Do you know NFTs market is valued at $250 million? NFTs are no longer a passing fad; nfts are getting popular within cryptocurrency space and even moving beyond.
For starters, NFTs are unique digital assets, can’t be replaced and represent real-world assets like music, memes, video clips, art, sports collectibles etc.
Many believe that NFT digital works would take over the traditional art market within 5 years. We think that’s a broad statement and anything is possible.
Coinbase and Sotheby announced launching their own marketplaces recently.
In this blog post, we will be explaining about nft marketplaces, where to buy nfts and how to buy nfts.
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Top NFT marketplaces to buy and sell
NFTs are making headlines but despite their popularity many people don’t know about what nfts, how do they work and nft marketplaces.
Read a detailed blog here for clarity before getting an understanding of NFT marketplaces and where to invest.
NFT marketplace is just like any other marketplace except for the fact that they sell NFTs based digital valuables. NFTs investments rose to 299% in 2020 just like cryptocurrencies like Bitcoin gained traction according to L’Atelier BNP Paribas.
Creators and sellers of NFTs have made millions. In February 2021, a 10-second video artwork was sold for $6.6 million In March this year, Beeple made records when he sold a crypto art piece for almost $70 million.
Some of the most expensive NFTs are CryptoPunks, Beeple, and Bored Ape Yacht Club.
Online creators are no longer relying on YouTube and Facebook to highlight their work and connect with their audience, now they can create NFTs for their work and sell as per their demand. In 2021 alone, NFT sales surged up to $2.5 billion.
How much does NFTs cost?
There is no one answer, some sell NFTs for a couple of dollars, some in thousands and even some in millions of dollars. Bear in mind, only a few NFTs succeed from $1 million.
However, we can share a list of top marketplaces where you can try your luck if you are interested.
List of marketplaces, their market cuts and what do you need before investing in NFTs
Here is a list of some known NFT marketplaces.
1-OpenSea, the first and largest NFT marketplace for buying and selling NFTs. Some of the blockchain networks compatible with this marketplace are Ethereum, Polygon and Klaytn. There are around 34 million NFTs sorted into catgeorgies like digital art, collectibles, game items etc.
What do you need? An Ethereum wallet (Coinbase wallet, MetaMask, etc) and a gas fee upfront (for validating transactions on blockchain network).
Marketplace cut – 2.5% after the NFT gets sold.
2-Axie infinity, a gaming NFT marketplace where users can create and breed pets named Axies and compete. Every pet (Axie) is unique which can be sold or bought. Built on Ethereum blockchain, can exchange in-game assets and can buy virtual land for gaming.
What do you need? MetaMask wallet, new players must have at least 3 axies before start playing.
Marketplace cut – 4.25% from buyer and seller.
3-Rarible, based on tokenized digital art. Best about this marketplace is that you can earn royalties on reselling NFTs and they have multiple categories like photography, music, digital art, domains, metaverse and games.
What do you need? An Ethereum wallet.
Marketplace cut – 5% on every sale, i.e. 2.5% from buyer and seller each.
4-SuperRare, peer-to-peer digital art marketplace for collectors and artists. The platform is still naive and has only few artists on board. Best about this marketplace is that they keep single or unique editions of the art pieces unlike other NFTs where artists can sell iterations of the same artwork.
What do you need? Submit your profile for review, they evaluate and maintain exclusivity of hosted artworks. Only accepts payments in ETH, and wants their user to have a MetaMask wallet.
Marketplace cut – 15% cut from seller on every buy. Provides 10% royalty each time the asset sells in the market. Buyer is charged 3%.
5-Mintable, mint your memes, video files, audios into NFTs. They reward their users with MINT tokens.
What do you need? Need to have a MetaMask wallet to sign up.
Marketplace cut- 2.5% normal, 5% gasless, 10% printable NFTs.
6-Nifty gateway, for expert artists, built on the Ethereum blockchain network. NFTs are called Nifties in their system, where you can ONLY find renowned musicians, and artists.
They go up for sale every 3 weeks. Anyone can buy an NFT by blind offers, participate in raffle draws and bids or buy using credit cards.
What do you need? Ethereum wallet/ credit card. Participate in raffle draws or auctions.
Marketplace cut – 5% cut on every sale, $0.30 transaction processing fee.
7-NBA Top Shot, fans/users can trade digital moments from the NBA. Example, if you have watched the live match and captured a player making a 3-pointer, you can mint it on NBA Top Shot.
What do you need? Crypto wallet/ credit card. If you pay via crypto wallet, you will pay the gas fee of the ETH network.
Marketplace cut – 5% cut from seller.
How to know what nfts to buy?
Choosing an NFT marketplace
To start from, think of NFT as seeking ownership of an asset. Before picking from a NFT marketplace, you have to decide what kind of digital asset you want or interested in buying / selling.
On blockchain, anything digital like videos, tweets, video games, art collections etc. can be tokenized. Ethereum network is the most common in creating NFTs.
Find out your interest first. After which, consider the type of tokens supported by a certain marketplace. Some support a wide variety of tokens while others are specific or can say closed marketplaces and have specific proprietary tokens.
Another good tip is ‘having the right crypto or tokens in your NFT marketplace account before participating in any site auction/activity’. While opening an account, you will be asked to sync your digital wallet with an NFT marketplace.
Basic set of steps before investing in NFTs
Step 1 – Choose the NFT you want to invest in, could be an art piece, video game asset, music etc.
Step 2 – Search what type of cryptos are required to buy your chosen NFT since every marketplace has specific requirements regarding crypto wallets.
Step 3 – Create a crypto wallet for free by signing up on cryptocurrency exchanges like Binance. The cryptocurrencies you buy will store in your wallet.
Step 4 – Populate your account with that type of cryptos required for a specific NFT marketplace as this will allow you to send, receive and create NFTs.
Step 5 – Buy your NFT or place a bid and see if you win. NFTs are on fixed price and on virtual auctions.
What is the right NFT marketplace for you? It can be challenging. Find your interest. If you are a sports fan and want to collect live game moments, NBA Top Shot is an obvious go-to choice. Again, if you like collecting exclusive artwork, SuperRare is for you.
You don’t have an idea and want to invest in NFT? A wise piece of advice is to invest in any popular NFT marketplace as they have low transaction fees and most of the time let you mint NFTs for free.