Coinbase, the top US-based crypto exchange platform, has announced the launch of crypto futures trading for retail investors in the US. This new offering allows US Coinbase Advanced customers to trade regulated leveraged crypto futures through Coinbase Financial Markets.
The futures contracts offered by Coinbase will be sized at 1/100 of a Bitcoin (BTC) and 1/10 of an Ethereum (ETH), also known as 'nano contracts.' These contracts provide lower upfront capital requirements, making them an affordable investment option for a broader range of retail customers.
While futures contracts with leverage can be beneficial, Coinbase warns customers about the significant risks involved. Traders can potentially lose more money than they initially invest. It is important for traders to understand the risks and exercise caution when trading with leverage.
To access the crypto futures, traders need to apply for the Coinbase Financial Markets with an existing Coinbase account. Currently, futures trading can only be accessed through a web browser, but Coinbase plans to offer the service through its mobile app in the near future.
Coinbase's launch of crypto futures trading for retail investors in the US provides an exciting opportunity for individuals to diversify their portfolios and speculate on the market. However, it is crucial for traders to be aware of the risks involved and make informed decisions. As Coinbase continues to expand its services, retail investors can look forward to more accessible and affordable investment options in the crypto market.
