Leading US cryptocurrency exchange and wallet provider, Coinbase, announced today the incorporation of “Trading Signals” on its platform to enable users to build a data-driven investing strategy.
The development will help Coinbase customers to create and manage their crypto strategy independently. The addition of these new signals to the standardized market data on Coinbase will provide a deeper understanding of cryptocurrencies and their communities.
“Whether you’re new to crypto or a long-time HODLer, it can be confusing to sort the real news from the noise. That’s why we’re making exclusive trading data available to any Coinbase customer — for free — starting today,” Coinbase wrote in a tweet.
The signals include “Top holder activity signal,” “Typical hold time & Popularity on Coinbase,” and “Price correlation signal.”
The Top holder activity signal holds the percentage of customers with vast balances of an asset (top 10%) in Coinbase. This feature will help to predict how the largest holders have recently traded over the last 24 hours.
While the typical hold time signal is meant to indicate the median number of days an asset is kept in the customer’s account or vault before it is sent to another address or wallet, the Popularity on Coinbase signal will rank how many customers hold a particular cryptocurrency.
Lastly, the price correlation signal will calculate how cryptocurrency prices move in relation to each other. The report, however, noted that price correlations are historical and not predictive of future correlations.
“Our goal is to provide accurate, objective measurements of cryptocurrency usage based on the aggregated and anonymized activity of millions of Coinbase customers,” the report noted, adding that, the trading signals should not be seen as investment advice.