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What Is NFT Marketplace: A Beginner’s Guide

The Crypto world is evolving rapidly, and NFTs are gaining popularity. Some people might find it difficult to keep up with the advancements, which is why this guide is here for you. What are non-fungible tokens, and what is NFT marketplace? You will find all the answers below.

What Is NFT Marketplace?

NFTs or non-fungible tokens are digital assets that only exist on blockchain because they are intangible. By purchasing a token, every person receives full ownership. Most of them are Ethereum-based, and their digital nature requires special outlets for working with them. This is where an NFT marketplace comes in handy. We all know about cryptocurrency exchanges, which are digital sites for purchasing, selling, and trading crypto. Similarly, there are specialized web platforms for trading NFTs. On such marketplaces, users can upload and tokenize their artworks, buy and sell NFTs, and store them in collections.

How NFTs Work

Even after learning about what NFTs are, it is important to understand how they work. Here is everything you need to know about working with non-fungible tokens.

Signing Up

To buy or sell NFTs, it is necessary to sign up on a special digital marketplace. It is necessary to choose a suitable NFT marketplace first. Based on the tokens you want to produce or buy, pick a reliable trading platform. It is a safe bet to start with a platform that deals with multiple types of non-fungible tokens, such as OpenSea. To create an account, you will need to set up your crypto wallet first and connect it. This way, you will be able to buy NFTs with crypto or receive money for selling them. When your electronic wallet with ETH is ready, connect it to the NFT marketplace and create a user account.

Buying NFT

NFTs can be usually purchased at a fixed price or via an auction. After signing up for a token marketplace and adding a crypto wallet, it becomes possible to access the catalog of all available NFTs. It is common for digital tokens to be sold via an online auction. There are different types of auctions, which can be familiar to users that tend to buy things online. The classic one allows users to place their offers, and the highest bid wins when the time is up. Another type of auctioning starts at a certain price, and it reduces gradually until anyone decides to place their bid and purchase an NFT. Of course, there are tokens sold at a fixed price, which means that anybody can purchase them at any time.

Selling NFT

All NFT owners can resell the tokens they have bought. To sell a token you already own, it is necessary to select this NFT and list it for sale. You can set the necessary price and simply wait until someone buys it. However, selling tokens created by other people will not provide you with royalty, as it only belongs to the original creator.

Another way of arranging NFT sales is launching them yourself and putting them up for sale. The process of creating non-fungible tokens is called minting. After your NFT is minted, it can be sold on the site for any price you select.

Minting NFT

To place your NFT on a non fungible token marketplace, it is necessary to mint it first. Minting is a procedure of putting your digital art or another token on a blockchain. To mint an NFT, it is necessary to create a digital item in high resolution and upload it to a marketplace by clicking on the Create button on the website. You will need to provide a description of this piece as well. Users can choose whether they want to add tokens to a collection or post standalone tokens. After finally clicking on Create and paying for gas fees, your NFT will be minted and displayed on the site.

Choosing a Non Fungible Token Marketplace

Now that we know what is an NFT marketplace, it is time to learn how to pick the right option. Here are some things to look for when picking a non-fungible token marketplace:

·        Token standards available on the site – while NFT marketplaces are based on the Ethereum blockchain and use respective token standards, there are a few of them that might differ across platforms. The standards available can include ERC-721, ERC-998, or ERC-1155. However, not every single marketplace uses Ethereum, and one of the standards from another blockchain is the FA2 token.

·        Verification process – a token-selling platform should have a powerful verification system to protect your assets and crypto stored in the wallet. Make sure to sign up for websites that use two-factor authentication and other security measures to make trading extra safe.

·        Electronic wallets – since the only way to purchase NFTs is via crypto wallets, it is crucial to choose marketplaces that support your e-wallet of choice or at least a variety of options.

·        Type of marketplace – there are a few different types of marketplaces based on the NFTs they offer. These websites are multi-faceted for the most part, but some of them focus on gaming, sports, or other niche types of NFTs. In case you are specifically interested in tokens found in video games, you might want to sign up for a respective platform.

These are only a few criteria that you need to keep in mind while picking an NFT marketplace. Another good way of selecting a web platform for selling or buying tokens is looking through the reliable lists of the top marketplaces up to date.

How to Access These Marketplaces: What You Need

If we are talking about common websites rather than an exclusive crypto NFT marketplace, anybody can access them. However, some steps need to be taken before you can actually start purchasing and selling NFTs:

·        Cryptocurrency wallet – a crypto wallet is a must when trading NFTs. It is essential to select a digital wallet compatible with the marketplace of your choice. For example, in case your marketplace uses the Ethereum blockchain, you have to be able to buy and store ETH in the wallet. One of the most reliable wallets with a great reputation is MetaMask. Regardless of the wallet you pick, it needs to be ready before registering on the website.

·        Crypto coins – it is necessary to have at least some crypto on your wallet to start trading. Find out how to purchase the necessary currency beforehand and store some coins in the wallet.

·        User profile – the final step towards accessing all the NFTs on the marketplace is creating your personal account. Follow the instruction to create a new user profile, pick a strong password, and utilize additional verification methods to protect your personal data and assets.

After registering and filling your wallet, it is only necessary to register. The process is as simple as creating a user account on any other website.

Kinds of NFT Marketplaces

As NFT marketplaces continue to develop, more and more specialized platforms appear. Initially, there were only classic token marketplaces that featured all types of NFTs. Now, you can find websites focused on certain kinds of digital tokens. This is especially convenient for NFT experts and collectors as they can dedicate all their attention to the required tokens.

Mass Marketplaces

These are some of the largest marketplaces that feature a range of NFTs, from classic digital art pieces and well-known collections to sports trading cards, music tracks, virtual reality tokens, and more. These are the go-to markets for beginners in the NFT world as they have a little bit (or a lot) of everything. Such marketplaces also offer tokens by the most famous NFT creators and the newest pieces from emerging artists.

Non-curated, Self-service Crypto Art Marketplaces

These NFT marketplaces offer free access for every user or creator. It is only necessary to complete registration and pay gas fees to mint a token as usual. Because of completely free and unfiltered access, the quality of tokens displayed can be drastically different.

Curated Crypto Art Marketplaces

Not every artist can be featured on such token marketplaces as they have moderators and curators. If you are interested in purchasing the most unique and top-quality tokens, this is the right place. Curated marketplaces usually deal with digital artworks and provide a platform for talented artists. To be able to display NFTs on such platforms, it is necessary to submit a detailed application form and wait patiently for its approval. Since there are such tough criteria for picking out artists and their works, users can be sure to access the finest non-fungible tokens on the market.

Gaming Platforms

There is an entire NFT market catering to videogame players. Because gamers are often interested in technology and blockchain, it is only natural that NFTs are being incorporated into digital gaming quickly. Special NFT markets are now focusing on NFTs related to the gaming world and VR technology. Many NFTs are incorporated into games in a form of character skins, weapons, rewards, collectibles, etc. There are non-fungible tokens available for the most popular games in digital sports, as well as unique NFTs created for new games built specifically around this technology.

Sports NFT Marketplaces

Sports is one of the most popular niche markets in the NFT sphere. People have been collecting sports cards and other memorabilia with their favorite teams and players for ages. Now, people can collect digital cards and other sports-related tokens. Fans of basketball, soccer, racing, etc. can now support their favorite teams by purchasing their official tokens.

Niche NFT Marketplaces

Such NFT markets are focused on a very specific type of token or an NFT collection. There are dedicated websites that only sell virtual tokens related to a specific collection, which increases their rarity and price significantly. Some web platforms specialize in the most unique and obscure digital tokens, such as tweets. For example, the screen of the first tweet by Jack Dorsey, the CEO of Twitter, was tokenized and sold for almost three million dollars. This fact led to numerous celebrities selling their tweets to fans. Another example of unique NFTs is the possibility to purchase a plot of digital land on special blockchain platforms that look like online games with cities and characters. People can even buy places on virtual cemeteries, and this is not the limit of non-fungible tokens.

What Are the Best NFT Marketplaces?

One of the questions that might interest beginner NFT investors and artists is what is the most popular NFT marketplace? As non-fungible token marketplaces differ in size and target audience they cater to, there is no clear answer to this question. One of the most popular can be considered OpenSea because of its size and diverse portfolio.

Rarible

One of the more diverse NFT marketplaces is called Rarible. This platform offers all sorts of digital artworks, songs, video clips, collectibles, etc. minted into NFTs. This web marketplace is based on the Ethereum blockchain as most NFT websites, but it utilizes its own special tokens. This token is also called Rarible, and users can purchase and sell NFTs on the website only using this currency. Overall, this is a huge platform for selling non-fungible tokens, and users should be able to find virtually anything here. Some internationally renowned brands are working with this company, which includes Adobe, Taco Bell, and others.

OpenSea

This platform is definitely what comes to mind when talking about NFTs. It is the largest marketplace for selling tokens by far. This site is very user-friendly, which is perfect for beginners in this industry. Every kind of non-fungible token can be discovered here, from the most popular artworks by bestselling NFT creators to the latest submissions by striving artists. More than 150 digital currencies are supported on this website, which makes it much easier to trade tokens.

SuperRare

Another great platform for digital art features tokenized artworks, 3D models, videos, etc. This token marketplace is built on Ethereum, and users can pay for NFTs using ETH and receive this crypto as payment. In addition, SuperRare tokens are also supported and can be used for improving the platform.

Nifty Gateway

This web marketplace is supported by one of the most popular cryptocurrency exchanges called Gemini. Such famous personalities as Beeple (the creator of the most expensive NFT by far) and Grimes are featured on the platform. Virtual tokens here can be bought using fiat money and cryptos. This marketplace is curated, which means not all creators can be featured, and the selection of NFTs available is of supreme quality.

Foundation

This is a community-based platform for convenient NFT trading. It is necessary to have a digital wallet with some ETH coins to start buying tokens. After setting up a wallet and receiving an invitation to join, any user can start trading easily. The platform is user-friendly and offers convenient bidding.

Axie Infinity

This is a video game that has a dedicated marketplace for its unique tokens. There are special creatures called Axies, which can be purchased and trained to join battles afterward. All Axies, various items, and even plots of digital land are NFTs that can be purchased on the platform. Native tokens Axie Shards are used for transactions here. They are Ethereum-based as well and can be obtained from a range of crypto exchanges.

Binance NFT

Binance, a very popular crypto exchange, also has a dedicated NFT marketplace. It is also based on the Ethereum blockchain, but the only currency used here is the native Binance token. A variety of wallets is supported to make transactions easier. It is a platform that features all sorts of tokens, from virtual art to sports collectibles.

Summary

NFTs are the new obsession among blockchain enthusiasts, ordinary people, and celebrities alike. Virtually anything can be an NFT after it is tokenized and put on the blockchain. However, to do so, it is necessary to be a part of an NFT marketplace. The latter ones are dedicated markets that allow creating, selling, buying, and trading non-fungible tokens. People can choose among general NFT marketplaces that feature all types of tokens and specialized web platforms with a focus on a certain type of NFT.

Frequently Asked Questions

What Is NFT Marketplace?

An NFT marketplace is a specialized website that focuses on buying and selling non-fungible tokens. Just like any other digital marketplace designed for trading cryptocurrencies, there are separate web platforms for trading NFTs. They can offer any type of non-fungible tokens or focus on a specific type of NFTs, such as gaming items or sports cards.

How Do NFTs Work?

An NFT is a unique collectible, which can be a piece of digital art, a music track, an object in a videogame, etc. These assets are similar to art pieces in real life in a sense that they are unique and hold certain value. However, they exist only on the blockchain, which is usually Ethereum. NFTs can be purchased and stored online for the sake of collecting unique digital assets or for investment purposes.

What Are the Best NFT Marketplaces?

There are numerous NFT marketplaces already available online, and their number keeps growing. Some of the most popular ones are Rarible, OpenSea, and SuperRare. OpenSea is a well-rounded marketplace that offers a wide range of tokens, from artworks to domain names. The other two are more digital and art-oriented. These marketplaces feature some of the most famous NFT artists.