If you have been hit by the NFT bug then, you must have heard about NFT marketplaces and the need for them. So, in this article, I will give you an easy guide on navigating these online NFT marketplaces. If you are a newbie to the NFT space then this article is definitely for you.
NFTs, which stands for “non-fungible tokens,” became popular when “Beeple,” a piece by digital artist, graphic designer, and animator Mike Winkelmann, sold for a whopping $69 million at Christie’s in 2021. “Everydays: The First 5000 Days” was the name of the piece in question.
A lot of people do not know that NFTs have been around for a lot longer than that. All of this goes back to the Colored Coins idea from 2012, which, was a set of ways to manage and show real-world assets on the blockchain.
The idea gave people a place to start experimenting, which eventually led to the creation of NFTs. Kevin McCoy, a digital artist, made the first NFT in 2014. It was called “Quantum” and started a wave of experimentation and development.
Here is a guide to help you find your way around NFT marketplaces.
A Brief Overview
- What do NFTs mean
- What is an NFT Marketplace
- Which NFT Marketplace is the best
- How to use an NFT Marketplace
What do NFTs mean?
Before we talk about how to rank and rate the different kinds of NFT marketplaces, it’s important to know what NFT stands for. A non-fungible token, or NFT, is a digital asset that can’t be changed. It is stored on the blockchain. This could be a gamer’s avatar, a piece of art, a video, or even a tweet.
Having an NFT means that you own the asset directly. So that even if a lot of people can see, use, or even copy your digital asset, you still own it in the most basic way.
Because an NFT is not fungible, it becomes a unique entity. It is not like cryptocurrencies like Bitcoin or a regular currency like the US dollar. The NFT has no direct value. Instead, its value is based on how many people want to buy it. This means that an NFT for a piece of digital art could be completely worthless if no one else wants it, or it could be the subject of a bidding war on an NFT marketplace and end up being worth millions. One thing is for sure: NFTs are here to stay, and all of us will likely use an NFT marketplace at some point.
A Quick Look at what an NFT Marketplace is
An NFT marketplace is just an online marketplace where you can buy, sell, or trade NFT tokens. These platforms give NFT creators a direct link with the NFT market. Creators host their NFT projects on these marketplace platforms and organize NFT drops on them too.
Anyone can sign up for an NFT marketplace, and from there you can link your crypto wallet to the marketplace and start trading. Most of the time, the marketplace will have listings for all sorts of NFTs, like art, collectibles, domain names, music, photography, sports trading cards, and so on.
Most of the time, you will be able to buy or sell NFT at a fixed price or through a kind of auction. If you’ve bought an NFT, you can keep it as part of your collection. This means that you own the unique digital asset and no one else does.
Keep in mind that there will be fees for each NFT you buy or sell on a marketplace. Every time the digital asset is traded, a royalty fee will be paid to the person who made the NFT.
Which NFT market is the best?
In the past few years, there have been dozens of NFT marketplaces, and we can expect many more to pop up in the years to come. Here are just a few good NFT markets you should check out:
It’s without a doubt the biggest NFT market in the world. It is the ideal place for both NFT collectors and NFT creators. This has all kinds of digital items and assets, from sports trading cards to whole virtual worlds. The Ethereum blockchain is where the OpenSea market takes place.
It’s a trendy place for creators to buy and sell NFTs. It is also on the Ethereum blockchain, but it has its cryptocurrency called RARI. Makes it easy for creators to list anything from a complex piece of digital art to a simple meme.
It’s a whole virtual world where you can trade non-fungible tokens (NFTs) and can determine how Decentraland works on the Ethereum blockchain. It has a wide variety of digital assets, and the best part is that you can even trade real estate and land within the virtual world of Decentraland.
Magic Eden is the leading NFT marketplace on the Solana platform. The marketplace offers users insight into Popular NFT collections, new collections, and upcoming NFT auctions.
Crypto exchanges such as Binance and Coinbase offer NFT marketplace platforms as part of their ecosystem. For example, the Binance NFT marketplace supports NFTs on various networks including its native blockchain – Binance Smart Chain. You can trade your game items and other digital items on the platform.
How to use an NFT Marketplace
The good news is that getting started at an NFT marketplace is very easy. Here is a quick list of the things you need to do before you can start trading NFTs.
Get a wallet
The first thing you’ll need to do is get a wallet for your crypto. Most NFT marketplaces will have a short list of recommended crypto wallets that you can download, or you could just connect your existing wallet. To trade NFTs, keep in mind that the wallet will need to work with the Ethereum blockchain.
Get your cryptos
Once you’ve set up your crypto wallet, all you have to do is get the digital currency from an exchange. Again, most NFT marketplaces will have you buy Ether coins to trade.
Browse and start trading
Now comes the fun part, when you can look at all the digital assets on the NFT marketplace and start trading. Once you’ve linked your wallet, you’ll be able to add your username, a photo, and other things to your profile to make it your own. You’ll be able to buy an NFT right away for a set price or bid on an NFT auction right away.
How to Choose the Right NFT Marketplace
Most NFT marketplaces will have thousands of digital assets for sale, mostly working the same way. It’s a good idea to do some research on the NFT market before you buy or sell anything since different sites might put collectibles or gaming avatars ahead of other assets. Also, we should mention that each time you buy or sell a digital asset on an NFT marketplace, you will have to pay a different fee.
You can buy, sell, and trade digital assets on NFT marketplaces. They are a big part of the crypto gaming community, and anyone interested in anything from digital art to sports trading cards will also find them interesting. We’ve shown you that it’s easy to use an NFT marketplace and that they’re a safe and easy way to collect your digital assets. So get a crypto wallet and start trading your NFTs.