With the industrialization and absorption of technology, digital currencies are gaining much importance of late. Bitcoin is undoubtedly one of the most popular digital currencies because it was the first-ever cryptocurrency that was discovered in 2009, by the pseudonymous developer Satoshi Nakamoto. Therefore, the people who are aware of cryptocurrencies and their concepts are well-versed with bitcoins at least.
The global cryptocurrency industry was last estimated towards the end of 2021 at $910.3 million and is expected to grow at a CAGR of 11.1% to $1902.5 million in 2028. Though we are still devoid of the exact data, the total cryptocurrency investors in India range between 15-20 million, where the total crypto holdings were estimated at 400 billion rupees ($5.37 billion).
Though the cryptocurrencies or the income drawn by the Indians from the same were not taxed earlier, in a recent move to bring the cryptocurrencies and non-fungible tokens (NFTs) under the tax bracket, the Indian Finance Minister Nirmala Sitharaman announced a 30% tax on the income from the transfer of virtual digital assets on February 1, 2022, Tuesday. Sitharaman further specified that no deductions and/or exemptions would be allowed here. The crypto tax, being proposed at 30%, is the highest tax band that has been introduced in the country so far. This crypto tax news is also happily welcomed by the crypto industry, founders and entrepreneurs alike. The chiefs of 3 major organizations – WazirX, CoinDCX, and ASQI responded cheerfully to the news as soon as it was disclosed by the Indian government, happy at the progressive stance the government is taking.
In this article, we will talk about the significant advantages and disadvantages of Cryptocurrencies.
A cryptocurrency is a type of virtual currency that uses digital files as money. Normally, the files are designed using the same methods as cryptography. Cryptocurrencies use ‘decentralized control’, which means that they aren’t managed by the government or one person.
Types of Cryptocurrency
There are many different types of cryptocurrency in the market that are taking the world by storm. Some well-known currencies are:
Bitcoin (BTC)
Bitcoin is the most popular cryptocurrency out there and its development is the inspiration and result of the development of other cryptocurrencies. It was founded in the year 2009 by Satoshi Nakamoto, whose identity is revealed. The current value of bitcoin is INR 1514136.15
Litecoin (LTC)
Litecoin was developed in the year 2011. The creator was Charles Lee, who was a former Google engineer. The current market value of Litecoin is INR 3934.91. It is quite similar to bitcoin and is popular as well.
Ethereum
Ethereum was founded by programmer Vitalik Buterin in 2013, he is also the co-founder of Bitcoin Magazine. The current market value of Ethereum is INR 83896.38.
Zcash (ZEC)
Zcash, another form of cryptocurrency was founded by Zooko Wilcox-O’Hearn. This crypto was developed and released in the year 2016. The current market value of Zcash is INRT 4716.53.
Stellar Lumen was created by Jed McCaleb in 2014, who is an American programmer and entrepreneur. as it is cheap it is said to be good for investment. The current market value of Stellar Lumen is INR 8.4.
Cardano
Another cryptocurrency that is taking over the world is Cardano. It was developed by Charles Hoskinson, who is also the co-founder of Ethereum. The current value of Cardano is INR 35.31.
Cons of Cryptocurrency
People are getting more and more obsessed with cryptocurrency. Here are some advantages of Cryptocurrency investments:
Protection from Inflation
It’s one of the great advantages of cryptocurrency as inflation has caused multiple currencies to make their value decline over time. Nearly everycryptocurrency, at the time of its launch, is issued with a set amount. The source code defines the amount of any coin; like, there are only 21 million Bitcoins released in the world. So, as the demand increases, its value will rise, which will keep up with the market and, in the long run, restrain inflation.
Instant and 24 Hour Accessibility
It is possible that you can spend or purchase anywhere you are, and you do not even require a system to use it. Everything can be done from your mobile device, implying that even those with limited usage of technology are still able to make their investments and make decisions in real-time. This convenience is a fundamental feature for the selection and buying of bitcoin and it is being used all over the world to give opportunities for those who would earlier have struggled to become online customers.
Self Governed and Managed
Governance and preservation of any currency are determinants for its development. The cryptocurrency transactions are collected by miners on their hardware, and they get a transaction charge as a reward for doing so. Since the miners are getting paid for it, they keep transaction records precise and updated, maintaining the honesty of the cryptocurrency and the records decentralized.
Secure and Private
Privacy and security have always been a primary concern for cryptocurrencies. The blockchain record is based on many numerical puzzles, which are difficult to decode. This makes a cryptocurrency extra secure than conventional electronic transactions. Cryptocurrencies, for better safety and privacy, use pseudonyms that are unconnected to users, accounts, or saved data that could be connected to a profile.
Ease in Currency Exchange
Cryptocurrency can be obtained using multiple currencies like the US dollar, European euro, British pound, Indian rupee, or Japanese yen. With the help of different cryptocurrency pocketbooks and exchanges, a currency can be converted into another by trading in cryptocurrency, with minimal transaction fees.
Decentralized
A significant advantage of cryptocurrency is its decentralization. The majority of cryptocurrencies are regulated by the developers using them, and the individuals who have a notable amount of the coin. The decentralization assists keep the currency monopoly free and in check so that no organization can ascertain the movement and the value of the coin, which, in turn, will keep it stable and secure, unlike currencies that are controlled by the government.
Cost-Effective Mode Of Transaction
One of the important applications of cryptocurrencies is to transfer money across borders. With the help of cryptocurrency, the transaction expenses handled by a user are decreased to a negligible amount. It does so by eradicating the necessity for third parties, like VISA or PayPal, to approve a transaction. Transactions, whether foreign or national in cryptocurrencies, are lightning-fast. This is because the verification requires very little time, as there are very few hurdles to pass.
Cons of Cryptocurrency
There are many reasons cryptocurrencies are still facing the heat from people. Some of the disadvantages of cryptocurrency investment are:
Used for Illegal Transactions
Since the privacy and security of cryptocurrency transactions are stable, it is difficult for the government to track down each user by their wallet address or keep checks on their data. Bitcoin has been used as a mode of exchanging money for a lot of illegal contracts in history, such as acquiring drugs on the dark web. Cryptocurrencies are also used by some to convert their illegal money through a trustworthy mediator to mask its origin.
No Security in Case of Loss
As with emerging technology, some use incompetence to scam, trick and steal your hard-earned bucks. This has proven to be the problem with digital currencies, so it is necessary to be informed of the security risks. With a few primary security, one can decrease the possibility of causing a loss that cannot be restored.
Conversion of Cryptocurrencies
Some cryptocurrencies can only be patronized in one or a few fiat currencies. This limits the user to convert these currencies into one of the major currencies, like Ethereum or Bitcoin, then through other exchanges, to their wanted coin. By doing so, the additional transaction fees are added in the process, requiring unnecessary money.
Adverse Effects of Mining on the Environment
Mining cryptocurrencies requires a lot of power and electricity, making it extremely energy-intensive. The greatest culprit in this is Bitcoin. Mining Bitcoin requires advanced computers and enormous energy. It cannot be done on regular computers.
No Refund or Cancellation Policy
If there occurs a dispute between involving parties, or if a person wrongly transfers funds to the wallet address, they cannot be recovered by the sender. As there are no rebates, one can generate a transaction whose product or services they never received.
Prone to Market Fluctuations
There are numerous ways that one can use cryptocurrencies, but a lot of people utilizing them at the moment are solely using them as an investment. While eager users are using their digital money to purchase tickets to sporting events, gamble online, or wait for the market fluctuations to work in their favour. Treating your bitcoins as any other commodity may be the way to initiate a more widespread understanding and trust in the new currencies.
Conclusion
With recent developmental and rules regarding cryptocurrency in every country. People are getting more and more interested in them. Of course, there are cons of cryptocurrencies that make people question themselves before indulging in them. However, with technology taking over the world, people cannot deny the pros of cryptocurrencies. It is just a matter of time before cryptocurrency will take over the world.
FAQs
What are the advantages of Cryptocurrency?
The advantages of Cryptocurrency are that it is decentralized in nature, it is not affected by inflation, and transferring money across borders is easy.
What are the disadvantages of Cryptocurrency?
Some of the disadvantages of cryptocurrency are, It is used for money laundering, it is highly volatile and it has high-security risks.
Is it good to invest in Cryptocurrency?
Investing in crypto can be profitable but it is risky too, as it is a highly volatile currency and is prone to market fluctuations.
Initial media announcements declared that the rate of TDS on Virtual Digital Assets (VDA) has decreased to 0.1 percent. However, in a late evening circular, the government debunked prior reports. They illustrated that the rate of TDS on Virtual Digital Assets will remain to be 1 percent. This will be applicable from July 1, 2022.
Tax Deducted at Source or TDS is a method to acquire tax on revenue, asset deals, or dividends. According to the Income Tax Act, an individual making a payment has to pay TDS if the payment exceeds a certain limit. TDS is regulated by the Central Board of Direct Taxes (CDBT). This falls under the Department of Revenue.
Government Plans on TDS
CBDT on Wednesday stated that the TDS on virtual digital assets will continue to be 1 percent. This was clarified when some media reports stated that the TDS rate on VDAs has dropped to 0.1 percent.
“Some media reports have come to the notice of CBDT claiming that the rate of TDS on Virtual Digital Assets(VDA) has been reduced to 0.1%. It is hereby clarified that there is no change in the rate of TDS on VDA, which continues to be 1%,” read the official clarification.
Some media reports have come to the notice of CBDT claiming that the rate of TDS on Virtual Digital Assets(VDA) has been reduced to 0.1%. It is hereby clarified that there is no change in the rate of TDS on VDA, which continues to be 1%.@FinMinIndia
The government had regulated a 30 percent tax deduction on the gains of crypto assets. With guidance from organizations (the World Bank and IMF) and stakeholders, the centre will shortly conclude a conference paper on cryptocurrencies, Economic Affairs Secretary Ajay Seth said last month.
What Does the Law on TDS on VDA, Crypto Say?
On June 22, 2022, it was issued that TDS on Virtual Digital Assets and cryptocurrencies will continue to be 1 percent. As per section 194S of the Income-tax Act, any VDA buyer is obliged to deduct 1 percent of the amount paid to the seller (resident Indian).
Moreover, the tax rate will be higher in the absence of the PAN. Adhering to the non-availability of the PAN, the tax imposed on VDA (at the time of transfer) will be 20 percent. Besides, if a person has not filed their income tax return, the TDS will be deducted at a 5 percent rate.
When Will TDS on VDA, and Crypto Be Applicable?
As per CBDT reports, TDS on Virtual Digital Assets and Cryptocurrencies will be applicable if:
The sum paid on a single or aggregate basis by the specified person (buyer) crosses 50,000 INR during the financial year; or
The sum paid on a single or aggregate basis by anyone other than the specified person (any other buyer) crosses 10,000 INR during the financial year.
Who is a ‘Specified Person’?
An individual or HUF (Hindu Undivided Family) who does not have any income under the head ‘profit and gains from business and profession’
An individual or HUF having income under the head ‘profit and gains from business and profession’ whose total sales/gross receipts/turnover from business does not exceed Rs 1 crore – or in case of the profession does not exceed Rs 50 lakh.
Wadhwa says, “An individual (not having income from business and profession) will be required to deduct tax at the time of buying VDA, crypto if the payment exceeds Rs 50,000. An individual (having income from the business profession) will be required to deduct TDS if the turnover of business or profession in the previous financial year exceeds Rs 1 crore or Rs 50 lakh respectively.”
“The tax will be deducted if the payment made at the time of buying VDA exceeds Rs 50,000. Any other person (for example Company) will deduct TDS at the time of buying VDA, crypto if the payment exceeds Rs 10,000.”
NOTE: The tax has to be paid after deducting GST and other charges. Sunil Badala, Partner and Head, Financial Services, Tax, KPMG in India says, “It has been clarified that where tax is deducted under the VDA provisions no tax shall be required to be deducted considering the provisions regarding the purchase of goods (without getting into the aspect whether VDAs are goods or not). The tax is to be deducted only on the net amount excluding the charges and GST.”
Who Has to Pay TDS?
After July 1, any individual who purchases a Virtual Digital Asset, such as a non-fungible token (NFT) – or any other cryptocurrency has to pay 1 percent TDS.
“The new section mandates a person, who is responsible for paying to any resident any sum by way of consideration for transfer of a virtual digital asset (VDA), to deduct an amount equal to 1% of such sum as income-tax thereon,” read the circular by CBDT.
The law applies to non-resident Indians (NRIs) as well. If they purchase VDAs from an Indian, they are required to pay 1% TDS. However, if an NRI buys through another NRI, they need not pay the tax.
Role of Third Party
The role of a third party would be to deliver a declaration (in Form No. 26 QF) once every three months. They need to provide the declaration for all trades of the quarter on or before the expected date (according to the income-tax regulations).
The Exchange would also be needed to provide its income tax return. All of these transactions must be incorporated in such returns. If these requirements are catered to, the buyer will not be pressed against any charges under section 201 of the Act for these agreements.
What if the Payment is Made in Kind or by Exchanging Two VDAs?
If a person makes the payment in kind (by providing certain services), they still need to pay 1% TDS. Further, if they pay through an exchange of VDA, the tax will still be deducted. For instance, ‘X’ buys Ethereum from ‘Y’ in exchange for Bitcoin. Likewise, the tax will be deducted by both ‘X’ and ‘Y’. Both the parties need to pay their respective taxes.
Conclusion
Virtual Digital Assets have achieved enormous popularity in current times. Accordingly, the volumes of trading in cryptos and digital assets have elevated significantly. The Central Board of Direct Taxes (CBDT) handed out comprehensive guidelines on TDS for cryptocurrencies and Virtual Digital Assets. The tax rate continues to be 1 percent, applicable onwards July 1st, 2022.
FAQs
How TDS will be deducted on cryptocurrency?
1% TDS is applicable on payments toward cryptocurrencies beyond Rs 10,000 in a financial year.
Is TDS applicable to assets?
Yes, TDS is applicable to any earnings made by your fixed assets.
With the growing digitalization, a famous crypto trend is moving along. And that’s NFTs, Non-Fungible Tokens. NFTs are shining all over the internet. Through this, many creators and investors have made remarkable figures that have literally changed their lives.
NFTs began with 69.3 million sales, which broke over the internet and transformed the perspective of people towards these digital collectibles. Today, numerous people are getting on with NFTs. They are buying, selling, and investing tons in order to get the fancy outcome.
With such immense popularity of these crypto – NFTs, people are researching it more vibrantly. And on that note, we have presented this article carrying all the requirements information and ways to make money from NFTs. The world is growing and in order to keep up with it, you need to be smart and advanced. So, let’s get started with how to make money from NFTs.
What are NFTs?
Number of NFT Users in 2021
Before we move further with the ways to make money, let’s discuss what are NFTs?
NFTs are known as a collectible digital asset that carries value as cryptocurrency and art or culture. NFTs are elaborated as Non Fungible Tokens. NFTs are quite similar to Bitcoin and Ethereum. But, it’s a very distant form of crypto that can not be exchanged aka non-fungible.
The most significant thing about NFTs is that it is formed to store extra information, equalized above a pure currency and makes it into the vicinity. NFTs are classified into various exclusive parts, plus they can be formed in digital art form or music files, that can be easily sorted digitally and can carry a value. For example, you will get a JPG file instead of getting a physical oil painting on canvas.
Let’s move forward to understand how to make money with NFTs.
If you are some sort of creator or artist and you want any of your work to monetize, then you can use them as NFTs. Basically, you create something and sell it as NFTs. Through this, you will increase your income. You can create original memes, music, audio clips, digital art, or any other.
This is a great chance for you to increase your income through your work as NFTs. Go, Get started with it!
NFTs Stake
In crypto, you can safely keep your digital assets in the form of a stake and allocate them to only those who are willing to manage their upkeep.
As in return, you will be rewarded with some share of the stake. Through this, you can win tons of rewards and inducements on numerous famous websites just by staking your NFTs.
Trading NFTs
NFTs Trading
Among the numerous ways, trading NFTs are quite popular. You can easily trade NFTs by selling and buying them in profitable deals. In fact, one of the creators has made 1,000 times more than their work’s initial price.
Although all NFTs don’t come out with the counterpart. As some of them hold a worth even higher than a million while some are as good as worthless. That’s why before getting started with your NFTs, you need to do a thorough analysis on where to trade and how.
NFTs also come with various games with advanced technology. Although NFTs games aren’t that much popular but with high potential as these have, they will rise pretty soon.
The gamers invest with tremendous fortune into virtual gaming. If any gaming company sells their potential game as NFTs, then this will bring enormous profit to the gamers as well as gaming companies.
Some of the NFTs game developers are known to be with the biggest ambitions towards the non-fungible tokens. Its in-game commodities are even more fascinating and are considered the future of the whole non-fungible technology. NFTs games carry a great future in hand with immense technology.
NFTs are known to have dozens of applications in several companies that hold the potential to transform the world. Therefore, investing in any of the NFTs startups is a great indirect way to earn money from NFTs crypto.
NFTs startups are growing vibrantly and are proven extremely innovative as well as promising. That’s why investing in these would bring great results to you.
Conclusion
In the upcoming future, NFTs crypto is going to rise even more brightly. It comes with various distinct applications that carry great potential in itself. And this is just the beginning of it. NFTs carry great potential but still, in the market, it does not have that much recognition and is very underrated. These are built with huge advancements and soon, they would be on the top.
Those who know its potential and capabilities are earning enormously. Celebrities are also promoting NFTs. These are making tremendous profits through NFTs. There are various ways through which you can earn by NFTs. And as we have listed those in the article, you’d find it very intriguing.
There’s still a long run for crypto, but with such growth and development, people are getting more and more attracted towards it. Stay tuned for more updates!
FAQs
What are NFTs?
NFTs can be used to represent items such as photos, videos, audio, and other types of digital files.
What is the best marketplace to sell NFTs?
Some of the top NFT Marketplaces are:
OpenSea
Rarible
SuperRare
Can anyone sell an NFT?
Yes, anyone can create and sell NFTs.
How to buy and sell NFTs for profit?
The most popular way is to buy an NFT at a low price and then sell it at a higher price for a profit.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved byCoinbase.
With the passage of days, currencies have evolved. The physical currency that we use today, has also undergone a list of transformations in terms of the denominations, metals used, shapes and sizes of the currencies, and more. This currency that is presently in use has a physical form, but they also stay with us, within our wallets, payment apps, and banking accounts, digitally.
The crypto-currency is a step ahead of these currencies that are in vogue today around the world. A cryptocurrency or crypto can be summed up as a collection of binary data that is designed to work as a medium of exchange where the ownership records of the individuals are managed in computerized databases. These records are stored in the form of ledgers secured with strong cryptography, which seals the transaction records, controls the creation of additional coins, and verifies the transfer of the ownership of coins.
The cryptocurrencies, as they work, also need cryptocurrency exchanges, to empower the users to trade these currencies for other assets, including digital and fiat currencies. Coinbase works in a similar way.
Coinbase is an American company that operates an entirely online cryptocurrency trading network with no physical headquarters. The company was founded in 2012 by Brian Armstrong and Fred Ehrsam, and as of November 2021, it is the largest cryptocurrency exchange in the United States by trading volume.
The largest cryptocurrency exchange in the United States, Coinbase is a San Francisco-based business, which was established in 2012. It has weathered occasional Bitcoin bubbles to become the go-to place for Americans looking to purchase so-called digital gold and other blockchain tokens. Coinbase is one of the most prominent digital finance upstarts challenging Wall Street, led by Brain Armstrong, a former Airbnb engineer.
Coinbase is an online platform that enables merchants, consumers, and traders to transact in digital currencies. It allows users to build their own cryptocurrency wallets and use their bank accounts to buy and sell cryptocurrency. In addition, the firm provides a range of merchant payment processing systems and tools to support high-trafficked websites on the internet. The company already has a sizable client base in a market that was once dominated by crypto asset enthusiasts.
Coinbase has increased in popularity and become the on-ramp for the mainstream cryptocurrency investors by positioning itself as a safe haven for crypto asset exchanges. Unlike many of its competitors, it has never been hacked. Coinbase has also adhered to existing legislation and law enforcement with zeal, putting it on the right side of the law — another significant advantage in a sector in dire need of regulatory oversight.
Coinbase – Target Market Audience
As Coinbase is a crypto-exchange platform, the target audience of Coinbase is primarily the millenials, ranging between 25-45 years from low-tech to high-tech individuals from around the globe.
Coinbase – Founders and Team
Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam.
Founders of Coinbase – Brian Armstrong and Fred Ehrsam
Brian Armstrong
Brian Armstrong is known as the Co-founder and CEO of Coinbase. Armstrong is a Rice University alumnus, who completed his Bachelor’s and Master’s degree in Computer Science, Economics and Computer Science respectively. Before founding Coinbase, Armstrong was an Enterprise Risk Management consultant at Deloitte & Touche, a CEO, and Founder at UniversityTutor.com, and a Technical Product Manager at Airbnb.
Fred Ehrsam
Fred Ehrsam is a Co-founder of Coinbase. Ehrsam is an alumnus of Duke University, from where he obtained a BS in Computer Science and Economics. He was previously a Trader at Goldman Sachs, before being a Founder of Coinbase, who is now also serving as a member of the Board of Directors. Ehrsam is also a Co-Founder of Paradigm.
The company recently hired Snap India Head Durgesh Kaushik. The former CEO of Snapchat was appointed as the Senior Director for Market Expansion of Coinbase, effective from May 9, 2022. The company is strongly looking forward to its expansion in countries like India, which is a significant part of the reason of this appointment. Besides, Coinbase is also striving to debut in many other markets as well in the Asia Pacific, Africa, Europe, the Middle East, and the Americas.
Coinbase has a considerably large team, which consists of more than 3K employees.
Coinbase – Startup Story
Coinbase was initially created by Brian Armstrong, a former Airbnb engineer, in July 2011 and was started to be funded by Y Combinator. After co-founder Fred Ehrsam, a former Goldman Sachs trader, joined the group, Coinbase finally launched its services to buy, sell, and store bitcoins in 2012.
“Armstrong and Ehrsam first met on Reddit and shared a bullish view on bitcoin and the cryptocurrency space as a whole,” said Ehrsam on Twitter. After this, they decided to launch Coinbase with the “mission” to “make crypto easy to use.”
Ben Reeves, a British programmer and co-founder of Blockchain.info, was supposed to be a member of the Coinbase founding team, but he split with Armstrong shortly before the Y Combinator funding round over their conflicting views on how the Coinbase wallet should function.
The company began offering services to buy and sell bitcoins via bank transfers in October 2012.
Coinbase is a cryptocurrency exchange network that is entirely online, as the name implies. The company’s name was influenced by Coinbase transactions, which are special transactions that put cryptocurrency into circulation in proof of work cryptocurrencies.
Coinbase’s Company Logo
“Welcome to the Future of Money,” read the slogan at the top of Coinbase’s website in 2013. This was changed to “Buy and Sell Digital Currency” in 2017.
Coinbase – Products and Services
Coinbase offers both retail and institutional investors cryptocurrency products, as well as other cryptocurrency-related services.
The following are some of the company’s retail trade products:
Coinbase is a user-friendly app for purchasing, storing, and exchanging cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin.
Coinbase Pro is a sophisticated asset trading platform that lets users exchange a wide variety of digital assets.
Customers can use Coinbase Wallet to access decentralized crypto apps (dapps) through a dapp browser.
Coinbase’s products for institutional traders include:
Coinbase Prime, a platform dedicated to institutional customers.
Coinbase Custody is a collection of tailored services for businesses that hold bitcoin and other cryptocurrencies on the Coinbase platform. As part of the program, Coinbase members have access to an SEC-qualified custodian, third-party auditing, and financial reporting confirmation.
Other cryptocurrency-related products offered by the business include:
USD Coin is a digital stablecoin that allows customers to swap US dollars for a cryptocurrency with the same value but faster trading.
Customers can spend cryptocurrency wherever Visa cards are accepted with the Coinbase Card, a debit Visa card.
Coinbase Commerce, a retailer payment program.
Using the company’s API, developers and merchants can build applications and accept payments in both digital currencies. As of 2018, the cryptocurrency wallet was available in 190 countries, and the company’s buy/sell trading functionality was available in 32 countries. Coinbase has a mobile app for both iOS and Android.
Coinbase – Vision and Mission
Coinbase’s mission statement says, “our mission is to build an open financial system. We’re doing this to increase the amount of economic freedom in the world, a measurable concept that can be greatly accelerated with the adoption of cryptocurrency.”
“We started in 2012 with the radical idea that anyone, anywhere, should be able to easily and securely send and receive Bitcoin“, says the Coinbase website, which can be considered the vision of Coinbase.
Coinbase – Business Model
The business of coinbase is built around the B2C and B2B models. The company targets two primary customer groups:
Those who use the platform for buying and selling digital assets with the help of the wallet that Coinbase (B2C) offers.
The next are the merchants, who use the Coinbase platform (B2B) to store their digital assets (transferred by consumers) as a kind of payment from their customers.
Coinbase’s network is used by both retail and institutional customers to buy, sell, and shop cryptocurrencies like Bitcoin and Ethereum. Customers can use the Coinbase, Coinbase Pro, and Coinbase Wallet apps, as well as the company’s websites, to contact them. Coinbase had approximately 56 million retail users as of Q1 2021.
As an online marketplace, Coinbase allows the consumers to trade in numerous cryptocurrencies (over 20 different cryptocurrencies), which they can buy and sell like:
Bitcoin
Ether
Litecoin
XRP and many others.
Furthermore, Coinbase also boasts of the Coinbase Pro and Prime platforms that help individuals and institutional clients to trade in a more sophisticated manner. Besides, the traders can also plug into the Coinbase API in case they want to retrieve real-time market data and develop programmatic trading bots.
Along with the Coinbase trading platform, also known as exchange wallet, the Coinbase customers can also choose to use the Coinbase Wallet, often referred to as the crypto wallet. The latter is designed as a standalone app via Android or iOS and is more secure than the exchange wallet. Moreover, the wallet facility also enables the users to exchange goods and services effortlessly.
Along with the trading platform that Coinbase offers, the company also brings in a whole suite of other products both for the businesses and the consumers.
Furthermore, Coinbase also offers a wide range of courses on cryptocurrencies, such as Dai or EOS. The platform grants these currencies as rewards for the users who manage to successfully complete the courses.
Coinbase also helps the users order a physical VISA debit card called the Coinbase Card, via which they can spend their earned cryptocurrencies and can also track their spending.
Coinbase is hailed as the largest crypto-exchange by trading volume in the United States, and has seen huge growth already since it was founded in June 2012 by Brian Armstrong and Fred Ehrsam. When the started, in around 2012, the worth of a bitcoin was $6, and the knowledge of the same was limited to only a “few nerds on the internet”, tweeted Ehrsam. From that to today’s awareness of bitcoin, Coinbase has a huge hand in it.
Over the first two years in business, Coinbase grew to be a company with 1000+ employees, which is a huge milestone indeed.
The company has rolled out an NFT marketplace in beta, went the May 25, 2022 reports. What was announced 7 months earlier, in October 2021, the marketplace for the non-fungible tokens (NFTs) is now available in beta version.
IT’S ALL HAPPENING!
We’re super excited to announce we're opening @Coinbase_NFT Beta up to everyone.
Coinbase earns its revenue from a range of different sources, as mentioned in the above section of the Business Model.
Trading transaction fees and services such as storage and analytics accounted for about 90% of the Coinbase revenue (as of 2020). Customers are paid transaction fees (roughly 0.5%) based on the size of their trades, with smaller trades incurring lower fees.
Coinbase takes a share of any bitcoin trade, according to its website. It made $1.28 billion in revenue in 2020, with transaction fees accounting for 86% of that total. In 2020, Coinbase was responsible for roughly 0.57% of the $193 billion in cryptocurrency trading value.
Sales will rise by 139% in 2020, according to Coinbase’s prospectus, from $534 million in 2019. From about $80 billion in 2019, Coinbase’s trading volume increased nearly 142% in 2020.
In 2020, Coinbase profited $322 million, compared to a $30 million loss in 2019. Yet faster growth was seen in the first quarter of 2021. Coinbase posted $1.8 billion in sales for the year, up 906% from $179 million in the first quarter of 2020. The trading volume in the first quarter was $335 billion, which was 60% higher than the entire year of 2020. In the first year, Coinbase anticipates a profit of $730 million to $800 million.
Coinbase – Funding and Investors
Coinbase has raised a total of $567.3M in funding over 17 rounds. Here’s a list of the last 12 rounds that the company has seen.
Date
Round
Amount
Lead Investor
Jan 18, 2021
Secondary Market
$20M
–
Oct 1, 2020
Venture Round
–
–
Jan 1, 2019
Secomdary Market
–
–
Dec 21, 2018
Secomdary Market
$22M
–
Oct 30, 2018
Series E
$300M
Tiger Global Management
Aug 1, 2018
Venture Round
–
–
Feb 1, 2018
Venture Round
–
–
Aug 10, 2017
Series D
$108.1M
IVP
Jul 7, 2016
Series C
$10.5M
Mitsubishi UFJ
Jan 13, 2015
Series C
$75M
DFJ Growth
Jan 13, 2015
Series C
–
–
Dec 12, 2013
Series B
$25M
Andreessen Horowitz
Coinbase – Investments
Coinbase has made many investments to date. Here are some of the prominent recent investments of Coinbase:
Coinbase has acquired 22 organizations, as of May 5, 2022. BtcTurk was the last company acquired by Coinbase, which came in on April 21, 2022. Here’s a list of the prominent Coinbase acquisitions to date:
Aquiree Name
Date
Amount
About Acquiree
BtcTurk
Apr 12, 2022
–
A bitcoin and cryptocurrency exchange based from Turkey that utilises BTC trader’s white label platform
FairX
Jan 12, 2022
–
A futures products manufacturing company that caters to the demands of the active retail investors
Unbound Security
Nov 30, 2021
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A security company that extends protection for cryptographic keys and credentials, based in New York
BRD
Nov 25, 2021
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Zurich-based company that designs, develops and markets financial software
Agara
Nov 2, 2021
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Based in Bengaluru, India, Agara helps to automate end-to-end customer support operations.
Zabo
Aug 4, 2021
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Zabo helps in connecting a crypto wallet with an application via codes.
Skew
April 30, 2021
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skew is a platform that builds cutting-edge financial infrastructure for the digital assets space.
Bison Trails
Jan 19, 2021
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Bison Trails allows the user to run secure infrastructure on multiple blockchains.
Tagomi
May 27, 2020
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Tagomi is a cryptocurrency trading platform to provide clients with trade better execution so they can keep more of their returns.
Routefire
Jan 7, 2020
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Routefire is a provider of trade execution infrastructure in the digital asset space.
Neutrino
Feb 19, 2019
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Neutrino is focused on developing a comprehensive platform for analyzing, tracking & investigating blockchain and other virtual currencies.
Blockspring
Jan 17, 2019
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Blockspring is a place to create, share, and run functions.
Distributed Systems
Aug 15, 2018
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Distributed Systems is a digital identity startup and a full-stack machine intelligence.
Keystone Capital Corp.
Jun 6, 2018
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Keystone Capital Corp. operates as a financial-services firm.
Venovate
Jun 6, 2018
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Venovate facilitates the discovery, evaluation, and purchase of private company stock and other alternative assets.
Digital Wealth
Jun 6, 2018
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Digital Wealth is a fee-only financial planning and investment management firm.
Paradex
May 23, 2018
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Paradex operates as a crypto trading relay platform.
Coinbase was up against existing players as well as new decentralised exchanges. The company has struggled to scale up, with its support staff handling a backlog of queries about, among other items, exchange outages and money transfer delays. Finally, since crypto asset prices directly affect Coinbase, it must exercise caution if the market continues to decline.
Coinbase has experienced internal issues as a result of poor execution. Despite a substantial increase in its user base, Coinbase has struggled to scale, as shown by recent events concerning the listing of bitcoin cash.
Faced with the aforementioned obstacles, Coinbase intends to expand its core businesses while still exploring new opportunities.
According to Coinbase’s “Digital Asset Framework,” the company plans to add more assets to its network in order to diversify its trading. This would benefit the company’s bottom line while also encouraging a huge consumer base to try out new blockchain applications. As a result, adding assets is both a hedge and a bet on the sector’s long-term viability.
The goal of Coinbase is to assist all assets that meet their technical specifications and adhere to all applicable laws. According to Coinbase, customers around the world will eventually have access to at least 90% of the overall market cap of all digital assets in circulation through its platforms.
FAQs
What does Coinbase do?
Coinbase is an American company that runs a cryptocurrency trading network that is based entirely online.
Who founded Coinbase?
Brian Armstrong and Fred Ehrsam are the founders of Coinbase.
How does Coinbase make money?
Trading transaction fees and services such as storage and analytics accounted for about 90% of the company’s revenue. Customers are paid transaction fees (roughly 0.5%) based on the size of their trades, with smaller trades incurring lower fees.
What companies do Coinbase compete with?
Coinbase’s top competitors include River Financial, OST.com, Blockchain, Binance, Bittrex, Bitfinex, Kraken, Paxos, Xapo, Bithumb and Bibox.
Cryptocurrency is creating a lot of buzz these days. It is getting popular and gaining acceptance at various levels. In India, cryptocurrency cannot be labelled as completely legal or illegal. It is kind of a grey area. So, analyzing the cryptocurrency industry in India becomes crucial.
In this article, we will discuss about cryptocurrency industry in India. We have brought you the cryptocurrency market insights, legal issues, and its future in India.
So let’s begin…
“Bitcoin is exciting me because it shows how cheap transactions can be” -Bill Gates
Cryptocurrency is a decentralized digital currency based on a blockchain platform that has been named crypto as it verifies transactions through encryptions. However, it is not any normal digital currency that you may use to pay your bills.
There are two major differences. First, it is decentralized i.e. it is not controlled by any government or third party. This means that all the transactions are made independently not relying on banks. Thus, the value of cryptocurrency does not get affected due to any geopolitical problem.
Second, it is only available in a limited amount i.e. the amount of crypto of any particular cryptocurrency is predetermined. It will never change. For example, the limit for bitcoin is 21 million. So, there will always be only 21 million bitcoins in the world.
Cryptocurrencies are generated through a process known as mining. Thereafter, they can be stored or spent through crypto-wallets. These wallets let you exchange crypto for any particular currency. They also allow you to make payments at places where cryptocurrency is accepted.
Some people like Bill Gates and Elon Musk support cryptocurrency. As per them, it is much better and more secure than physical money. Also, it holds great value for the future.
On the other hand, some people like Warren Buffett and Ajay Banga, consider it a bane to the world economy. They feel that cryptocurrency is the platform for criminal activities.
This actually makes us think is it actually a safe platform? This is especially important when no government or bank is involved for guarantee.
So, let’s take a look at its safety measures.
The transfer or purchase of cryptocurrency is guarded by cryptography. This means that advanced coding is used to safeguard the storage and transaction data. Thus, it is almost impossible to hack this currency. This makes crypto quite a secure platform.
Moreover, blockchain technology maintains distributed ledgers across a network of computers. The records of transactions are automatically updated in the systems of currency holders. This enhances traceability and visibility.
Anyways, cryptocurrency is not a tangible asset. However, it can be called a digital asset. Its applications are still being explored and expanded in financial terms.
Crypto charts represent the price history, volumes, and time intervals of the digital currencies, in graphical format. These are meant to help investors in making better decisions by picking equities and commodities.
Usually, a chart known as the Japanese candlestick chart is used by crypto traders. The colour, shape, and size of the candles in the chart are used as indicators. For example, a red candle is an indicator that the closing price was lower than the starting price. Similarly, a green candle represents that the closing price was higher than the starting price. The specified time frame is demonstrated in the graph.
Analyzing the Crypto Industry in India
As per a report by the Economic Times almost 20 million people invested in cryptocurrency in India, in 2021. Currently, Indian investors hold cryptocurrency worth about $5.3 billion.
The bitcoins touched their all-time highs in 2021, touching a mark of $63,729 on April 3. This has encouraged many small investors from India to focus on cryptocurrency. If the experience and sources of these investors are to be believed, the future of money lies in cryptocurrency.
Bitcoin was the first and most popular cryptocurrency, launched in 2009. It was later followed by other cryptocurrencies named Ethereum, Solana, Dogecoin, Polygon, etc.
In India, CoinSwitch Kuber is the biggest cryptocurrency exchange platform. It has recently touched 14 million users and registered a rise of 3500% in the transaction volume. The leading exchange apps WazirX and BitBns have also witnessed a growth of 1735% and 849%, respectively.
This data certainly speaks a lot in itself. The popularity of cryptocurrency is rising in India and appears to keep rising in the future as well. Also, owing to more number of buyers the demand for cryptocurrency is increasing. This has led to a several-fold hike in its price.
The cost of a bitcoin was about $0.008 – $0.08 in 2009 when it was launched. However, the present cost of a bitcoin is about $40,0000. Further, looking at the pace at which its value is increasing, more people are turning towards this form of investment.
Bitcoin Price
Is Cryptocurrency Legal in India?
On April 6, 2018, RBI imposed a ban on trading in cryptocurrency. However, on March 4, 2020, Supreme Court quashed this ban. Post this decision, RBI has taken back its earlier circular and has urged the banks to follow the decision of the apex court.
The Reserve Bank of India is responsible for managing currency and money transfers in the country. So far, the bank has supported the ban on investment in cryptocurrency. As per RBI, these investments would adversely affect macroeconomic stability.
As per RBI Deputy Governor, T Rabi Sankar, cryptocurrencies do not pass the basic scrutiny. Therefore, it will never be legalized in India. On the question of advanced economies not banning crypto, he said, most cryptocurrencies are valued in dollars and thus, do not pose any threat to convertible currencies of these countries. However, some people refer to it as the statist approach. It is assumed that if private cryptocurrencies are launched in India, RBI would lose the hold.
Presently, RBI is also set to launch their Central Bank Digital Currency (CBDC) in 2022-23. It will be a digital legal tender issued by the Central Bank. It will be the same as fiat currency, only in a different form. It will be exchangeable with fiat currency.
In Union Budget, 2022, cryptocurrency was given legal sanction, virtually. While presenting the finance bill, Finance Minister Nirmala Sitharaman did not refer to crypto as a “currency”. However, she someway gave it a legal status by labelling it as “digital assets”.
She has stated that this decision was taken in light of the phenomenal increase in the frequency and magnitude of transactions. This has ended the uncertainty over the future of cryptocurrency in India.
A heavy tax of 30% has been imposed on the income generated through crypto transactions. Also, this tax cannot be claimed for deduction. In addition, to keep track of transactions 1% TDS will be charged on the payments made using digital assets.
However, since this declaration, a number of questions have been raised. This is because the budget does not talk about regulations of crypto exchanges or investor protection. Also, how can government impose a tax without bringing the Cryptocurrency bill to legalize it?
All-in-all, the government has still not cleared the legal status of cryptocurrency in India.
Crypto Industry Market Size India
Future of Cryptocurrency in India
As per Purushottam Anand, Founder of blockchain law firm Crypto legal, “Taxing income from cryptocurrencies does not necessarily and explicitly legalize cryptocurrencies because income tax is not concerned about the manner or means of acquiring the income.” However, tax provisions for cryptocurrencies can be a step towards legalization.
Prime Minister Modi, in his speech at the “Summit for Democracy” organized by the U.S in 2021 has stated that world leaders must jointly shape global norms for emerging technologies like social media and cryptocurrency. It would help in utilizing these to empower democracy.
Also, while speaking at the virtually organized India-Central Asia summit, Prime Minister has urged a common approach to cryptocurrency.
Further, the general approach of India is going with the majority. As the majority of countries especially advanced economies are favouring this innovation, it is expected that India too will legalize it in the future.
Conclusion
The investment in cryptocurrency has enhanced several folds in India since last year. Even though the legal status is still unclear, it appears that the investors are not bothered by it.
Further, the cryptocurrency banning bill, due for the last winter session, has not been proposed by the government. Moreover, Finance bill-2022 has imposed a 30% tax on the income generated through crypto investment. This appears to be a good sign for the future of cryptocurrency in India.
Overall, it can be said that although the cryptocurrency industry in India is expanding tailing uncertainties cannot be denied.
FAQs
Is cryptocurrency legal in India?
Crypotuccureny is not a legal tender in India nor it is banned by the Indian government.
Is crypto taxable in India?
Yes, income from Crypto and NFTs are taxed at 30%.
The world has now taken the form of a digital avatar. We are surrounded by technologies, artificial intelligence, digital currency, social media, you name it, and the world has it. To be honest, it is not the same world that it was 20 years ago; it has gone through a bewildering change.
Such is the effect that now currency has also turned digital. Many people are aware of blockchain technology. Yes, the one on that cryptocurrency uses. Blockchain technology has created a way where one can exchange their currency without a help of the government or a mediator.
Apart from cryptos, NFT is also dependent on blockchain technology. The market of NFT saw a sudden rise in the year 2021 and it still growing big. India also seems to be a part of this growth. Many Indian brands are launching their NFTs. In this article, we will talk about the Indian brands that have decided to step their foot in the industry and launch NFTs. Here are the top brands that are launching their NFT collection.
As the value goes up, heads start to swivel and sceptics begin to soften. Starting a new currency is easy, anyone can do it. The trick is getting people to accept it because it is their use that gives the “money” value. – Adam B. Levine
NFT, also known as Non-Fungible Tokens are a form of assets operating on blockchain that can be sold and traded. They have unique identification codes and metadata through which, they can be differentiated.
Unlike cryptocurrency, NFTs are unique and they don’t hold the same value as cryptos. Single crypto is equal with another, that’s not the case with NFTs. Each of the tokens is unique and has a different identity that cannot be transferred or exchanged like other assets.
The craze of NFT is increasing day by day, anything can be converted into NFTs like art, videos, song and others.
Why are Brands Launching NFTs?
Brands are focusing on the NFT industry now, and they are doing it rigorously to attain some of its benefits. Some of the reasons why brands are launching NFTs are:
Through NFTs, brand awareness will increase as it is willingly giving a unique experience to its customers. This also increases the loyalty of the customers towards the brand
With the help of NFTs, brands can also fulfil their social responsibilities and improve their reputation in front of the world by supporting charities with the income from NFT and helping struggling artists by asking them to create art and give them the exposure that they needed through the brand.
Once the brand enters into the NFT marketplace, it will get recognition which will lead to an increase of interest for the brand in the mind of the general public.
Top Indian Brands Launching NFT
T-Series
T-Series is an Indian music record label and film production company that was founded in the year 1983 by Gulshan Kumar. It focuses on producing Bollywood music and pop music. T-Series is India’s biggest music label as it holds 35% shares of the Indian Music Industry.
After conquering the music industry, T-Series is now set to enter the NFT market. T-Series has decided to collaborate with Hefty Entertainment; a subsidiary of Hungama Digital Media has decided to launch NFTs for their films.
Films like ‘Bhool Bhulaiyaa’, ‘Aashiqui 2’ and the upcoming movie ‘Radhe Shyam’ are on the list of NFT drops. T-Series is set to provide money can’t buy experience to their NFT buyers by this new step.
Hindustan Times
An Indian English- Language Daily newspaper, Hindustan Times founded in the year 1924 and is operating in the nation for 98 years. The company was founded by Sunder Singh Lyallpuri and it is one of the most circulated newspapers in the country.
Hindustan Times is getting to enter the Web 3.0 realm and is, therefore, has decided to launch NFTs. These NFTs will include their original historic creative that was published by the newspaper under their banner of HT Timeless Token.
HT Timeless Tokens
Some of India’s iconic moments have been witnessed by Hindustan Times and they have been captured in their historic creative sections. NFT is being launched by the brand, this way the customers can keep the historic moments with them by buying the NFTs, as they are being digitised. These tokens can be brought with the help of cryptocurrency and Fiat currency.
MG Motor India
The automobile manufacturer company is the Indian subsidiary of Chinese automobile manufacturer SAIC Motor and they are marketed under the British MG marque. MG Motor India was established in 2017 and started its journey in 2019 and now has over 1000 employees working for it.
MG Motor India has become the first carmaker in the country to launch its NFTs. It will launch 1111 units as its first collection. For any MG transaction, MG Motors will sell its NFTs through KoineArth’s NgageN platform and through this platform only they will introduce their first collection of NFT where customers can buy it.
Tech Mahindra
Tech Mahindra is an Indian Multinational IT company founded in the year 1986 by Anand Mahindra. It comes under India’s top 5 IT firms. The company has now decided to explore the NFT industry and will launch the NFT marketplace, their main aim is to give a platform to celebrities and creators to present their art and memorabilia in a digital form.
They are partnering with Mahindra & Mahindra and will be producing digital collectables which will then be sold on the NFT marketplace platform of Tech Mahindra.
Viacom18
Viacom18 is an Indian entertainment network; it was founded in the year 2007, it was a joint venture between Paramount Global and TV18. Various Indian channels are under Viacom18. Viacom 18 has decided to be a part of the NFT market.
Viacom18 has launched its NFT; it has gone with its first collection of 3013 tokens on 14th February 2022. One can find the tokens and can buy them from the marketplace created by Viacom18, Fullyfaltoonft.com.
One can find various ranges of digital collectables based on pop culture. The digital artworks will be inspired by popular Viacom18 shows like ‘Kaisi Yeh Yaariyaan’, ‘Bakra’ and others.
Many brands are using NFT as a part of their marketing strategy. Through this, the brands promise to provide its customers with a unique experience. It is a new way to engage with their customers and a new way to generate revenue. With the growing trend, it seems that NFT is here to stay and it’s only a matter of time before all big brands will start exploring this market.
FAQs
Are NFTs popular in India?
Yes, the NFTs craze has entered India and many people are interested in it. Many Bollywood celebrities are also launching their own NFTs which explains its success.
What is the best NFT marketplace?
OpenSea, Axie Marketplace, CryptoPunks, NBA Top Shot Marketplace, Rarible, and SuperRar are some of the best NFT marketplaces.
How can I buy NFT from India?
First, you need to visit an NFT marketplace, add ether tokens to your wallet and then you can purchase your desired NFTs.
Cryptocurrency and NFT have taken the world by a storm in just a few years, people have started taking them seriously and are investing in them. They are said to be the new future of currency, Bitcoin announced its existence in the year 2009 and since then, a number of cryptocurrencies have launched. Although the future of cryptocurrency is uncertain, young people are not shying away to show their interest in them.
At this age, there is hardly anyone who is not aware of NFTs and Cryptocurrency, they are becoming a medium of exchange and there are big companies who are accepting cryptocurrency as a form of payment.
With so many new rules, regulations and states of NFT and Crypto, the status of them has changed. For any kind of product or service, advertising is one of the most aspects; if not the most important factors for letting the world know that they exist.
Naturally, to make people more aware of cryptos and NFT and their features, advertisement is definitely going to be a strong need for marketing for all the business that is dealing with this industry.
Cryptos somehow are able to get recognized and are not banned entirely in the country, but the advertisement of these products needs to follow some guidelines. In this article, we will talk about the guidelines that companies have to follow while advertising cryptos and NFT related things in India. So let’s get started.
“A good advertisement is one which sells the product without drawing attention to itself.” –David Ogilvy
Guidelines for Crypto and NFT Related Advertising Released by ASCI
The Advertising Standards Council of India (ASCI) as per the Government of India set some rules while advertising for Crypto and NFT related products as they are extremely risky. So people must be aware of the risks that they are going to take while investing in them.
All these guidelines will be applicable to all the ads released on and after April 1, 2022, and not to forget ads that are not complying with the guidelines will not appear in front of the public after 15th April 2022.
ASCI Guidelines Tweet
Some of the guidelines related to Virtual Digital Assets (VDA) are:
One of the disclaimers is “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.” It must be placed in every advertisement in such a way that it cannot be missed by anyone watching the advertisement.
If the advertisement is in print, then the disclaimer must be placed in a space that has to be at least one-fifth of the space in the bottom, the font has to be big and clear enough, that it can be read properly.
In a video ad, the disclaimer should be placed at the end and it must remain on screen for five seconds and the voiceover should be at a normal pace.
If the ad is an audio one, then it should be spoken at a normal pace at the end.
In social media advertisements, the disclaimer must be present in the caption as well as in the pictures and video attachments.
Several words are forbidden to be used in the advertisement of Crypto and NFT related products and services. Worlds such as, ‘Custodian’, ‘Currency’, ‘Securities’ and ‘Depositories’
Whatever information the advertisement of the products will provide to the consumers must not contradict the guidelines given by the Government of the country.
The past performance of any products shall not be included in any biased form in the advertisements.
The name and contact of the advertisers of VDA products and services advertisement must be clear in the advertisement so that a consumer can contact them if the need arises.
Advertisements must avoid making any kind of promise that states that there will be an increase in profit related to those products.
Minors are not allowed to be in the advertisements dealing with the products and services.
Ads must not be presented in such a way that it will show the consumers that while investing in them, one does not have to think twice.
Advertisements must not show that if anyone invests in the products, it will solve their money or personality problems.
Comparison with others assets must be avoided.
Any kind of celebrity, who is going to be present in the advertisement and endorse the products or services, must be very careful. They should avoid making any claims that can lead to a misunderstanding that may confuse the consumers.
Cryptos and NFT related products status are quite uncertain in the country. All the guidelines by the ASCI are to protect the common people from facing any kind of uncertain future while investing in these products. By following these guidelines, the companies can advertise their products without any hindrance.
FAQs
Why were the guidelines released by ASCI?
As to protect the investors from investing and losing money after watching misleading ads, ASCI released a few guidelines that every advertiser has to follow.
Is investing in cryptos safe?
Crypto is a highly volatile currency, so it is quite risky but it can be profitable as well.
Can you run Facebook ads for crypto?
You can run ads on Facebook but you have to follow the guidelines and get approval from the company.
The rate of growth in the world right now is at probably the topmost pace. The fuel for this growth is simply the technology sector behind every organisation. Lines and walls between companies are getting more and more transparent. Every company and entity is becoming a technological entity. All these utilities of technology have induced certain dependence in the world. That utility is worthwhile too, too much of an extent.
Technology, in a nutshell, has made our surroundings more convenient than ever before. We see transactions are getting easier and easier. We see that the entertainment sector is at an all-time high, in terms of revenue generation and visibility. We see that technology has invaded our homes and hands, the utilities it provides are endless.
All the utilities that the technology provides, make it a lucrative port for every other activity. Paying someone has become easier, and in fact, the transactions have become easier. Digital cryptocurrency is the new buzzword around the world corridors.
Most people support this trend of bitcoin and other crypto asset classes. India recently announced the commencement of a digital currency. The digital rupee is a new term for every Indian and this is a move that no one has ever imagined. There is a lot of hype among people about this but most people don’t know what it will be like. In this article, we will discuss what is a digital currency and how will it be different from the UPI method or unified payments method.
A digital payment mechanism is a tunnel through which payments can travel digitally. For instance, UPI is a digital payments mechanism. A Unified Payment Interface is a method by which people can transfer funds digitally and directly from the bank to another bank account.
The sole purpose of the digital setup of payments is the ease and convenience which it provides. The craze of digital payments grew so much in a very small time that it shifted to more serious business.
A Small Brief About Digital Currency
When digital payments are so easy and convenient, then why not all shift to digital payment methods? Moreover, why not make a digital currency? Nowadays, crypto is a popular buzzword. Let us see what digital currency means and what crypto is.
The world of cryptocurrency and digital assets. A cryptocurrency or just crypto is a digital currency that is designed and formulated to act as a medium of exchange. The whole system is decentralised, in fact, decentralisation is the core concept on which the world of crypto is being built.
Transactions happen through computers and computer networks. All the computer networks are not controlled by anyone’s authority, this by definition is known as decentralisation. There is no bank intermediary, a government or anyone else to maintain or uphold it.
A digital currency, as the name suggests, is a sort of digital money or electronic money is a sort of currency. It is money like an asset class that is primarily stored in a digital source or a computer. It is also stored and transmitted over the internet. It involves a lot of other asset classes. Types of digital currency include a lot more than just some of the asset classes.
Digital currency includes all sorts of cryptocurrency, virtual currency and all the currency which is accepted by digital currency. Except for the cryptocurrency, other asset classes may be recorded in a database that is centralised. A centralised database here means the database which is upheld by some central authority or a government figure.
This currency can be used to buy goods and services that exist in the real world. It can also however be used to buy things online, like something in an online game. Apart from being digital, digital currencies exhibit all the traits of a traditional currency. It doesn’t just have a physical form.
The fact that they are not physical in nature implies that they can be held by anyone with a computer device. This feature of digital money removes the cost of circulating physical money in the market. Transactions can happen seamlessly over the internet without any issues of lower denomination of notes.
A digital currency is usually not issued by a government body and thus, these are not considered as legal tender in many countries except El Salvador. Digital currency can be owned by anyone, even outside the borders of a country. These features also make the government not accept it as a legal tender.
Depending on the situation and characteristics of the digital currency, it can be centralised and decentralised. Centralised means some organisation that is operated under the rules of a central body. Decentralised is an organisation that has no central body and no one person or entity can control it wholly. Centralised institutes include banks and the stock market. Cryptocurrency like Bitcoin is decentralised.
This is the new word that, after its inception, became a buzzword of the month. Nirmala Sitaraman made the announcement mentioning the word digital rupee in her speech. She introduced that the government will soon unveil a digital rupee that will have all the support from the RBI or Reserve Bank of India.
Among all the crypto hype, this digital rupee will be a welcoming move by the Government of India to the world. It is said to be launched in the next financial year. It will be a central bank currency in the digital format.
Another word for it can be, CBDC, which is a central bank digital currency. This currency will be valid in India and will be accepted and transacted in the whole of the country. Let us see what more we heard about this new head of currency.
Digital rupee to be issued using blockchain and other technologies; to be issued by RBI starting 2022-23. This will give a big boost to the economy: FM Nirmala Sitharaman#Budget2022pic.twitter.com/tUdj2DoZCR
Indians were surprised at the time when our finance minister made an uncommon statement. This proposal of a digital rupee had many people in surprise.
Vipin Kumar, CEO TechnoloaderPvt. Ltd said launching a digital rupee using blockchain will not be an arduous task for the government.
“People in India are already amicable with the concept of digital transactions or payments in the form of UPI ID and barcode. Presently a great many people are doing digital transactions in their way of living. If the government is planning to launch a digital rupee using blockchain; accepting it also will not be an arduous task. Government has to refurbish technical aspects. Only mobile applications desire to update and UPI id entail replacement with Wallet address as blockchain works on wallets addresses,” said Vipin Kumar.
There were immediate questions about how the digital rupee would operate. What will be its use cases and how we will be able to transact in digital rupee. How different it will be from the UPI payments that we make on a daily basis.
Digital money, built from blockchain technology will be transferred from one digital wallet to another like other cryptos assets. “One will have to punch in the wallet address of the recipient to transfer the money. It would be as good as today’s UPI transactions where the value of money is transferred from one’s wallet or bank account to another,” Kunal Jagdale, Founder, BitsAir Exchange
“As the usage of the Digital Rupee increases, it could also benefit things like cross-border remittances, an environment could be created for interoperability whereby faster real-time remittance occurs,” said Kunal Jagdale.
The Digital rupee which the government will unveil in the next financial year will be seamless and real-time. The transactions will be made through a digital currency tunnel.
Transactions will be real-time and every Indian can send their money to another person, even overseas and across borders. There will be no need for any central authority. This means that the transactions will happen at an instant and will be needing no intermediary in between transacting bodies.
Even though digital currency will not be available in the physical form, it will be acceptable. Digital currency will be as acceptable as cash and will be a legal tender in any sort of transaction. Payments made through CBDCs (Central Bank Digital Currency) will also reduce settlement risks and the demand for interbank settlements.
Finance minister Nirmala Sitaraman has also mentioned that the country will launch a digital version of the rupee as early as this year. It will be usable from the next financial year itself.
Apart from the announcement of a digital currency, the finance minister in her budget speech also mentioned that any trading gains or transfer gains of cryptos will be taxed. This means every gain from any crypto transaction or NFT (Non-fungible tokens) sales proceeds will be taxed 30 percent. All these gains will fall into the top class tax bracket in India.
The primary two motives behind launching a digital currency are simple. First, the digital currency will give a jump to the digital economy. Secondly, the digital currency will be cheaper for the government than producing physical currency notes. This way the government is trying to kill two birds with one stone.
Ms Sitharaman also said the magnitude and frequency of digital asset transactions “have made it imperative to provide for a specific tax regime”, where profits from transactions are taxed. Taxes of this sort will also be levied on any transaction of digital assets, which means that they will also be levied when someone gifts this asset to another. In this case, the receiver will be the liable person.
In 2016, Prime Minister Narendra Modi withdrew the currency notes of 500 and 1000 rupee from the financial system. Within very short notice, notes of this denomination got terminated as a legal tender and the economy was pushed to a digital world.
The Indian payments landscape changed forever, after demonetisation. Companies like Paytm, which works in the digital payments sector got an immense boost from this government direction. On the other hand, India’s neighbour China was also involved in some digital currency work. The United Kingdom also saw some potential at the time in digital currency.
Sumit Gupta, co-founder and chief executive of India-based cryptocurrency exchange CoinDCX, told the BBC that the initiative “has given legitimacy to virtual digital assets”. Sumit thinks that taxing digital assets would be good for the market but believes the rate is too high.
“A tax rate of 30% is on par with that imposed on gains from speculative activities like the lottery, gambling and other gaming activities. That proposed 30% might act as a dampener for greater adoption,” he said.
Among all the hype of a new digital currency, the ongoing digital crypto is seen as a new digital asset. The new digital currency will be a new thing by the RBI. However, with all the technological shields that we stand with today, the digital rupee has high hopes from citizens.
According to the Reserve Bank of India and the finance minister, the currency will be seamlessly transferred and will be easy for the government to take charge and control. This is a win-win for everyone. More details about the platform and transactions will be officially out soon from the RBI. However, with the announcement of a digital currency, cryptocurrency is seen as an accepted currency.
With all the speculations from the public and the unclearness of the new digital currency, many people are connecting the digital currency with that of UPI. Unified payments interface is a very famous transacting mechanism in India. It is, however, said to differ from the digital currency or the digital rupee which the government is planning to push into Indian markets. Before we get to the differences it is good to know some basic information about the UPI and how the unified payment interface works.
There is little possibility that you haven’t heard of UPI in today’s world. It is almost everywhere in every marketplace. It is easy, convenient, seamless and real-time. As the name suggests, a unified payment interface is a payment pathway in which a person can transact money via digital means. People can add multiple bank accounts to their UPI apps which are available in the market today and can start transacting. It is a real-time payment system for money transfers and the settlement is done in both the receiver’s and the sender’s bank account.
The UPI is developed by the National Payments Corporation of India or NPCI. This digital payment mechanism is regulated by the Reserve Bank of India. UPI can be used every day of the week and every month of the year, it is universal in nature.
All it needs is a bank account and an internet connection. However it is noted that there is no digital currency involved, it is simple to transfer bank funds from one person to the other. A UPI transaction can be initiated and accepted both by a person, any individual and also any business out there in the country.
The Unified Payments system is secure by all means and uses some of the same pathways as digital currency transactions. The unified payments system has a data log of VPA ids, which is a unique ID that is given to every individual who is getting into the UPI transactions.
This VPA ID or the Virtual Payment Address is the address where the payment has to be made. It is simply the bank account that is linked with the Virtual Payment ID to which or from which the payment is initiated. It can be made by a bank name or the person can choose one himself or herself as opposed to in digital currency transactions.
Most of the time, the email address or the mobile number of the person is made their VPA address. VPA is something that directs the payment/transaction path. Transfers can be inter-bank and they can also be intra-bank. A mobile number also works seamlessly in the UPI payment system, if it is attached/linked with the bank account of the sender or receiver.
Most UPI apps have no holding capacity. They are not wallets, except a few like Paytm. Most UPI apps like Google Pay does not offer wallet services. Companies like Paytm do that. It is however to be noted that UPI does not hold any money in between. Wallet services are the sole services of the payment pathways companies like Paytm.
UPI works simply by settling payments from one bank and the other. It works on request by the transferee and then works towards settling the money settlement among participating banks of persons involved. A sender can initiate a transfer using a two-step secure process: you have to login to a UPI app – then you have to type the VPA id or scan a QR code – then you can send money by entering your UPI Pin that is personal to you.
The payment hits instantly and in real-time. This means, by the time you get the notification of money sent, another person will get the notification of money received.
After a brief discussion, it is time to see how both the payments are different. The digital currency which the government will release next year and the Unified payments interface that we use even today. What are the most noticeable differences and what are the most significant upgrades over the UPI payments mechanism? Let us see the key differences between the digital rupee and the UPI payments.
How Digital Rupee Will Be Different From UPI Transactions?
UPI is our day to day useful item. We use it even multiple times a day. It is handy, easy and convenient. It works seamlessly everywhere and has almost negligible issues. But how it is different from the digital rupee that the finance minister just announced in India. This is a valid question. Let us see what will be the key differences between a digital rupee and the UPI apps and payment mechanisms
The first difference is that the Digital rupee will be a standalone payment mode. As opposed to the UPI which is a payment processing tunnel. If we use UPI methods, they all don’t act like the underlying asset in transactions, instead, they are the ones who will be processing the money in your bank account. In this case, your money in the bank is the underlying asset that will enter the transaction. In the case of a digital rupee, it will itself be the underlying asset that will enter the transaction.
“The payment rails like UPI, IMPS etc use the underlying currency/cash to transfer the funds. In other cases, it is expected that payment rails will work together with the digital rupee to ensure a seamless payment transaction,” said Mihir Gandhi, Partner & Payments Transformation Leader, PwC India.
Any payment that is made through the Unified payment interface, will be equivalent to the transfer of currency notes. As there are banks, the government and all the proper authorities at work, who allows the transaction. This means that every amount which is transacted by the UPI method is backed and supported by a physical currency transaction. Which makes the process of transaction impossible to jump through. In the case of the digital rupee, this will be even more efficient and effective.
“The digital rupee will be legal tender in and of itself and need not necessarily be backed up by physical currency,” said Sumit Gwalani, Co-Founder, Neobank Fi.
Another difference is the fact that UPI transactions are involved between participating banks and they have their own UPI handlers. In the case of the digital rupee, the digital currency will be equal to the physical currency. It will be operated by the Reserve Bank Of India and no commercial bank will enter the process.
They will be informed but the central figure of RBI will always recognise the transactions happening in the digital rupee. This will add more accountability to any sort of transaction.
The digital rupee is no different from your normal rupee; it can be used to do normal transactions like NEFT, UPI. The digital rupee will be operated by RBI and not by bank intermediaries in the case of UPI where each bank has a different UPI handler, said Manoj Dalmia, Founder and Director, Proassets Exchange
The digital rupee will eliminate settlements in commercial banks. It will be directed directly by the Reserve Bank India and thus, will be instant and seamless. Record keeping will also become easier.
UPI payments currently rely on the settlement of the transacting banks with the RBI, Digital Ruppe will be transacting directly from RBI, hence it will be settled instantly, said Vinshu Gupta, Founder and Director, Nonceblox Blockchain Studio.
It is evident from the above discussion that the digital rupee is definitely an upgrade over the Unified payments interface. It will add more accountability to the system of transactions. It will be more seamless and as real-time as possible.
These transactions will also be introduced in the market without incurring a lot of costs, as the digital rupee will be made at less cost than physical notes. These are the most noticeable benefits and there will be more benefits when it comes to the market. The government is welcoming the digital change of currency as it is more efficient.
UPI payments have been the most convenient money transacting mechanism that we have seen today. As the world becomes more and more tech-savvy, people are rethinking ideas of money and transactions. Which has led to the development of digital transactions and even currency that has no physical nature of existence. We now live in a world of numbers.
In the seven budget, the Indian Finance minister announced that the government will be launching a digital rupee. Many people are considering this as a welcoming move toward the cryptocurrency hype in the rest of the world. Others are just wondering if it will be a good decision.
It can be seen from the above discussions that the digital rupee is definitely an upgrade over the Unified payments interface payment tunnel. As transactions will be recorded and regulated by the Reserve Bank of India, It will add more accountability to transacting parties. The digital rupee will be more seamless and as real-time as UPI.
These transactions will also be introduced in the market without incurring a lot of new costs. The digital rupee will be circulated in public at a lesser cost than is needed to circulate physical notes. It is a move that simply implies that the government wants better governance over the money transactions happening in the country. It is imperative, as we are a really populous country and the digital rupee can be the perfect money.
FAQ
Which is the first digital currency?
Bitcoin is one of the first and most popular digital currencies.
What is digital or virtual currency?
A digital currency is a digital representation of currency that is stored in an electronic form that can be mobile or computer. It can be centralized or decentralized.
Is Bitcoin legal in India?
There are no regulations on crypto nor the Bitcoin is banned in India.
The cryptocurrencies such as Bitcoin and Dogecoin had been surging their value in recent years. The meme-based Dogecoin had reached its all-time high being part of the top 10 cryptocurrencies according to the market capitalization. Other than Bitcoin and Dogecoin there is a new cryptocurrency creating excitement in the crypto market called Shiba Inu Coin. Let’s look at what is Shiba Inu Coin, expert opinions and its price prediction.
There is not much information available about this cryptocurrency. The crypto is considered to have been made in order to provide competition to Dogecoin. The website of Shiba Inu Coin claims that it has an experiment in order to the decentralized voluntary building of community.
Shiba Inu Coin Website
The coin features a hunting dog from Japan, Shiba Inu which rose in popularity due to the Dogecoin as this is also considered to be another meme coin. The website shares the message that this token is their first and the users have the choice to hold billions or even trillions of them.
The nickname of the coin is Dogecoin killer and claims that everyone should own one from the open market.
According to the data received from CoinMarketCap, the Shiba Inu Coin had given a return of 120 % in the time period of 24 hours at one point in time. When compared to a 7 day time period the coin has provided a return of around 1970.57 %.
The meme-based cryptocurrency, Shiba Inu Coin which is positioned to be a rival coin of Dogecoin has a market capitalization of USD 15 billion whereas Dogecoin has a market capitalization of USD 22 billion as of 2021.
Expert Opinions about Shiba Inu Coin
Investorplace.com has recently conducted deep research into the Shiba Inu coin which conveyed that the predictions of the price of currency have been heating up due to the enormous gains of the cryptocurrency. However, it is seen that the investors are not yet rushing to invest their money into the new cryptocurrency.
Investorplace.com had done a dive into the number of predictions about the new coin where they found out WalletInvestor has suggested that Shiba Inu coin is not a good investment for the long term.
They also have an estimated prediction that the value of this cryptocurrency would see a downfall by the end of 2022 to somewhere in between USD 0.000029 to USD 0.000016. But DigitalCoinPrice has predicted that there would be an increase in the price of the cryptocurrency and would see a jump by the end of 2021 to USD 0.000044.
Gov Capital has predicted that Shiba Inu Coin would see a huge drop falling to USD 0.000006.
If you are not sure whether you should invest in this cryptocurrency, then take some steps before getting into the decision and investing your money into it. First of all, try to understand the fundamentals of cryptocurrency before you decide to trade with it.
Understand the project and go through various risk management techniques and adjust it according to your capacity to bear the risk of which one would vary from one individual to another.
The most important point which should be noted before investing your money into cryptocurrency is that you should be satisfied before investing, with your research and studies and never buy or invest your money into the coin because of someone else’s advice.
Shiba Inu Coin Price Prediction
Shiba Inu Coin Price Prediction
Shiba Inu coin is a highly volatile coin as it is a meme coin and to predict its price is difficult as it is linked to the hype. The meme coin is expected to grow from $0.000014 at the end of 2025 to $0.000028 in 2030. As of 2022, the Shiba Inu Coin price in rupees is ₹0.002318.
Shiba Inu Coin Price in INR
Will Shiba Inu Coin Reach $1?
The current price of Shiba Inu is 0.000031 and reaching the $1 mark may sound impossible but we should remember that this is a highly volatile coin, also the price of the coin is linked to the hype of the projects. But can it hit $1? probably not. If Shiba Inu reaches $1, the market cap of the coin would be $550 trillion which would be higher than every combined economy of the world and 650 times the market cap of Bitcoin. So, it is highly unlikely that Shiba Inu will reach $1 in 2025 or 2030.
Conclusion
There can be risks involved with these get-rich-quick coins, even though the percentage returns provided by the cryptocurrency in the past may look attractive, there are a lot of cases where such coins have lost their value and provided negative returns after a few months.
FAQ
What is the use of the Shiba Inu coin?
Shiba Inu tokens are powered by Ethereum. Fungible tokens like Shiba Inu are ERC-20 tokens.
How many Shiba coins are left?
As of 17 May 2021, a total of 394.796 trillion Shiba Tokens were in circulation, with a market cap of $6.52 billion USD.
Where can I buy the Shiba Inu coin?
You can currently buy Shiba Inu coins on platforms like Binance, Huobi Global, OKEx, Hotcoin Global, and MXC.COM.
Digital currency is the new reality at present. We are surrounded by different types of digital currency first came payment cards, and then came UPI, and now the thing that is always on-trend, Cryptocurrency. It wouldn’t be long before the big stacks of notes disappear.
Cryptocurrency has started to grasp the market as well as the mind of the youth. The investments in cryptocurrency are rising day by day. The cryptocurrency was first invented in 2008 by an anonymous individual or a group of people Satoshi Nakamoto. It is a type of digital currency that functions on blockchain technology; it is decentralized and cannot be controlled by any Government or mediator.
The exchange of cryptocurrency is possible through various trading sites. Amongst all those, there is CoinDCX, where you can do the said job. Now marketing of any kind of business is necessary for the brand to be visible in front of people. A proper marketing strategy has to be set up carefully for the sales and the survival of the business depends on it. In this article, we will talk about CoinDCX’s marketing strategy and how it is making everyone’s head turn towards them. So let’s get started.
“In cryptocurrency investment, long-term thinkers are less stressed.”
CoinDCX was founded in the year 2018 by Neeraj Khandelwal and Sumit Gupta, two graduates from IIT Bombay. The IIT graduates decided to invest in this company after they realize that Bitcoin is creating noise in the market. This is a company that works on providing cryptocurrency-related financial services and deals with cryptocurrency trading networks.
The company’s main motive is to provide a risk-free, fast, and reliable trading experience to all of its customers. Various types of cryptocurrencies can be exchanged here by traders and it is said to be the largest and safest cryptocurrency exchange platform.
Features of CoinDCX
The main features of CoinDCX that are helping the company to attract customers are:
It is extremely quick, simple, and easy where one can just start investing in it in just 10 minutes.
The safety that it provides to its customers while trading is another significant feature that makes it popular in the world of cryptocurrency exchange platforms. Whatever the investment is, the site ensures to make it safe.
The adding and withdrawing of the fund is not time taking and can be done quickly.
One of the most common mass media is television, through it one can reach a huge number of people, so advertisement here is pretty much a jackpot for any brand. CoinDCX with its shrewd strategy launched its advertisements on TV.
The ad consists of Bollywood actor Ayushmann Khuranna, who is ensuring how it is safe and easy to invest in cryptocurrency through the CoinDCX app and is asking the audience to install it as it is the future.
Social Media Advertisement
Facebook ads are quite common of CoinDCX, in their digital campaign titled #Bitcoinliyakya consists of a woman asking a man who is showing off all his properties, that if he has anyhow invested in Bitcoins, which is an asset that is on-trend right now.
This ad is somehow making people aware of cryptocurrency and how if you are not investing in them, you are going to miss out on a great opportunity. Not only on Facebook, but the campaign has also launched on all social media platforms.
Celebrity And Influencers Endorsement
Apart from Ayushmann Khuranna being its brand ambassador, CoinDCX has roped in various content creators like Ashish Chanchlani who asks people to download CoinDCX and start investing in it.
Apart from many other YouTubers that are promoting CoinDCX in their channels. Cricketers Surya Kumar Yadav and Prithvi Shaw promote CoinDCX as a safe way to begin investing in cryptocurrency. Celebrities like Nora Fatehi and Gauhar Khan have also taken a part in promoting CoinDCX.
When it comes to any kind of business, certain offers can make the audience entice. Just like that, it has offered ₹100 worth of Bitcoins to new users the user has to make at least one purchase in a whole month to earn the reward.
With new rules and regulations in the country regarding cryptocurrency plus with the fluctuating nature of it, the future is quite uncertain but trading platforms like CoinDCX with their brilliant marketing strategy are able to attract potential customers to use the trading platform. It assures safety which is one of the most important factors involving digital currency like cryptos. The most interesting part is that in just three years, the company has become the first crypto Unicorn in the country.
FAQ
What are the marketing strategies employed by CoinDCX?
CoinDCX uses television advertisements, social media marketing, and seo to market its brand.
How does CoinDCX make money?
CoinDCX makes money by getting deposit fees, withdrawal fees, and trading commissions from exchanging different types of cryptocurrencies.
Is CoinDCX safe in India?
CoinDCX is the largest and safest cryptocurrency exchange platform.
