Coinbase Presents Three Trading Signals for the Users
Coinbase has come up with three trading signals that will help the platform users make use of better and well-informed trading strategies. The three trading signals introduce by Coinbase includes the top holder activity, the typical hold time and popularity, and the price correlation. The main aim of the new offerings is to develop better insights among the users to create enhanced trading strategies simply. Coinbase also announces that it will offer the metrics along with the traditional market data that it has been providing. The offered metrics will allow the investors on Coinbase to have a better understanding of the user behaviors on an anonymous form as well as in the aggregate form.
The Importance of the Trading Signals
The top holder activity will simply reflect the buying percentage as well as the selling percentage. It will allow the users to gain an idea about the top holder’s action. This signal is effective in informing and updating the users about the buying and selling of particular assets on the Coinbase by the top holders within 24 hours. 10 % of owners on Coinbase form the top holders. The information keeps updating every 2 hours. If the position of the top holder increases within 24 hours, it indicates that they are on the buy-side. And if the position of the top holders decreases, it signals that they are on the sell-side. This trading signal keeps updating the users about the performance of the top holders, which keeps changing in 24 hours.
The signal of typical hold time and popularity indicates the median number of days that a particular asset on Coinbase stays with the customer’s account before the asset gets moved or sold to another wallet or address. The popularity indicator is nothing but a simple ranking that shows the number of Coinbase customers holding a particular asset. This signal also keeps updating every 24 hours.
The price correlation indicator
The indicator of price correlation measures the changing prices of the cryptocurrencies in comparison to each other. This indicator keeps updating every 24 hours. The price correlation is updated in the form of a percentage. When the movement of the two coins is exactly similar, then the correlation is expressed as 100%, and when there is no correlation between the coins, the correlation is expressed as 0%. And in the case of the movement of coins in perfectly opposite ways, the correlation is -100%. This indicator easily and quickly throws light on the coins that move in the different ways on Coinbase.
The Note-worthy Consideration
It is noteworthy that in the smaller markets of Coinbase, it is easy for someone to make manipulation to the indicator of top holder activity in certain cases. When money gets thrown for causing manipulation in the crypto market, it’s possible for the inquisitive individuals to explore and bend the metrics of the top holder activity as per their will. It is even a surprising fact that manipulation can be quite easy in the case of some particular assets.