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July 18, 2019

Coinbase Launches Crypto Trading Signals, Revealing Inside Look at Price Action

By Daily Hodl Staff

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The leading US crypto exchange Coinbase is launching a trio of trading signals for its users.

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The first is called “top holder activity”, which analyzes the biggest holders of a given crypto asset on the site, revealing how many users in the group have bought or sold their positions in the last 24 hours.

Coinbase is also showing average hold times, which is the median number of days an asset stays in a Coinbase customer’s account before it’s sold or sent to another address or wallet.

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A new popularity signal shows how many customers hold each cryptocurrency. Both the hold time and the popularity signals are updated every 24 hours.

Finally, Coinbase is introducing a price correlation metric to give traders a look at whether the prices of certain crypto assets are correlated with one another.

“For example, if you want to increase your exposure to potential BTC-related price movements, you could buy cryptocurrencies that are highly correlated to BTC. And if you wanted to hedge your bets against BTC-related price movements, you could buy crypto with a high negative correlation. Further, you could make uncorrelated bets with a crypto that has no relationship with BTC.”

Coinbase is careful to point out that while the data may offer unique insight, the metrics are not investment advice and traders are at their own risk in the volatile crypto market.

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You can check out a complete overview of the new signals here.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.