After digital currencies like Bitcoin and Ethereum, NFTs have made it to popularity in the crypto market. atechbook shows you the best marketplaces to buy NFTs.
Anyone who wants to buy NFTs will inevitably end up on one of the online trading sites. There, after registration, one can often not only buy, but in some cases also sell. Such trading places are for example “Binance” or “OpenSea”, the largest exchange for digital art and other digital assets, such as videos, music, domain names etc.
If you want to buy NFTs, you have to do it online
The path to a digital work of art is – especially for a beginner on the crypto trading floor – definitely significantly more difficult than the purchase of a physical painting. First of all, it should be clear that the uniqueness of a digital object can, on the one hand, bring an enormous price gain, as it were from zero to a few million, but on the other hand, “the risk is even higher than with the already volatile cryptocurrencies such as Bitcoin, Ethereum and Co. due to the extreme price fluctuations,” according to the “Wirtschaftswoche”. This is the case when, precisely because of its distinctiveness, no one is now interested in the corresponding work at all. The risk is therefore difficult to assess.
Continue reading What are NFTs and what do they have to do with crypto?
The best marketplaces to buy NFTs.
- Binance: Strictly speaking, like “Coinbase,” a crypto exchange with an attached marketplace for NFTs. Purchases can be made via the marketplace, via auction or via a mystery box – which means a bit of “buying a pig in a poke”. Binance Coin (BNB) and Binance USD (BUSD) are also available as payment methods. Fee: one percent of the purchase price.
- OpenSea: 2017 the first NFT marketplace ever and today the one with the largest supply (about 20 million NFTs). Unlike Binance, you can also sell your own NFTs.
- SuperRare: Specialist for the special taste and very rare, digital works of art. There is something like a virtual art scene here, whose members can exchange information about their created profiles. Those who are also allowed to sell – one is selected – have made it. Fee for buying three percent, for selling 15 percent.
- Rarible: Rarible also offers a large selection of digital art of all kinds, from pictures to videos and music. Unlike Superrare, almost anyone is allowed to sell here. Fee for buying/selling: 2.5 percent each.
- Nifty Gateway: Particularly suitable for NFT beginners, since neither Ether nor Wallet are a prerequisite, but payment is made with the credit card. According to “Wirtschaftswoche,” pop culture icons such as Mick Jagger and Eminem have sold NFTs here. The offer of digital artworks is correspondingly exclusive. Here, too, those who not only want to buy but also sell must first go through a selection process. Those who pass pay five percent plus a flat fee of 30 cents for the sale.
Choosing the right wallet for NFT purchases.
The catch when buying and selling NFTs: Only those who have the cryptocurrency Ether can trade, since the purchase is processed via the Ethereum blockchain. Ether can (also) be obtained via apps from online crypto exchanges such as “eToro”, “Coinbase” or “BSDEX”. Depending on the provider, a commission and/or the so-called spread may apply. These result from the difference between the purchase and sale value. The Ethers can now be transferred to a crypto wallet such as “MyEtherWallet”, from which they can in turn be sent on to one of the NFT marketplaces mentioned above. Since all costs incurred in the purchase of most NFTs must be paid with Ether, such a wallet is also a prerequisite.
In some ways, “Coinbase” is a special case. “Coinbase” is one of the biggest crypto exchanges around and holds its own wallet app. “Wirtschaftswoche” pointed out that this wallet was available exclusively as a mobile app, but for both Android and iOS devices. In the meantime, however, according to “Coinbase’s” own information, a browser extension is also available. Once the wallet has been installed and is ready for use, it still has to be linked to the buyer’s Coinbase account.
Custodial or non-custodial wallet?
The big advantage of such a ‘custodial’ app compared to a hosted (also: ‘non-custodial’) app is the usually higher security, as providers like “Coinbase” keep backups, so that if the ‘seed phrase’ (the password consisting of twelve randomly generated terms) is lost, the credit is not lost at the same time. Thus, a ‘custodial’ wallet could be described as a digital bank where, as with an actual bank, the user’s trust should be absolute. However, if the account is hacked, “you lose control, and irrevocable transfers can result,” as the Internet portal “Blockbuilders” warns. In addition, a crypto exchange may be forced by a court to freeze a balance if necessary.
With a ‘non-custodial’ wallet, on the other hand, you have sole control over the data – something that especially distrustful or previously deceived users prefer. However, if the data is lost because the user forgets the seed phrase or can no longer find the paper on which the password was written, the credit is also lost.
“Blockbuilders” therefore refers to a third variant: a hardware wallet, such as those offered by “Ledger” or “Trezor”. This is a physical device, about the size of a USB stick, which stores the login data offline, so that a possible hack could only cause comparatively minor damage. However, installing this software requires more effort. In short, the best protection is to use multiple types of wallets.
You can see: It takes time and/or money to set up the wallet, depending on the type. But then you are ready to act. With “Coinbase”, for example, you click on the menu items ‘Trade’, then ‘Select Coin’. Here, one finally decides on ‘NFT’ and the previously determined marketplace and can now pay for the desired object from the Ether balance.