Coinbase Now Offering Four Free Exclusive ‘Trading Signals’ to All Users

Siamak Masnavi

Digital asset exchange Coinbase has announced that all Coinbase users now have access to four free exclusive "trading signals."  

Coinbase explained in a blog post published on Wednesday (July 17) that it wants to help their customers "independently create and manage their own crypto strategy" by making available certain data—some of which is based on the "aggregated and anonymized activity of millions of Coinbase customers"—available, for free, to all users of Coinbase. These "insights" (which Coinbase says are "the first of their kind in crypto") are only available to those who are logged into the Coinbase website. gital asset that is available on Coinbase.com.

The four tradings signals are available for every digital asset that is available on Coinbase.com.

So, what are these trading signals?

Top Holder Activity

This refers to the percentage of Coinbase users "with large balances of an asset (top 10%)" who have either bought or sold that asset in the past 24-hour period. This information is updated every two hours. 

At the time of writing, for Bitcoin (BTC), 69% of the top BTC holders have bought Bitcoin and 31% have sold Bitcoin in the past 24-hour period.  

Typical Hold Time

This is the "median number of days an asset stays in a Coinbase customer’s account or vault before it’s sold or sent to another address or wallet."

In the case of Bitcoin, currently, the typical hold time is 85 days.

Popularity on Coinbase

This is a "a ranking (out of all tradable assets) of how many customers hold a particular cryptocurrency." This information is updated every 24 hours.

You will probably not be surprised to find out that currently Bitcoin is the most popular digital asset on Coinbase.

Price Correlation

This signal tells you how cryptoasset prices move in relation to each other, i.e. a high positive correlation means "those assets’ prices have tended to move in the same direction." So, if you want to hedge your risk exposure to BTC-related price movements, you might want to consider buying cryptoassets that have a high negative correlation with Bitcoin.

In the case of Bitcoin, currently, Coinbase.com (UK) shows the following price correlation information when you are looking at Bitcoin:

Coinbase Price Correlation Info - 18 July 2019.png

Coinbase wisely points out that "price correlations are historical and not predictive of future correlations," and that all market data provided by Coinbase, including these four trading signals, should not be "considered investment advice."

Featured Image Credit: All Images Courtesy of Coinbase.com (UK)