Coinbase tells you if top holders are buying or selling a crypto asset
Source:https://techcrunch.com/2019/07/17/coinbase-tells-you-if-top-holders-are-buying-or-selling-a-crypto-asset/ Coinbase tells you if top holders are buying or selling a crypto asset 2023-01-29 23:32:24

Coinbase is taking advantage of its significant user base to give you more information about trading behavior and price correlation. Given that there are now 15 cryptocurrencies on Coinbase that you can trade, the new features should provide some signals.

In addition to price and variation information, you can see what Coinbase customers with large balances are currently doing. You get a buy/sell percentage for each asset.

Behind the scene, Coinbase looks at users with a Coinbase balance in the top 10% for that asset. The exchange then counts how many users in that pool have increased or decreased their positions over the last 24 hours. The signal is updated every two hours.

Coinbase is also calculating two other data points — the average hold time and the popularity of each asset. This time, the company relies on the entire Coinbase user base to tell you how long people keep a specific asset before selling it or sending it to another address.

Unfortunately, when you transfer your assets to a hardware wallet or a more secure wallet, Coinbase considers that you’re no longer “holding” that asset because it’s no longer on your Coinbase account.

Finally, Coinbase is looking at price data to find out if prices of multiple assets are correlated. For instance, if Crypto X and Crypto Y have a correlation of 0%, it means that they have no relationship. A negative correlation means that two assets move in opposite directions. This feature could help you build a more balanced portfolio of cryptocurrencies.

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Tech, Technology Source:https://techcrunch.com/2019/07/17/coinbase-tells-you-if-top-holders-are-buying-or-selling-a-crypto-asset/

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