FxBrokerReviews.org – NFTs have become a major industry today. The sale of an NFT art collection by digital artist Beeple for $69 million set a completely new benchmark for NFTs, attracting more and more investors into the marketplace.
Powered by blockchain technology, NFTs have made it possible to convert any asset into a digital token and monetize it. Owing to this very factor, several creators, artists, musicians, and even celebrities are investing and minting their own NFTs. more so, people have also taken up the route to build their NFT marketplaces or partnered with a third-party platform to mint and sell the tokens.
While we are not indicating you to build your marketplace, we want you to understand the meaning and purpose of an NFT marketplace so that you can get a better understanding of what is NFT and how does it work, and how to sell and mint one successfully.
What is NFT?
The buzz of NFT is not new in the market, but only a few understand its true meaning of it. You will find people defining it as a unique digital asset that you can buy from a marketplace. But there is more to it!
NFTs or non-fungible tokens are assets that are tokenized using blockchain technology. Each token has a unique code associated with it, which helps to trace the identity of the creator as well as the buyer of the digital token. NFTs serve as a major aid to people with digital collectibles as they cannot be exchanged or traded equivalently like other cryptographic assets. Each token is rare and unique and can not be manipulated.
Non-Fungible Tokens (NFTs) represent a variety of intangible and tangible items such as paintings, virtual real estate, postcards, videos, and so on.
Take a look at some of the popular NFT examples to understand better :
Example: CryptoKitties
It is a famous NFT game that involves breeding and collecting cats. These digital cats took NFTs to the mainstream with each token having distinctive ”cattributes”.
Example: Bored Ape Yacht Club
Bored Ape Yacht Club, is a collection of 10,000 NFTs built on the Ethereum blockchain featuring profile pictures of different cartoon apes.
Now all this information about NFTs may have left you wondering: how does NFT works?
Working of a Non-fungible token
As mentioned above, NFTs are crypto tokens developed on blockchain technology. Therefore, blockchain acts as the decentralized ledger that manages all the transaction history of each NFT. Meaning that all the transactions recorded in the blockchain network are accessible in the public records, allowing traders to trace back the identity of the creator.
How does NFT minting work?
NFTs are created by blockchains using appropriate tools and support. To create new NFTs, the transactions on the blockchain need to be validated by the minors, which requires solving ultra-complex mathematical equations. Miners are paid transaction fees which are covered by the person who mints the NFTs. These fees depend on the network, and blockchain on which the NFT is created. NFTs are typically held on the Ethereum blockchain, although other blockchains support them as well.
What is an NFT marketplace?
NFT platforms are built around the concept that digital content, like artwork, should be owned and traded fairly. Marketplaces advertise the concept that the NFT collectibles are rare and limited in number and therefore should add value and be unique.
Leveraged by blockchain technology, like Ethereum, Solana, and more these marketplaces host thousands of digital tokens in various fields like business, sports, art, music, fashion, and more. Marketplaces serve as the medium between a creator and the buyer to trade NFTs and participate in NFT biddings and auctions. Furthermore, they also allow any user to mint their own NFTs and sell in the marketplace, provided they own cryptocurrency to fund the transactions.
All transactions on the marketplace, are secured by the blockchain network thus verifying the originality of the digital asset.
Why do you need an NFT marketplace?
Now, before we directly dive into the section on how to create an NFT, let us understand the functions of an NFT marketplace and how can you use it to make the best use of NFT creation.
With the introduction of NFT marketplaces, artists and creators no longer have to stick to geographical boundaries to sell their artwork. They can get a better share of profits, and are even entitled to royalties i.e. a certain percentage of subsequent sales of the artwork. Moreover, creators get a free hand and space to try something unique and create innovative digital artwork.
If you are a buyer and wondering why and how to invest in NFTs and marketplaces, then take a look below!
NFT buyers have the facility to own rare and unique NFT collectibles and participate in auctions. Investors can own trading cards, exclusive merchandise, and even in-game assets like character outfits accessories, and more. Buyers though, can not exchange the NFT but can rent them out and earn extra money.
Interested NFT buyers can take a look below at a step-by-step guide on how to buy NFTs:
- You will require a crypto wallet to store your NFTs and crypto to pay for the transactions in the marketplace.
- If you do not have any existing funds, purchase cryptocurrency, possibly ETH, or the currency supported by your marketplace.
- Once you have sufficient funds in your wallet, connect it with your marketplace and start exploring the NFTs you want to buy.
- After finding your desired NFT to buy click on the buy button and your marketplace will take you to a screen asking you to connect your wallet. Read here to know more about how to invest in NFTs.
How do I engage in an NFT marketplace?
An NFT marketplace allows users to mint and sell NFTs. platforms like Opeansea, SuperRare, Binance, and more allows users to either sell their digital tokens at a fixed price or conduct an NFT bidding. Both methods involve uploading your digital asset and listing it on the marketplace. To know more read our guide on how to sell NFTs via fixed price.
When you engage with any NFT marketplace make sure you are aware of the blockchain it runs on as it determines the gas fee. Also read about if there are any other fees involved with the transaction.
How does NFT bidding work?
NFT bidding refers to an auction helped by the creator of the NFT to sell the token at the highest price. The auction is a type of sale, where the seller sets a minimum parameter of the price, and buyers place their bids to own the limited NTF collections.
Once a seller places the auction, interested people can place their bids within the set timeframe. The token is earned by the highest bidder within that timeframe. There is a countdown meter of 15- 20 minutes, indicating the end of the auction. for new bids coming in the last 15 – 20 minutes, the timer resets for another 15 – 20 minutes. This continues until there are no more bids.
If you are an investor who is looking to invest in NFTs through auctions, this is how you can place an NFT bid :
- Connect your crypto wallet like Metamask to place a bid.
- Search or browse for NFTs on various NFT marketplaces to discover what you are looking for.
- once, you have selected your NFT, click on Browse, then, view all current auctions by selecting Auction from the Sale Type drop-down.
- To the right of the NFT, you can view the current bid, remaining time, and other information about the NFT.
- Place a bid by entering an amount more than the current bid in the text field and selecting the Place Bid option.
- Sign the transaction on your Smart Chain.
- Link the wallet by clicking ‘Place Bid a second time.
- Lastly, confirm your bid
How to sell NFT in an NFT auction
- Firstly, sign up and connect your crypto wallet to the NFT marketplace of your choice like Opensea.
- Mint your NFT to create a new one or select an existing one directly from your wallet.
- Choose the Sell option in your marketplace and list your NFT for sale.
- When you proceed to list the NFT, your marketplace will ask you if you want to place it for a bid. Select the ‘Auction’ option to do so.
- Then wait for buyers to start placing their bids
Best NFT marketplaces to invest in
Now that you have learned about NFT marketplaces, and how to create an NFT and sell one. In this section forex broker reviews, looks at some of the best NFT marketplaces that you can blindly trust!
Rarible
Rarible marketplace, allows users to buy and sell various collectibles in the form of art, video game assets, music, and a lot more. Based on blockchains, Ethereum, Flow, and Tezos, Rarible has created its native token called RARI. investors who buy the token get voting rights on various company decisions. The marketplace charges a 2.5% fee on every transaction, plus the gas fees, depending on your chosen blockchain. The best feature of the platform is that it allows users to buy NFTs using credit cards thus, allowing transactions in fiat currencies.
OpenSea
OpeanSea is undoubtedly the user’s choice of the best NFT marketplace. With the largest collection of NFTs available, the platform is user-friendly and the perfect choice for beginners. Based on the Ethereum blockchain, the marketplace supports other cryptocurrencies, like Solana, and USDC and payment options feature other cryptos. In terms of the cost, OpenSea charges a fee equal to 2.5% of every transaction. Furthermore, users also have to pay the gas fee, depending on the blockchain.
Binance
Binance is a well-known low-cost cryptocurrency exchange, and its NFT marketplace also offers low-cost NFT creation and selling. The marketplace allows you to purchase NFTs with only a 1% transaction fee using the Binance Smart Chain or the Ethereum blockchain. The Binance NFT Marketplace has a wide range of NFTs in several categories, including, Art Sports, Entertainment, Gaming Collectables, Esports, and Mystery Box. The easy navigation and accessibility make it a popular choice among all kinds of investors. People who already have a Binance crypto account, do not need to create a new crypto wallet to buy and sell NFTs.
JPG.Store
JPG.store is the largest marketplace on the Cardona blockchain. It is suitable for beginners who want to buy and mint their own NFT tokens. The marketplace is somewhat similar to Opensea and hence has a very smooth user interface. The platform allows you to keep a track of all the upcoming NFT projects and auctions and holds a great variety of collections. The marketplace comes with a transaction fee of 2% and also allows royalty to creators on each sale.
Final Thoughts
Whether you are an experienced blockchain user or a beginner in NFT trading, choosing the right marketplace makes all the difference. Some of the most popular NFT examples like Beeple’s Everyday and Human One, success due to the marketplace he chose to auction or sell on.
However, to gain success in NFT trading make sure you also follow the correct steps to mint and sell an NFT. An NFT which provides value to users is more likely to sell in the marketplace.
FAQ’s
Q1. How can I buy NFTs?
Ans: To invest in NFTs you need to have funds in your crypto wallet, like Ether. Therefore, adding funds and storing them in a digital wallet is the primary step. Then, find a suitable NFT marketplace and invest in the NFT that you like.
Q2. Are NFTs safe?
Ans: NFTs are powered by blockchain technology, therefore the possibility of fraud or manipulation is next to impossible. The only security risk ], a user can face is if your chosen marketplace goes out of business.
Q3. Should I invest in NFTs?
Ans: NFTs are a good investment option, you can either put the digital asset for resale or even rent it out. Moreover, several marketplaces allow creators to earn a royalty on every sale they make.
