Coinbase will list Bitcoin Cash and Polygon's Matic on December 7th
The introduction of the pairs will offer traders migrating from the failed FTX exchange more trading options.
Coinbase International Exchange has recently announced its plan to introduce futures trading for Polygon (MATIC) and Bitcoin Cash (BCH).
This move aims to expand Coinbase's offerings and catch up with other leading exchanges in the futures industry. As a result, a lot of Polygon and Bitcoin Cash enthusiasts all over the world might start utilizing Coinbase.
Trading pairs for MATIC-PERP and BCH-PERP will be accessible starting December 7, 2023, at 13:00 Turkey time (UTC+3).
Coinbase Futures Expansion and Competing with FTX
Coinbase's foray into the futures market comes as a response to the collapse of FTX, a significant player in the crypto industry.
With this step, Coinbase aims to grab the market share left vacant by FTX's downfall, which will elevate Coinbase's reach.
Although Coinbase entered the futures sector relatively late, it has added prominent cryptocurrencies like ADA, DOGE, LINK, and XLM, demonstrating its determination to compete with exchanges like Binance, Bybit, and other reputable cryptocurrency exchanges.
The Importance of Leverage in Cryptocurrency Trading
Leverage allows traders to operate with higher-value contracts by providing a smaller upfront investment.
This amplifies traders' exposure and boosts capital efficiency. However, it's crucial to understand that leverage increases potential gains and magnifies potential losses.
Thus, traders need to be aware of the risks associated with leverage and educate themselves about market dynamics and the terms and conditions of leveraged trading.
While spot trading with leverage is restricted for most investors in the United States, there are alternative ways to engage in leveraged cryptocurrency trading.
Derivatives, such as futures and options, offer opportunities for traders to gain exposure to crypto markets with leverage.
In countries with specific regulations, brokers, exchanges, and financial services firms adhere to guidelines that determine who can trade with leverage and which assets are eligible.
Meanwhile, in the United States, investors can access leveraged trading through cryptocurrency futures and options contracts.
Futures contracts involve buying or selling assets at predetermined prices on future dates.
Options contracts provide the right to buy or sell assets without immediate commitment.
Depending on the platform's capabilities, traders can leverage their positions while trading futures and options contracts for cryptocurrencies like Bitcoin or Ethereum.
To round up everything, Coinbase International Exchange has taken a significant step forward by introducing leveraged trading for Polygon (MATIC) and Bitcoin Cash (BCH) futures.
By expanding its offerings, Coinbase aims to compete with other industry-leading exchanges and fill the gap left by FTX's collapse.
Meanwhile, traders should remain informed about leverage trading and its associated risks, keeping in mind that while leverage can enhance returns, it also amplifies potential losses.
Before engaging in leveraged trading, make sure to thoroughly understand the market and the terms and conditions provided by your chosen platform.