XRP futures are financial contracts that allow traders to buy or sell XRP at a predetermined price on a future date, without requiring ownership of the actual asset. Recently launched by Coinbase Derivatives, these contracts are regulated by the CFTC, providing a level of oversight. Coinbase distinguishes between Nano XRP futures (500 XRP per contract, aimed at retail traders) and Standard XRP futures (10,000 XRP per contract for larger institutions). Key advantages of trading XRP futures include the potential for leverage, hedging against volatility, and cash settlement, which simplifies the process by avoiding direct custody of XRP. Conversely, purchasing XRP directly is ideal for long-term holders or those using XRP for transactions. Various platforms like Kraken, Binance, OKX, and KuCoin also offer XRP futures, each with unique features and leverage options. However, investors should be cautious as futures trading carries significant risks, including leverage risks, volatility, and market liquidity issues. Understanding the intricacies of futures contracts is crucial before engaging in trading activities.

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