How should you choose the best marketplace for trading NFTs?
NFTs, or non-fungible tokens, are digital assets such as 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 display various NFTs under the safety net of blockchain technology. The global NFT market has witnessed a 200-fold increase over 2021, and since then the number of NFT marketplaces has increased significantly.
NFT marketplaces and regular NFTs are traded on them
As the popularity of NFT marketplaces increases, artists worldwide are able to monetize their art while promoting it globally. The success of these online platforms is evident from the staggering $44.2 billion spent on them in 2021.
NFT marketplaces attract users like bees to honey due to aspects of their architecture such as 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 wide range of NFTs, including collectibles (e.g. Crazy Ape Yacht Club, Cryptopunks, fantasy football cards), art (e.g. paintings, music, video), digital objects in 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 for users transaction fees and commissions of around 2.5-15% for buying and selling NFTs. Before associating with a long-term platform, users should choose marketplaces that charge low and transparent transaction fees and commissions along with the best payment options.
As users around the world choose to pay for transactions with Bitcoin, Ethereum or even fiat currencies, NFT marketplaces should support a variety of digital/crypto wallets and payment options on their platforms to facilitate operations.
Safety provided by the NFT platform is one of several factors that should not be overlooked. The chosen marketplace should offer adequate security measures such as advanced encryption, two-factor authentication and transaction assurance to protect users’ sensitive information from fraud.
Users should favor NFT marketplaces that offer in-depth information about the NFTs they catalog on their platform, their costs, the number of bids and the ownership of each item. This information helps buyers make the right decisions while also benefiting sellers as they can include these necessary facts to help market their products.
It is important for users to choose such an adaptable platform in the ever-changing landscape of the NFT ecosystem moving towards the future vision of platform scalability.
A significant difference can be found in user interface and experience (such as design, navigation, filters and search) of various NFT marketplaces. Users should look for platforms that offer a user-friendly and intuitive interface while displaying a variety of features such as ratings, reviews and rankings.
Along with the growth of the NFT market, the number of NFT types and categories has also increased tremendously. Some NFTs (eg digital art) are extremely popular and dominate the industry, while others (eg music, in-game assets) are becoming increasingly popular. NFT platforms that support the transaction of the type/category of NFTs that users like should be preferred.