Coinbase Advanced Introduces Perpetual Futures Trading for Non-U.S. Retail Traders
Coinbase Advanced has expanded its offerings to include perpetual futures trading for its non-U.S. retail traders. This new feature allows users to engage in perpetual futures trading using USDC, a stablecoin pegged to the U.S. dollar, on four distinct contracts: Bitcoin, Ether, Litecoin, and XRP.
Most of these contracts offer up to 5x leverage, except for XRP which offers up to 3x leverage. However, this feature is currently only available to customers outside of the United States.
To access perpetual futures trading on Coinbase Advanced, you will need to visit their website. Additionally, Coinbase has hinted at the possibility of introducing a mobile trading version in the near future.
Perpetual Futures: A Lucrative Market
The decision to enter the perpetual futures market is driven by its significant growth and popularity. According to a CoinGecko report, as of March 2023, the derivatives market accounted for 75 percent of the total $2.95 trillion cryptocurrency trading volume.
In recent news, the global centralized exchange perpetuals volume reached a peak of $151 billion on October 16th. Binance dominated this market with a 63.7 percent share, followed by OKX with a 16 percent share.
Coinbase acknowledges the strong demand for perpetual futures and highlights the benefits it offers to traders. Margin trading allows for increased capital efficiency and provides access to the crypto market without requiring large initial investments. Additionally, the ability to go long or short empowers traders to manage risks associated with their core crypto assets.
Hot Take: Expanding Opportunities for Non-U.S. Traders
Coinbase Advanced’s introduction of perpetual futures trading for non-U.S. retail traders opens up new opportunities in the crypto market. By allowing users to trade on four different contracts with leverage, Coinbase is catering to the growing demand for derivative products.
Although this feature is currently not available to U.S. customers, it showcases Coinbase’s commitment to expanding its services globally. The regulatory approval from the Bermuda Monetary Authority further solidifies Coinbase’s position in the international market.
As the derivatives market continues to dominate cryptocurrency trading, Coinbase’s move into perpetual futures aligns with the industry trend. Traders can now benefit from increased capital efficiency and greater flexibility in managing their crypto assets.
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