Coinbase Financial Markets (CFM) has introduced regulated cryptocurrency futures contracts for Coinbase Advanced users in the United States. These futures contracts are designed with retail traders in mind and are sized at 1/100th of a Bitcoin and 1/10th of an Ethereum.
For now, these contracts are accessible through the Coinbase Advanced platform for US traders, and there are plans to make futures trading available on the Coinbase mobile app in the future.
Futures trading provides traders with several advantages. They can manage risks, expand their investments, and predict market movements, be it upward or downward. But it’s crucial to be careful with leverage, as it can lead to losses surpassing the initial investment.
In August, Coinbase Financial Markets, Inc. got the green light to introduce regulated crypto futures trading for eligible US users. This means Coinbase Advanced users can now engage in leveraged cryptocurrency futures trading via CFM. For further details, you can visit their official website.
Unique and Educational Features
CFM provides unique nano-sized futures contracts to make trading more accessible. Traders have two options: BTC and ETH contracts, which demand lower initial funds as they are sized at 1/100th of a Bitcoin and 1/10th of an Ethereum. This makes them attractive for a wider range of everyday investors.
In addition, CFM has expanded educational resources by adding a series of articles to the Coinbase Learn platform. These articles cover various aspects of futures trading, including fundamental concepts, advantages, and risks, ensuring that traders are well-informed.
How to Start Trading
To get started with this new update, traders should first log in to advanced.coinbase.com. The left menu now includes a “Futures” section. After logging in, traders must apply to trade futures with Coinbase Financial Markets. Due to financial regulations, it’s necessary to verify personal information and answer questions about financial background and previous investment experiences. Once their application is approved, traders can begin trading futures, with all contracts settled in US dollars.
Additionally, although it’s currently only available on the web, CFM has plans to integrate futures trading into the Coinbase mobile app.
Coinbase’s Response to Decreased Spot Trading
In the third quarter of 2023, Coinbase saw a significant drop in spot trading volume compared to the same period in 2022. According to CCData, a digital asset data source, Coinbase recorded about $76 billion in spot trading volume, a 52% decrease. In response to this decline, Coinbase decided to introduce crypto futures services as a natural step.
Despite the decrease in spot trading activity, Coinbase managed to increase its market share in the last quarter. This was partly due to increased regulatory scrutiny on its competitor, the cryptocurrency exchange Binance.
However, the decision to launch futures trading in the United States represents a significant moment in Coinbase’s mission to provide access to futures for a wide range of users and boost its spot trading volume.
Important:聽Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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