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NFTs, or non-fungible tokens, are digital assets like art, music, and games that are valuable because their ownership and authenticity can be digitally verified. NFT marketplaces are online trading platforms where users can create, sell, buy, and showcase various NFTs under the safety net of blockchain technology. The global NFT market has witnessed a 200-fold growth over 2021 and since then, the number of NFT marketplaces has been proliferating significantly.
NFT marketplaces and common NFTs traded on them
As the popularity of NFT marketplaces is increasing, artists worldwide are able to monetize their art while also promoting it globally. The success of these online platforms is evident from the staggering $44.2 Billion spent on them in 2021.
NFT marketplaces are attracting users like bees to honey owing to aspects of their architecture like simple design, reward system, transparency, and an enthusiastic community. OpenSea, Rarible, Axie Infinity, Mintable, and Superrare are some examples of the major NFT marketplaces preferred by users.
Some platforms in the NFT market offer a broad range of NFTs, including collectibles (e.g., Crazy Ape Yacht Club, Cryptopunks, fantasy football cards), art (e.g., paintings, music, video), digital items inside video games, and assets/properties traded within the metaverse.
Key factors to consider when choosing the best NFT marketplace
Most of the NFT marketplaces charge users transaction fees and commissions of around 2.5-15% for buying and selling NFTs. Before associating with a platform for the long term, users should opt for marketplaces that charge low and transparent transaction fees and commissions along with providing the best payment options.
As users worldwide choose to pay for transactions using Bitcoin, Ethereum, or even fiat currencies, NFT marketplaces should support a variety of digital/crypto wallets and payment options on their platforms to facilitate smooth operations.
Security provided by the NFT platform is one of the several factors that should not be overlooked. The chosen marketplace should offer adequate security measures such as advanced encryption, two-factor authentication, and transaction insurance to protect the sensitive information of users from fraud.
Users should favor NFT marketplaces that provide in-depth information about the NFTs they are cataloging on their platform, their cost, the number of bids, and the ownership of each item. This information assists buyers in making the right decisions while it is also beneficial to the sellers as they can include these necessary facts to assist in the marketing of their products.
It is important for users to choose such an adaptable platform in the ever-changing landscape of the NFT ecosystem which moves towards the future vision of platform scalability.
A substantial difference can be found in the user interfaces and experience (such as designs, navigation, filters, and search) of different NFT marketplaces. Users should look for platforms that offer a user-friendly and intuitive interface while also displaying a range of features like ratings, reviews, and rankings.
Along with the growth of the NFT marketplace, the number of NFT types and categories has also been increasing rampantly. Some NFTs (e.g., digital art) are extremely popular and dominate the industry while others (e.g., music, in-game assets) are steadily getting popular. NFT platforms supporting the transaction of the type/category of NFTs that users like should be preferred.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
