Coinbase, the top-tier cryptocurrency exchange in the U.S., has rolled out a new trading avenue for its users. Significantly, this move enables eligible retail customers in the country to trade in crypto futures.
Moreover, to cater specifically to this demographic, Coinbase has sized these futures contracts at 1/100th of a Bitcoin and 1/10th of an Ethereum. Consequently, this initiative not only broadens the spectrum of trading options available but also invites a broader range of participants to the crypto market.
This move by Coinbase is familiar to those in the know. In August, the company successfully acquired approval from the National Futures Association. Hence, they are fully compliant to operate as a futures commission merchant. This strategic direction aligns with the global trend, where crypto derivatives command a staggering 75% of the global crypto trading volume.
While the allure of futures trading is undeniable, Coinbase quickly reminds its users about the associated risks. Trading with leverage, although promising substantial returns, can also lead to losses exceeding the initial investment. Hence, it’s a tool that can either amplify gains or magnify losses.