The crypto derivatives market has grown fast – especially in smaller Indian cities where retail enthusiasm is driving its growth. This year, we’ve seen daily trading volumes cross over $4 billion on top crypto exchanges. Though crypto futures and options have their own advantages, many retail traders still feel that they’re too complex for their style.
That’s where crypto trackers step in. These new contracts let you follow the price of major crypto assets like Bitcoin with the same simplicity of buying spot. More traders are noticing how trackers strike the right balance between ease, flexibility, and cost-efficiency.
In this post, let’s find out what trackers are exactly and how they are transforming the crypto trading sector.
What Exactly Are Crypto Trackers?
Crypto trackers are derivative contracts that mirror the price movement of an underlying crypto asset. If you buy a BTC tracker, you benefit when Bitcoin’s price rises, and you can sell your tracker whenever you want.
Unlike crypto futures and options, there’s no leverage involved, and unlike spot, trackers are not subject to extra taxes for Virtual Digital Assets (VDAs). For a retail trader who wants market exposure without the hassle of margin calls, trackers are a simpler and easier instrument to manage.
Why Traders Prefer Crypto Trackers Over Spot
Crypto trackers launched on Delta Exchange
Buying crypto directly gives you full ownership, but it may come with higher trading fees, tax rules, and the need for extra steps like moving funds across wallets. Trackers skip most of that on Delta Exchange:
- Lower fees: Trading fees are just 0.05% for both buying and selling, far less than typical spot platforms – which is around 0.5%.
- Better liquidity: Tighter spreads and deeper liquidity in the market reduce slippage.
- No withdrawal hassles: Unlike regular crypto assets that you can withdraw to a personal wallet or transfer to other exchanges, trackers are unique. They can only be held and traded on the platform and are not withdrawable.
For short-term trading, crypto trackers often deliver better net returns compared to spot positions.
Why They Work Better Than Crypto Futures and Options
Crypto futures and options are powerful tools, but they demand leverage, risk management, and margin maintenance. Many of you must have experienced how challenging the market can be to navigate smoothly – traders may enter these volatile markets without full preparation and end up facing liquidations or losses.
Trading BTC trackers on Delta
Crypto trackers remove that stress. You buy, hold, and sell – just like spot – without worrying about liquidation triggers. This makes trackers feel approachable, while still offering the efficiency of derivatives.
How Trackers Fit Into Daily Trading
On some trackers, a single lot of BTC trackers equals 0.00001 BTC. The minimum purchase is 100 lots (0.001 BTC). That means as a trader, you can start with small amounts instead of investing large sums in one go. Selling is equally flexible – you can sell any portion of your holdings at any time.
For example, with ₹5,000 you can buy trackers, monitor them directly in your app, and sell on the same day if there’s a quick gain potential. No extra margin rules, no sudden liquidations, just a clean buy-and-sell experience on the tracker.
The Daily Holding Cost Explained
Apart from the trading fees of 0.05% (both maker & taker), crypto trackers also carry a daily holding cost. This fee is charged for the convenience and liquidity they provide. It’s deducted automatically at 5:30 PM IST if you’re still holding the tracker. The rate updates every 24 hours and is clearly visible on the platform.
And the good part? If you buy and sell on the same day or before the next 5:30 PM cycle, you don’t have to pay any holding cost. Such low and affordable costs make trackers attractive for short- and medium-term trades.
Crypto Trackers vs. Spot: Which One Delivers More Value?
Let’s say you purchased a BTC tracker and Bitcoin moved 10% higher within a day. With lower trading fees, your net profit would actually be higher than spot.
But over longer periods, holding costs also add up, so spots may start to look better.
However, for shorter trades – like 1 to 30 days – crypto trackers often outperform spot trading in net gains.
This gives you the flexibility to choose strategies based on your goals:
- For short-term trading activity, trackers are more cost-effective.
- For long holds, spots may still work better.
Why Traders Are Switching To Trackers Now
The appeal of trackers comes down to usability. Many are cautious of paying higher fees on spot and managing risk on perpetuals. Trackers are positioned right in the middle of this – simple like spot and efficient like crypto futures and options.
And with trackers already handling high-frequency trades, trackers are gaining adoption quickly because they work well for both new users and active traders who are looking for a simpler trading experience without complexities.
The Bottomline
The world of crypto has moved beyond trading assets. Crypto trading isn’t about picking between spots or futures and options anymore. You now have a simpler choice – crypto trackers fill the gap by giving you the simplicity of direct exposure with the liquidity and tax advantages. That’s why more traders on top crypto exchanges are choosing trackers as their go-to derivative product.
Disclaimer: Cryptocurrencies are highly volatile and carry inherent risks. Kindly do your own research before investing in any digital currencies or crypto derivatives.
