- Coinbase Financial Markets (CFM) has launched regulated cryptocurrency futures contracts for Coinbase Advanced users in the United States.
- The futures contracts are sized at 1/100th of a Bitcoin and 1/10th of an Ethereum and are intended for retail traders.
- US traders can access these contracts through the Coinbase Advanced platform, with futures trading planned for the Coinbase mobile app in the future.
Coinbase, through its subsidiary Coinbase Financial Markets, has cleared the path for retail crypto traders in the United States by providing regulated crypto futures contracts. This means that US traders can now invest in regulated cryptocurrency futures contracts. These retail-oriented contracts are accessible at 1/100th of a Bitcoin and 1/10th of an Ethereum.
Futures trading offers various benefits to traders. They can hedge risks, diversify their portfolios, and speculate on the market’s direction, whether rising or falling. However, traders must exercise prudence when using leverage. Leverage can result in losses that exceed the initial investment.
Coinbase Financial Markets, Inc. received approval in August to launch federally regulated crypto futures trading for eligible US consumers. As a result, Coinbase Advanced users can now trade leveraged cryptocurrency futures through CFM. More information is available on their official website.
Features that are unique and educational resources
CFM offers nano-sized futures contracts to enhance the trading experience. Traders can choose between two futures contracts: BTC and ETH. These contracts require less initial money because their sizes are set at 1/100th of a Bitcoin and 1/10th of an Ethereum. As a result, they are an enticing investment option for a broader range of ordinary investors.
CFM has also included a set of articles to the Coinbase Learn site to ensure traders are well-informed. These articles explain many aspects of futures trading, from fundamental ideas to benefits and hazards.
How to Begin Trading
To participate in this new update, traders must first log in at advanced.coinbase.com. The left menu now includes a new “Futures” section. Traders must apply to trade futures with Coinbase Financial Markets after logging in. Because of financial restrictions, it is necessary to verify personal information and answer questions regarding financial background and prior investment experiences. Traders can begin trading futures once their application has been authorized. All futures contracts will be settled in US dollars.
Furthermore, while now exclusively available via the web, CFM has ambitions to integrate futures trading into the Coinbase mobile application.
When compared to the same period in 2022, Coinbase’s spot trading volume decreased significantly in Q3 2023. According to CCData, a digital asset data source, Coinbase registered about $76 billion in spot trading volume, a 52% decrease. Coinbase opted to develop crypto futures services to counteract this decrease, which appears to be a natural trend.
Despite a drop in spot trading activity, Coinbase increased its market share in the last quarter. This was owing to heightened regulatory scrutiny on its competitor cryptocurrency exchange, Binance.
Nonetheless, the decision to launch futures trading in the United States is a watershed moment in Coinbase’s mission to democratize access to futures for a broad variety of users and increase its spot trading volume.
Disclaimer. The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.