Cryptocurrency trading has evolved significantly in recent years, and one of the most powerful tools available to modern traders is perpetual futures. Among the leading platforms in the crypto space, Coinbase stands out for its user-friendly interface and growing suite of advanced trading options. But can you trade perpetual futures on Coinbase? The short answer is yes — but with important details and limitations that every trader should understand before diving in.
This guide breaks down everything you need to know about trading perpetual futures on Coinbase, including supported assets, leverage options, platform access, fees, risks, and key features designed to enhance your trading experience.
What Are Perpetual Futures?
Perpetual futures are derivative contracts that allow traders to speculate on the price of an asset — such as Bitcoin or Ethereum — without owning it outright. Unlike traditional futures, they don’t have an expiration date, meaning positions can be held indefinitely. This makes them ideal for both short-term speculators and long-term investors.
These contracts are typically traded using leverage, enabling traders to control larger positions with a smaller amount of capital. While this amplifies potential profits, it also increases the risk of losses — a crucial factor to keep in mind.
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Can You Trade Perpetual Futures on Coinbase?
Yes, Coinbase supports perpetual futures trading, but not through its standard retail platform. Instead, these advanced derivatives are available exclusively on Coinbase Advanced, a dedicated trading interface designed for experienced users.
It's important to note that perpetual futures are currently only available to non-U.S. customers in eligible jurisdictions. U.S.-based users do not have access to this feature due to regulatory restrictions.
To trade perpetual futures, you’ll need to:
- Create and verify a Coinbase account.
- Upgrade to Coinbase Advanced.
- Ensure compliance with local regulations.
While mobile trading is not yet supported, Coinbase has confirmed plans to roll out mobile access in the near future, which will make trading more flexible and accessible worldwide.
Supported Cryptocurrencies and Leverage
Coinbase Advanced offers perpetual futures contracts for four major cryptocurrencies:
- Bitcoin (BTC) – up to 5x leverage
- Ethereum (ETH) – up to 5x leverage
- Litecoin (LTC) – up to 5x leverage
- XRP (XRP) – up to 3x leverage
All trades are settled in USDC, a stablecoin pegged to the U.S. dollar, which helps reduce volatility during transactions and simplifies profit/loss calculations.
The difference in leverage limits — especially the 3x cap on XRP — reflects the platform’s risk management strategy, as XRP is considered more volatile or subject to greater regulatory uncertainty compared to BTC or ETH.
Key Benefits of Trading Perpetual Futures on Coinbase
1. High Capital Efficiency
With leverage up to 5x, traders can open larger positions using less capital. This improves capital efficiency and allows for greater market exposure without tying up large amounts of funds.
2. No Expiration Dates
Unlike traditional futures, perpetual contracts don’t expire. This allows traders to maintain long-term positions aligned with their market outlook without worrying about rollover costs or contract settlement.
3. Risk Management Tools
Traders can go long (buy) or short (sell), allowing them to profit in both rising and falling markets. Shorting also enables hedging strategies — for example, protecting a long-term Bitcoin holding from downside risk during a bear market.
4. Competitive Fee Structure
Coinbase charges a flat 0.50% fee for both makers and takers, which is competitive within the crypto derivatives space. Transparent pricing helps traders manage costs effectively over time.
5. Robust Infrastructure and Security
As one of the most regulated crypto exchanges globally, Coinbase provides a secure environment backed by strong compliance protocols. The platform’s Insurance Fund and Liquidity Support Program — both funded in USDC — help ensure stability even during periods of high volatility.
Risks Involved in Perpetual Futures Trading
While the rewards can be significant, perpetual futures come with substantial risks:
- Leverage amplifies losses just as much as gains. A small adverse price movement can lead to large losses or even liquidation.
- Margin calls may occur if your account equity drops below maintenance levels, requiring additional deposits or forced position closures.
- Market volatility in crypto markets can be extreme, leading to rapid and unpredictable price swings.
- Liquidation risk is real, especially for over-leveraged positions or those without proper stop-loss protections.
New traders should start small, use risk controls like stop-loss orders, and avoid over-leveraging until they gain experience.
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Frequently Asked Questions (FAQ)
Q: Is perpetual futures trading available on the main Coinbase app?
No. Perpetual futures are only accessible through Coinbase Advanced, and currently only via the web platform. Mobile support is expected soon.
Q: Do I need a special account to trade perpetual futures?
Yes. You must use Coinbase Advanced, which requires identity verification and eligibility based on your jurisdiction.
Q: What is the maximum leverage offered?
Most contracts offer up to 5x leverage. However, XRP is limited to 3x leverage due to higher perceived risk.
Q: Can U.S. users trade perpetual futures on Coinbase?
No. Perpetual futures trading is not available to U.S. residents due to regulatory constraints.
Q: What currency is used for trading perpetual futures?
All perpetual futures on Coinbase Advanced are traded and settled in USDC, providing price stability and ease of use.
Q: How does funding work in perpetual futures?
Perpetual contracts include periodic funding rates that align the contract price with the spot market. These rates are exchanged between long and short positions every eight hours.
Final Thoughts
Trading perpetual futures on Coinbase offers a powerful way to gain leveraged exposure to major cryptocurrencies like Bitcoin and Ethereum. With support for long and short positions, no expiry dates, and competitive fees, it’s an attractive option for experienced traders outside the U.S.
However, leverage brings heightened risk, and success requires discipline, strategy, and a solid understanding of margin mechanics. Whether you're hedging existing holdings or speculating on price movements, always prioritize risk management.
As Coinbase continues to expand its advanced trading capabilities — including upcoming mobile access — the platform is positioning itself as a serious contender in the global crypto derivatives market.
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