Coinbase US Customers Can Now Expand Bitcoin Futures Trading

Key Points:

• Coinbase enables Bitcoin and Ether futures trading for eligible U.S. customers.
• Regulatory approval in August allowed Coinbase to expand its services for U.S. customers.
• Coinbase focuses on risk management and education to support safer futures trading.

Coinbase Global has unveiled an exciting opportunity for its eligible retail Coinbase US customers, as they can now engage in futures trading tied to Bitcoin and Ether.

Coinbase Launches Bitcoin and Ether Futures Trading for Eligible Coinbase US Customers

This development, disclosed in a recent blog post, emphasizes that only US customers with advanced trader status will have the privilege of trading these futures contracts.

Coinbase’s foray into the futures market follows its clearance in August to operate as a futures commission merchant (FCM) under the regulations of the National Futures Association.

Futures contracts, while offering unique trading opportunities, are generally considered riskier due to the inherent volatility of cryptocurrencies and the potential for amplified gains and losses through leverage, making risk management crucial for Coinbase US customers.

According to Coinbase Financial Markets CEO Andrew Sears, futures provide Coinbase US customers with various benefits, including risk hedging, portfolio diversification, leveraging, and speculation on market direction. This initiative is a significant step toward expanding the trading horizons for Coinbase US customers in the rapidly evolving crypto market.

The launch of this service highlights Coinbase’s commitment to enhancing access to crypto derivatives trading for Coinbase US customers, a sector that represents approximately 75% of the global crypto trading volume.

Users can take advantage of the nano-Ether contract to manage risk, trade on margin, or speculate on Ether’s price. Meanwhile, the nano-Bitcoin contract enables Coinbase US customers to place bets on Bitcoin’s future price.

Initially available on the web version, these services will soon be accessible on mobile devices, further enhancing convenience for Coinbase US customers. However, it’s important to note that while this new offering adds trading flexibility, Coinbase underscores that futures trading involves greater downside risk.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.