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What is the NFT Marketplaces?


 What is NFT Marketplaces: A Beginner’s Guide.

NFT, NFt marketplace

Digital collectors can purchase, sell, and create their own tokens that reflect ownership of unique, physical, and intangible goods on NFT marketplaces.

Do you hear about digital cats, NBA moments, and people buying Donald Trump virtual artworks, but are not sure where they get these NFTs? Don't worry, we got you covered.

With more and more crypto holders and traditional investors speculating on these unique blockchain-based assets, Non-fungible tokens (NFTs) have quickly become one of the most explosive crypto trends since the "DeFi summer" of 2020.

NFTs are virtual tokens that represent ownership of something unique and rare in nature, whether it's a physical or digital item such as an artwork, soundtrack, collectible, game item, or real estate. Unlike traditional cryptocurrencies such as bitcoin or fiat currency such as the US dollar, these specific types of digital assets cannot be traded with each other because each token has a specific value based on its unique characteristics and characteristics.

NFTs cannot be purchased on centralized or decentralized crypto exchanges, unlike ordinary cryptocurrencies. Instead, they are listed and traded on online marketplaces specially designed for NFTs.

1) What are NFT marketplaces?

NFT marketplaces are platforms where NFTs can be stored, viewed, traded, and in some cases printed (created). These platforms are to non-ferrous metals what Amazon and eBay are to commodities.

To access and use such marketplaces, you must have:

  • A crypto wallet: You will need to choose a blockchain-enabled wallet that supports the NFTs you want to buy (below). For example, if you plan to buy or sell NFT based on the Ethereum blockchain platform, you will need to use a compatible Ethereum wallet such as MetaMask. For NFTs sold on the Solana platform, you will need to use a wallet service like Sollet.
  • Amount of money in the wallet: You will need to prepay your wallet before purchasing, listing, or printing an NFT. Again, you will need to know which cryptocurrencies are supported by the market you intend to use.
  • A user account: You will need to create an account in the specific market where you want to buy NFTs.

It should be noted that often, listing and creating NFTs on a marketplace platform is subject to blockchain network fees. Fees vary depending on the blockchain-based system you decide to use. For example, Ethereum has the largest ecosystem of NFT applications (decentralized applications). But they have the most expensive fees.

2) NFT blockchain options

By far the most popular method for buying, selling, and producing one-of-a-kind digital things is Ethereum. However, there is a growing list of competitors entering the market, including:

  • Binance Smart Chain.
  • Stream.
  • EOS.
  • Solana.
  • Polkadot.
  • Tezos.
  • Algorand.
  • Universe.
  • WAX.
  • Hedera Hashgraph.

Some of these blockchain systems are interoperable. For example, you can buy Ethereum-based tokens that cannot be exchanged with Ethereum-based tokens (known as ERC-20 tokens containing USDT, USDC, BNB, DAI, etc.). Others, such as flow, are closed systems. For example, you cannot buy Topshot NBA NFTs (based on Flow) with Ether or BNB.

3) How do NFT marketplaces work?

1. Singing up

Signing up for an NFT marketplace can differ slightly from site to site, but the main steps involved include creating an account or linking a supported digital wallet, or both. The button for this is usually located in the upper right corner of the NFT market homepage. When connecting your wallet, you will be asked to enter your wallet password to complete the transaction.

2. Buy NFT

NFTs are often bought at a predetermined price or through an auction. In some cases, potential buyers may bid on the owner and try to negotiate a better price.

3. Sell NFT

Selling unique digital assets can be a technically more complex process than buying them, especially if the user is trying to sell something they have created (an artwork, a soundtrack, a tweet, etc.).

  • You will need to upload the selected digital asset to the market and enter a fixed price or choose to sell the NFT via auction.
  • The platform will then verify its existence. If approved, it will go on sale.
  • When the seller accepts an offer, the marketplace transfers the item from the buyer to the seller.

4. Minting an NFT

If you want to build an NFT, you might consider starting with Ethereum as it is the largest system for such assets. You will need an Ethereum wallet that supports ERC-721 (Ethereum's token standard for NFTs), such as MetaMask, Trust Wallet, or Coinbase Wallet. Additionally, you will need to add approximately $50-100 worth of Ether to your wallet to cover transaction fees (depending on network congestion).

After completing these steps, you will be able to access and use platforms such as OpenSea, Rarible, or Mintable. Most platforms have a "Create" button in the top right corner that will take you to the page where you can start creating your NFTs.

4) Top 5 NFT marketplace 

While there are many types of marketplaces, universal and art-oriented platforms are the most popular. There are also niche NFT marketplaces that list certain types of non-return assets, such as game items, digital trading cards, and virtual real estate.
The five most popular universal and digital art-focused NFT markets currently available are:

  • OpenSea: This is one of the most established universal NFT markets. You can find non-tradable tokens that represent ownership of a wide variety of things, including artwork, sports collectibles, virtual worlds, trading cards, and domains. 
  • Rarible: This is an NFT marketplace organized by community members with RARI tokens. It focuses on the arts, but you can also find a wide variety of other NFT items here.
  • SuperRare: Another market focused on digital art is SuperRare, which works with a handful of top concept artists.
  • Nifty Gateway:- Nifty is one of the largest marketplaces for NFTs. Here you can buy works by well-known artists including Beeple (holding the record for most expensive NFT sold at $69 million), Steve Aoki, and deadmau5.
  • Foundation: Founded in February, the Foundation has quickly become one of the most popular NFT markets for content creators, with historical transaction volumes already reaching nearly $48 million.