Non-fungible tokens (NFTs) are unique digital assets stored on the blockchain. They represent a range of content, including art, music, videos, and even virtual real estate transactions. If you’re interested in buying NFTs, there are several platforms and NFT marketplaces to choose from.
So what are NFT marketplaces? Sometimes also known as NFT exchanges, NFT marketplaces are safe and secure platforms that facilitate the sale of unique digital assets. They offer a way to buy, sell or trade NFTs with other users worldwide. What Amazon is to consumable goods, these marketplaces are to NFTs.
What are the Best NFT Marketplaces?
Since OpenSea, the first NFT marketplace, launched in 2018, hundreds of marketplaces have looked to get in on the action. Each has a unique business model and goals. The best NFT platforms use the power of blockchain technology to create a more secure environment for users. Here are our top five exchanges.
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OpenSea
OpenSea allows users to buy and sell NFTs using popular cryptocurrencies like Bitcoin or Ethereum. It is an open platform for digital trading assets like artworks, clothing, and accessories. The platform also offers a marketplace for users to create and sell their NFTs, making it an excellent option for artists and creators looking to monetize their work.
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Nifty Gateway
One of the most popular NFT marketplaces, Nifty Gateway is a top choice for many NFT enthusiasts looking to buy and sell digital assets. What’s unique about Nifty Gateway is that the marketplace primarily features exclusive NFTs of high-end artwork. Nifty gateway is likely the platform most akin to a real (physical) art gallery in that artists are there to see and be seen; there’s a bit of a luxury feel to the collections and offerings. All art on the site is curated, and artists must be verified before submitting their work.
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SuperRare
SuperRare is another popular marketplace for blockchain-based artworks and collectibles. Like the rest of the exchanges on this list, SuperRare is a decentralized community-driven marketplace. It allows buyers and sellers to interact directly without the influence of third parties such as banks or payment processors. Like Nifty Gateway, SuperRare focuses on digital art (as opposed to utility-focused NFTs). The platform features a wide selection of emerging and established artists; all vetted through a strict application process. Once through the door, SuperRare’s artists are in luck, thanks to the platform’s strong focus on creator support. In nourishing creativity, SuperRare sets the bar high for other artist-focused platforms.
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Rarible
Rarible enables users to create and sell virtual goods, including digital art, digital music, and more. The platform hosts tools for creators to manage their work and earn revenue. This platform also has a strong community feel, where users can share their work with other artists. Rarible allows for payment for NFTs by credit card and is often considered one of the more secure NFT marketplaces.
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Binance NFT Marketplace
Binance, the largest crypto exchange and one of the first to support Ethereum-based tokens, also offers NFT trading facilities. The Binance NFT Marketplace launched in 2021. Users can utilize this marketplace to buy and sell NFTs in exchange for other cryptocurrencies like Bitcoin or ETH.
How do NFT Platforms Operate?
NFT platforms are the custodian of these digital assets. They are decentralized, meaning they are not subject to third-party control.
If you want to transfer ownership of an NFT, you must use a platform to exchange your tokens for the NFT you want. The platform then verifies that you own the token by sending it to a smart contract on the blockchain. Once verified by the smart contract, your token becomes a “smart property” on the blockchain and can only be transferred upon proof of ownership.
NFT platforms are the middleman between buyers and sellers of digital assets and have several components. One is the marketplace, where users can post listings and prices for their NFTs. They can declare selling prices and minimum bid limits.
The second component is an exchange that allows users to purchase NFTs from other users. The exchange rate between each NFT platform’s native currency and other currencies depends on the supply and demand for each platform’s currency, among other factors, including market volatility. Nevertheless, the value of an NFT token is determined by supply and demand in the open market.
Factors to consider when choosing the best NFT marketplace for you
So what should you consider before selecting an NFT marketplace? The main options include the following:
What is your intention?
Do you want to hold NFTs or use them to make money? If you intend to make money, then it is better if you select a marketplace with a good reputation that has been in operation for a long time. You will likely find NFTs from reputable projects and artists on longstanding marketplaces. Fees and artist/creator commission are also essential elements to consider. If you’re buying NFTs primarily to support artists, ensure you choose an NFT platform where creator royalties are enforced (Magic Eden recently moved to a 0% royalty structure, for instance).
Experience
Consider the experience of the platform. If it is a new platform that has only launched recently, it may provide only some of the services required by an experienced user. It’s always wise to check if the marketplace offers customization options and if it allows for multiple cryptocurrencies on its platform. Usability and the type of user interface are also crucial. Look at a few options listed and consider which feels right/ most intuitive for you..
Security and Privacy
A number of marketplaces on this list have experienced data breaches, even Opensea. A significant factor of any marketplace is its security. In addition, marketplaces should allow you to set up custom permissions, which makes it more difficult for malignant actors to access or mess with your content. All leading marketplaces should also prioritize privacy and prevent access to account information for anyone apart from the account holder.
The best NFT marketplace boils down to individual preferences
Finally, the list above shows a few of the many available NFT marketplaces. Each platform has a unique focus and offerings, so it is wise to take time and explore the features of each to find which best suits your needs.
For high-end art, choose Nifty Gateway or SuperRare. For the broadest range of NFTs and most trustworthy, we’d still recommend Opensea first and foremost. For a secure and diverse platform, take a look at Rarible. And if you already store or trade crypto on Binance, choosing the Binance NFT Marketplace might make the most sense.
