Deciphering the Meaning of NFT Platforms

NFT meaning and definition

NFT stands for ‘non-fungible token’. Non-fungible means that something is unique and cant be replaced. By contrast, physical money and cryptocurrencies are fungible, which means they can be traded or exchanged for one another. Every NFT contains a digital signature which makes each one unique. NFTs are digital assets and could be photos, videos, audio files, or another digital format. NFT examples include artwork, comic books, sports collectibles, trading cards, games, and more.

How do NFTs work？

Non-fungible tokens or NTFs are cryptographic assets which sit on a blockchain – that is, a distributed public ledger that records transactions. Each NFT contains unique identification codes that distinguish them from each other. This data makes it easy to transfer tokens between owners and to verify ownership.

NFTs hold a value which is set by the market – i.e., supply and demand – and they can be bought and sold in the same way that physical assets can. NFTs are digital representations of assets – and can also represent real-world items such as artwork and real estate. Tokenizing real-world tangible assets in this way is considered by some users to make buying, selling and trading them more efficient, as well as potentially reducing the likelihood of fraud.

How do you buy NFTs？

The NFT market is considered high risk, and its volatile highs and lows can deter even experienced investors. If you are thinking of buying NFTs, it‘s important to have a clear understanding of the process. Let’s look at the steps involved:

Open a crypto exchange account

The first step is to open an account on a crypto platform or crypto exchange. A crypto exchange is an online platform where you can buy and sell different types of cryptocurrencies. To buy NFTs, you need to create an account with your chosen platform. Different platforms offer different services, so its worth researching them to find out which suits you best in terms of features, fees, and ongoing support.

Open a crypto wallet

A crypto wallet stores the keys that grant access to your digital assets. Users are given a unique seed phrase – also called a recovery phrase – to access their wallet. Its essential to keep your seed phrase safe – without it, you lose access to your wallet.

Wallets can either be hosted on an exchange or may operate independently. If they operate independently, then you retain responsibility for your wallet and private keys. If your digital wallet is hosted by an exchange, the exchange acts as an intermediary for crypto transfer. The company holds your private keys and is responsible for keeping your assets safe.

Alternatively, if you want to buy and sell NFTs without third-party involvement, you need a wallet tied directly to the blockchain. This allows currency to be transferred directly between people using the public key. The two types of wallet available are called ‘hot’ or ‘cold’:

Hot wallets are:

Software, web-based wallets

Available as a desktop or mobile app, in-browser extension or both

More vulnerable to cyber attacks than cold wallets

Cold wallets are:

Hardware wallets, physical devices not connected to the internet

Considered more secure

However, at greater risk of loss and have no backup available if you lose your seed phrase

Whichever crypto wallet you select should ideally be compatible with the Ethereum blockchain, since that is the network on which most NFTs are sold, and Ether (ETH, Ethereum), which is the cryptocurrency native to the Ethereum blockchain.

Transfer Ethereum into a crypto wallet

Once you have selected an NFT exchange and bought ETH, you then need to transfer it to a wallet. This process will vary depending on the exchange through which you buy ETH, the wallet you use, and the marketplace on which you plan to trade NFTs.

Buy NFTs

Once your wallet is connected and funded, you can start buying NFTs. When you buy an NFT, you gain ownership in the sense that it becomes your property. However, the NFT holder doesnt have other rights to the work – such as the right to adapt or reproduce it – unless that is part of the direct agreement between the buyer and creator. Different marketplaces may place varying restrictions on the NFT you purchased.

What is an NFT marketplace？

NFT marketplaces are specialized platforms that facilitate the buying, selling, and creation of Non-Fungible Tokens (NFTs), which are unique digital assets representing ownership of distinct and scarce items, both tangible and intangible.

The NFT landscape is evolving, but typically, most NFT marketplaces fall into one of these three categories:

Open marketplace – Anyone can sell, buy, or mint NFTs. Minting refers to the process of uniquely publishing your token on blockchain to make it buyable. Open marketplaces typically mint NFTs for you, though creators can also mint their works.

Closed marketplace –Artists must apply to join and the marketplace usually undertakes the minting processes. Selling and trading are more restricted.

Proprietary marketplace – A marketplace that sells NFTs trademarked or copyrighted by the company operating it.

Some NFT traders create accounts on and subscribe to a variety of marketplaces so they can receive announcements about new NFT drops. Information about new NFTs is also shared on platforms such as Discord and Twitter, as well as more specialized investing platforms like Rarity Sniper and Rarity Tools. When highly anticipated NFTs are released, investors tend to act quickly.

These marketplaces function similarly to e-commerce platforms like Amazon or eBay, but instead of physical goods, they deal with NFTs. To participate in these marketplaces, you need to have a crypto wallet compatible with the blockchain network that supports the NFTs you are interested in. You also need to pre-fund your wallet with the necessary cryptocurrencies supported by the marketplace. Additionally, you have to set up a user account on the marketplace platform.

Once you have everything set up, you can start buying, selling or minting NFTs. Buying usually involves direct purchases at a fixed price or through an auction. Selling, especially if you are selling something you created, may require a more technical process. You'll need to upload your digital asset on the marketplace and set a fixed price or opt for an auction. The platform will then verify your asset, and once approved, it will be listed for sale. The transfer from buyer to seller is conducted by the marketplace once a bid is accepted.

If you want to mint an NFT, you need to have a wallet that supports the token standard for NFTs, such as ERC-721 for Ethereum-based NFTs. After topping up your wallet with ether to cover transaction fees, you can use platforms like OpenSea or Rarible to start minting your NFTs. Remember, the process and fees may vary depending on the blockchain system you choose.

The Significance of NFT Platforms

Democratizing Access to Art and Creativity: NFT platforms have broken down traditional barriers to entry in the art world, enabling emerging artists to showcase their work directly to a global audience. By eliminating intermediaries and reducing transaction costs, these platforms make it easier for creators to monetize their talents and connect with passionate collectors.

Preserving Authenticity and Provenance: Each NFT is assigned a unique digital signature stored on a blockchain, ensuring its authenticity and traceability. This feature is crucial for art collectors and investors, who can confidently verify the ownership history and authenticity of their digital assets. NFT platforms play a pivotal role in facilitating this verification process.

Fostering Innovation and Collaboration: By creating a vibrant ecosystem of creators, collectors, and investors, NFT platforms spur innovation and encourage cross-disciplinary collaboration. Artists can experiment with new forms of expression, while collectors and investors support these endeavors, driving the development of novel digital art forms and technologies.

Bridging the Gap between Physical and Digital Worlds: NFT platforms are at the forefront of bridging the gap between the physical and digital worlds. From digital twins of real-world assets to immersive virtual experiences, NFTs are reshaping how we interact with and value objects in both realms. These platforms facilitate the exchange of these hybrid assets, enabling users to experience the best of both worlds.

Fueling Economic Growth and Decentralization: As the NFT market continues to expand, it is driving economic growth and fostering a more decentralized economy. By empowering individuals to own and trade digital assets directly, NFT platforms are empowering creators and users alike, leading to a more equitable and inclusive digital economy.

Types of NFT Marketplaces

There are numerous types of NFT marketplaces, each catering to different kinds of digital assets and user preferences. These platforms can be broadly classified into universal and art-oriented platforms, as well as niche-specific marketplaces.

Universal platforms like OpenSea or Blur offer a wide array of NFTs, including art, sports collectibles, virtual worlds, trading cards, and domain names. Art-oriented platforms such as Rarible and SuperRare cater specifically to digital art, often hosting works from renowned artists and creators.

On the other hand, niche-specific marketplaces focus on particular types of NFTs, such as in-game items, digital collectible cards, and virtual real estate. For instance, NBA Top Shot is a marketplace through which users can buy and sell digital collectible cards featuring memorable NBA moments. Axie Infinity hosts digital pets called Axies, while Sorare is a global fantasy football game allowing users to trade virtual player cards. Decentraland has an in-house marketplace for virtual land or in-game items, while Valuables allows users to tokenize and sell tweets as NFTs.

When choosing a marketplace, it's essential to consider the type of NFT you're interested in, the blockchain system it operates on, and the user interface and experience offered by the platform. Each marketplace has its unique features and requirements, and understanding these can help you navigate the vibrant and diverse world of NFTs more effectively.

Examples of NFT marketplaces

There are dozens of NFT marketplaces. Examples include:

OpenSea:

OpenSea is the largest peer-to-peer marketplace for NFTs, allowing users to trade various digital assets. It supports various collectibles, art, virtual real estate, and other unique items stored on the Ethereum blockchain. OpenSea enables both primary sales and secondary market transactions, offering tools for creators to mint new NFTs and list them for sale. It features a user-friendly interface with advanced filtering options, having it accessible for novice collectors and seasoned traders to discover, buy, and sell NFTs.

Rarible:

Rarible operates on a decentralized protocol that enables creators to mint and sell NFTs without intermediaries. It utilizes its native RARI governance token, allowing holders to participate in platform decisions such as fee structures and curation policies. Rarible emphasizes community engagement and incentivizes creators through its incentive mechanisms, rewarding active participation and high-quality contributions. The platform supports various digital formats beyond static art, including animations and interactive digital experiences.

Foundation:

The foundation provides a platform where creators can auction their digital artworks as NFTs, fostering direct engagement between artists and collectors. It features a curated marketplace where high-quality digital art is showcased and sold, focusing on transparency and fair compensation for creators. The foundation supports different auction formats, including open bidding and reserve auctions, allowing artists to experiment with pricing strategies and engage with a global audience of collectors interested in unique digital creations.

Nifty Gateway:

Nifty Gateway differentiates itself by hosting exclusive drops and limited edition releases of NFTs from well-known artists and brands. The platform collaborates directly with artists to create curated collections that drive interest and demand among collectors. Nifty Gateway offers a streamlined purchasing process through credit card payments, lowering the entry barrier for newcomers to the NFT space. It emphasizes the intersection of art, technology, and culture, positioning itself as a gateway for mainstream adoption of digital collectibles.

SuperRare:

SuperRare operates as a premier marketplace for digital art NFTs, focusing on high-quality, scarce editions created by individual artists. Each artwork on SuperRare is tokenized on the Ethereum blockchain, ensuring provenance and authenticity. The platform emphasizes the importance of digital ownership and the ability for artists to earn royalties from secondary sales. SuperRare features a community-driven approach to curation, where collectors can discover and support emerging and established artists through transparent transactions and a vibrant social network.

Decentraland:

Decentraland is a decentralized virtual reality platform built on Ethereum, where users can own, develop, and monetize virtual real estate and assets as NFTs. It operates on a blockchain-based governance model, allowing users to participate in community decisions and platform development. Decentraland's marketplace facilitates the buying and selling of LAND parcels, wearables, and other virtual goods, enabling creators to build immersive experiences and monetize their digital assets within a virtual metaverse governed by decentralized principles.

Crypto.com NFT:

Crypto.com NFT integrates within the broader Crypto.com ecosystem, offering a marketplace for trading NFTs across diverse categories such as art, entertainment, sports memorabilia, and collectibles. Leveraging Crypto.com's infrastructure, the platform provides secure transactions and broad accessibility for users worldwide. Crypto.com NFT supports both established and emerging artists, empowering them to tokenize and sell their digital creations while offering collectors a seamless experience to discover and acquire unique NFTs through an intuitive interface.

KnownOrigin:

KnownOrigin serves as a curated platform for digital artists to showcase and sell their artwork as NFTs on Ethereum. It prioritizes authenticity and provenance, ensuring that each piece of digital art is verifiable on the blockchain. KnownOrigin supports artists in protecting their intellectual property rights and earning fair compensation through transparent transactions and community engagement. The platform fosters a supportive environment where collectors can discover and invest in original digital artworks while contributing to the growth of the digital art ecosystem.

AtomicMarket:

AtomicMarket operates on the EOSIO blockchain, providing a marketplace for trading NFTs and digital assets within the EOS ecosystem. It offers tools for creators to mint, buy, and sell unique digital items efficiently, leveraging the fast transaction speeds and low fees characteristic of the EOS blockchain. AtomicMarket supports a variety of digital collectibles, virtual goods, and gaming assets, catering to users interested in blockchain-based ownership and decentralized commerce on the EOSIO network.

Binance NFT Marketplace:

Binance NFT Marketplace is part of the Binance ecosystem, designed to facilitate the creation, trading, and discovery of NFTs across multiple categories including art, gaming, sports, and entertainment. Integrated with Binance's infrastructure, the marketplace ensures low transaction fees, high liquidity, and a seamless user experience for creators and collectors. Binance NFT Marketplace aims to broaden accessibility to NFTs by leveraging Binance's global user base and providing robust support for both creators looking to tokenize their work and collectors seeking to acquire unique digital assets.

Tips for finding a NFT marketplace

When embarking on your journey in the NFT market, identifying the right marketplace is crucial.

Firstly, it's essential to understand that NFT marketplaces are not generic crypto exchanges, but specialized platforms where unique digital assets, represented as NFTs, are bought, sold, and minted. Familiarizing yourself with these platforms is the first step.

Remember, each marketplace caters to a specific type of NFT and operates on a particular blockchain system.

Additionally, consider the user interface and experience offered by the platform. Each marketplace has its unique features and requirements, and understanding these is crucial for effective navigation.

Finally, bear in mind that the cost involved in minting and listing NFTs varies across different blockchain networks. While Ethereum is currently the most prevalent network for NFTs, alternatives like Binance Smart Chain, Flow and Solana are also gaining popularity. Choosing a marketplace should be based on careful consideration of these factors, ensuring a smooth and successful foray into the vibrant and diverse world of NFTs.

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

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 youre 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 at:

Seatlab

GET Protocol

GUTS Tickets

NFT TiX

NFT avatars

Youll 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 having NFT avatars:

8biticon

NFT Avatar Maker

OpenSea

AtomicMarket

Rarible