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Indians aged 18 to 25 comprise more than 60 per cent of new investors in the crypto derivatives market, forming a cohort that makes larger bets and trades frequently, said a report on Thursday.
Gen Z investors trade in high-risk and high-reward segments such as crypto derivatives but are disciplined and mature, said the joint study by Pi42, a crypto trading platform, and Hashed Emergent, a venture capital firm.
Larger bets
The average trade value in the crypto derivatives market has increased from $1,051 in FY25 to $1,960 in FY26, suggesting that younger investors are not merely experimenting with small amounts but are committing larger capital. The report said the trend indicates:
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Greater risk appetite -
Higher conviction in trading strategies -
Increased familiarity with leveraged instruments
At the same time, trading activity has intensified. Nearly 60 per cent of active traders now trade daily, compared with about 45 per cent earlier. This shows a shift from casual participation to more active, strategy-driven engagement.
Early signs of maturity in retail behaviour
Despite the speculative nature of crypto derivatives, the data indicates “mature behavior” among retail participants.
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Around one in four traders reported booking profits -
There is evidence of improved awareness around risk management and trading strategies -
Participation is becoming more consistent rather than sporadic
Avinash Shekhar, cofounder and chief executive officer (CEO) of Pi42, said that young investors are adopting “more strategic and informed trading approaches” amid global macroeconomic uncertainty.
This is significant because derivatives, especially in crypto, are complex instruments that require a higher level of understanding compared with spot trading.
Surge in smaller cities
Another defining feature of this boom is its geographic spread. Trading in crypto derivatives is no longer concentrated in metro cities.
Eastern India accounts for nearly 32 per cent of retail participation, with states such as Assam, Arunachal Pradesh and Meghalaya emerging as key contributors. The region is also growing significantly faster than others.
North and Central India have also seen participation double over the past year, underlining how adoption is expanding into smaller towns and semi-urban areas.
This dispersion reflects two underlying factors:
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Wider access to digital infrastructure and mobile trading platforms -
Growing financial awareness among younger populations outside metros
Tak Lee, CEO and managing partner at Hashed Emergent, described this as a “structural shift”, noting that derivatives are increasingly becoming the entry point for a new generation of investors, rather than an advanced segment entered later.
Rising participation of women
The study also highlights a gradual broadening of the investor base. Female participation grew 20 per cent year-on-year in FY26, with women now making up nearly one in eight traders on the platform.
While still relatively low, this trend indicates increasing inclusivity in a segment traditionally dominated by male participants.
What this means
For retail investors, especially younger ones, the findings present both opportunity and caution.
On the positive side:
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Greater access to financial markets is enabling early investing exposure -
Digital platforms are lowering entry barriers -
Knowledge levels appear to be improving
However, crypto derivatives are volatile and leveraged instruments and carry downside risks. The rise in average trade size amplifies potential losses as much as gains.
Key considerations for retail investors include:
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Avoid allocating a large portion of savings to derivatives -
Understand leverage and margin requirements before trading -
Treat crypto futures as a speculative allocation, not a core investment -
Early-stage but expanding market
The report said that India’s nascent crypto derivatives ecosystem is expanding rapidly, driven by “digital natives” and deeper penetration into non-metro regions.
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