The NFT marketplaces are booming, with the total value of NFTs traded in 2021 already surpassing $1 billion. NFTs, or non-fungible tokens, are digital assets that are stored on a blockchain. These tokens represent digital assets like artwork, music, videos, or virtual real estate. They are unique, indivisible, and can be used to store value or trade. The marketplaces offer users the opportunity to buy, sell, and trade these tokens. Many of these platforms also offer user-friendly tools and services to make the process easier and more efficient. As the market continues to grow, the range of services and products available will only increase.
What to look out for in marketplaces
Liquidity
The liquidity of NFT marketplaces is a major consideration for buyers and sellers alike. As NFTs are still relatively new, the marketplaces are still relatively illiquid. This means that it may take some time to find buyers or sellers willing to transact at the desired prices. This can be especially challenging if the NFT is a unique one-of-a-kind asset. However, as the NFT space matures, the liquidity of these marketplaces is expected to improve as more people become aware of and engage with the space. This should lead to more buyers and sellers being available, as well as more trading activity, leading to greater liquidity.
Fees
The fees associated with NFT marketplaces can vary widely, depending on the platform and the type of asset being sold. Some platforms may charge a flat fee for listing an NFT, while others may charge a percentage of the final sale price. Additionally, some marketplaces may charge transaction fees when buying or selling NFTs. It is important to research the fees associated with a particular marketplace before deciding to list or purchase an NFT, as the fees can have a significant impact on the overall cost of the transaction.
Recently, there has been a lot of discussion about fees & royalties in particular. 2 of the most important marketplaces have currently made it optional from collecting any fees for themselves. Also for creator royalty fees they have set a bare minimum of 0,5%.
Payment Options
NFT marketplaces typically offer cryptocurrency as a payment method. However, in order to reach the broader public also methods like credit card are offered. When making a purchase, buyers should always ensure that the payment method they choose is secure and protected. Additionally, buyers should confirm that their payment method is supported by the NFT marketplace before proceeding with the transaction.
The marketplaces
Opensea
https://opensea.io/
OpenSea is a leading decentralized marketplace for non-fungible tokens (NFTs). It allows users to buy, sell, and discover unique digital assets, such as collectibles, gaming items, and other digital assets. OpenSea provides users with an easy-to-use interface, and it supports multiple blockchains, including Ethereum, Polygon, and Flow. OpenSea also offers various features such as a built-in search engine, wallet integration, and a dedicated auction house. It has a large and growing community of users, developers, and creators. OpenSea is a great way for anyone interested in NFTs to explore and discover new and exciting digital assets.
Pro's: Market leader, beginner friendly
Con's: not decentralized, no governance token
Blur
https://blur.io/
The NFT marketplace blur is a decentralized digital asset exchange platform that enables users to securely buy, sell, and trade digital assets using blockchain technology. The platform allows users to create their own NFTs and to access a wide range of digital assets from a variety of marketplaces. By using a decentralized platform, users can avoid the traditional middleman and benefit from lower transaction costs. Furthermore, the platform provides users with a secure and transparent trading environment, where they can access real-time data and analytics to inform their decisions. Additionally, the platform is designed to be user-friendly, with a simple and intuitive interface, making it accessible to everyone. With the NFT marketplace blur, users can take advantage of the many benefits of the blockchain, including increased security, transparency, and liquidity.
Pro's: designed for pro traders, decentralized, own governance token
Con's: not beginner & less user friendly
X2Y2
The NFT marketplace x2y2 is a digital asset marketplace where buyers and sellers can come together to buy and sell Non-Fungible Tokens (NFTs). NFTs are digital assets, like artwork, music, and collectibles, that are stored on the blockchain and have unique identifiers that make them one-of-a-kind. The x2y2 marketplace allows users to purchase, sell, and trade NFTs with confidence. With the help of blockchain technology, x2y2 ensures secure transactions and protects users from fraud. In addition, users can access the x2y2 marketplace on their mobile devices and stay up to date on the latest trends in the NFT space. With its user-friendly interface and intuitive features, x2y2 is the perfect platform for anyone looking to explore the world of NFTs.
Pro's: decentral, own governance token
Con's: lower liquidity
Magic Eden
Magic Eden is a Non-Fungible Token (NFT) marketplace that offers a secure and transparent platform for users to buy, sell, and trade NFTs. It provides an easy-to-use interface for users to manage their digital assets, including their NFTs. With its advanced security measures, users can trust their digital assets are safe and secure. Magic Eden allows users to buy and sell NFTs from different blockchains, including Ethereum, EOS, and NEO. Additionally, users can also explore and discover new NFTs from the marketplace. With its low transaction fees and user-friendly features, Magic Eden is a great place to find and manage your NFTs.
Pro's: hub for solana projects, multi-chain,
Con's: no governance token
Other notable mentions
LooksRare, Rarible, Superrare & Foundation are a few other well known marketplaces. While LooksRare basically works like the marketplaces described above, the other 3 are more focused on 1 on 1 art.
Superrare
Conclusion
In conclusion, NFT marketplaces are a powerful tool that can be used to transform the way digital assets are bought, sold, and traded. While there are still many unknowns surrounding the technology, its potential to revolutionize digital asset trading and ownership is undeniable. NFT marketplaces have the potential to open up a whole new world of possibilities, and as more people become familiar with them, the market will only continue to grow.