What Is an NFT Marketplace?

If you have an interest in cryptocurrency, art, or music, chances are you’ve heard of NFTs. An NFT, or non-fungible token, is a unique token recorded in a blockchain that represents ownership of a digital or physical asset. An NFT marketplace is somewhere you can buy and sell NFTs. Many NFT marketplaces exist, with a wide variety of niches and reputations. Before you begin buying NFTs or selling what you have created, it’s a good idea to do your research on which blockchain platform to use. 

Types of NFT marketplaces

You can find NFT marketplace platforms that are very general, specialized marketplaces such as gaming, and others that are by invitation only. Your NFT interests and whether you are buying or selling will influence which marketplace suits your needs.

Read more: What Is an NFT? Your Guide to Non-Fungible Tokens in 2023

Where to buy NFTs

Some NFT marketplaces offer a variety of digital items, while others list exclusive items that go through a vetting process before listing them for sale or trade. Take a look at some of the NFT assets available and examples of the NFT marketplaces where you can buy them. 

NFT art

One of the most popular types of NFTs is digital art. Artists list their creations on an NFT marketplace, and buyers can place bids on the artwork they’re interested in or buy them directly. Although some art has sold for millions of dollars, you’ll find art at lower prices, too. If you’re interested in animated art, you’ll also find NFT GIFS for sale. Some of the marketplaces that specialize in selling NFT artworks include:

• Foundation

• SuperRare

• Nifty Gateway

• Makersplace

• KnownOrigin

Read more: What is NFT Art? (How Does It Work)

NFT gaming items

Gamers have the opportunity to buy, sell, and trade gaming items that are add-ons to what the game offers. You can trade the collectible assets with other players. A few marketplaces for buying NFT gaming items include:

• Aetsoft

• DMarket

• The Sandbox

• Enjin

• Binance

NFT videos

You can purchase videos in an NFT marketplace. Professional sports videos have become popular, as well as short YouTube clips. While the original clip may be free to watch online, buying an NFT of the clip gives you the ownership and rights to resell it. Find video NFTs to buy on:

• Theta Drop

• Mintable

• AirNFTs

• SuperRare

NFT event tickets 

You can purchase event tickets on NFT marketplaces too. If you’re interested in attending a virtual concert or other events, you can purchase tickets and store access to them in your crypto wallet. The event organizers have digital verification of your purchase. Look for NFT event tickets on:

• Seatlab

• GET Protocol

• GUTS Tickets

• NFT TiX

NFT avatars

You’ll find avatars on the NFT marketplace that you can use in the metaverse and on your social media sites. Each avatar is unique and cannot be duplicated. Some of the most notable avatars are from the Board Ape Yacht Club, CryptoPunks, and Cool Cats collections. You can buy a ready-made avatar or have your avatar custom made to your specifications. Here are some options for buying or making NFT avatars:

• 8biticon

• NFT Avatar Maker

• OpenSea

• AtomicMarket

• Rarible 

NFT virtual fashion

While an NFT isn't clothing you can purchase and wear, you can purchase fashion and accessories for your avatar. Virtual fashion purchased with NFTs is unique, so your avatar can wear one-of-a-kind clothing. Marketplaces that offer NFT wearables include:

• DRESSX

• Replicant

• DIGITALAX

• The Dematerialised

• Decentraland

Domain names

The NFT marketplace has provided the ability to purchase domain names. Purchasing a domain from a marketplace eliminates the need to pay a third party, and you’ll have exclusive ownership as opposed to paying a yearly fee. Find out more on:

• Unstoppable Domains

• Ethereum Name Service

• Mintable

• OpenSea

NFT collectibles 

Collectibles like trading cards can be found on NFT marketplaces. You can find NFT collectibles to buy on many NFT marketplaces, including:

• Mintable

• OpenSea

• NFT Hive

• Theta Drop

• Binance

NFT sports clips and digital collectibles

Find short videos of sports moments on NFT marketplaces. You can buy a memorable play in basketball as a digital asset, for example, or you can buy sports trading cards. Look for sports NFTs on:

• NBA Top Shot Marketplace

• DraftKings

• Mintable

• OpenSea

• Binance

Tips for choosing an NFT marketplace

When choosing an NFT marketplace, you have many factors to keep in mind. It’s essential to consider some of the more technical aspects, such as tokens used, the ability to use credit cards for purchases, wallet compatibility, and platform fees.

Token standard used in the platform 

Initially, NFTs were mainly built on the Ethereum blockchain, but this isn’t necessarily the case anymore. NFT standards can vary across blockchains, so creators and sellers especially should check the token standard supported in the marketplace they’re considering. 

Platform's verification process 

Security is vital when transactions are taking place, and a rigorous identity verification process and fraud protection should exist. 

Platform fees

Each marketplace charges a fee or fees. While these vary, you’ll likely encounter three types of fees that you need to pay. The first is an upfront fee for joining the marketplace as a creator, and the second is a transaction fee. Thirdly, you pay gas fees, which cover the computing power to verify your transaction on the blockchain. 

Wallet compatibility

The platform you choose NFTs needs to be compatible with your crypto wallet. It may be beneficial to have multiple crypto wallets and the function for payment by other methods. 

Reviews and ratings

When choosing an NFT marketplace, do your research, check ratings, and read reviews to make sure you are using a reputable platform. 

How to buy NFT assets

When you’re ready to buy NFT assets, you’ll need to take specific steps to get started. You’ll want to start with a digital wallet known as a crypto wallet. When you’ve purchased a wallet, you’re ready to buy NFTs. Next, you’ll transfer the key to access the NFTs into your wallet. 

Once your transfer is complete, you’ll join an NFT marketplace, connect your wallet, and you’re ready to make your first purchase. Here's a look at the buying process:

• Peruse the marketplace. You’ll find dozens or even hundreds of assets for sale on the various marketplaces. Some markets have exclusive items that were vetted prior to being listed, and others provide open access for anyone who wants to list digital assets for sale or auction.

• Bid or buy. When you’ve made a selection, the next step is to place a bid or agree to purchase at the seller’s asking price. Each seller will have their list price, auction end time, and the type of cryptocurrencies or digital wallets they accept.  

• Complete the purchase. The seller has two options. They can accept your offer any time before the auction closes or wait until it closes. The transaction is automatically completed if the seller accepts your bid at the auction’s closing. When the transaction is complete, you’ll be the exclusive owner.

Keep learning about NFTs

Dig deeper into NFTs and the metaverse with What is the Metaverse?, a free course from industry leader Meta. To learn more about NFT marketplaces and cryptocurrency, explore Blockchain in Financial Services Specialization, an online course offered by INSEAD.