A non-fungible token (NFT) is a unique digital asset which lives on a blockchain. In 2021, NFTs exploded in popularity, in particular digital artworks such as the CryptoPunk and Bored Ape Yacht Club (BAYC) profile picture collections traded individually for millions of US dollars. This era marked the birth of the NFT marketplace, a platform for buying and selling these digital assets. These marketplaces offer a variety of blockchain based assets – video game assets, artwork, music, and even tweets. Below, we explore the fascinating world of NFT marketplaces.
Popular NFT marketplaces today include:
The best way to engage with these marketplaces is to follow the links above and explore them yourself. Each website is easy to navigate such that within five minutes you would have likely explored multiple NFT collections and developed a sense of what is considered valuable amongst collectors and speculators. To access these marketplaces more fully, it is best to have the following set up:
- Crypto wallet: This is a digital wallet which stores blockchain-based assets, predominantly cryptocurrencies. You will need to ensure your wallet is compatible with the blockchain network with the NFTs you may wish to buy. For instance, if you wish to buy a Bored Ape you will need an Ethereum-based wallet, such as MetaMask, to transact and stored your blue-chip NFT.
- Funded wallet: Before you can transact at all, ensure you have enough of the cryptocurrency native to the blockchain you which to transact upon. To buy a Bored Ape, you will require sufficient ETH to not only cover the purchase price of the NFT but also to pay for transaction.
- User account: To make full use of these marketplaces you will be required to create an account.
With the above taken care of, you are free to explore the world of NFTs. A few considerations to bear in mind which may help you along in your journey:
- Fees: this will vary, potentially dramatically, across different marketplaces and depend heavily on transaction demand of the underlying blockchain i.e., when Ethereum gas fees are high, associated fees on these marketplaces will also be high.
- Collections: While there is plenty of overlap across the NFTs listed on these marketplaces, each website displays a vast array of NFT collections unique to it, thus taking the time to explore fully can unearth hidden gems.
- Marketplace Nature: Some sites like SuperRare are targeted more toward NFT collectors, long-term buyers, while others are more geared to speculators such as Blur.
- Security: As with all things crypto, it pays to remain vigilant when it comes to security, ensure the marketplaces you use are highly credible and offer secure access
In conclusion, NFT marketplaces offer a key bridge into the exciting world of NFTs. As this segment of the crypto ecosystem continues to grow, we will likely see new and wild NFT collections spring up and dominate these marketplaces. Hopefully these pointers will aid you in your exploration.
