api/v3/quotes/crypto?apikey=YOUR_API_KEY

3. A Use Case Example: Find Very Undervalued Tokens

I wrote a python script that looks for tokens 70% undervalued compared to the their average price on a long period of time:

response = requests.get("https://financialmodelingprep.com/api/v3/quotes/cryptoapikey=your-key")

for crypto in response.json():
    try:
        ratio = crypto["price"]/crypto["priceAvg200"]
    except ZeroDivisionError:
        continue
    if crypto["price"]/crypto["priceAvg200"] < 0.3:
        print(crypto["name"])

The results of that script gives a list of undervalued tokens based on their past average price:

DigixDAO USD
ICN-USD
FairCoin USD
SingularDTV USD
FirstCoin USD
Zenon USD
HighPerformanceBlockchain USD
Stakenet USD
CUTcoin USD
PACGlobal USD
DigitalNote USD
Compound USD
Ouroboros USD
Helleniccoin USD
Myriad USD
TrueChain USD
Asch USD
Crust USD
EurekaCoin USD
OrientWalt USD
NuBits USD
AdvancedInternetBlocks USD
Electra USD
Nyzo USD
YOYOW USD
Massnet USD
TurtleCoin USD
Phore USD
ODUWA USD
Molecular Future USD
Smooth Love Potion USD
Bit Financial USD

This is in no way a recommendation. Also, the list of tokens is not complete yet as this is a new feature. However, it’s an example of a cool little use case you can develop yourself based on APIs. It’s also a good tool to get your on-chain data (in the future or using other APIs) and build investment plans based on analytical thresholds that you define depending on your risk appetite.

4. Conclusion

Use crypto APIs. They’re everywhere and allow you to be programmatic while applying criteria to your crypto search. By combining requests to a crypto API, you can automate your investment plans and disconnect your emotional brain when you invest.

Thanks for reading.

Disclaimer: this is not financial advice