Majority of traders in our India prefer to trade in Stock Market and a small portion out of it trades in Commodity market in MCX. And Crypto trading is not so popular in India till now. Most people even don’t know that we can trade Intraday, Futures & Options in Crypto markets also and could generate decent regular income.
As we may know there are various Crypto Exchanges where we can buy & sell crypto currencies like Bitcoin, Ethereum and many of us may have used some of the mobile apps like Wazir-X, Coin-DCX, Coin Switch Kuber to purchase Bitcoin in 2020 to 2021, when Crypto market was in boom and Bitcoin had crossed 60k USD.
After that when all the financial markets, stock markets started to fall including Bitcoin also, then most of the people had sold their cryptos. But do you know that we can trade cryptos like we trade stocks in stock market and could make money either it is rising or falling also.
So in this article we will discuss how to trade derivatives of crypto currencies like Bitcoin, Ethereum, XRP, Cardano etc. You can also check the previous article “why I prefer crypto trading a better option for beginners than Options trading”, because most of the beginner jumps to stock market options buying without any experience and proper knowledge, then lose money and blame that ‘stock market is gambling’. But the actual fact is in options buying, probability of making profit is very low and risk reward ratio is very high. Without proper knowledge we should not directly jump in to it.
I think beginners may learn and practice trading in crypto market with small capital, and after making decent profit and consistency they can trade in stock markets options trading with proper knowledge, risk management skills and good capital.
Although there are various apps to buy & sell cryptos but we cannot trade Crypto Derivatives or ‘Crypto futures & options’ with all of them, most of them only provide buying & selling only. The most popular exchanges which provide Crypto Futures & Options Trading are Binance & Delta Exchange. Out of Indian Exchanges the Coin-DCX provide Crypto derivative trading through the Binance exchange, we can trade with a Coin-DCX Pro account.
Trading with Coin-DCX Pro :
With Coin-DCX Pro we can deposit Indian Rupees (INR) to our account and trade
- Crypto Spot that is Coins buying & selling, then
- Margin trading in which we get up to 6x leverage to trade different coins
- Crypto Futures (Perpetual) in which we get up to 20x leverage
Trading with Binance :
With Binance we have a lot of option to trade Crypto and NFTs and various other assets.
- But we could not deposit Indian Rupees (INR) or any other currency. We can trade with crypto currencies only and if we have any crypto balance then can deposit it or we have to purchase crypto coins through P2P trading.
- P2P trading to buy or sell crypto currency from person to person by paying them directly to their bank accounts through Net banking, NEFT, UPI etc.
- Spot trading in which we can buy & sell different crypto coins with up to 10x margin leverage.
- Crypto derivatives Futures (Perpetual) trading with up to 100x margin leverage.
- Crypto derivative Options buying & selling CE and PE daily contracts.
- Strategy based trading, NFT trading and various other types of trading.
Delta exchange
Delta Exchange also provide P2P, Spot, Futures & Options trading in cryptos with margin up to 100x.
And there are various other global crypto exchanges also but Binance is the most popular and biggest crypto exchange with good trading volume and liquidity. Their trading platform and charts are also fast and has option to use trading-view. But the major drawback of crypto trading is all the exchanges are not regulated.
In this article we have given a basic overview about how we can trade crypto derivatives futures & options. In our next articles we will discuss about the trading platforms, account opening, taking trades and more details about crypto trading. Thanks for visiting us.
