Coinbase Is Rolling Out New Data Tools For ‘First Time’ Crypto Investors

One of the largest cryptocurrency exchanges in the world, Coinbase, is apparently launching new tools that will help entry-level crypto users to understand what seasoned traders do. Coinbase is rolling out the new data tools now – in a suite of signaling tools which broadcast the activity of the platform’s top traders. The news are all over many best cryptocurrency news sites.

“The top holder activity signal is the percentage of Coinbase customers with large balances of an asset (top 10%) who have net increased (bought) or decreased (sold) their positions in that asset through trading over the last 24 hours,” Coinbase explained in a blog post which went viral in the altcoin news. “This is updated approximately every 2 hours.”

Speaking to CoinDesk, one Coinbase spokesperson further noted that top holder activity would be aggregated from all of the individual Coinbase accounts across the exchange – excluding the ones set up by institutions.

Beyond the sharing metrics on Coinbase power users, the fact that Coinbase is rolling out their data tools will apparently help retail users make more informed decisions. The Coinbase customers will also be able to see the median number of days an asset is held by traders on the exchange before it is sold or moved to another address, the latest cryptocurrency news show.

Another tool which Coinbase is rolling out will gauge the popularity of assets on Coinbase as well as their relative price correlations to other crypto assets. All of the “exclusive” data tools are available to any user for free starting from today.

“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 spokesperson from Coinbase noted.

Now that Coinbase is rolling out these data tools, a senior engineer from the company named Will Drevo says that the platform’s top crypto accounts have a tendency to buy rather than sell their portfolio positions.

“Historically, when top holders are either unusually bullish or bearish this has been indicative of changing market conditions, but not always,” Drevo wrote in another post.

Founded in 2012, Coinbase has snagged a $8 billion valuation this year.