Coinbase has announced the launch of Perpetual Futures for the customers of Coinbase Advance. It is a dedicated trading tool for sophisticated retail traders. The access to Perpetual Futures is limited to eligible non-US jurisdictions with four contracts, namely BTC, ETH, LTC, and XRP. These are settled in USDC.
Perpetual Futures is now live. Customers can check their eligibility by visiting the platform’s official site before they start trading.
All contracts come loaded with up to 5x leverage, except XRP. It offers up to 3x leverage. Coinbase has chosen to settle all the contracts in USDC because it is a globally recognized stablecoin. Coinbase will introduce more contracts as it moves forward with the services. Moreover, retail traders can expect the launch of mobile trading soon for a convenient experience.
Customers have access to a low introductory fee (taker and maker), which is 0.03% and 0%, respectively. Needless to say, the fee structure is subject to change in the days to come.
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The crypto derivatives market is on the rise. It already represents 75% of the trading volume. It has its reasons for gaining popularity. For instance, it enables traders to go long or short while managing risks better with a low initial investment. It has higher capital efficiency. Therefore, it is only right to assume that the demand for crypto derivative products is strong, with a higher possibility that the demand will further strengthen.
Coinbase has made it convenient for customers to access spots and derivatives in a single window. Services are restricted to the customers of Coinbase Advance, but it does signal the innovation that the platform is bringing to serve the community. More innovative features of the platform can be read in our Coinbase exchange review. It also covers 3k+ cryptocurrencies listed on the platform and 150+ trading pairs available for customers.
The interface for Coinbase Advance customers is secure and easy to use. It, moreover, unlocks access to new strategies with tools like TradingView Charts, Advance Order Types, and APIs. The platform boosts automated trading for a simpler experience.
Coinbase has a competitive edge because the platform has been built by following rigorous compliance standards. Traders trade with confidence because only trusted players exist in the crypto derivatives market across the globe. Coinbase Advance has worked with its customers to understand their needs and better serve them. Hence, there is a commitment to introducing mobile trading and more contracts in the future.
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Coinbase is different from other players in the market as it reflects the ideology of holding customer assets in 1:1 per the financial statements published. Perpetual Futures are capitalized through the Insurance Fund and Liquidity Support Program. Both are funded by USDC, not an exchange token but a highly liquid stablecoin. Its risk management team has professionals from credit business and trade management backgrounds.
