interactivated blog

magento & ecommerce

A Beginner’s Guide to NFT Marketplaces

Non-fungible tokens (NFTs) are a relatively new phenomenon, but their popularity is on a rapid upward trajectory. NFTs are a type of digital artwork that allows creators to demonstrate their skills, gain widespread recognition, and earn money for their efforts.

However, these digital assets have also attracted traditional investors and crypto holders, seeking to jump on the crypto trend and speculate on this valuable artwork. Even celebrities like Paris Hilton, Snoop Dogg, and Post Malone have become interested in this unique blockchain-based phenomenon.

But where do you go to buy an asset? It’s a question that stumps most NFT beginners. To help you get your foot in the door, we’ll go over everything you need to know about NFT marketplaces.

Without further ado, let’s dive in.

NFT Marketplaces: What Are They?

While you can exchange one dollar for another without difficulty, doing so with NFTs is impossible. One piece of digital artwork doesn’t equal another. Each blockchain-based asset features unique characteristics and attributes that determine its value. As a result, you can’t mutually exchange one token for another.

Unlike traditional cryptocurrencies, users can’t purchase NFTs on decentralized or centralized exchanges. Instead, the tokens are listed on virtual marketplaces specifically built for NFT trading.

Although many different options have sprung up during the last several years, we can divide these marketplaces into two categories.

First, we have local marketplaces. They only deal with assets related to a single digital space. “Local” currency is used for all transactions, simplifying the trading process and minimizing transaction fees.

Next, there are global marketplaces. Their function is reminiscent of conventional stock exchanges. They compile listings from multiple games and virtual spaces and allow users to trade using different currencies.

The ever-expanding market shows no signs of slowing down, and niche marketplaces are becoming increasingly popular. They’re user-friendly and meet the needs of their target audiences. For example, you can find spaces specifically designed for trading videos, images, artworks, and other collectibles.

Regardless of which platform you wish to access, getting started is similar. You need three things to access the perks of an NFT marketplace- a wallet, coins, and a user profile.

When choosing a crypto wallet, selecting an option that supports the blockchain network of the asset you want to purchase is essential. For example, you can sell or buy Ethereum-based NFTs using a wallet such as MetaMask because it features Ethereum blockchain support.

Before buying, minting, or listing tokens, you must fill your wallet with coins. Of course, research the marketplace and learn which cryptocurrencies it supports.

Finally, a user profile will store all your trading information and enable each transaction to go through successfully.

Another aspect new users should remember is that creating and listing tokens on most marketplaces comes with a blockchain network fee. It differs depending on which blockchain system you choose. While Ethereum has the largest collection of token dapps (decentralized applications), it also boasts steep fees.

Blockchain Options

Blockchain Options

Ethereum remains the most well-known blockchain-based network, but the list of competitors grows annually. Other systems where you can trade digital items include the Binance Smart Chain, Flow, EOS, Tron, Solana, WAX, Cosmos, Tezos, Hedera Hashgrap, and Polkadot.

Many of these systems are interoperable. If you want to buy Ethereum-based assets, you can use Ethereum-based or ERC-20 tokens. These include USDC, DAI, BNB, USDT, and more. But this option is unavailable in closed systems such as Flow. It’s impossible to purchase Flow-based NBA Topshot non-fungible tokens with BNB, USDC, or ether.

NFT Marketplaces: How Do They Work?

Although most marketplaces have slightly different user guidelines, they function similarly. After signing up, they allow you to buy, sell, and mint NFTs.

The Signup Process

Signing up to a marketplace may differ from platform to platform, but the essential steps remain the same. Users create an account profile and connect their digital wallets. Most marketplaces realize how instrumental wallets are for trading and seek to make the process hassle-free.

Typically, you press a button in the upper right part of the homepage to link the wallet to your account. All you need to do is type your wallet password to confirm your identity and complete the task. Although finishing this step only takes a few minutes, a connected wallet is a powerful tool for kickstarting your NFT trading journey.

Buying NFTs

Users can buy tokens for a fixed price or participate in auctions. Some platforms let prospective buyers contact the seller to propose a new price and negotiate a deal.

Selling NFTs

While buying NFTs is relatively straightforward, selling them can be tricky. The situation gets particularly complicated when selling an original token.

Let’s look at the steps involved in selling an NFT you’ve created:

  1. After uploading the digital item onto the marketplace, decide whether you’ll sell it for a fixed price or through an auction.
  2. Wait for the platform to verify the NFT. When approved, it will go up for sale.
  3. When you accept a bid, the platform initiatives a transaction and transfers coins from the buyer’s wallet into your own.

Minting NFTs

If you’re interested in creating NFTs, it’s best to start with Ethereum. The system boasts one of the most active markets for these types of assets. You’ll need an Ethereum wallet that supports the standard Ethereum token for NFT trading, ERC-721. Coinbase Wallet, MetaMask, and Trust Wallet are popular options among new users and seasoned traders.

Make sure to move about $100 worth of crypto. This amount will cover various transaction fees. However, these fees vary depending on how much traffic the network handles.

After transferring coins into your wallet, you’ll be able to use most NFT marketplaces, including Foundation, Rarible, and OpenSea. When you’re ready to make your first NFT, head to the homepage. Tap the “Create” button in the upper-right part of the interface to initiate the process.

The Best NFT Marketplaces for Beginners

You’ve done your research, you know the general principles behind these platforms, and now it’s time to decide which marketplace is best for you. We’ve compiled a list of several industry leaders to narrow your search and help you make an informed decision.

The Best NFT Marketplaces for Beginners

Let’s look at our top picks and what they bring to the table.

OpenSea

OpenSea has established itself as the largest marketplace for digital assets. While some websites target a niche audience, OpenSea brings variety to its users.

This decentralized platform is perfect for trading digital collectibles, including sports items, trading cards, virtual worlds, and artwork.

What makes OpenSea stand out from similar platforms is its functional royalties system. It enables the creator to receive royalties based on the token’s value.

OpenSea’s perks have paid off for the platform as its transaction volume increased by 1,400% in 2021. Despite these high congestion levels, OpenSea is incredibly secure. It logs each transaction on a blockchain-based ledger. As a result, users gain insight into the platform’s operation while digital artists receive recognition for their work.

Those who want mint NFTs often flock to OpenSea. Unlike other options, anyone can create an NFT on this platform for free.

Moreover, OpenSea is compatible with multiple wallets, ensuring a large customer pool. It works well with Formatic, Bitski, Trust, Coinbase, Arkane, Torus, Argent, and more.

Additionally, more than 240 payment options are available.

While there are no gas fees on OpenSea for withdrawals or deposits, your currency provider and wallet may attach transaction fees.

SuperRare

SuperRare is an Ethereum-based digital artwork market. Self-described as “Instagram meets Christie’s,” the marketplace prides itself on its exclusivity.

Those who want to become curated artists can send their work to SuperRare, where the platform’s team will examine the submission’s quality. NFT creators are also part of a royalties system that serves as a source of passive income.

But SuperRare doesn’t just cater to artists. Its exclusivity attracts buyers seeking to grow their collection of sought-after digital goods. You can even make an offer on items that haven’t gone up for sale and signal your interest.

Rarible

Rarible is another NFT marketplace built on the Ethereum blockchain. It’s easy to use and requires no coding knowledge.

It features a diverse NFT collection spanning domain names, artwork, music, images, and more. Selling assets on the platform is relatively straightforward. After uploading your creation, Rarible generates a unique NFT to represent its attributes and value.

The platform rewards dedicated users with RARI tokens. It’s a smart practice that builds trust and fosters a transparent environment. RARI holders hold a high level of autonomy and have voting rights whenever the site rolls out changes.

In addition to the native RARI token, the marketplace supports other Ethereum-based tokens like MANA, YTZ, and Matic. It supports different wallets, including MetaMask, Coinbase, TokenPocket, and imToken.

Foundation

Foundation is an easy-to-navigate platform that values quality over quantity. All buyers have to do to access Foundation is create an account and connect their wallets. However, you can only become a creator after receiving an invitation from an existing Foundation member.

Collectors can resell purchased NFTs, and artists benefit from the 10% royalty.

Another perk of the exclusive system is private sales. You can choose this option to buy a specific NFT or support a creator you admire.

Joining the Ideal Marketplace

There’s never been a better time to get into NFT trading. The digital world has allowed creators to reach new audiences and earn a steady income. It has also opened up new investment opportunities for buyers looking for quality pieces.

Although the rise of NFTs seems daunting, many popular marketplaces are beginner-friendly and operate on the same principles. As long as you set up an account and connect a crypto wallet, you’ll be able to buy, sell, and mint assets without difficulty.

By interactivated • on November 15, 2022

Contact Us
Get in touch with a specialist
THE NETHERLANDS (HQ)
Leonard Springerlaan 35, 9727 KB
Groningen (Netherlands)
+31 (0)50 711 9940
VAT: NL 852998521B01
Chamber of Commerce: 58348646
SPAIN
Calle Jabea 18, 29631,
Benalmádena Costa (Malaga)

* Required Fields