The Rise of Crypto Derivatives in India: How Delta Exchange Plays a Key Role
The crypto market in India is evolving rapidly, and crypto derivatives are playing a major role in this transformation. As the number of crypto traders and their levels of sophistication grow, we find that derivatives like futures, options, and perpetual swaps are no longer being accessed only by institutional players. Retail investors, high-frequency traders, and hedgers are all tapping into these financial instruments.
India’s crypto derivatives space holds immense potential, accompanied by equally unique challenges. The market competition is strong with many exchanges emerging almost daily, but one crypto derivatives trading platform that stands out with its product-first and compliance-led approach is the Delta Exchange.
In this post, let’s discuss what the future holds for crypto derivatives in India – and how Delta Exchange is leading the space.
What Are Crypto Derivatives, and Why Do They Matter?
Crypto derivatives are financial contracts that derive their value from an underlying crypto asset. Instead of buying digital assets like Bitcoin (BTC) and Ethereum (ETH) directly, crypto traders speculate on their price movements through contracts like:
- Futures: Agreements to buy or sell at a predetermined future date and price.
- Perpetual swaps: Similar to futures but with no expiration date.
- Options: Contracts that offer the right (but not obligation) to buy or sell at a price that is pre-fixed.
Today, traders use these instruments to apply strategies such as hedging, leveraged speculation, volatility plays, and capital efficiency. The growing awareness and availability of such products in India have led to tremendous growth and demand.
Opportunities in the Indian Crypto Derivatives Market
According to The Economic Times, digital payment transactions in India increased from ~₹2,070 crore in FY 2017-18 to over ₹18,700 crore in 2023-24, with a compound annual growth rate (CAGR) of 44%.
Globally, India ranks at the top when it comes to crypto adoption, thanks to its large tech-savvy population and increasing digitization of finance. For the derivatives segment, Delta Exchange offers several tailwinds:
- INR-Centric Trading
Delta Exchange is one of the few platforms that offers crypto trading in INR – eliminating the need to convert currencies. This simplifies onboarding, reduces fees, and makes tracking profit or loss much easier for Indian crypto traders.
- Regulatory Momentum
Crypto derivatives trading platforms like Delta Exchange, which are registered with India’s Financial Intelligence Unit (FIU), make the path towards legitimacy much clearer. Both institutional and retail traders can now confidently use compliant platforms that sit right with Indian regulators.
- Growing Demand for Advanced Tools
As more retail crypto traders evolve beyond basic buy-and-hold strategies, there’s a growing demand for advanced and sophisticated trading instruments. Think Options Combos, MOVE contracts, and multi-leg strategies – all available on Delta Exchange.
- Financial Inclusion and Youth Participation
India’s youth is mobile-first and increasingly digitally literate. Crypto derivatives trading platforms like Delta Exchange offer an easy-to-use app, a demo account, and a strategy builder for higher participation rates.
Recently, Delta crossed $4 billion in daily trading volume – a clear indication of its market presence and growing trust among traders.
For mobile trading, download the Delta Exchange app on Google Play or the App Store.
Challenges to Tackle
The future is indeed promising, but not without hurdles. The Indian crypto derivatives market faces several challenges like:
- Regulatory Uncertainty
Despite the presence of the FIU, crypto regulation in India remains far from perfect. Due to a lack of a strong regulatory structure, it naturally leads to hesitations and limits innovation.
- Risk of Misuse and High Leverage
The use of leverage and crypto derivatives trading walk hand-in-hand, and traders who are not properly conversant in this matter can suffer substantial losses. Retail investors in particular are prone to misunderstanding the complexities of crypto options or perpetual swaps.
- Banking Infrastructure Limitations
For INR-based trading to thrive, integration with the banking system must improve significantly.
- Global Competition
Major players like Binance and OKX are keeping a keen eye on India. Local crypto derivatives trading platforms must compete not only on features but also in terms of trust, transparency, and regulatory alignment.
How Delta Exchange Is Shaping the Future
Delta Exchange is positioning itself as more than just another crypto derivatives trading platform in the dynamic space – it’s becoming a launchpad for the next generation of Indian crypto traders.
Here’s how:
Regulatory First, Innovation Always
Delta Exchange is one of the few Indian crypto exchange registered with the FIU – demonstrating a commitment to compliance and KYC. This gives it credibility with users and also bodes well for its compliance with upcoming regulatory developments.
A Full Suite of Derivatives
Delta Exchange isn’t just offering futures on Bitcoin or Ethereum. This crypto derivatives trading platform has one of the most diverse sets of offerings in India, with:
- Perpetual swaps across major and alt tokens
- Options trading for BTC, ETH, and more
This makes it a one-stop shop for advanced crypto trading in India.
INR-First Trading Model
The INR-first model of this crypto derivatives trading platform makes it extremely accessible and encourages participation. Crypto traders can deposit INR directly, trade without having to convert to crypto or stablecoins, and withdraw profits in INR.
Professional-Grade Infrastructure
Delta offers deep liquidity, fast execution, and minimal slippage, enabling it to cater to retail crypto traders, institutions, and high-frequency trading firms alike. It delivers on both fronts – an institutional-grade experience, as well as fantastic accessibility.
Security and Transparency
Delta prioritises user security with:
- Cold wallet storage of funds
- 2FA for account safety
- Manual withdrawal checks for added protection.
Education and Risk Management
Delta helps crypto traders learn the ropes without risking real capital through its demo account mode. Used in conjunction with its strategy builder tools and advanced charting features, it enables users to make informed decisions.
What Lies Ahead: Trends to Watch
In India, as regulations evolve and institutional interest grows, the following trends are set to shape the future of the domain:
- Structured products and custom strategies are gaining popularity.
- Regulated crypto ETFs are possibly paving the way for broader exposure.
- AI-driven trading pools are being integrated into retail platforms.
- Deeper institutional participation are seen from hedge funds and asset managers.
- Delta Exchange is expanding its offerings and global footprint.
To Sum Up
The future of crypto derivatives in India looks promising. As the market matures, there’s a clear need for platforms that offer innovation, accessibility, and regulatory alignment. Delta Exchange is ticking all these boxes with a robust suite of products, INR settlements, FIU registration, and a focus on trader education.
For anyone looking to explore the high-potential world of crypto derivatives with the right mix of safety, sophistication, and support, Delta Exchange is a name to watch – and a platform to trust.
Want to kickstart your crypto derivatives trading journey? Visit Delta’s official website at www.delta.exchange to sign up. You can also join the community on X for all the latest information.
Disclaimer: Crypto trading carries inherent risks due to its high volatility. Kindly do your own research and consult the experts before making any investment decisions.
