Coinbase comes up with new data tools for the first time investors
Coinbase, one of the largest crypto exchanges of the decentralized space announced a new set of tools and indicators to help the first time investors. Coinbase announced on Wednesday, which is aimed at helping new traders what seasoned ones in the business are doing. One of these tools would broadcast the activities of top traders on the platform.
Coinbase also released an official blog post explaining how the new set of tools would work. The blogpost read,
“The top holder activity signal is the percentage of Coinbase customers with large balances of an asset (top 10%) who have not increased (bought) or decreased (sold) their positions in that asset through trading over the last 24 hours. This is updated approximately every 2 hours.”
One of the spokespersons from the exchange told that all the activities of top traders from the platform would be aggregated from their account, apart from those accounts set up by the institutions. Apart from the accumulated activities of top traders, the newly released suit from the exchange would help retail traders make more informed decisions.
How new tools help inexperienced and new traders?
The exchange has released a series of tools aimed at helping on different aspects of trading. On of the tools will help the consumers on the exchange to see the median number of days a token or digital asset is held by top trades before selling it. Another tool ranks the assets as per their popularity on the platform along with their relative price correlation with other crypto assets.
All these tools are available for every trader on the platform for free from Wednesday itself. When enquired about the goals behind releasing the set of tools, one of the spokespersons from the platform said,
“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.”
Will Drevo, the chief engineer at Coinbase said that the tools would surely have a great impact on the coming of age traders as most of the top traders on the platform tends to buy more than sell their assets. However, Dave also mentioned that directly taking the top traders activity as investment advice would not be a great trading move, and one should decide for themselves on how to manage their respective crypto portfolio.