On Thursday, Coinbase announced that smaller-scale investors, also known as retail traders, can now trade Bitcoin and Ethereum futures on their platform.
According to Coinbase’s announcement, this new service will be provided through Coinbase Financial Markets (CFM). Additionally, the announcement shared that US-based Coinbase Advanced users will now have access to regulated crypto futures contracts. These futures contracts are designed specifically for smaller investors and are sized at 1/100th of Bitcoin and 1/10th of Ethereum.
“Futures trading offers investors the opportunity to predict market trends, manage risks, diversify their portfolios across a broader range, and trade using leverage. However, it’s important to consider the risks associated with leveraged trading. While leverage can potentially provide investors with higher returns, it can also lead to losses exceeding the initial investment.”Coinbase
Coinbase shared that for investors operating in the US, services are offered through Coinbase Inc. for spot trading and through CFM for futures trading. These services are presented on the Coinbase Advanced platform, integrated according to users’ needs. This allows users to conduct all their transactions on a single integrated and secure platform.