Tradovate Futures Trading Blog

Nano Bitcoin Futures Reshape the Crypto Futures Landscape - Part 1

Posted by Tradovate on July 18, 2022 at 9:14 AM

Tradovate - Blog Post - Crypto Landscape - Part 1Why Should Crypto Enthusiasts Consider Nano Bitcoin Futures?

As Bitcoin continues to solidify its position as the leading benchmark for the cryptocurrency marketplace, Coinbase Derivatives and Tradovate are delivering a brand-new way to get in the game.


Launched June 27th, Nano Bitcoin futures make it easier than ever before for retail traders and crypto HODL’ers to experience that benefits of futures through a dynamic marketplace. 


5 Reasons to Trade Nano Bitcoin Futures

  • Futures trading leverage can go a long way.  In the simplest terms, leverage is the ability to control more with less.  Right?  In the futures markets, it is the ability to control a larger contract value with a relatively smaller amount of capital. Let’s say the price of Bitcoin is $30,000 even.  One Nano Bitcoin Futures contract is 1/100th of the price of one Bitcoin so that’s $300.  With futures leverage on your side, you will only need to invest a mere $37.50 to trade one contract …that’s leverage of 8 to 1.  Using that same amount of capital, $37.50 to trade a piece of the actual bitcoin, gets you only 1/13th of 1 percent of one Bitcoin.  Getting the picture here? While leverage can provide more buying power, it also increases risk.

  • Go Long & Short Crypto.  Like all other tradeable products, the price of Bitcoin rises and falls…often dramatically as we’ve all seen.  If you are only able to trade one side of this price movement – & unable to easily short Bitcoin when you think the price might be dropping – then you’re missing out on half the equation.  Nano Bitcoin futures allows you to quickly and easily short the market based on your view.  Oh, and no $25,000 day-trading balance requirements, no uptick rule and no short-selling restrictions apply.
  • “Insure” your existing Bitcoin positions. Seasoned traders understand the concept of using futures to hedge or “insure” an existing position.  If you own Bitcoin, you owe it to yourself to understand this concept too.  Here’s a simplified explanation.  If you think Bitcoin prices will be falling in the near term and want to protect your existing position (i.e. the Bitcoin you are already holding) against a price drop, you can sell - or go short - Nano Bitcoin Futures. This short futures position would increase in value as the underlying Bitcoin asset decreases in value. In essence, your futures position is serving as insurance. Please note that this example simply illustrates the concept of hedging. There are many real-world variables to consider. Hedging with futures does not eliminate risk, it is a method that provides for the management of risk.
  • Trade a regulated product in a regulated marketplace.  It’s highly recommended that for anything you trade, you know all of the facts…like this one: The buying and selling of the actual Bitcoin asset, or any cryptocurrency for that matter, is not regulated.  It does not take place in a regulated marketplace or on a regulated exchange.  However, Nano Bitcoin Futures is a regulated product trading on a regulated exchange and has the Commodities Futures Trading Commission (CFTC) “watching the store”.  The CFTC has been overseeing futures trading, among other things, for nearly 50 years.  The organization’s goals include the promotion of competitive and efficient markets and the protection of investors against manipulation, abusive trade practices, and fraud. 
  • Not having to figure out Bitcoin tax stuff.  Here’s the headline that should grab your attention.  Futures trading, unlike Crypto and Equity trading, is taxed differently.  Futures are taxed using the 60/40 rule: 60% are taxed at the long-term capital gains tax rate of 15%, while only 40% of your short-term capital gains are taxed at your ordinary income tax rate. 

Learn More about Nano Bitcoin Futures


Tradovate gives you the tools you need to buy, sell and trade Nano Bitcoin futures anywhere, anytime and on any device.

Ready to Trade Nano Bitcoin Futures? Open an Account Today




Trading virtual currency derivatives have a variety of unique and potentially significant risks. Please read our full Virtual Currency Transaction Disclosures & Risk Disclosure Statement for Virtual Currency Futures prior to any virtual currency trading.


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