In 2014 the first known NFT was created by Kevin McCoy and sold to Anil Dash. However, the general public didn’t really become aware of NFTs until 2017 with the advent of the online game CryptoKitties which met with much success. The demand for NFTs really took off in 2021 with sales surpassing the $2 billion mark in the first quarter. There are numerous marketplaces and trading platforms where you can buy and sell NFTs and we will be taking a look at some of the best of them.
NFT stands for non-fungible token and is a digital file that has a unique and non-interchangeable unit of data hidden within it. The data is stored on a digital ledger that uses blockchain technology to indicate ownership of that particular digital file. Pretty much any type of digital file can be tokenized and made into an NFT. Written text, images, music, video games, digital art, memes are just a few of the types of digital files that can be stored as a NFT. All these types of files can be easily reproduced but storing one as an NFT identifies it as the original and is what gives the NFT its value. They are similar to other collectable items like baseball cards or paintings except instead of a physical object you have a digital file along with the proof that you own it.
NFTs have sold for surprisingly high prices. Naturally, it depends on the particular NFT but a simple Rainbow Cat GIF recently sold for $690,000 and Jack Dorsey, the founder of Twitter sold his first tweet for upwards of $2.5 million. That pales in comparison to the staggering $69.3 million paid for Beeple’s Everydays – The First 5000 Days, a NFT created by artist Beeple, also known as Mike Winklemann. Of course, most NFTs aren’t fetching prices like this but it gives you some idea of the potential and why they are generating so much interest. NFTs can be bought on a number of different NFT platforms.
So what is an NFT platform? NFT platforms are sites that facilitate the buying, selling and creation of non-fungible tokens. Some can be used to create NFTs, a process known as minting, while others are sites where NFTs can be bought and sold. There are basically three categories that a NFT platform may fall into; NFT apps, minting sites and NFT marketplaces/exchanges.
Some apps like wallets are essential if you want to own NFTs while others exist to make the buying and selling process easier or offer other benefits. Here are 10 of the best NFT apps you may want to consider trying.
The process of creating NFTs is known as minting and there are a growing number of sites where you can easily tokenize your digital files. The most commonly used blockchain for NFTs is the Ethereum blockchain but it can be done on others like EOS, Binance Smart Chain, Polkadot and Tron as well. Depending on the blockchain there may be some “gas” fees that have to be paid. In crypto gas is the computational effort required to execute operations on the blockchain. Here are 5 sites where you can mint NFTs.
If you are interested in buying and selling NFTs, you have plenty of choices. Some marketplaces focus on special niches while others have a wide range of categories. Fees and payment methods vary from platform to platform which is something you will want to take into consideration when choosing a marketplace. Here we will take a look at some of the best NFT markets for buying and selling non-fungible tokens.
OpenSea was established in 2017 which makes it one of the older NFT marketplaces. With a total trading volume of over $6.5 billion, it is also the biggest NFT exchange. Signing up to the site is free. Creators pay a 2.5% commission when they sell their work while there is a 2% buyer’s fee. Ethereum, Polygon and Klaytn are the blockchains used on the site.
Payments can be made using over 150 cryptocurrencies. Fiat currencies using debit and credit cards are accepted as are bank transfers. OpenSeas has approximately 200 categories of NFTs including music, art, domain names, trading cards, sports, collectibles, and virtual worlds. NFTs can be sold at a fixed price or by auction. You can also mint NFAs on the site.
Axie Marketplace is the online store for the blockchain video game Axie Infinity and deals exclusively in Axies. Axies are digital pets that can be purchased and used to battle monsters and other players to earn Smooth Love Potion (SLP) which is Axie Infinity’s local ERC-20 application token. SLP can be used to breed Axies which can be sold on the marketplace. On average Axies sell in the $300 range but the price will depend on a number of factors like type and breed count. Axie Infinity is profitable enough that some players in Indonesia and the Philippines are earning a living at the game. The total Axie Marketplace trading volume is over $2.1 billion
CryptoPunks is a NFT project of Larva Labs. In 2017 10,000 randomly generated and unique characters were created. Originally they could be had for free but they were quickly grabbed up. However you can still buy and sell on the Larva Labs market place. As of this writing the lowest priced CryptoPunk has an asking price of 89.5 ETH ($375,959.96). The highest price paid for a CryptoPunk to date is $7.58 million and there have been a dozen that have passed the $2 million mark. Larva Labs is currently working on other digital art projects as well.
The NBA Top Shot marketplace sells NFTs in the form of video clips and play highlights from the NBA. The site used the Flow blockchain from Dapper Labs. This is a closed marketplace meaning you can only buy and sell their NFTs on the Top Shop marketplace. NFTs are available for as little as a few dollars. Payment can be made using a Flow wallet, an existing crypto wallet, your Dapper account balance or with a credit card.
Rarible is a NFT marketplace founded in 2020 and based in LA. They have a number of NFT categories that include photography, music, art, games, domains and Metaverses. Users can buy, sell and mint NFTs on the site which uses the Ethereum network. Buyers will pay a 2.5% commission on any purchases and you have to use the site’s token Rarible (RARI) to buy and sell on the marketplace. NFTS from Rarible can also listed on OpenSeas in RARI but Rarible doesn’t allow NFT’s from other sites.
SuperRare is a NFT marketplace based in Delaware. They were founded in 2018 and use the Ethereum network. The site focuses on digital artwork which anybody can purchase from the site. However artists must be invited and have their work approved before they can mint and display their NFTs for sale in order to maintain the quality of art being offered. Buyers will pay a 3% fee on NFTs purchased. Creators pay a 15% fee on works that they sell. On secondary sales artists earn a 10% commission. SuperRare NFTs can also be bought and sold on OpenSea. Transactions on SuperRare can only be made in Ethereum. No fiat currency methods are available.
Foundation is another NFT marketplace where anybody can buy but artists must be invited. The site was only launched in early 2021 but has a total trading volume of around $100 million. There is a 15% seller’s fee for artists as well as a gas fee as Foundation uses the Ethereum network. Transaction on the site must be made in Ether. No fiat currency payment methods are available. Foundation has had some notable sales including the Nyan Cat NFT which sold for 300 ETH ($842,325).
Mintable is a Singapore based NFT marketplace backed by billionaire Mark Cuban with the stated goal of becoming the largest NFT market place in the world. The site was founded in 2018 and supports Ethereum and Zilliqa-based NFTs. Recently added new features which are now live include a “rarity” meter that assesses NFTs for their rarity and uniqueness and NFTs transaction history. Buyers and sellers can message each other directly on the platform. Some 10 million NFTs have been organized into 400 categories. According to the company Mintable has around 300,000 users and from 6 to 10 million unique visitors in a month.
KnownOrigin is a smaller UK based NFT marketplace that focuses on higher-quality digital art. The site was founded in 2018 and uses the Ethereum network. Creators pay a 15% commission when they sell a NFT on the site. Artists must apply to be able to present their work on the site and will go through a review process. It is a relatively easy to usemarketplace and you only have to connect a wallet such as MetaMask to get started. Recently KnownOrigin added a pay-with-card feature so you can now make payments with fiat currency as well as cryptocurrency.
Nifty Gateway is based in New York and owned by the Gemini crypto exchange which acquired the NFT marketplace in 2019. NFTs on the site, known as Nifties use the Ethereum network. They have worked with some of the top digital artists including Beeple and the musician Grimes. Any NTFs purchased are hosted by Nifty Gateway and Gemini rather than being stored in your own wallet. Purchases on the site can be made in fiat currency using debit and credit cards as well as with cryptocurrency. For cryptocurrency payments you can use a wallet or link your Gemini exchange account with your Nifty Gateway account so that you can use your exchange account balance. Creators are charged a 15% commission when they sell NFTs.
There are many NFT marketplaces to choose from. The best for you will depend on your budget, the type of NFT you want to invest in and other factors.
Yes, a number of marketplaces allow the purchase of NFTs using debit/credit cards and other fiat payment methods although some are limited to cryptocurrency payments.
To make a transaction or execute a smart contract on blockchains like Ethereum requires computational effort and the gas fee is what pays for that.
