Coinbase future trading with Solana and Avalanche perpetual starts 14th of November which is said to enhance the crypto trading options and with the market’s growing interest in perpetual contracts, this seems to be the right move.
Major cryptocurrency platform Coinbase is expanding its futures trading offerings, announcing the addition of perpetual futures contracts for Solana (SOL) and Avalanche (AVAX) starting November 14. This move signals a significant enhancement of Coinbase’s derivative market capabilities, providing traders with more choices in the dynamic crypto landscape.
SOL-PERP and AVAX-PERP
The upcoming SOL-PERP and AVAX-PERP markets are scheduled to launch on the Coinbase International Exchange & Coinbase Advanced, pending liquidity conditions. Unlike traditional futures, perpetual futures do not have an expiration date, allowing traders to speculate on underlying asset price movements indefinitely.
This flexibility introduces opportunities for;
- Arbitrage
- Leveraging
- Hedging
crucial tools for navigating the volatile cryptocurrency market. However, these contracts come with risks such as over-leveraging and liquidation, requiring careful management from investors.
Compliance with local regulations
Coinbase emphasizes compliance with local regulations for crypto derivatives, restricting perpetual futures trading on the Advanced Trading platform to users in specific non-US regions.
This commitment to regulatory adherence is reinforced by Coinbase International Exchange’s regulatory approval from the Bermuda Monetary Authority in September. Initially offering perpetual contracts for;
Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP) with leverages up to 5X (except for Ripple, offering up to 3X leverage), all contracts are settled in the USD Coin (USDC) stablecoin, adding a layer of stability to transactions.
CEX Perpetual Volume
The global centralized exchange (CEX) perpetual volume reached $195.3 billion as of November 10, showcasing the rising interest and demand for perpetual contracts in crypto markets.
Coinbase’s competitors, including Binance and OKX exchange, have also seen significant volumes in this space. Conor Ryder, a research analyst at Kaiko, notes the increasing popularity of these contracts, highlighting the highest Bitcoin perpetuals-to-spot-volume ratio in nearly two years.
Conclusion
To wind it up, the growing interest of the market in perpetual contracts for crypto trading shows that the step of Coinbase to enhance its future trading with Solana and Avalanche perpetual is a great one and more crypto platforms should also expand their future trading.
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