Coinbase Ventures into Perpetual Futures for Non-US Crypto Traders

Key Insights:

  • Coinbase launches perpetual futures trading, tapping into 75% of global crypto trading volume.
  • Enhanced trading experience promised with Coinbase Advanced’s integrated spot and derivatives platform.
  • Coinbase parallels Bitcoin creator Satoshi Nakamoto, holding 5% of all existing Bitcoin.

Coinbase, a prominent cryptocurrency exchange, has again made headlines by unveiling perpetual futures trading for its non-US retail clientele in response to the mounting demand for crypto derivatives. This significant addition is available through the Coinbase Advanced platform.

Perpetual Futures: A Magnet for Modern Traders

The rise of perpetual futures in the global crypto market is hard to ignore. As Coinbase suggests, these instruments account for 75% of the entire crypto trading volume. The core attraction of these derivatives lies in their unique features. They allow traders to enter the volatile crypto world with a higher capital efficiency, which translates to a minimized initial investment. Such dynamics are proving irresistible to many. Additionally, these contracts offer the benefit of leverage, heightening the prospects of profits, albeit with accompanying risks.

In its current rollout, Coinbase facilitates perpetual trading for four significant cryptocurrencies. These are Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and XRP. With the industry’s ever-evolving nature, the platform has hinted at introducing perpetual contracts for additional cryptocurrencies in the coming months. Stability is a concern in the ever-fluctuating crypto market, and to address this, contracts will be settled using the USDC stablecoin.

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Set leverage limits are in place to safeguard traders and maintain market integrity. They stand at 5x for ETH, BTC, and LTC contracts, while XRP has a cap of 3x.

Regulatory Oversight and Platform Safety

Coinbase’s approach to regulatory oversight is worth noting. The platform is actively seeking guidance and supervision from the Bermuda Monetary Authority. This action is about more than just meeting the growing regulatory requirements of the crypto world. It’s also a clear nod to Coinbase’s ongoing mission to cultivate trust and ensure transparency for its expansive user base. Financial safety measures further solidify this trust. The platform has set up an Insurance Fund and a Liquidity Support Program, both backed by USDC.

A crucial part of this narrative is the enhanced user experience promised by Coinbase Advanced. Merging spot and derivatives trading into a single interface paves the way for a streamlined trading journey. Traders have an array of advanced features at their fingertips. These include diverse order types and APIs specifically engineered for automated trading. Additionally, TradingView charts will be available, offering traders a comprehensive tool to analyze market trends and fine-tune their trading blueprints.

To boost liquidity, Coinbase recently suspended 80 non-USD trading pairs. This action echoes a previous one in September when 41 such pairs faced a similar fate. Highlighting Coinbase’s position in the industry, a late September report from Arkham divulged that Coinbase held a remarkable 5% of all Bitcoin in circulation. With a reservoir of 1 million Bitcoin, equivalent to about $25 billion back then, Arkham branded Coinbase as the “world’s predominant Bitcoin entity.” This puts the exchange in a league akin to the Bitcoin reserves of the cryptocurrency’s elusive creator, Satoshi Nakamoto.

Editorial credit: T. Schneider /