NFT market

NFT Market: A Beginner’s Guide

The NFT market is expanding at breakneck speed. If you want to hop on the NFT craze and purchase or sell digital assets, you must look into the most suitable NFT market. There are a lot of NFT marketplaces, and they have distinct niches, so you need to research which marketplace suits your interest the most. Unsure where to get started? Don’t worry; we got you covered!

NFTs have been getting more traction over the years. Many people are gaining more interest in investing in these digital assets and, at the same time, creating their own NFT assets for selling. And an NFT marketplace is the best starting point if you want to see more of these digital assets. These NFT marketplaces are the Amazon of the digital space. It can be hard to decide on the best marketplace to use since you can find a myriad of NFT marketplaces on the internet.

Fortunately, we have curated a list of the best NFT marketplaces and the significant features you must look into when sourcing for a marketplace app.

What is NFT?

NFT
NFT stands for non-fungible tokens.

NFT stands for non-fungible tokens. NFTs represent digital assets—such as artworks, music, and more—that have been tokenized through blockchain technology. These digital assets can be sold for money, cryptocurrency, or other NFTs. Some people think NFTs are worthless, while others spend millions for one NFT. Others are in the space to sell their NFTs. For example, Twitter’s founder and former CEO Jack Dorsey sold an NFT of his first-ever Tweet for a whopping $2.9 million.

The NFT market value is projected to reach US$3,546.00m. As NFTs become increasingly popular, several people have become investors, causing the NFT market size to balloon. As for an NFT price, it varies on the cost of creating one since it involves a lot of processes and factors. So, how much does 1 NFT cost? The average cost of creating NFTs can range from $0.05 to $150.

What is the NFT marketplace?

Amazon
An NFT marketplace is like the Amazon of NFTs.

The NFT marketplace is a digital platform where you can easily purchase, store, and sell NFTs to others for money or cryptocurrency. Typically with a fee, an NFT marketplace manages the transfer of an asset from one person to person. Every NFT marketplace has a distinct system in terms of operations; in other words, the available NFT types, payment methods, fees, permitted blockchains, and other policies vary from one marketplace to another.

What are the features of a good NFT market?

While sourcing for an NFT market app, make sure to look for these features:

Storefront

One of the significant features you must look for in an NFT market is a storefront or shopfront that works as a dashboard. A storefront provides its users with enough details regarding an asset, such as the owner, price, title, price description, and more.

Advanced Search Options

The best NFT market app allows consumers to promptly obtain complete information on things they need without going through a complicated process. Hence, the best NFT market app properly organizes all its product for easy search navigation. The users are more satisfied whenever their searches are completed quickly.

Filters

Filters make navigating an NFT market app more hassle-free. Aside from advanced search options, it is much easier for users to discover the market if they have the option to look for assets based on specific facets, such as payment methods, type, listing status, due dates, etc.

Trading

An NFT market is obviously a platform for buying and selling NFT assets. Hence, proposals should contain information regarding their status and the bid validity date, which should be transparent on the NFT market app.

Good Promotions

This feature is identical to what you can find on eBay or Amazon. Here, the characteristics, prices, titles, tags, and external links of assets are specified. This information is relevant if you wish to purchase an NFT, so make sure your chosen marketplaces reveal all these.

NFT Wallet

Users will need an NFT wallet to receive, transfer, or store NFT cryptocurrencies and tokens. A great NFT market app is integrated with a reliable cryptocurrency wallet.

Customer Support

The most essential feature of an NFT market and all other trading platforms is helpful customer support. Good customer support can assist customers in resolving issues and difficulties. Customer support services may be in the form of a chatbot, email assistance, information platform, or call center.

What are the best NFT marketplaces?

You can easily find many NFT marketplace lists with just a tap on your keyboard. That is exactly why you should be very careful lest you fall into the trap of nasty scammers. To help you pick the best NFT market, we’ve come up with our NFT marketplace ranking of some of the best you can find.

OpenSea

Having launched in 2017, OpenSea has been around the longest and is the biggest NFT marketplace today in terms of the trading volume. This marketplace’s trading volume is a whopping $495 million. The market hosts several popular NFTs, including art, trading cards, music, photography, and virtual worlds. OpenSea’s major cryptocurrencies are Ethereum, USDC, and Solana. However, it’s worth knowing that this market doesn’t support fiat currencies like Euros and US dollars.

This NFT marketplace has user-fra friendly interface that allows you to set up a set account in a matter of minutes. While setting up an account is free, the platform charges 2.5% for all transactions. On top of that, you need to pay the gas fee for Ethereum transactions, but if you’re looking for zero gas fees, you can purchase and sell NFT assets on Polygon. The only catch with Polygon is that its logo is displayed on the NFT item of interest. Best of all, OpenSea lets you create your own NFTs on the platform and have it out for auction.

OpenSea is an excellent choice for neophyte NFT investors and sellers who want a hassle-free and straightforward experience and numerous NFT selections.

NFT sales
NFT sales on OpenSea peak in August. Source: Reuters

Axie Infinity

Axie Infinity is a play-to-earn game where your NFT assets are in the form of cute monsters (Axies) that resemble Pokémon. This is a gaming NFT where its players must purchase a minimum of at least three Axies, breed those Axies and fight in battles to earn more tokens called SLPs and AXS. Here, you can buy Axies and sell them once you have bred enough. The Axie marketplace has a 5.25% fee for sellers, and its blockchain is Ethereum with Ronin sidechain.

The downside of Axie Infinity is that it uses multiple wallets so it can be time-consuming for its players. Plus, it only offers one type of NFT. Therefore, this marketplace isn’t for investors interested in varied NFT types.

While the game experienced a dip not so long ago, analysts and experts believe and are hopeful that Axie Infinity will bounce back. So, we’re crossing our fingers on this one.

Rarible

Rarible is another NFT marketplace where you can purchase and sell art, collectibles, and video games. It supports Ethereum, Tezos, and Flow, so you are not limited to just one or two cryptocurrencies like Axie Infinity. Rarible’s sales fees are so meager—1% on the buyer and 1% on the seller. Two years ago, Rarible partnered with Adobe to easily verify and protect the metadata for digital content, including NFTs.

One thing that interests its users is the marketplace’s very own native coin called RARI. The holders of RARI have the privilege to vote on company decisions, such as making policies and guidelines.

If you want access to a massive platform with solid connections and low charges, Rarible is the best NFT marketplace for you.

SuperRare

This high-end NFT marketplace is an NFT art gallery. From the word high-end, SuperRare doesn’t accept into its marketplace meme-style NFTs. They are, in fact, very selective, and they scrutinize all NFT submissions. SuperRare spends much time reviewing and going over all NFT submissions; hence, investors can be confident in the quality of the assets.

As for the fees, the SuperRare marketplace charges 15% whenever an NFT is sold on the primary market for the first time. Aside from that, they also have a flat 3% transaction fee that’s charged to the buyers.

If you want to invest in high-end NFT art pieces, give SuperRare a look.

Should you invest in NFT?

dollar bills
Are NFTs worth your money?

Now that you already know where to buy NFTs, the next and most important question to address is this: is an NFT a good investment? Before investing in NFT, you must do intensive research and listen to the experts’ advice and predictions since an NFT market crash may happen. To add up to your pool of NFT-related research, here are some of the reasons why it is good to invest in NFT:

NFTs establish marketplace efficiency.

NFTs have a vast potential to make the market more efficient. By converting physical assets into digital ones, processes will be more streamlined, intermediaries can be eliminated, supply chains will be enhanced, and security will be bolstered.

All props to tokenizing artworks into NFTs, artists can directly contact and connect with their audience, eliminating the demand for costly agents and lengthy transactions. Aside from that, converting physical artworks into digital assets enhances the authentication process, further reducing costs and streamlining transactions. With NFTs, artists, and investors can save time and money.

NFTs ease the division of ownership.

It’s always been so challenging to fractionalize the ownership of physical assets, such as jewelry, artworks, or real estate. It goes to say that it is much easier to divide the ownership of a digitalized building or jewelry compared to a physical one.

Digitalization can expand the market for certain assets, resulting in better liquidity and higher prices. While this is currently possible for artworks, music, and the like, we can only hope for further developments. But with NFTs, it is easy to divide and pass on the ownership of an asset.

Blockchain technology is secure.

bitcoins
Most, if not all, cryptocurrencies are secured through blockchain technology.

The process of creating NFTs uses blockchain technology, a system of storing information in a way that’s impossible to alter, delete, and hack. All NFTs stored in a blockchain contain specific authenticity records and ownership chains, which, in theory, prevent mishandling and theft. Once data is inputted into the chain, the data cannot be altered or deleted.

Hence, the authenticity and security of NFTs are assured. This fosters next-level confidence that we don’t witness in many markets.

NFT: To invest or not to invest

There are good reasons why you should invest in NFTs. However, there are also reasons why you shouldn’t invest in NFTs. It is up to you to decide, but if you ever decide to invest in NFTs, you must start by looking for a great NFT market. Remember to invest wisely!

If you are an investor and wish to put your money into running a brand instead of using it to purchase an NFT, you might want to consider optimizing some of your social media management tasks. Check out our recommended tools in this Facelift Cloud review and Hopper HQ review.