US-based crypto exchange Coinbase on Thursday announced that it introduced three new trading signals based on its aggregated data for traders on the platform.
According to the exchange, the trading signals are “first of their kind in crypto” and will help traders to get a “deeper understanding and comparison of cryptocurrencies and their communities.”
The three data-based signals are top holder activity, typical hold time and popularity, and price correlation.
What exactly are trading signals? Up-to-date and trusted data on top holder activity, typical hold time, popularity on Coinbase, and price correlations. Trading signals are meant to help our customers build a data-driven investing strategy.
— Coinbase (@coinbase) July 17, 2019
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Providing insight into traders’ behaviors
The first signal will show the percentage net increase and decrease of positions of Coinbase customers falling in the top 10 percent in terms of holding assets for 24 hours. The exchange will update this data every 2 hours.
As the name suggests, typical hold time will provide the information of the median number of days a Coinbase customer holds an assetan asset is held by a Coinbase customer before it’s sold or sent to another address or wallet.
“For those customers who want to better understand what the average Coinbase customer does, we’re providing data on-hold times and popularity,” the exchange noted.
The third parameter is closely related to the value of the digital currencies and will signal measures how cryptocurrency prices have moved in relation to each other.
“High positive correlation means those assets’ prices have tended to move in the same direction. High negative correlation means those assets’ prices have tended to move in the opposite direction,” the San Francisco-headquartered exchange added. “Low or no correlation (around 0%) means the assets’ prices haven’t tended to be related.”
Over the years, Coinbase has become an industry giant and is currently the largest cryptocurrency and wallet platform in the United States. Last month, it introduced push notification on its mobile platform to alert the traders of any price fluctuations.
Meanwhile, the exchange is reportedly planning to set up a captive insurance company to get better access to the reinsurance market.