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What Are the Advantages of Using a CEX’s API for Price Data over On-Chain Data?

CEX APIs offer high-frequency, low-latency price updates from deep order books, which reflect real-time market sentiment and are less susceptible to single-transaction manipulation than shallow on-chain pools. The data is often cleaner and more reliable in terms of volume and depth.

However, this comes with the risk of relying on a centralized, off-chain entity.

How Does a ‘Speed Bump’ Mechanism Affect High-Frequency Trading on a CEX?
How Does the ‘Spread’ on the Order Book Relate to Market Depth and Liquidity?
What Is an “Order Book” and How Does Its Depth Relate to Market Liquidity?
How Does a CEX’S Decision on Confirmation Depth Influence a Coin’s Liquidity?