Trading signals, while quite useful, do not guarantee fixed returns. Not only that, it has also been observed that such indicators tend to lose their predictive power as more and more people start to make use of them.
- Popular crypto exchange Coinbase announced today that it was adding 3 new trading signals to its native UI so as to help users maximize their returns.
- With this latest move, the firm is trying to attract a new wave of day traders and investors who may be looking to enter the crypto market.
As per an all new blog post released by the folks over at Coinbase earlier today, the premier crypto trading platform has just released three new trading signals that are designed to monitor the buy/sell activities of its users in an automated manner. The announcement has been met with a lot of fanfare and many experts believe that this move will help boost Coinbase’s popularity even more within the global crypto community.
More On The Matter
According to the above linked announcement, Coinbase is providing its users with three new technical indicators that contain niche’ data such as:
The total number of ‘buyers and sellers’ who are currently in the top ten percent (i.e. holders) of people owning a certain alt asset.
The average no. of days that a trader holds on to his/her assets.
The ranking of each crypto commodity by its total number of owners.
The correlation between the values of different alt-assets.
In regards to the matter, a spokesperson for Coinbase made it clear that the point of this entire exercise was to allow individual investors to get in line with upcoming market trends in a seamless manner. He then went on to add:
“We want trading signals to help first-time investors build the right portfolio to suit their investment goals. Similar to traditional market sentiment indicators, this information is intended to provide more context for customers rather than impact the broader market.”
- While such activities certainly do look appealing to the average investor, some experts are of the opinion that by revealing the trade activities of its top crypto holders, Coinbase was playing with fire — since the move could dissuade experienced traders from using the premier trading platform.
- In a similar vein, certain insider sources who wish to remain unnamed at this time believe that most day traders will quite likely not adopt these signals.
- A recent study by Coinbase has shown that during the 2017 bull season, a BTC buy-in strategy (that was based on the activities of top holders) allowed investors to incur better returns when compared to other strategies that included buying fixed amounts of Bitcoin.
- However, this exact same strategy when applied to ZRX (over the same time period) was found to result in a loss of around 2%.