May 5, 2022
NFT Marketplace 101: The Beginner’s Guide
Non-fungible tokens (NFTs) have become one of the hottest crypto trends since the DeFi summer of 2020. As the days pass by, more and more investors, both traditional and blockchain, are seeking to own one of these multi-million-dollar revenue blockchain-based assets.
Blockchain newbie? Want to know what an NFT is? Then, check out the previous article we’ve published entitled “NFTs Are Revolutionizing The Way We Play Video Games!”
Even though NFTs are minted (blockchain term for creating NFTs) and stored in the blockchain, they cannot be mutually exchanged for one another, like in the case of cryptocurrencies, because each token has a specific value based on uniqueness, traits and attributes. NFTs can only be listed and traded on platforms that are specially built for them called an NFT Marketplace.
What Is an NFT Marketplace and How to Access It?
An NFT marketplace is a platform where NFTs are stored, displayed, traded, and minted — in some cases. Imagine it being Amazon or Ebay that only sells digital goods without the hassle of tracking the delivery since transactions happen real-time. Keep in mind that every transaction done on any NFT marketplace incurs a certain fee, commonly known in the blockchain industry as “gas fee,” which varies depending on the platform. As of this writing, Ethereum boasts the largest ecosystem of NFT dApps (decentralized applications), but it also has the most expensive fees.
To access any NFT marketplace, most platforms have three (3) basic requirements. These are:
1. A crypto wallet
Before creating an account in any NFT marketplace, every user must have a crypto wallet first. Choose a wallet that is compatible with the blockchain network that supports the NFTs you wish to purchase. For example, if you wish to buy or sell NFTs that are minted and stored in Ethereum-based platforms, you must use a compatible Ethereum wallet such as Coinbase, Binance, and MetaMask.
Additionally, crypto wallets will provide you with a uniquely generated 12-word phrase called Secret Recovery Phrase. If you happen to forget your password, the Secret Recovery Phrase allows you to recover your wallet and your funds. Unlike any website or application, you cannot find a Forgot Password button or retrieve access using an email address. Like a real-world wallet, crypto wallets are self-managed, which means the responsibility for keeping it safe against perpetrators is entirely on the user.
2. A certain amount in your crypto wallet
After creating a crypto wallet, you must pre-fund it to successfully purchase, list or mint your NFT. In most cases, crypto wallets require connecting a valid credit or debit card to purchase cryptocurrencies or coins that will be used for the entire transaction.
3. A registered account in the platform
Now that you have your wallet set up, you can now proceed in creating an account on your desired NFT marketplace. To keep your account safe, it is highly recommended that you turn on Two Factor Authentication. Follow instructions on how to connect your wallet and you will be good to make your first NFT transaction.
How Do NFT Marketplaces Differ?
NFT Marketplaces might offer the same services to the users, but there are actual differences on how they work. Below are the aspects that make platforms unique from one another:
• Account Creation
Creating an account in an NFT marketplace differs from one site to another, however, they follow the same requirements of providing personal information and connecting the preferred digital wallet. Account creation on NFT platforms is now straightforward — click the Sign Up button, provide email address and password, confirm email address, provide personal information, activate Two Factor Authentication, and you now have an account.
• Buy NFT
During the early dates of NFT marketplaces, NFTs are usually purchased directly for a fixed price or through an auction. But nowadays, some platforms are now offering prospective buyers to propose an offer to NFT owners or creators and attempt to receive a better price. Others are even offering reservations for future NFT releases of an artist or owner.
• Sell NFT
FYI, selling an NFT is way more complicated than buying them for the first time. This has been the issue experienced by most artists, creators, and owners, especially those who are just starting in the blockchain industry and only has a few followings on social media. Some NFT sellers have even resorted to paying influencers just for their assets to be noticed by the public.
Selling an NFT will differ on how the owner will price the asset (either a fixed price or through an auction), when it will be listed on the platform, and how quick the transfer will be from seller to buyer.
• Mint NFT
For aspiring NFT creators, you may want to consider the Ethereum blockchain for the creation of your digital assets. You must have an Ethereum wallet that supports ERC-721 (Ethereum’s token standard for NFTs), such as MetaMask, Trust Wallet or Coinbase Wallet. Then, you need to top up your wallet with Ether (ETH) worth $50-$100 just to cover the fees once the transaction starts. Note that fees are subject to change without notice and will depend on the network’s congestion.
Platforms may differ on transaction fees, but they certainly have one thing in common — it’s the Create button. Once NFT creators click this button, they will be redirected to a new page where they can start minting their NFTs, regardless of size, file type, and category.
NFTing Will Transform How Marketplaces Should Work
Expensive transaction fees, annoying usability issues, thin trading volume, limited NFT collections, and passive community engagements are evident shortcomings of current NFT marketplaces today — and these issues are the top reasons why NFTing was created.
A truly decentralized and secure platform that is built for the community from artists and projects to users of all experience levels and languages. There’s an NFT for everyone, a true utility, and ways to share with like-minded individuals. NFTing is planning to become a pioneer in this respect, giving users access to any NFT, no matter the chain, all in a completely decentralized manner, with fees much lower than any of the existing marketplaces.
As a Marketplace, our goal is to not only provide the most intuitive experience but also bring the future of NFTs by helping new developing projects and artists, while also bringing new innovative ways to see the NFT of tomorrow.
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