Choosing an NFT marketplace? Here is what you should know
Understanding the NFT marketplace is no rocket science. NFT marketplace is simply an online market. That is, the platform where digital assets or NFTs can be advertised, bought, sold, stored, and even staked most seamlessly. The need to choose the most suitable NFT marketplace has never been more crucial, as the valuation of the NFT market skyrocketed, reaching a $40 billion valuation in 2021.
To fully comprehend what an NFT marketplace is all about, you must know what an NFT is. NFTs can be anything digital such as drawings, music, digital stickers, and even tweets. They are digital tokens of games and artworks that confer ownership and represent authenticity.
What is the Use of the NFT Marketplace?
The role of the NFT marketplace is to bring together creators, artists, collectors, and investors in a place. In addition, it plays the role of an intermediary for trading NFTs. One of the many benefits of selling artwork in an NFT marketplace is that an artist does not need to depend on galleries or auction houses.
They can simply sell their works in the form of NFT. This helps the artist to get better remuneration. In contrast to a physical sale where the original creator can no longer share in the future profit upon a transfer of ownership, the content creator or artist that sells artwork in the form of NFT is still entitled to a certain percentage of the future profit when there is a resale. Also, collectors benefit because there is no geographical barrier in getting artwork.
To transact in an NFT marketplace, you must first:
- Get a Digital Wallet
NFT wallets are digital wallets that help you store your NFT. This is a compulsory tool for ensuring participation in an NFT marketplace. You should choose a wallet that matches the blockchain network that supports the NFTs you wish to buy. For instance, if you purchase NFTs based on the Ethereum blockchain network, you will find AlphaWallet or MetaMask as the most promising as they support Ethereum. Some distinct features to look for when choosing a wallet includes strong security, user-friendly, and multiple device support.
- Fund your Wallet
It is essential to fund your wallet by purchasing cryptocurrency, for instance, Ether or Bitcoin, or any other currency that supports your selected NFT provider. A way to do this is by transferring from Coinbase to your wallet. Funding is important as NFTs work with smart contracts and you need gas to assign the NFT to your wallet. Your exchange will deduct the amount for the gas used in this case.
- Create your User Account
The next thing to do is to set up a user account on the marketplace you wish to purchase or sell NFTs. Several exchanges provide instructions on what you need to do, making the process very straightforward. To make your choice even easier, we would highlight that some of the most popular and widely used marketplaces are OpenSea, Axie Market, SuperRARE, Binance NFT and Niffy Gateway. You have to be careful about using unpopular platfoms as they can cause a wallet hack and make you lose your NFT.
Finally, you should also know that currently, there are thousands of NFT marketplaces, and many have a specific focus. Thus choosing the most suitable NFT marketplace for your transactions may be difficult. However, some factors to consider when choosing NFT marketplace include the transaction fee, the platform’s experience, liquidity and market volume, and what interests you.