2024-10-27 17:19 |
The cryptocurrency market has become a trillion-dollar global industry. And as it matures further, the demand for sophisticated financial instruments like crypto derivatives—futures and options—is poised to grow.
Let’s dive into the current state of the global crypto market, understand why trading crypto derivatives is a smart move, and break down the different types of crypto derivatives you can trade on Delta Exchange.
State of Global Crypto Market and Growth of Crypto Derivatives TradingCryptocurrencies have come a long way from being seen as niche assets. A recent major turning point has been the launch of Bitcoin and Ethereum ETFs, which have received the backing of high profile financial giants like BlackRock. These ETFs are traded on stock exchanges, giving crypto assets more credibility.
In this backdrop of increasing adoption by big players, there’s a demand for more sophisticated financial instruments. The global markets have seen a growing appetite for cryptocurrency derivatives like futures and options. For instance: Bitcoin futures on the Chicago Mercantile Exchange (CME) have been available since 2017, and options were introduced shortly after.
India in this regard has been a bit slower, largely due to regulatory hurdles and market conditions. To make it easy for Indian crypto traders to get started with crypto derivatives trading, Delta Exchange India stepped in with a tailored solution specifically for Indian traders. More on that later.
Delta India is the fastest growing crypto derivatives trading platform which provides access to a variety of crypto derivatives, including options and perpetual contracts on major assets like Bitcoin and Ethereum. Let’s understand what these terms mean:
A Refresher on Crypto Derivatives TradingCrypto derivatives trading is essentially a contract between two parties—a buyer and a seller—who are betting on the future price of a cryptocurrency. Instead of buying the actual asset, you’re speculating on its price movement.
These contracts come in different forms, futures, perpetual contracts and options, and are typically traded on crypto exchanges.
Futures Contracts: These allow traders to agree to buy or sell a cryptocurrency at a specific price on a set date in the future. If you predict the price movement correctly, you can make a profit. Perpetual Contracts: Unlike futures, these don’t expire. You can hold your position for as long as you want, provided you meet the margin requirements. This makes them a favorite for traders looking to ride market trends without time pressure. Options: These give traders the right—but not the obligation—to buy or sell a cryptocurrency at a certain price before a specified date. They’re flexible and can be used to hedge your bets. Why Crypto Futures and Options Are Taking Off Managing Volatility: Cryptocurrencies can be volatile, and futures and options offer a way for traders to hedge against price swings. Potential for High Returns: Crypto derivatives can offer big returns because of leverage, meaning you can control a much larger position than the money you put in. This can magnify your profits if things go your way—but it can also amplify losses. Speculate in Both Directions: One big advantage is that you can profit in both bull and bear markets. Whether prices are climbing or falling, derivatives give you the flexibility to trade in any market condition. Advanced Trading Strategies: For more experienced traders, derivatives open the door to complex strategies like hedging and arbitrage. Hedging allows you to protect yourself from market swings, while arbitrage lets you exploit price differences across exchanges. How Delta Exchange India Stands Out in the Indian Crypto Derivatives Market 1. Regulatory Compliance with a Local FocusWhat really sets Delta India apart is its strong focus on regulatory compliance and local integration. It’s registered with India’s Financial Intelligence Unit (FIU) and follows KYC and AML guidelines.
But the standout feature? You can settle trades in INR. This means seamless deposits and withdrawals in local currency, making it way easier for Indian crypto traders to jump in without needing to worry about holding stablecoins or other crypto tokens.
By eliminating the need to hold digital assets, Delta simplifies the whole process, making crypto trading more approachable for everyone.
2. Around-the-Clock Trading with Advanced ToolsCrypto markets never sleep, and neither does Delta Exchange. With 24/7 operations, you don’t have to worry about overnight gaps—those unpredictable price jumps when traditional markets close. This constant access allows traders to place precise stop-loss orders and take advantage of continuous margining.
Plus, Delta’s platform comes packed with advanced analytics, including insights into open interest, implied volatility, and historical volatility. These tools help you make smarter trading decisions.
3. A Safer Trading EnvironmentBy not allowing crypto deposits or withdrawals, Delta eliminates the need for traders to worry about crypto custody and the risks associated with storing digital assets.
This is especially attractive for people who want to engage with crypto derivatives without having to manage wallets or deal with the risk of losing access to their funds.
4. Rapid Growth and Strong BackingSince its launch in 2018 by Pankaj Balani, Jitender Tokas, and Saurabh Goyal, the platform has seen huge growth. It hit 100,000 users within just two months of its beta launch, and at its peak, daily trading volumes reached $700 million.
It also has the backing of big industry names like CoinFund, Aave, Kyber Network, and SinoGlobal Capital.
5. Tax Advantages and Simplified Trading Crypto Tax in IndiaWhen you trade or sell cryptocurrencies for a profit, the tax rate is 30% on your gains. On top of that, there’s an additional 4% cess, which applies to everyone, from individual investors to companies and trusts.
However, on Delta Exchange, you don’t actually handle crypto directly; your balances and unrealized profits stay in INR.
Future of Crypto Trading in IndiaThe future for crypto trading in India looks promising. Here’s why:
Growing Investment: As reported by PitchBook, crypto startups in India secured more than $2 billion in funding during the second quarter of 2024. These investments signal long-term confidence in the sector. Regulatory Evolution: While India’s crypto regulations are still evolving, the government’s focus on launching a CBDC and tightening rules around crypto exchanges shows that digital assets are becoming a part of the broader financial framework. This will likely lead to more favorable trading conditions over time. The BottomlineIf you’ve been thinking about entering the crypto market, or if you’re already a trader looking for new opportunities, now is a great time to explore crypto futures and options. The market’s volatility, combined with advanced trading strategies, offers a high reward-to-risk ratio compared to traditional assets. Plus, platforms like Delta Exchange India are making it easier than ever to trade with INR, removing many of the barriers that have held back Indian traders.
Disclosure: This is a sponsored press release. Please do your research before buying any cryptocurrency or investing in any projects. Read the full disclosure here.
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