Can we trade derivatives in crypto?

Is there an option to trade derivatives and how safe is it right now for a crypto trader? Also liquidity will be a big factor. So how do exchanges work around that?

Cryptos are very volatile. Associated risk along with inherent trading risk applies. Also take note of Indian taxation rules on Crypto.

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The problem with indian taxation laws is that each person has his own interpretation of it. Where can I find objective details regarding it?

I would say yes and no. Certain things are clearly defined and a few perhaps not, but ultimately if we don’t want any headaches, it is better if we pay as per the department’s calculation, if there are any discrepancies.

And I think as almost all of our transactions are online, what we calculate and what the department has will be the same.

Of course we can contest the discrepancies.


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Delta exchange is located outside India and so they may not be in compliance of this for the user. So you will have to take care of this at your end which can be bit of a hassle.

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Trading in crypto derivative is possible in India.

You have to follow few steps to get started :
(1) Open an account with crypto broker few options are : Binance, Coindcx, Kucoin, Wazirx etc.
(2) Buy USDT using your fiat( INR)
(3) Transfer your fund to your future trading wallet
(4) Select your crypto pair (i.e. BTCUSDT, ETHUSDT )
(5) Start trading

Few benefits of trading crypto derivative, it is perpetual contract with no expiry date. So you can trade without worrying about expiry and you can get leverage upto 100x (yes few exchanges provide this much leverage)

You can reach out to me in case of any questions.

Happy Trading :slight_smile:

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