{"id":63379,"date":"2023-11-01T12:25:36","date_gmt":"2023-11-01T16:25:36","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=63379"},"modified":"2023-11-01T12:25:41","modified_gmt":"2023-11-01T16:25:41","slug":"coinbase-launches-crypto-futures-for-us-retail-customers","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/coinbase-launches-crypto-futures-for-us-retail-customers\/","title":{"rendered":"Coinbase Launches Crypto Futures for US Retail Customers"},"content":{"rendered":"\n

Coinbase has announced that it will offer crypto futures<\/a> trading for eligible retail customers in the country. The new service will allow users to trade futures contracts sized at 1\/100th of a Bitcoin and 1\/10th of an Ethereum, making them more accessible and affordable.<\/p>\n\n\n\n

\"Coinbase<\/figure>\n\n\n\n

However, Coinbase also warns users of the risks involved in trading with leverage and confirms that all futures contracts will be settled in US dollars.<\/a><\/p>\n\n\n\n

An Overview of Crypto Futures and Their Role in Crypto<\/h3>\n\n\n\n

Crypto futures are derivatives contracts that allow traders to speculate on the future price movements of cryptocurrencies without owning or delivering the underlying assets. <\/p>\n\n\n\n

They are important because they provide liquidity, price discovery, and risk management for the crypto market. They also enable traders to access leverage, which means they can open positions with less upfront capital than spot trading. <\/p>\n\n\n\n

However, leverage also magnifies the potential losses if the market moves against the trader\u2019s position.<\/p>\n\n\n\n

On October 31st, Coinbase announced \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>that it had launched crypto futures trading for its retail customers in the US. The announcement came after Coinbase received approval from the National Futures Association (NFA) in August to operate as a futures commission merchant.<\/p>\n\n\n\n

According to Coinbase, its crypto futures trading service will offer two types of contracts: nano Bitcoin futures and nano Ether futures. <\/use><\/svg><\/span><\/a><\/p>\n\n\n\n

These contracts are sized at 1\/100th of a Bitcoin<\/strong> and 1\/10th of an Ethereum,<\/strong> respectively, which means they are more affordable and accessible than standard contracts that are typically sized at one or more units of cryptocurrency.<\/p>\n\n\n\n

Coinbase stated that its crypto futures trading service will be integrated into its existing platform, allowing users to access both spot and futures markets through one interface. <\/p>\n\n\n\n

Users will also be able to use Coinbase\u2019s advanced trading tools, such as limit orders, stop orders, and trailing stop orders.<\/p>\n\n\n\n

The exchange also said that its crypto futures trading service will settle all contracts in US dollars, which means that users will not have to deal with the delivery or custody of cryptocurrencies. <\/p>\n\n\n\n

However, Coinbase also reminded users that trading with leverage involves significant risks and should only trade with funds they can afford to lose.<\/p>\n\n\n\n

\n

Traders In United States Can Officially Trade Leveraged Crypto Future With Coinbase Financial Markets

US traders have a new avenue to delve into leveraged crypto futures trading, thanks to Coinbase Financial Markets (CFM). CFM's latest offering allows Coinbase Advanced customers\u2026 pic.twitter.com\/G9zSOsCg7b<\/use><\/svg><\/span><\/a><\/p>— The Wolf Of All Streets (@scottmelker) November 1, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

The Regulatory Landscape and Implications for Coinbase<\/h3>\n\n\n\n

Coinbase\u2019s decision to launch crypto futures trading for its retail customers is a significant milestone for the crypto industry, as it marks the first time that a major US-based crypto exchange offers such a service. <\/p>\n\n\n\n

Previously, only institutional or accredited investors could access crypto futures trading in the US through platforms such as Bakkt or CME Group.<\/a><\/p>\n\n\n\n

Coinbase\u2019s decision also reflects the growing demand and popularity of crypto derivatives in the global market. <\/p>\n\n\n\n

According to data from CryptoCompare,<\/use><\/svg><\/span><\/a> crypto derivatives accounted for about 75%<\/strong> of the total crypto trading volume in September 2021, reaching over $3 trillion.<\/strong><\/p>\n\n\n\n

The launch may also impact the regulatory landscape for crypto derivatives in the US. <\/p>\n\n\n\n

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have been closely monitoring and investigating various aspects of the crypto derivatives market, such as stablecoins, lending platforms, exchange-traded products, and market manipulation. <\/p>\n\n\n\n

Coinbase\u2019s decision may prompt more clarity and guidance from these regulators on how to ensure compliance and consumer protection in this emerging sector.<\/p>\n","protected":false},"excerpt":{"rendered":"

Coinbase has announced that it will offer crypto futures trading for eligible retail customers in the country. The new service will allow users to trade futures contracts sized at 1\/100th of a Bitcoin and 1\/10th of an Ethereum, making them more accessible and affordable. However, Coinbase also warns users of the risks involved in trading […]<\/p>\n","protected":false},"author":44,"featured_media":63381,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[150,4433,13417,12338],"class_list":["post-63379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news","tag-coinbase","tag-crypto-futures","tag-retail-sector","tag-u-s-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/11\/coinbase_-scaled.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/63379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=63379"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/63379\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/63381"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=63379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=63379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=63379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}