According to statistics from DAppRadar, the NFT market hit the $12 billion mark in the first quarter of 2022. The popularity of collections or unique works makes NFT more noticeable in many NFT marketplaces. This article will help you understand the NFT marketplace and how it works. In particular, there are also the best NFT marketplaces that you should not miss.
What is the NFT Market?
NFT Marketplace is a decentralized digital marketplace where you can store, buy, sell and mint NFT (Non-fungible token) with cryptocurrencies (Bitcoin, Ethereum, etc.). To trade in the NFT market, users must have a digital wallet because the NFT buying, selling, and storing transactions will take place through the digital wallet.
The NFT marketplace is like an e-commerce platform like Amazon and eBay, where sellers post different products, and buyers can buy them through cryptocurrencies.
The NFT market has different features and characteristics, which makes them different from the e-commerce market. Each NFT has a unique identifier code that makes them unique to the owner.
Classifying NFT marketplaces
There are many factors to classify the NFT market. However, this article will mention three classifications to understand the NFT market better.
- By function
Nowadays, the NFT marketplace includes the NFT marketplace and NFT Aggregator. NFT Marketplace allows trading NFT at a price the seller has placed a previous order. Meanwhile, NFT Aggregator will aggregate NFT prices from many different NFT marketplaces to provide users with the best price.
- By items
NFT marketplaces have filters and categories that help users efficiently search for them in NFT formats such as art, movies, music, shows, football, etc.
- By Ecosystem
Some famous and familiar ecosystems for those interested and knowledgeable about the cryptocurrency market include Etherium, Solana, Terra, etc.
How do NFTs marketplaces work?
- Signing up for an account
The first step in participating in an NFT marketplace is to sign up for an account and connect to a digital wallet. This button is usually located in the top right corner of the NFT marketplace website. The user must enter the wallet password to complete the wallet's connecting process.
- Buying NFTs
NFTs are usually purchased directly or through auctions in the NFT marketplace. In some cases, buyers can offer the creators to buy a better price.
- Selling NFTs
Sellers must upload the information of NFTs or digital assets to the Marketplace. After that, the user has to enter a fixed price or choose to sell NFT through auction. Next, the platform will verify the content. If approved, it will be listed on the Marketplace. However, the user will have to pay a fee for the listing process.
- Minting NFTs
It is the process of converting and encoding tangible assets into digital assets. In some NFT markets, this process can take gas fees. However, some NFT marketplaces will forgo the NFT minting process like “nft spacex” to help creators save money.
Popular NFTs Marketplaces
Currently, many NFT markets are launched to serve consumers' needs. However, this article will point out 4 NFT marketplaces considered the most popular in the NFT community.
- Opensea
It is one of the most famous and popular NFT marketplaces. Users can find irreplaceable NFTs representing ownership, including artwork, sports, virtual worlds, trading cards, music, photography, and domain names.
- Rarible
An NFT marketplace allows users to create their own NFTs on one of the three blockchains Ethereum, Tezos, and Flow. Rarible provides NFT items in many fields and lists top collections and trending NFTs so that users can quickly refer to and grasp trends.
- SuperRare
Focus on digital art. SuperRare works with a select few top concept artists and only allows one of an NFT.
- Nifty Gateway
This is one of the largest NFT marketplaces. Here, users can search and buy artworks by famous artists.
In conclusion, NFT will be the top keyword in 2021. Nowadays, it expands other features to attract and serve community needs, such as play to earn, move to earn, stake or participate in INO, and whitelist. It is predicted to grow widely and become popular soon.