Coinbase Advanced, a powerful trading platform for both spot and derivatives, has announced that it is expanding its offerings to include perpetual futures contracts on Bitcoin, Ethereum, Litecoin, and XRP for retail customers outside of the US and UK. The futures contracts will be settled in USDC, a globally-trusted stablecoin.
Perpetual futures have arrived: Coinbase Advanced customers in eligible non-US geos can now trade BTC, ETH, LTC, and XRP perpetual contracts.— Coinbase 🛡️📞 (@coinbase) October 18, 2023
Learn more at → https://t.co/IHc0ZI6rHv pic.twitter.com/7J1NFDmrPX
This is a significant development for the cryptocurrency exchange, as it will allow retail traders outside of the US and UK to gain access to a powerful trading tool that was previously only available to institutional investors.
What are Perpetual Futures Contracts?
Perpetual futures contracts are a type of derivative contract that allows traders to speculate on the future price of an asset without having to take physical delivery of the asset. They are constantly traded and have no fixed expiration date, making them a popular tool for active traders.
Benefits of Trading Perpetual Futures Contracts
There are a number of benefits to trading perpetual futures contracts, including:
- Leverage: Perpetual futures contracts allow traders to use leverage to amplify their profits. This can be a powerful tool for experienced traders, but it is important to use leverage carefully as it can also amplify losses.
- Liquidity: Perpetual futures contracts are highly liquid, meaning that there are always buyers and sellers in the market. This makes it easy to enter and exit trades quickly and efficiently.
- 24/7 trading: Perpetual futures contracts are traded 24 hours a day, 7 days a week. This allows traders to take advantage of market movements at any time of day or night.
Why is this Interesting?
The launch of perpetual futures contracts on Coinbase Advanced is interesting for a number of reasons. First, it is a sign that Coinbase is committed to expanding its offerings to retail traders outside of the US and UK. This is a positive development for the cryptocurrency industry as a whole, as it will make it easier for people around the world to participate in the market.
Second, the launch of perpetual futures contracts on Coinbase Advanced could lead to increased liquidity and volatility in the cryptocurrency markets. This could be beneficial for traders, as it would give them more opportunities to make profits. However, it is important to note that increased volatility can also lead to increased losses.
Finally, the launch of perpetual futures contracts on Coinbase Advanced could help to attract more institutional investors to the cryptocurrency markets. This would be a significant development, as it would bring more capital and legitimacy to the industry.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.