Coinbase Financial Markets (CFM) has rolled out regulated leveraged futures for cryptocurrencies, specifically for Bitcoin and Ethereum, to its U.S.-based clientele. These new offerings, available for Coinbase Advanced users, aim to democratize futures trading by presenting nano-sized contracts: one-hundredth of a bitcoin and one-tenth of an Ethereum.
Originating in San Francisco, Coinbase is progressively unveiling its futures for both Bitcoin and Ethereum. Wednesday’s announcement emphasized CFM’s objective to render crypto futures more approachable for retail traders. As a result, Coinbase Advanced users in the U.S. now have the privilege to tap into these regulated crypto futures contracts.
Elaborating on the benefits of futures as derivatives, Coinbase highlighted their utility in risk hedging and portfolio diversification. The company’s announcement was also quick to point out the potential pitfalls, stating: “Utilizing leverage in futures trading can be a double-edged sword. The potential losses might outstrip your principal investment.”
Adding depth to their communication, the exchange stressed:
“Our futures contracts are tailored for the retail trader, sized at 1/100th of a Bitcoin and 1/10th of an Ethereum.”
Coinbase reminisced about CFM’s authorization in August to present federally regulated crypto futures trading. This nod was considered a pivotal moment, hinting at the rapid advancements in the cryptocurrency trading sphere. Acknowledging the importance of well-informed traders, Coinbase has curated an educational repository. This comprises articles spanning basic futures trading principles to intricate discussions on its merits and challenges.
Coinbase’s stock performance on Nasdaq, under the ticker COIN, has been commendable. Monthly gains stand at 0.48%, and a six-month overview reveals a rise of 58%. Comparing year-to-date performance against the U.S. dollar, COIN has surged by an impressive 111%. Meanwhile, those interested in futures trading with CFM but not on Coinbase Advanced can register, given they have clear anti-money laundering and know-your-customer checks.