How to Pay for Prop Firms Using Crypto in India — Red Dot Pay & USDT Guide

Two Ways to Pay with Crypto

There are two methods to pay prop firm fees using crypto from India. Both are legal, but they work differently:

Method 1: Red Dot Pay — Crypto-Powered Visa Card

Red Dot Pay is the best option for most Indian prop traders. It's a Visa debit card funded by your crypto balance. You load USDT, USDC, or other supported crypto onto the card, and then use it like a normal debit card at checkout. The prop firm sees a regular Visa payment — they don't even know you're paying with crypto.

Why Red Dot Pay Is Ideal for Indian Traders

• Works everywhere: Any prop firm that accepts Visa (which is all of them) works with Red Dot Pay. No need to check if the firm "accepts crypto"
• No bank involvement: Your Indian bank never sees the transaction. No international payment flags, no declines, no forex markup
• No LRS TCS: Since you're spending crypto (not remitting INR through the banking system), the 20% Tax Collected at Source on LRS remittances above ₹7 lakh doesn't apply
• Lower fees: Red Dot Pay's conversion rate is typically 1–2%, compared to 2–3.5% bank forex markup plus GST
• Instant: Payment processes immediately, just like a regular debit card

How to Set Up Red Dot Pay — Step by Step

Red Dot Pay Cost Example

Let's say you're buying a Lucid Trading LucidFlex 50K evaluation ($65 with 50% off):

Compare that to a typical SBI debit card at 3.5% forex markup + GST = ₹200+ in fees on the same transaction. Red Dot Pay saves you ₹30–₹125 on a small fee like this. The savings scale significantly on larger evaluations.

Method 2: Direct Crypto Payment (USDT)

Some prop firms let you pay with USDT directly at checkout. Instead of entering a card number, you send crypto from your wallet to the firm's wallet address. This is the absolute cheapest method — you only pay the blockchain network fee.

How Direct USDT Payment Works

Direct Crypto Cost Example

That's less than ₹61 in total fees on a ₹5,400 payment. No bank card comes close to this. The only downside is not every prop firm offers a direct crypto checkout — in which case, use Red Dot Pay instead.

Red Dot Pay vs Direct Crypto vs Bank Debit Card

Where to Buy USDT in India

You need USDT (Tether) before you can use either Red Dot Pay or direct crypto payment. Here are the most popular options for Indian traders:

Centralized Exchanges (Easiest)

• WazirX: India's largest crypto exchange. Buy USDT with INR via bank transfer or UPI. 0.2% trading fee. KYC required.
• CoinDCX: Major Indian exchange. INR deposits via bank transfer, UPI, or NEFT. Clean interface, good for beginners.
• Binance (P2P): Use Binance's peer-to-peer marketplace to buy USDT directly from sellers using UPI, IMPS, or bank transfer. Often the best rates.

P2P Platforms (Best Rates)

• Binance P2P: Connect directly with USDT sellers. Pay via UPI or bank transfer. Zero platform fee — you negotiate the rate with the seller.
• WazirX P2P: Similar to Binance P2P but within the WazirX ecosystem.

Is Paying with Crypto Legal in India?

Yes. Let's be very clear about the legal position:

• Crypto is legal in India. The Supreme Court struck down RBI's 2018 circular banning crypto transactions in March 2020. Since then, buying, selling, holding, and using crypto is fully legal.
• Crypto taxation exists — the government introduced a 30% tax on crypto gains and 1% TDS on transactions in the 2022 Union Budget. The fact that crypto is taxed proves it's legal — you don't tax something that's banned.
• Using crypto for payments is legal. There is no law prohibiting the use of crypto to purchase goods or services. Paying a US-based prop firm with USDT is legally equivalent to paying them with a debit card — it's a payment for a service.
• Red Dot Pay is a licensed service. It operates as a regulated payment processor. Using their Visa card is no different from using any other debit card.

The only requirement: keep records and declare everything. Save your USDT purchase receipts from WazirX/CoinDCX, your Red Dot Pay or blockchain transaction records, and the prop firm's payment confirmation. These are needed for your ITR filing. See our full tax guide.

When to Use Which Method

Use Red Dot Pay when:

• The prop firm doesn't accept direct crypto
• You want the simplest checkout experience (just enter card details)
• You're buying from multiple firms and want one card for all
• Your bank keeps declining international transactions

Use Direct USDT when:

• The prop firm offers a crypto checkout option
• You want the absolute lowest fees (₹10–₹50 total)
• You're comfortable sending crypto between wallets
• You already hold USDT and don't want to load a card

Use your bank debit card when:

• You don't hold any crypto and need to pay immediately
• The fee is small (under ₹5,000) and the forex markup doesn't matter much
• You prefer the simplest possible method and your bank doesn't block international payments

Common Mistakes to Avoid

• Wrong network: Always confirm you're using the same blockchain network (TRC-20, ERC-20, etc.) as the receiving address. Mismatched networks = lost funds forever.
• Insufficient balance: Load slightly more than the exact amount to cover gas fees and conversion spreads. Running short by $0.50 means a failed payment.
• Ignoring tax records: Every crypto transaction (buying USDT, spending it) should be recorded. The 1% TDS on crypto transactions over ₹50,000 is deducted automatically by Indian exchanges.
• Using ERC-20 for small amounts: Ethereum gas fees (₹200–₹500) make no sense for a ₹5,400 payment. Always use TRC-20 for prop firm fees.
• Not verifying the prop firm's wallet address: Scammers create fake checkout pages. Always navigate to the prop firm's official website directly — never through links in random Telegram groups or emails.

Frequently Asked Questions