UpdatesNov 03, 2023

Coinbase launches leveraged digital currency futures for US investors

The largest American cryptocurrency exchange offers its clients new investment opportunities.

Coinbase Financial Markets (CFM) - a popular cryptocurrency platform based in San Francisco - announced last Wednesday (November 1 this year) that it has started introducing a new functionality consisting of regulated futures contracts for cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), for all its customers in the United States. It is worth adding that this service is currently available to users using the Coinbase Advanced platform.

Nano-sized cryptocurrency futures

As part of its latest offer, the Coinbase cryptocurrency exchange has opened up the opportunity for its clients to trade nano-sized futures contracts. This means, more or less, that contracts for one hundredth of Bitcoin and one tenth of Ethereum are available. This innovative financial engineering approach aims to make such a derivative more accessible to retail traders in the digital currency market.

The above-mentioned investment platform explains through its representative that futures contracts are futures derivatives that essentially allow American investors to hedge against potential risks and effectively diversify their investment portfolios. However, throughout this story, the first thing to remember is that using leverage in futures trading carries a number of potential risks associated with losses that may exceed the initial investment amount. Therefore, it is extremely important that all investors are aware of this and use this tool consciously and carefully.

Education as a key part of the CFM strategy

Coinbase has also recently strongly emphasized the importance of education in its CFM strategy. The company, which operates the largest cryptocurrency trading platform in the United States, provides a set of educational articles that help traders understand both the basics of futures trading and the potential benefits and risks associated with them. This approach is clearly aimed at increasing the awareness of American investors.

Coinbase further notes that obtaining CFM approval to offer federally regulated digital currency futures trading in August of this year was a significant milestone and signaled ongoing and rapid progress in the field of cryptocurrency trading. The company continues its intense efforts to make the digital currency sector more accessible and understandable to the cryptocurrency community.