Coinbase Financial Markets (CFM) has recently launched regulated leveraged crypto futures for its U.S. customers. This offering is now accessible to Coinbase Advanced users. The trading platform currently provides nano-sized contracts, allowing traders to deal with one-hundredth of a bitcoin and one-tenth of an ethereum.
Coinbase Financial Markets Rolls Out Crypto Futures for U.S. Investors
Coinbase, a San Francisco-based crypto platform, has begun to gradually introduce bitcoin and ethereum futures offerings. The primary goal of CFM is to make futures more accessible to retail crypto traders, as stated in their recent announcement. With this launch, Coinbase Advanced customers in the U.S. can now access the regulated crypto futures contracts.
Understanding Futures Trading
According to Coinbase, futures derivatives products enable traders to hedge risk and diversify their investments. However, it is important to note that leverage in futures trading can work either for or against traders. The announcement emphasizes that the risk of loss when using leverage can exceed the initial investment amount.
The exchange also explains that these futures contracts are specifically designed for retail traders, with the contract sizes set at 1/100th of a bitcoin and 1/10th of an ethereum.
CFM's Milestone in Regulated Futures Trading
Coinbase highlights the approval received by CFM to offer federally regulated crypto futures trading in August as a significant milestone in the crypto trading domain. The company acknowledges the role of education in its strategy, providing a suite of informative articles for traders. These articles cover a range of topics, from the basics of futures trading to the associated benefits and risks.
Market Performance and Availability
Coinbase's stock (Nasdaq: COIN) has shown positive performance, with a 0.48% increase for the month and a 58% increase over the past six months. Year-to-date, COIN has gained 111% against the U.S. dollar. Customers who are not using Coinbase Advanced can apply to trade futures with CFM, provided they pass the anti-money laundering/know-your-customer (AML/KYC) and verification processes.
Coinbase's introduction of leveraged crypto futures for U.S. traders, with nano-sized BTC and ETH contracts, marks a significant step towards making futures trading more accessible to retail investors. As the company continues to expand its offerings and educate traders on the benefits and risks of futures trading, it is likely to attract more interest from the crypto community.
What are your thoughts on Coinbase's decision to introduce futures crypto products to U.S. traders? Share your opinions in the comments section below.
Frequently Asked Questions
What does gold do as an investment?
The supply and the demand for gold determine how much gold is worth. Interest rates also have an impact on the price of gold.
Due to their limited supply, gold prices fluctuate. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
Should You Buy Gold?
Gold was a safe investment option for those who were in financial turmoil. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
Experts believe this could change soon. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also point out that gold is becoming popular because of its perceived value and potential return.
These are some things you should consider when considering gold investing.
- First, consider whether or not you need the money you're saving for retirement. You can save money for retirement even if you don't invest in gold. However, when you retire at age 65, gold can provide additional protection.
- Second, ensure you fully understand the risks involved in buying gold. Each offers varying levels of flexibility and security.
- Keep in mind that gold may not be as secure as a bank deposit. If you lose your gold coins, you may never recover them.
Do your research before you buy gold. And if you already own gold, ensure you're doing everything possible to protect it.
Who is the owner of the gold in a gold IRA
The IRS considers an individual who owns gold as holding “a form of money” subject to taxation.
You must have at least $10,000 in gold and keep it for at most five years to qualify for this tax-free status.
Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
To find out what options you have, consult an accountant or financial planner.
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's not exactly legal – WSJ
Investing in gold vs. investing in stocks
These days, it might seem quite risky to invest your money in gold. This is because many people believe gold is no longer financially profitable. This belief comes from the fact most people see gold prices falling due to the global economy. People believe that investing in gold would result in them losing money. In reality, however, there are still significant benefits that you can get when investing in gold. Below we'll look at some of them.
One of the oldest forms known of currency is gold. Its use can be traced back to thousands of years ago. It is a valuable store of value that has been used by many people throughout the world. As a means of payment, South Africa and many other countries still rely on it.
The first point to consider when deciding whether or not you should invest in gold is what price you want to pay per gram. It is important to determine the price per gram you are willing and able to pay for gold bullion. If you don’t know the current market rate for gold bullion, you can always consult a local jeweler to get their opinion.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. Although the price of gold has dropped, production costs have not.
You should also consider the amount of your intended purchase when considering whether you should buy or not. It is sensible to avoid buying gold if you are only looking to cover the wedding rings. If you plan to do so as long-term investments, it is worth looking into. It is possible to make a profit by selling your gold at higher prices than when you purchased it.
We hope that this article has helped you gain a better understanding and appreciation for gold as an investment option. It is important to research all options before you make any decision. Only then can you make informed decisions.
By: Jamie Redman
Title: Coinbase Launches Leveraged Crypto Futures for US Traders With Nano-Sized BTC and ETH Contracts
Sourced From: news.bitcoin.com/coinbase-launches-leveraged-crypto-futures-for-us-traders-with-nano-sized-btc-and-eth-contracts/
Published Date: Wed, 01 Nov 2023 21:30:11 +0000