NFT Marketplaces: The Future of Digital Assets8-min read

An Overview of NFT Marketplaces in April 2024

Since the dawn of time, technology has enabled humanity to break ground in new and exciting areas, creating both wealth and value for all involved. The so-called “digital revolution” has now reached mankind’s doorstep with the cutting edge of technology having given modern society its best possible digital tool for cooperation, coordination and financial exchange i.e., Blockchain technology. A single aspect of this technology is the NFT, or “non-fungible token”, which is the key topic of focus of this guide. Follow along to get better acquainted with the best NFT marketplaces and trading platforms in India.

Best NFT Marketplace for Indians in April 2024

In terms of the best NFT platforms, the following brokers have received overwhelmingly favourable reviews as the most dependable and trustworthy ones for both novice and seasoned investors in India:

NFT marketplace platforms like Binance, Crypto.com and OpenSea allow their users looking to either buy into the asset class or sell their NFTs with an easy-to-use platform. Each of them offers industry-leading volume and liquidity rates, low brokerage, easy and quick deposits from BNB and ETH chain networks, fast cash withdrawal, personalised mobile apps and easy token conversations. Making sure you’ve chosen the best NFT marketplace for your needs is a surefire way to start off your investing experience on the right foot and ensure that you’re on the right track for lucrative profits.

NFTs: A Brief Primer

NFTs or “non-fungible tokens” are distinctive cryptographic tokens within a blockchain and their distinct USP is that they cannot be replicated. Most people assume that the value of NFTs lies in their uniqueness, hence the term “non-fungible.” They are indivisible and impossible to forge as unique, digital representations of art, and hence individuals can place value on them.

However, there is currently a very technically competent and well-funded movement gaining momentum to expand the applications of NFTs. In addition to their scarcity and collectability, this trend toward increased utility gives NFTs a new form of value proposition. Here are a few examples of best-in-class organizational players who are becoming increasingly involved in NFTs and augmenting their potential:

● Disney
● Starbucks
● Citi
● Adidas
● Prada
● Nike
● Sony etc.

The rapidly growing world of NFTs is being included in the institutional portfolio of decentralised finance (DeFi). In a recent report, the entry of institutional investors into the NFT industry to better monetize their patents is noted by research firm Global Data. When a patent is owned by an institution as an NFT, its immutability and provenance can be enhanced through the Blockchain, which can help with improved patent commercialization. Once the patent rights have been transferred, they might give the patent holder full ownership, as reported by Global Data. Disney submitted a patent application in July to use blockchain to track and manage ownership of physical items like trading cards, pins, toys, collectible figurines as well as their digital equivalents in the form of NFT.

Why You Should Invest

When prices for products and services increase, customers’ purchasing power decreases if their income does not (and it rarely does in real terms). For investors, this entails shifting some of their capital to assets that profit from inflation or at the very least maintain their value. Investments in assets that hold their worth over time help people safeguard their well-earned wealth since inflation has been and will be a persistent danger to the value held in fiat money.

Gold has traditionally been regarded as a hedge against inflation, but NFTs have recently gained in popularity as a viable alternative. The U.S. dollar has been the leading currency around the globe for decades despite forecasts of its destruction. Dollars make up about 60% of worldwide foreign exchange reserves, but their proportion has been steadily declining as both technological alternatives and financial markets have developed, reducing the dollar’s dominance in international payments.

The dollar’s movement versus other major currencies was trendless between February 23 2022 and March 31 2022. When compared to the dollar, the pound plummeted by 5.12 percentage points, while the yen dropped by 4.21%. The Euro gained 1.61% during this time. The SWFs’ minor decline (-1.54%) confirms that investors believed the market environment was still favourable (Figure 1).

What this means is that NFTs are still a new horizon for investors that, aided by Blockchain’s decentralization, are still at a nascent stage and hence can generate substantial profits compared to fiat currencies. Simply understanding and acting according to the trends of the tech-native web3 market can help investors gain massive earnings.

A Beginner’s Guide to Investing Through an NFT Marketplace

An online exchange for non-fungible tokens, known as an NFT marketplace, runs on the Blockchain. People can sell their NFTs to others for Bitcoin or cash on these platforms, as well as store and exhibit them. Users can also mint their NFTs directly on some NFT marketplaces. The NFT marketplace will normally handle the transfer of an NFT from one party to another in exchange for a charge. The operational structure of each NFT market is unique. Depending on whatever one you use, different NFT kinds, costs, payment methods, permitted Blockchains, and other rules may apply. Check out this easy 5-step solution to invest in an NFT marketplace:

● Choosing a reliable NFT marketplace
● Creating an account
● Depositing funds
● Looking for assets
● Purchasing

The NFT marketplaces allow you to view all of their listings for sale once you register with them. You can also add a payment option, some of which enable you to use a credit card and others of which need you to attach a cryptocurrency wallet to pay with cryptocurrency. A fixed price is available on some websites, whereas an auction is used on others. The NFT marketplace will record the transaction on its Blockchain, indicating the change in ownership, if you complete it.

What Makes a Good NFT Investment

NFT projects, as a very novel phenomenon, do not follow the same set of rules and general criteria as other investments. Being driven by community as well as being extremely flexible in terms of their intended and actual use-cases, each project should be judged by its own merit and invested in accordingly.

Check out these four things critically before investing in an NFT:

Community
The team behind the project, the artwork, the NFT piece and its existing community are some of the most significant things that you should check before investing in it. A small, genuine, established community means that the value of the NFT is likely to be high and therefore is worth investing in.

Utility
NFTs with an additional utility to them are likely to provide you with a significant and more stable return. Along with being a digital token that you can own, they can also provide you with other rewards, options and usability.

Exposure
Constant and exponential hype buildup is directly proportional to the value of an NFT. Ex: CryptoPunks were so hyped that they were auctioned off at pioneer art exhibitions like Christie’s and Sotheby’s.

Accessibility
If the driving vision of an NFT project is incomprehensible or just rather inaccessible, it is likely to depreciate its value in the long run. By accessibility here we mean how comprehensible the NFT project is to you or any layman investor in the field.

What Are the Signs of a Reputable and Responsible NFT Broker

You should pay close attention to the following factors when choosing the best NFT marketplace:

1. Provides both single and multi-listing

The best NFT marketplaces give their users a degree of flexibility when it comes to either selling off their own NFTs or purchasing new ones. The following are fantastic marketplaces to begin with since their extremely solid backing and established nature means that they are the best technically equipped players to offer their clients the best possible solutions:

● Binance
● Crypto.com
● OpenSea

These markets also charge a smaller cost. So, you should choose one of the marketplaces listed above if you only have one NFT to purchase or sell.

2. Minting, listing and trading related transparency

A buyer should have access to as much information as possible to aid him in making a purchase. These datapoints could include the identity of  the team, the appreciation of the NFT’s price over time, related news and more.  The top NFT marketplace should at the bare minimum give its customers the following details:

● Availability of the NFTs
● Individual NFT unit cost
● The volume of purchases and sales
● Amount of holders
● Information about prior trading

3. Safety

Both the inventors and the purchasers depend on the security that an NFT marketplace offers. This security should be robust in terms of both the technical level, such as cybersecurity, as well as in terms of the legal compliance of the exchange, such as the presence of comprehensive KYC protocols. Hence, the top NFT marketplaces should offer the following:

● Identity verification
● Insurance for transactions
● Advanced encryption of private data to prevent fraud

4. No questionable costs
The marketplaces that demand unpredictable or generally fishy prices even before you visit their user interface should be avoided at all costs.

5. Market reputation

Consider other people’s personal experiences with the NFT market before making a decision. You would be making a wise choice if you carefully examine their reviews. It’s difficult to choose a market that can be the ideal fit for your NFT but referring to these testimonials would be an excellent first step in finding the brokerage that would work for you. You may choose well if you give the aforementioned considerations careful thought.

Vetting Our Recommended Brokers

With its user-friendly and straightforward interface, CoinBharat is a great option for both minters and collectors seeking to review the leading exchanges in the space. We rigorously check the brokers that we recommend by opening accounts with them ourselves, testing them on withdrawal times and requirements, reviewing their investment portfolio, the variety of payment funnels that they accept, closely inspect their terms and conditions to ensure that they abide by legal requirements and that users can safely open accounts without any issues. We also take feedback from the community and verify every claim or complaint before recommending a broker.

Red Flags: What to Look Out for in the World of NFTs

1. False offers
NFT scammers frequently send you phoney emails saying that you have received an offer for your NFT by impersonating trustworthy NFT trading sites. The goal of these phishing emails is to trick you into clicking on an embedded link that will lead you to a phoney NFT marketplace.

2. False technical assistance
Another popular fraud involves phoney texts from technical assistance or customer service. Consider the scenario when you need assistance with technical issues on a well-known NFT marketplace and turn to a public forum like Discord. Then someone offers their help while claiming to speak for the marketplace.

3. False prizes
Scammers will contact you via social media and invite you to participate in their NFT giveaway campaign while posing as employees from a well-known NFT trading platforms. If you spread the word about the offer and register for an account on their website—a phishing site—they might guarantee you a free NFT.

4. Rug-pulling fraud
Rug pull scams occur when an individual or organisation releases a preliminary collection of NFTs to launch a larger project that will eventually include a game component, merchandise, or an event. The trick is when they steal the millions of dollars collected before any of the promised activities can be carried out and disappear in thin air.

5. Plagiarised NFTs
The act of creating a digital file as an NFT does not grant you ownership of it or create a new work of intellectual property. Instead, it merely converts a digital file into a blockchain storage object.

Where to Store Your NFTs

Purchasing a cold storage hardware wallet and moving the digital assets there is the best option to store NFTs offline. The wallet won’t be accessible to keyloggers and hackers because it will always be offline. Additionally, each hardware wallet includes a password and ID for additional security. They can also be stored online, after purchasing an NFT, you must decide whether to store your assets in a cold wallet (non-custodial) or a hot wallet (custodial).

Taxation on Brokered Assets: NFTs

Previously non-taxable, recent regulations regarding cryptocurrencies have also started levying charges on NFT sales and transactions. If you use another cryptocurrency to make the purchase and when you sell the tokens, investors who purchase them must pay capital gains taxes. For detailed information, please click here.

Investing Responsibly

Investing in NFTs and choosing the right market is subjected to a broad spectrum of market risks, thus the terms and conditions must be viewed and reviewed carefully. Key things to remember while investing in NFTs: always invest amounts which you can afford to lose, understand that the market is volatile, do your own research, monitor you bankroll and understand when to withdraw. Moreover, follow the guidelines we mentioned previously to save yourself from any scam or illegitimacy.

Latest Updates

India is one of the fastest-growing markets for Web3 and Metaverse technologies, with over 450 startups, including four unicorns. India is home to over 11% of the total Web3 talent pool in the world, with more than 20,000 active cryptocurrency and Web3 developers. However, a recent report by PwC India titled “Our Take- Embracing the Metaverse” showed that 24% of 150 Indian businesses surveyed were unsure about how they perceive the Metaverse.

Conclusion

• NFTs or “non-fungible tokens” are distinctive cryptographic tokens which are embedded within a Blockchain. What makes them unique is that their distinctiveness cannot be replicated.
• NFT marketplace platforms like Binance, Crypto.com and OpenSea provide their users looking to sell their NFTs with an easy-to-use and multi-functionality platform.
• The NFT marketplaces allow you to view all of their products for sale once you register with them. NFTs can be stored both in online and offline means.

The Indian market is still in its nascency when it comes to utilizing the technology of NFTs. We are still biased towards investing with our age-old fiat currency. NFTs, cryptocurrencies and similar digital tokens are the new normal and have the ability to generate impressive profits when they are strategically invested in and properly researched.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.