Coinbase rolls out new data tools for smarter crypto trading

United States-based cryptocurrency exchange Coinbase announced the introduction of three new trading signals based on aggregated data for platform users. Coinbase shared the development in a Medium blog post dated July 17.

As per the blog post, the three trading signals that will only be available to Coinbase’s users are top holder activity, typical holder activity and popularity, and price correlation. 

According to the announcement, the trading signals are one of a kind in the crypto space and assist traders by providing “deeper understanding and comparison of cryptocurrencies and their communities.” These new set of data tools will enable crypto investors to create and manage cognizant trading strategies, the post read.

The first trading signal, top holder activity, will display the percentage net increase and decrease of customers coming under the top 10 percent with regards to holding of assets over the past 24 hours. The exchange asserts that the aforementioned data will be updated every two hours. 

Coinbase informed that these trading metrics would be offered alongside traditional market data, which the platform currently provides.

The typical hold time signal will present the data of the median number of days a Coinbase customer holds an asset before it is moved to another address or wallet. The exchange further added – “For those customers who want to better understand what the average Coinbase customer does, we’re providing data on hold times and popularity.”

Meanwhile, the third parameter, Price correlation, will purportedly signal measures on how cryptocurrency move in relation to each other. Coinbase affirms that this trading signal could help assess the “historical diversity” of a customer’s portfolio and evaluate potential risk exposure. 

The Silicon Valley-based cryptocurrency exchange informed that these trading signals would be offered together with traditional market data, which the platform is currently providing. 

In June 2019, Coinbase released a research report on the adoption and awareness of cryptocurrencies across the US. The data collected from over 2000 participants, shows that 58% of Americans have heard of Bitcoin while 37% proactively name the currency when asked about what they know about cryptocurrencies.