Are you increasingly interested in NFT? Would you like to try your hand at NFT trading? Then let’s start from the beginning: the NFT buying and trading platform. What is an NFT marketplace? What are the main NFT platforms you need to know about? Keep reading if you want to learn more about it!
What is an NFT exchange platform?
An NFT exchange platform (or marketplace) is similar to a crypto exchange. Like a decentralized exchange (DEX), it is a platform that enables peer-to-peer buying, selling and trading. Exchanges offer cryptos. Marketplaces, on the other hand, deal in NFTs. Marketplaces can be thought of as a meeting point between buyers, sellers, investors and the blockchain. Transactions take place on a peer-to-peer basis, i.e. without intermediaries.
There are different types of NFT marketplaces. Some are generalist, offering all types of NFT: art, sports, games, etc. This is the case, for example, of the well-known OpenSea platform. Other marketplaces are more specific. SuperRare, for example, is a platform that only offers NFTs in the field of art. Sorare is another example. Sorare is in fact a gaming platform that only offers NFTs associated with soccer (and soon baseball), more specifically NFT cards.
How does an NFT trading platform work?
These intermediary-free transactions are made possible by the blockchain. Like a DEX, an NFT marketplace operates on a blockchain. Some platforms are compatible with several blockchains. At present, the Ethereum blockchain is mainly used by NFT trading platforms. However, a growing number of blockchains have recognized the potential of this market. The Solana (SOL) and Cardano (ADA) blockchains, to name but two of Ethereum’s major competitors, now host NFT marketplaces.
Transactions are generally carried out in crypto on NFT marketplaces. But which crypto? The crypto used is that which corresponds to the blockchain on which the marketplace is installed. For example, OpenSea operates mainly on Ethereum. So it’s hardly surprising that most transactions are carried out in ETH. But some NFT platforms have also developed their own tokens. By using this token, you generally benefit from advantages and can also participate in the governance of the platform. This is the case, for example, with the NFT Rarible marketplace and its native RARI token.
How do I buy or trade an NFT on a marketplace?
Most marketplaces are easy to use. They have the merit of facilitating access to NFTs. However, it’s a good idea to have some knowledge of cryptos before you start trading NFTs.
Many platforms operate on the same principle. The main steps involved in buying, selling or trading an NFT on a marketplace are as follows:
- Step 1: Choose a marketplace and open an account;
- Step 2: Open a wallet compatible with the chosen marketplace;
- Step 3: Deposit funds on your crypto wallet (in the case of an NFT purchase);
- Step 4: Connect your crypto wallet to the NFT platform;
- Step 5: Buy, sell or trade your NFT.
Top 5 NFT platforms
Here are 5 best NFT platforms you need to know about!
OpenSea is the first NFT exchange you need to know! Why should you? OpenSea is the leading NFT platform in terms of transactions. It is also compatible with a large number of crypto wallets. What’s more, it offers a huge choice of NFTs. You’ll find the following types of NFT (non-exhaustive list):
- Collectibles ;
- Photography ;
- Sports ;
- Card ; Art
- Art ;
- Domain name.
Another advantage of OpenSea is its clean, simple interface. The platform primarily uses the Ethereum blockchain. Recently, OpenSea extended its compatibility to the Polygon, Klaytn and Solana blockchains. Another plus for OpenSea!
Marketplace Binance NFT
Binance is no longer a household name in crypto, as the platform is used by millions of people around the world. Indeed, Binance is one of the largest exchanges in terms of transaction volume and user numbers. Recently, the exchange decided to open up to NFTs and create its own marketplace. Given the strength of Binance, its marketplace was an immediate success and should rapidly secure its place among the top marketplaces.
The NFT marketplace unsurprisingly operates on the Binance blockchain (read revieew) and has its own token, the BNB. NFT transactions are all the easier to make if you use the platform’s native token. But you can also use other cryptos such as Ethereum or BUSD.
The Rarible marketplace is unique in that it has its own token, the RARI. With this token, you can benefit from exclusive advantages. Rarible is compatible with the following blockchains: Ethereum, Flow and Tezos.
On the Rarible platform, you’ll find NFTs in various fields, including sports, gaming, art, music and more.
As the name suggests, NFTs on SuperRare are “super rare”! Indeed, the platform relies heavily on the quality of the NFTs it offers. That’s why SuperRare has a very strict NFT selection process. In fact, only 1% of applicants manage to place their NFT on SuperRare!
The SuperRare platform mainly offers NFTs in the field of art.
To round off this top 5 NFT platforms, we couldn’t fail to mention Axie Infinity. Axie Infinity is different from the other NFT marketplaces mentioned above. In fact, it’s a gaming platform. It is currently the largest Play-to-Earn (P2E) platform in terms of capitalization. In terms of gameplay, the principle is very similar to that of Pokemon. The NFTs offered on Axie Infinity are creatures called “Axies”. Each player can then develop his or her “Axie” and improve it, notably through battles with other creatures.
The game’s native token is the AXS. Axie Infinity runs on the Ethereum blockchain. NFTs are therefore purchased in ETH.
In conclusion, if you’re interested in NFTs and want to get started trading these unique digital assets, it’s essential to understand the platforms for trading and buying NFTs. In this article, we’ve explored what an NFT marketplace is and introduced some of the main NFT platforms to be aware of.