Coinbase has just announced that a new service is available for all customers that provides crypto trading signals based on the data collected by the exchange itself.
Starting today, we’re making exclusive trading data available to any Coinbase customer. Trade smarter with trading signals, only on Coinbase. pic.twitter.com/aVAbIUEqzR
— Coinbase (@coinbase) July 17, 2019
These signals are completely free and have different update times. In the press release, Coinbase states that:
“Trading signals are up-to-date, trusted, exclusive data only available on Coinbase.com and are meant to help our customers independently create and manage their own crypto strategy. Our goal is to provide accurate, objective measurements of cryptocurrency usage based on the aggregated and anonymized activity of millions of Coinbase customers.”.
This is a new service that will be added to all those indicators already present on Coinbase Pro.
Trading signals on Coinbase
1) The activity of holders
It is a tool that shows the activities of those traders who hold a large amount of an asset (the top 10% among all). Buy and sell orders of the last 24 hours are monitored and reported to the public every 2 hours.
It is not possible to predict the price of bitcoin (BTC) or other cryptocurrencies, however, it is possible to observe, with extreme caution, the actions that are carried out by more experienced traders.
2) Typical hold time and popularity
The first is a signal that indicates the average time an asset remains within an address on Coinbase, or within the Vault, before it is sold or actually moved to another address.
Popularity is a ranking that shows how many customers actually own an asset. The latter signal is updated every 24 hours for the public.
3) Price correlation
The correlation, by definition, shows a relationship between two entities. In this case, it indicates how much two cryptocurrencies are tied together, such as bitcoin (BTC) and ethereum (ETH). This signal is also updated every 24 hours.
A high value indicates that the two assets have similar behaviour. On the other hand, a very low value shows that the two cryptocurrencies behave in the opposite way. Zero, or the area around it, suggests that there is no correlation between the assets.
However, Coinbase would like to point out that all these trading signals are in no way intended as financial or investment advice.