Tips on How to Choose the Best NFT Marketplace?

Tips on How to Choose the Best NFT Marketplace?

According to a NonFungible.com report, the total value of all NFT transactions has grown to 21,350% with $17. 6 billion in sales in 2021 compared to $82.5 million in 2020. That’s more than 200-fold increase in just one year! With its popularity, more and more people have joined the craze. Today, almost everyone has their eyes on NFTs. From huge brands such as Nike and Adidas, to popular celebrities such as Snoop Dogg, Eminem and Stephen Curry, a lot of people have now jumped in to invest their money in NFTs. For newbies, choosing the best and the most reputable NFT marketplace where you can securely buy and sell these digital assets is the first step to consider.

But what exactly is an NFT marketplace and what is it for? Continue reading to find out more.

What is an NFT Marketplace and How Does It Work?

NFT marketplaces are special trading platforms where users can store, display, buy, sell, auction or sometimes, create (mint) non-fungible tokens. Similar to how eCommerce trading platforms work, NFT marketplaces also allow users to range the tokens either by price or type or author. Most platforms also let users save their most interesting NFTs to their favourites. 

Some NFT marketplaces that have a specific focus or niche like certain music or digital art. Some trading platforms, on the other hand, are open to the public while others work like private clubs where you will need an invitation to get on the list.

Things to Consider When Choosing an NFT Marketplace

With an array of NFT marketplaces to choose from, choosing the best platform where you can keep your investments safe can be a little challenging. To avoid picking the wrong one, here’s a list of the things you need to consider when choosing an NFT marketplace.

1. Crypto wallet compatibility

When choosing an NFT marketplace, make sure to consider selecting a platform that supports multiple wallet NFT wallets and payment options. Support for various MFT platforms varies depending on the type of blockchain a specific marketplace is built on and the kind of token standard it supports.

Remember, the more ways you can pay for the non-fungible items, the better. This will make it a lot easier and more convenient for you to join any NFT transactions. 

2. Type of marketplace

As of writing, there are three major types of NFT marketplaces namely open, curated and proprietary marketplaces.

Open Marketplaces

Some of the best examples of open marketplaces are OpenSea and Rarible where anyone is allowed to mint, buy or sell NFTs. They are open to all types of NFTs including digital arts, music and even other NFTs that are minted outside the platforms. This, however, depends on the specific marketplace. 

Curated Marketplaces

SuperRare, Foundation and Nifty Gateway are some of the best examples of curated marketplaces. Compared to open marketplaces, curated marketplaces are more exclusive. In most cases, NFT creators are asked to fill out applications before they can be considered as part of these platforms. 

Proprietary Marketplaces,

Proprietary marketplaces are the most restrictive among the three platforms. Great examples of proprietary marketplaces are Bored Ape Yacht Club and NBA Top Shot. These marketplaces only display NFTs that are minted on their platforms. 

3. Project offerings 

You can choose an NFT marketplace that offers either single or multiple projects. While an NFT marketplace that focuses on a single project can be considered a much more trustworthy option, a multi-project marketplace can give you wider options.

Some of the most popular NFT marketplaces that only support a single project include Axie Infinity, CryptoPunks and NBA Top Shot. 

4. Gas fees

Gas fees are the processing fees that users need to pay to complete transactions on a blockchain. These fees are used to compensate blockchain miners for their computing energy and resources that have been used to verify blockchain transactions. Gas fees are highly volatile, depending on how complex the transaction is and the traffic on the network.

5. Marketplace ratings

Another thing to consider when choosing an NFT platform is the marketplace ratings. User reviews and platform analytics can help you make an excellent decision about whether or not to trust a specific marketplace. 

6. Security

The most important factor you need to consider when choosing an NFT marketplace is security. A great NFT trading platform offers a highly secured environment for both the creators and the buyers. For instance, look for an NFT marketplace that provides advanced encryption or requires identity verification to avoid fraud.

List of Top 5 NFT Marketplaces in 2022

Here are some of the top NFT marketplaces for you to choose from this 2022:

OpenSea

OpenSea is the largest and the most versatile NFT marketplace as of today. This trading platform offers a wide array of NFTs from collectibles, rt, music, domain names, photography, trading cards and virtual worlds. It allows people to create, send, receive, store, display and trade their NFTs. With OpenSea, users can sign-up for free. What’s more, OpenSea now offers a gas-free marketplace on the Polygon blockchain. 

OpenSea supports more than 150 payment tokens. It hosted a number of popular NFT projects such as Gods Unchained, Axie Infinity and CryptoKitties.

Nifty Gateway

Nifty Gateway allows anyone to create, list,  buy, sell and gift NFTs without any gas fees. It is powered by the crypto exchange Gemini technology. Nifty Gateway facilitated the sale of some notable names and companies including Beeple, Grimes and Pak. 

SuperRare

SuperRare, as the name suggests, is an NFT trading platform that focuses on rare finds. It allows users to create, collect and trade unique NFTs. SuperRare exhibits only rare digital artworks from selected digital artists. This offers buyers the exclusivity they are looking for. With SuperRare, artists can earn royalties from secondary sales of their artworks. It has its own token called $Rare, which is both a payment and voting token. 

Foundation

Foundation is an invite-only NFT marketplace where artists have to be invited by the Foundation community while buyers simply need to have a funded crypto wallet to make a purchase. With Foundation, artists can create and sell their digital assets while buyers can collect NFTs for fun and even for gifting. It allows users to buy and sell NFTs for fiat using credit or debit cards. 

Rarible

Rarible is a large marketplace built on the open-source NFT blockchain protocol which allows users to create, list, trade and exchange various kinds of NFTs including artworks, videos, collectibles, music and so much more. To buy and sell NFTs on this platform, users should use the marketplace’s own token called $RARI. Some notable companies that have partnered with Rarible include Taco Bell and Adobe. 

Conclusion

With NFTs gaining more and more popularity, dozens of NFT marketplaces now exist. When choosing a trading platform, remember to pick one that is intuitive, secure and compatible with an array of crypto wallets and payment methods. 

Learn more about NFTs, how to create an NFT community and more with SMMILE. Send us a message at hello@smmile.com or contact us at (65) 8687 8143.

Chris Anne

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Smmile is a Digital Marketing Agency in Singapore with over 10 years of experience in the industry.