Coinbase rolls out new data trading signal tools to help users make informed decisions

Cryptocurrency exchange Coinbase has launched a suite of new signaling tools that will help crypto beginners understand trade.

The company has released aggregated and anonymized data in the form of three trading signals to its customers, including top holder activity, typical hold time and popularity, and price correlation.

“For individual investors, especially those new to crypto, we hope these new signals will encourage more informed management of a diversified crypto portfolio. We want trading signals to help first-time investors build the right portfolio to suit their investment goals,” a Coinbase spokesperson told CoinDesk.

As per its blog post, the new signals aim to enable investors to make a more informed trading strategy, with insights that go beyond price.

The top holder activity, for instance, shows the buying behavior of Coinbase investors who own the top 10% of balances for a given asset. The composition will be changed regularly, and the signal is updated every 2 hours.

Next, the typical hold time signal tracks the median number of days that a given asset is held on the customer’s account before it is sold or moved in a new transaction. Asset popularity, on the other hand, traces how many users are holding a given currency.

Lastly, the price correlation determines how the prices of cryptocurrencies have moved in relation to each other. This metric aims to assess the historical diversity and potential risk exposure of a user’s portfolio.

Meanwhile, Coinbase warned that despite being “the first of their kind in crypto,” the latest offerings “are not and should not be considered investment advice,” adding that investors should still make their own independent assessment.

The announcement follows after reports revealed that Coinbase is planning to establish its own regulated insurance company and is already in talks with insurance broker giant Aon.