WazirX, crypto exchange and trading platform, futures trading volume increased 236% between the beginning of July and the end of September, as the Indian cryptocurrency exchange expanded its derivatives offerings, introduced AI-powered trading tools and added tax-reporting and compliance features.

Key highlights

• WazirX said futures trading volume rose 236% between early July and the end of September.
• Futures traders increased 279% toward quarter-end as WazirX expanded products, AI tools and compliance features.

WazirX futures trading volume at its September peak was approximately 345% higher than early-July levels. The number of daily futures traders also increased by around 279% towards the end of the quarter, reflecting rising activity on the platform.

In July–September, WazirX launched INR-margined USDT perpetual futures, an AI trading assistant, automated margin top-ups and a free tax-reporting tool for cryptocurrencies, called TaxLyst. The projects focus on expanding the range of crypto derivatives available for trading, as well as offering new functionalities for keeping track of transactions and positions.

WazirX Futures Trading Volume Rises as INR-Margined Contracts Expand

In August, WazirX launched INR-margined crypto-USDT futures, where users can trade on contracts supported by USDT, with their margin in Indian rupees, without having to convert rupees to USDT beforehand.

The business had stated that the INR markets remained the primary markets for futures trading. However, on some days during September, trading volume for USDT contracts ranged between about 20-35% of the total volume traded daily, depending on the market movement. The percentage of traders that participate in USDT contracts also rose in the quarter, to approximately 15-18% at the end of September.

In addition, WazirX reported that over 60% of all trades were winning trades. The exchange, however, didn't reveal additional details on how the figure was calculated or for what period.

WazirX AI Trading Assistant Adds Portfolio and Futures Features

In a bid to boost user efficiency, WazirX has unveiled a new trading assistant called WazirX AI that enables traders to perform trading, perform portfolio analysis, review market movements, and more, all within a single application.

The assistant also provides paper trading, where users can test their trading strategies without risking any real money. In September, WazirX added USDT perpetual futures, currency-wise portfolio views, realised profit-and-loss details of closed trades to its features. The company also launched a voice assistant catering to English and Hindi.

The AI tools are integrated into the trading platform as part of the exchange's commitment to making trading features more accessible and user-friendly, while also assisting users to track their trading activity. But, automated or AI analysis is not a guarantee of accurate prediction or profitable trading.

WazirX Introduces Automated Margin Top-Ups and Trading Controls

The cryptocurrency exchange WazirX upgraded its website with take-profit and stop-loss controls, as well as added an automatic margin top-up feature.

The margin tool can be used to pull money from the user's available futures wallet balance and move it to a user's eligible position when more margin is needed. The feature is designed to assist traders deal with the changing market conditions.

The tools do not eliminate risks from the use of leveraged cryptocurrency derivatives. The margin requirements may also change based on adverse price action that can lead to significant losses, and the amount of capital needed may be impacted by fluctuations in prices.

Rajagopal Menon, vice president, WazirX, commented on the quarterly performance as it indicated the company's expansion due to its user-centric trading products, which are accessible, flexible and user-friendly.

The company's objective was not just to gain market access but to provide users with more control, ease of cryptocurrency engagement, and to ensure it is an informed and transparent process, he added.

WazirX Launches TaxLyst for Cryptocurrency Tax Reporting

WazirX announced the launch of its free cryptocurrency tax reporting app, TaxLyst, which enables users to merge all their transactions from the exchange and other platforms they are connected with.

The tool helps to compute gains and losses and create tax ready reports. The initiative is a response to the fact that cryptocurrency investors are handling the records of their transactions and tax reporting on different platforms.

WazirX also changed the downloadable trade report to include the users' names and permanent account number (PAN) as opposed to email addresses and member ID. The change is designed to improve the adaptability of the documents to be used for tax reporting and transaction documentation purposes.

Consolidated reporting tools may make record keeping easier, but users are responsible for ensuring that the data from transactions and tax calculations are accurate.

WazirX Announces Rs 1.04 Crore in Futures Trading Rewards

Along with its product tweaks and compliance, WazirX also announced rewards worth Rs 1.04 crore for the Futures First Challenge and seven P&L Arena contests, which were introduced in the quarter.

The company said that it established over 10,000 potential reward opportunities.

The exchange also launched its new Gangs of Cryptopur campaign with actor Tigmanshu Dhulia as Ramadhir Singh. The campaign aimed to raise awareness among users that they need to understand the trades rather than following unverified tips or short-term excitement in the market.

Also Read: RBI Revises Trading Book Rules: Check Key Details

WazirX Combines Derivatives Expansion With Compliance Tools

The trading platform's initiatives for the month of July and the month of September will cover Futures Trading, AI-powered navigation, position management tools, and cryptocurrency tax reporting. The company is looking to increase trading volume and provide users with more options to track positions and organise trade history.

The volume and number of daily traders reported for futures suggests greater activity on the platform over the timeframe. The figures, however, were revealed by WazirX, which failed to give an in-depth independent split of the trading figures.

With various cryptocurrency platforms vying for user base, product development, risk-management features and compliance tools are now an integral part of what they are offering. Their effectiveness will rely on how they are being used by the users and on the risk management of crypto exchanges in digital-asset trading.