“Coinbase revolutionizes the crypto futures market for retail US traders with the introduction of ‘nano’ bitcoin trading, offering a fast and accessible way to engage in the exciting world of cryptocurrency investment.”
Coinbase, the largest cryptocurrency exchange in the U.S., has announced the launch of its crypto futures trading service for eligible retail customers. This service, offered through Coinbase Financial Markets (CFM), includes “nano” bitcoin contracts and aims to provide leveraged crypto futures contracts trading.
According to the company, these futures contracts are specifically sized for retail traders, at 1/100th of a Bitcoin and 1/10th of an Ethereum. The approval for this service was obtained from the National Futures Association, a self-regulatory organization designated by the Commodity Futures Trading Commission.
While this new service adds trading optionality, Coinbase cautions customers about the greater downside risk associated with futures trading. Futures trading allows traders to hedge their risk, diversify their portfolios, trade with leverage, and speculate on the market’s direction. However, leverage in futures trading can work for or against the trader, and the risk of loss using leverage can exceed the initial investment amount.
All futures contracts offered by Coinbase will be settled in U.S. dollars. This move to expand its business operations and cater to more customers comes as Coinbase continues to face a regulatory battle with the Securities and Exchange Commission (SEC). The SEC has charged Coinbase for not registering as a securities exchange, broker, and clearing agency, but the exchange argues that the agency’s authority is limited to securities transactions.
It is important to note that this article is provided for informational purposes only and should not be considered as legal, tax, investment, financial, or other advice.