Coinbase Launches Perpetual Futures Trading in U.S. with 10x Leverage

Coinbase has launched perpetual futures trading in the U.S., marking a significant development for cryptocurrency traders in the region. Starting July 21, eligible users in the U.S. can access two futures contracts: nano Bitcoin Perpetual Futures (BTC-PERP) and nano Ether Perpetual Futures (ETH-PERP). These contracts are regulated by the Commodity Futures Trading Commission (CFTC) and are available through Coinbase Financial Markets (CFM).

The introduction of these perpetual futures contracts allows U.S. traders to engage in higher-leverage trades without the constraints of monthly expiration dates. This move is part of a broader trend in the U.S. crypto market, which has seen increased regulatory support, including the recent adoption of a major stablecoin bill. Perpetual futures are a type of contract that enables traders to access higher-leverage trades without the need for monthly expirations, making them a popular choice among crypto traders.

Coinbase's decision to offer these contracts comes after a period of anticipation, as the exchange had previously announced plans to introduce the product in the U.S. Users interested in accessing these futures must have an account with Coinbase, where they can open a Coinbase Financial Markets account to participate. The launch of these contracts is significant as it allows U.S. traders to benefit from the same trading opportunities that have been available to international users for some time.

The perpetual futures on Coinbase offer several advantages, including no monthly expirations and up to 10x leverage, with fees as low as 0.02%. Unlike traditional futures, which have monthly or quarterly expiration dates, these perpetual futures are long-dated, with expiration dates of up to five years. This feature, combined with the 10x leverage, enhances capital efficiency, allowing traders to increase their market exposure and positions.

However, it is important for users to be aware of the risks associated with leveraged futures trading. As with any market, trades can work for or against a trader, and high leverage increases the risk of losses. Coinbase has emphasized the importance of understanding these risks before engaging in perpetual futures trading.

The launch of these perpetual futures contracts is a significant development for the U.S. crypto market, as it provides traders with new opportunities to engage in higher-leverage trades without the constraints of monthly expiration dates. This move is expected to further boost the resurgence of the crypto markets in the U.S., as traders gain access to more sophisticated trading tools and strategies.