NFT Marketplace and 3 Types Of NFT Marketplace You Should Know
This article will help you discover what NFT Marketplace is, how it works and 3 types of NFT Marketplace including Exclusive, General & Specific NFT Marketplace.
The NFT wave has developed strongly recently and has become one of the main cornerstones of the crypto economy. NFT is being used in a wide range of fields including Art, Gaming, Collectibles, Music, Fashion, etc. Along with the potential of NFT, investors are having higher demand in finding a platform to own or even trade NFT products for various purposes called NFT Marketplace. This article will guide you through the definition of NFT Marketplace, its working mechanism, and its categorization.
What is the NFT Marketplace?
NFT Marketplace is a platform where users can create, trade, and collect NFTs. Similar to evaluating the DeFi of an ecosystem by figuring out the parameters of DEX such as TVL, and trading volume,… researching basic parameters of NFT marketplaces enable users to assess an NFT on the ecosystem: Will the NFT attract cash flow? What types of NFT are preferred?
How Does The NFT Marketplace Work?
The NFT marketplace operates through these 10 steps:
- The user creates a new account.
- The user connects their e-wallet with that account.
- The user can create NFT on the marketplace.
- NFT is then structured/configured for that marketplace.
- NFT is listed for sale.
- Both NFT and the marketplace are moderated.
- NFT appears on the marketplace.
- Bids are set for the NFT.
- NFT is sold to the top bidder.
- The NFT marketplace proceeds the transaction through an e-wallet.
3 Types of NFT Marketplace You Should Know When Investing in NFT
NFT marketplace is classified into 3 main categories: Exclusive NFT Marketplace, General NFT Marketplace, and Specific NFT Marketplace.
Exclusive NFT Marketplace
Exclusive NFT Marketplace is created for the purchase and trading of unique NFTs, which are usually the artworks exclusively released in a copy or small quantities per work. This makes the value of the NFT in such marketplaces extremely high.
However, the disadvantage of Exclusive NFT Marketplace is the low liquidity due to the low quantities and high prices; therefore, it is appropriate for collectors who desire to own special and unique works.
Currently, there are popular Exclusive NFT Marketplaces such as SuperRare, Foundation, KnownOrigin,…
General NFT Marketplace
General NFT Marketplace is the platform for most of the NFTs. All types of NFTs in different styles, quantities, prices, and features, can be created and sold on this type of market. General NFT Marketplace is the most popular and has the highest trading volume because it satisfies the needs of the vast majority of users.
OpenSea, Magic Eden, ImmutableX are some well-known marketplaces, or the NFT marketplace of CEX can be listed such as Binance NFT, FTX NFT,…
Specific NFT Marketplace
Specific NFT Marketplace is used for a particular segment. It can be a marketplace dedicated to in-game NFT purchases, songs, or videos. Having a specific NFT marketplace for a certain segment makes it easier and more convenient for users to trade assets. Users can also track the market fluctuations and respond more quickly than they can in the common marketplace.
For the Specific NFT Marketplace to work smoothly, the project needs to have a large enough user base to encourage trading on that platform.
NFT Marketplaces are your path to start making your investment in digital assets, collectibles, art, game, etc. Be sure to choose one that suits your buying and storage needs based on the type of NFT you are interested in using for transactions!
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Disclaimer: The information herein is for educational purposes only and should not be considered financial, investment, or trading advice. Please conduct your own research and due diligence before making investment decisions. You understand that you are using the Information provided at your own risk.