Coinbase is ushering in a new era of crypto trading for U.S. retailer traders.
Earlier today, Coinbase Financial Markets announced that Coinbase Advanced customers in the U.S. can now engage with regulated crypto futures contracts. The contracts cater to retailer traders, with Bitcoin and Ethereum futures available in accessible sizes, including 1/100th of a Bitcoin and 1/10th of an Ethereum.
Futures trading aims to equip traders with the tools they need to shield themselves from risk, diversify their portfolios, and embrace leveraged trading. According to Coinbase, these contracts essentially grant traders the freedom to speculate on the market’s trajectory, whether it’s an ascent to new heights or a descent into volatility. That said, it’ll be important to grasp the duality of leverage, which can magnify both profits and losses, and potentially surpass the initial investment.
For U.S. traders, this recent news signifies a profound shift, giving them access to both spot and futures trading.
Mitigating Risk
Crypto future contracts, according to Coinbase, provide traders with the means to pursue both long and short positions, which helps them manage the inherent risk associated with their crypto assets.
The goal now is that traders can access both Bitcoin and Ethereum in more diminutive and affordable seizes, enticing retail traders specifically.
In its blog post, Coinbase noted that: “These contracts offer lower upfront capital requirements and can be an affordable investment option for a broader range of retail customers.”
The company is also looking to better educate its traders and has rolled out a library of education content they can lean on. Coinbase noted that it’s “committed to continuing to equip traders with the resources they need to trade futures in a safe and responsible way.”
