Coinbase is rolling out new tools to help entry-level crypto users understand what seasoned traders are up to.
The exchange announced Wednesday the availability of a new suite of signaling tools. One such tool broadcasts the activity of Coinbase’s top traders.
Firstly, Coinbase will allow users to see the percentage of Coinbase customers with large balances in assets which have not increased or decreased their position in the last 24 hours. Large balances are considered as the top ten percent of accounts holding said token. This will allow customers to gauge short term sentiment for a coin and take decision accordingly.
The next indicator shows users the typical hold time for a Coinbase customer’s account before it’s sold or sent to another wallet. This is calculated as the median of the number of days the asset stays in the wallet. This gives users brief insight into short term market cycles.
The three trading signals that are being offered are top holder activity, typical hold time and popularity, and price correlation. The purported aim of each of these offerings is to allow investors to create more informed trading strategies, by means of insights that go beyond raw price metrics.
As reported by CoinDesk, Coinbase spokesperson further detailed that top holder activity would be aggregated from all individual Coinbase accounts across the exchange – excluding those set up by institutions.
This is a great strategy from Coinbase to acquire new users as a new bullish cycle comes to life. In the future, expect to see more exchanges offer such analytical tools. Coinbase will be hoping their first-mover advantage gives them an edge in the next few months.
Beyond sharing metrics on Coinbase power users, the San Francisco-based company is rolling out other data tools to help retail users make more informed decisions.