How to Buy Crypto Futures in India Safely and Legally in 2025

Crypto futures have become popular among Indian traders who want more than just buying and holding coins. With futures, you can profit whether the market goes up or down, and you can use leverage to increase your exposure. That flexibility also means more risk and more rules to follow.

Many beginners are confused about whether crypto futures trading India is legal, how taxes work, and how to actually place their first futures trade. 

This guide explains the legal framework, tax rules, the practical steps to buy Bitcoin futures India or other coin futures, and the main risks you need to understand before you start.

Legal Status: Are Crypto Futures Allowed in India?

The short answer is yes: you can trade crypto futures in India, but under strict regulation. Crypto itself is not legal tender. You cannot legally use Bitcoin or other coins to pay salaries, rent, or daily bills. 

However, the Indian government has not banned trading. Instead, it treats crypto as a form of Virtual Digital Asset and puts it under the compliance net.

In March 2023, Virtual Digital Assets were brought under the Prevention of Money Laundering Act (PMLA). That move placed crypto platforms under the supervision of the Financial Intelligence Unit – India (FIU-IND). 

Exchanges that want to serve Indian users must collect full KYC data, monitor unusual transactions, and report suspicious activity. There is no SEBI-regulated crypto derivatives exchange yet, but that does not make futures trading illegal. 

Under current Indian crypto futures regulations, you can trade on FIU-IND–compliant platforms as long as you complete KYC and follow the tax rules.

Read Also: XRP Futures Trading on Bitrue: How to Do It and the Benefits You Can Reap

Tax Rules on Crypto Futures Trading India

The tax treatment is simple but harsh: the government assumes crypto is a high-risk asset and taxes it accordingly. Profits from crypto futures are taxed at a flat 30 percent rate under Section 115BBH of the Income Tax Act. 

This applies whether you hold the position for a few minutes or many months. You cannot claim normal deductions such as internet costs, trading fees, or platform charges.

On top of that, there is a 1 percent TDS (Tax Deducted at Source) on applicable crypto trades under Section 194S. Exchanges usually deduct this automatically and reflect it in your tax statement or Form 26AS, which you can later adjust when filing your return.

Losses from crypto futures cannot be set off against other income such as salary or business profit. That means risk management is not only important for your capital but also for your tax bill.

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Step-by-Step: How to Buy Crypto Futures in India

Here is a simple, practical flow for how to buy crypto futures in India from start to finish.

1. Choose a compliant exchange
   Pick a platform that is registered with FIU-IND, clearly explains KYC requirements. Avoid platforms that hide their regulatory status or offer extreme leverage without proper risk warnings.
    
2. Complete full KYC
   Before you can trade crypto derivatives India, you will need to verify your identity. The platform will usually ask for PAN, Aadhaar, and bank details. KYC is needed both for compliance and for enabling deposits and withdrawals.
    
3. Deposit funds into your account
   On Indian platforms, you can deposit INR by UPI or bank transfer. On global platforms like Bitrue, you usually deposit crypto such as USDT or USDC. After the deposit is confirmed, the balance will appear in your main or spot wallet.
    
4. Transfer funds to the futures wallet
   Most exchanges separate spot and futures balances. You need to move funds from your spot wallet to your futures wallet so they can be used as margin. Choose the amount carefully and avoid overfunding your futures account if you are a beginner.
    
5. Select the futures contract
   Go to the futures trading section and pick the pair you want, such as BTC/USDT or ETH/USDT perpetual futures. 

Check the contract details, including funding fees, leverage limits, and liquidation rules. This is the core step whether you want to buy Bitcoin futures India or trade other coins.

6. Set leverage and order details
   Choose your leverage level and order type. Market orders fill instantly at current prices, while limit orders wait for your chosen price. 

   Beginners should stick to low leverage, usually in the 2x–5x range, to reduce liquidation risk.

7. Open your position (long or short)
   If you believe the price will rise, open a long position. If you expect a fall, open a short. 

   Enter the position size, confirm the order, and make sure you understand your liquidation price before final submission.

8. Set stop-loss and take-profit levels
   After entering the trade, set a stop-loss to cap your downside and a take-profit to lock in gains. 

   These levels help you trade with a plan rather than emotion and are essential in leveraged environments.
   
    

9. Monitor and close your trade
   Watch your open position in the positions tab. You can manually close it at any time or let your stop-loss or take-profit close it automatically. 

   When you close the position, the realized profit or loss moves back to your futures wallet.

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Learn more about how to buy crypto future in India from this Bitrue Futures Trading Tutorial Video 

Risks and Basic Risk Management

Futures are powerful tools but can be unforgiving if used carelessly. Leverage magnifies every move. A small 5 or 10 percent move against you can be enough to trigger liquidation if you are over-leveraged. 

Liquidation means the platform force-closes your position to protect the system, often wiping out most or all of your margin.

Good practice includes using modest leverage, risking only money you can afford to lose, and diversifying rather than going all in on a single trade. Stop-loss orders are not optional; they are your main defense against sudden volatility.

Read Also: How to Double Your Money with USDT Perpetual Futures Trading on Bitrue

Conclusion

Crypto futures are now part of the mainstream trading landscape in India. They are legal when traded on FIU-IND–registered platforms, but tightly controlled through PMLA and a heavy tax regime. 

If you understand how the rules work, keep your trading on compliant exchanges, and respect the 30 percent tax plus 1 percent TDS structure, you can participate with a clear conscience and clean records.

The real challenge is not only learning the mechanics of how to buy crypto futures in India, but also learning when not to trade. 

Responsible use of leverage, strict risk management, and honest tax reporting are what separate a disciplined futures trader from a reckless gambler.

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FAQ

Is it legal to trade crypto futures in India?

Yes, trading crypto futures is allowed in India as long as you use compliant platforms that follow PMLA and FIU-IND guidelines and you complete full KYC.

Do I need to pay tax on crypto futures profits?

Yes, profits from crypto futures are taxed at a flat 30 percent rate, and 1 percent TDS is deducted on applicable trades. These trades must be reported in your income tax return.

Can I use INR directly to trade crypto futures?

On Indian platforms, you can deposit INR and then convert or move it into your futures wallet. On many global exchanges, you first need to convert INR to stablecoins such as USDT.

Are Bitcoin futures and altcoin futures treated differently for tax?

No, for tax purposes they are both considered trades in Virtual Digital Assets, and the same 30 percent rate and 1 percent TDS rules apply under Indian crypto futures regulations.

Is high leverage like 50x or 100x recommended for beginners?

No, high leverage brings the liquidation price very close to your entry and can erase your capital quickly. Beginners should stick to low leverage and focus on learning position sizing and risk control first.