Where to Buy NFT: A Beginners Guide
From digital art to sports collectibles to gaming if you want to start investing in non-fungible tokens here are the best marketplaces where you can buy and sell NFTs.
More and more digital artworks are bought and sold in the form of NFT each day. These digital tokens can be bought or obtained for a variety of reasons, including financial gain, collector’s value, and sentimental worth. Buyers of digital products/assets through NFT may perceive it as a means to feel more connected to the business or to assist artists financially.
Crypto art is envisioned as a new form of art based on scarcity and the possibility of a work’s certification.
Digital Works and NFT
An NFT, or Non-Fungible Token, can be used to validate a digital work in the same manner that a physical painting is validated by the artist’s signature.
NFTs provide artists with a new market in which they can sell their work while also automating the recoupment of a percentage of resales through royalty agreements. NFTs are seen as a method for investors who are optimistic about the technology — a group that often overlaps with cryptocurrency aficionados — to financially support artists, flex their digital art collections, and speculate in a market that is exploding.
How quickly is the market expanding?
According to Market Watch, the online marketplace OpenSea saw $3.4 billion in Ethereum transaction volume in August 2021. With investors like Mark Cuban, Salesforce CEO Marc Benioff, and A16z Crypto, a subgroup of the venture capital company Andreessen Horowitz, pouring money into the NFT economy, there’s reason to assume it’s more than a fad.
Despite this, numerous allegations of theft and fraud have surfaced. Fees and charges vary greatly, and the electricity required to run the Ethereum network emits a significant amount of CO2. Those joining the market should do so with their eyes wide open, realizing that it’s critical to scrutinize markets, including sometimes obscure FAQs and service agreements.
What is an NFT Marketplace?
NFT marketplaces are platforms or, simply put, “NFT malls” where they can be sold, bought or exchanged. They are created specifically for non-exchangeable tokens and all kinds of digital works are stored, displayed, sold, and in some cases even created here.
There are many such resources available today, but we’ll focus on the 10 most popular and interesting ones. Let’s go!
You won’t find this marketplace in the ratings of the biggest players in the NFT world yet. But there is not the slightest doubt that soon it will be there. The fact is that behind this project is one of the largest and most solid crypto exchanges in the world.
With almost unlimited financial resources, Binance is building its own ecosystem of projects, squeezing smaller players out of a variety of niches. It has long had its own blockchain, a traders’ academy, an initial coin offering platform, and even a service to help pay taxes on cryptocurrencies.
At the end of August, we will see digital objects officially presented by Hermitage on the Binance NFT site. A collection of digital art objects announced by Russian musician Eljay will also be placed here soon. The Mumiy Troll band has already shown interest in the marketplace, not to mention the aforementioned Pokras Lampas, who sold his work here.
Lot categories on Binance NFT are standard. And the interest on the part of Russian stars can be regarded as a planned action to promote the project. But it will be more interesting to see what features this “golden child” will acquire in time.
OpenSea is one of the largest and most popular NFT marketplaces today. Every day, 20,000 users carry out about 50,000 transactions worth more than $40 million.
In the Art category alone, you can find more than 1.3 million lots, the most expensive of which sells for 5,000 ETH. The artwork is a quote from Henry Ford in print on a uniformly gray backdrop.
Also on OpenSea, you can find huge piles of music, virtual worlds, collectible cards for various games, just collectibles, a variety of sports-related digital items, and lots that are hard to find a specific category. Most of them are the odd GIF. The Marketplace works with three blockchains – Ethereum, Polygon, and Klaytn – each of which supports the creation of NFT. The variety of offerings overshadows many other marketplaces. There are thousands of different NFTs, from paintings by contemporary artists to game cards.
In addition, the platform has several auction features and is fully integrated into the crypto infrastructure.
OpenSea users must pay a commission when putting their artwork up for sale. This fee depends on the demand on the network, time of day, and many other factors and sometimes can even exceed the price of the artwork being created, most often it is $70-100.
The Rarible platform is a Russian development that has managed to gain popularity all over the world. Art, photos, music, games, digital universes, domain names, and even memes are all sold and bought on the NFT-marketplace Rarible, which ranks fourth in the top 10 of such projects. The marketplace site is visited by 2 million people a month. And this is even with a fairly modest daily trading volume, which is a little over $ 750,000. The popularity can be explained by the fact that among the sellers NFT marked here many celebrities, including Lindsay Lohan. Not bad at all for a project created by two of our compatriots.
A month ago, Rarible closed its A investment round, receiving a total of $14.2 million from Venrock Capital, CoinFund, and 01 Advisors. There is no doubt that the project will actively develop on these funds and will probably continue to improve its position in the ranking. It is definitely worth a closer look if you intend to dive into the world of NFT.
Using their own RARI token artists can create and sell their works here. Another important difference is the opportunity for artists to receive compensation each time their work is resold. The Rarible marketplace, by the way, has one of the highest trading volumes of any NFT marketplace at the moment. Registration on the site is free. For placing each new token or creating a collection, you will need to pay a commission to the Ethereum network- $30-100 for each publication.
NiftyGateway platform has a convenient functionality for buying and selling NFT, as well as an impeccable reputation. It was bought by the Gemini exchange.
The key feature of this platform is that users can buy NFT using fiat currency (rubles, US dollars, euro, yen, etc.) and sellers can withdraw earnings to their credit or debit cards.
How much does it cost to post your work?
Posting is free. Nifty Gateway takes a 15% commission on the transaction. The platform deducts 5% and an additional 30 cents from each resale by NFT. NFT resales charge the author 10% of the transaction.
With a relatively modest daily trading volume ($380,000), the NBA Top Shot Marketplace is an interesting example of a sports NFT marketplace. The marketplace is officially licensed by the U.S. National Basketball Association and offers its users, no more and no less, to buy and sell highlights of real historical NBA games.
The idea is clearly borrowed from baseball cards but on a whole new technological level. Transactions here are done in dollars, and NFT transactions are recorded on the FLOW blockchain. The creators of NBA Top Shot themselves call the project nothing short of “a new era in fandom.”
Judging by the number of transactions, many agree with that statement. As recently as August 7, one @Dubria sold a “legendary” Zion Williamson game moment to one @jerlevine for $79,999.
The average deal here is somewhere in the neighborhood of $10, but it looks like some users are quite successful at speculating on tokens and making money off of basketball fans.
The concept of the platform is to issue and sell digital sports collectible cards. Only instead of static images NBA Top Shot cards contain video clips from past games. Each clip, in this case, is a one-of-a-kind token. NBA Top Shot charges a 5% fee for each sale.
The NFT platform Foundation has a stylish design and is considered more advanced NFT marketplace. Foundation is an auction platform, and even to get there you have to get an invitation from some author. The auction is similar to the real public sale of goods. Whoever indicated a higher price for a certain period – gets the work. The Foundation platform is a resource where you need to show your work with maximum involvement of the future audience, for example, by sharing them on social networks or blogs. Posting your work is free. Foundation deducts 15% from the sale of the art token. If NFT is resold, the author receives a 10% royalty.
To get an idea of how heterogeneous and weirdly structured the NFT world is, you only need to know that Axie Infinity Marketplace is second in the total value of assets sold daily, but first in the number of users.
According to analytics service DappRadar, almost 38 thousand players in Axie Infinity provide a daily trading volume of more than $28 million. The items for buying and selling here are creatures that can be bred and used in the gameplay, as well as game territories, items, etc. This seemingly frivolous activity has long attracted the attention of professional economists, and there is a good explanation.
According to analysts at Delphi Digital, developer Axie Infinity could end the year with a profit of $1 billion. The game uses several methods of monetization, based on commission payments for purchases/sales and certain actions within the game.
A Russian project, according to DappRadar, is one of the top 10 NFT marketplaces. It is also a game project, similar in its mechanics to Tamagotchi or Pokemon. Users, competing with each other, develop a “duck farm”. Duck characters in the gameplay help their owner to get tokens that can be spent on breeding pets or even out of the game in the form of fiat money. The popularity of the project, which already has more than 6.5 thousand registered users, is due to the fact that with a certain style of play you can get passive income from your farm. The best of the players already have it equivalent to $100,000 a month, so there is no need to further motivate the participants in this process. The marketplace is used to sell and buy ducks with different combinations of “genetic material”. Rare specimens cost quite a lot – recently a duck with a face reminiscent of Elon Musk was sold here for the equivalent of one million rubles in tokens.
Waves Ducks is ideologically and functionally different from its various predecessors, like CryptoKitties, which almost stopped the entire Ethereum blockchain four years ago due to overload. The creators rely on a Play-to-earn approach, meaning they offer users not only the ability to trade characters on an internal marketplace but also the ability to play to earn. By performing various actions and competing with other participants, players can earn a large number of tokens, which can later be used to develop their own farm.
The Sandbox platform allows you to create, buy and sell assets in the Decentraland meta-universe with LAND tokens. The first sale of territories in the LAND space took place back in late 2019, and in February of this year, the developers sold plots of land for the second time.
In a few days of the second presale, 6,192 blocks of virtual space were sold for a total of 800 ETNs, or more than $200,000. Buyers include casual gamers as well as major gaming companies like CryptoKitties, My Crypto Heroes, Old Skull Games, and Dapp.com, a website that ranks and analyzes decentralized apps.
CryptoPunks is a series of 10,000 randomly generated characters with pixel art aesthetics and unique attributes that was one of the first examples of NFTs on the Ethereum network. While they were once available for free, the only way to obtain one today is to purchase one.
As non-fungible tokens (NFTs) entered the mainstream in 2021, the market for crypto collectibles exploded, with $2.5 billion in transaction volume in the first six months. That means going to CryptoPunks creator Larva Labs’ marketplace, which is where the majority of sales happen. And buying one is expensive: the cheapest Punk currently costs 94.99 ETH (roughly $285,000), while the most valuable one sold on the marketplace (number 3100) sold for an incredible $7.58 million.
That explains Larva Labs’ $1.3 billion in all-time trading volume. To begin, simply connect your MetaMask wallet, browse the available Punks (those with red backgrounds are for sale), and place your bid.
The most difficult part of the process is persuading yourself to spend such a large sum of money, but hey, that’s on you. After all, the value of art is in the eyes of the beholder.
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