So, you’re ready to get in the NFT game. You learned how to setup a crypto wallet in Chapter 3.1 and how to fund your wallet in chapter 3.2. Now, you need to figure out where to buy an NFT.
NFTs are bought, sold, and traded through marketplaces. The most popular NFT marketplace online today is OpenSea, but it’s far from the only one and popular doesn’t always mean best.
The good news is that there are only three steps to finding the best marketplace to work with, and they’re quite simple to follow. Here’s what you need to do:
Step #1: Decide What Type of NFT You Want to Buy
The first thing you need to do is decide which type of NFT you want to buy. We covered the steps to doing that in Chapter 2. Click the link if you missed it or would like a refresher before you continue forward.
Nonetheless, as a quick refresher, there are a few types of NFTs to consider:
- Art Only NFTs. Art only NFTs are unique pieces of art that live on the blockchain. These are one-offs and aren’t part of collections like the Bored Ape Yacht Club or Crypto Punks. Art only NFTs are generally chosen for aesthetic value and what the art itself means to the buyer.
- Collections. There are several NFT collections online from the uber popular options like Bored Apes, CryptoPunks, and CryptoKitties to less popular up and comers like Coffee Bros’ Crypto Baristas. Owning pieces of collections can be rewarding from an investing standpoint, but also generally open the doors to exclusive communities and perks. Moreover, these collections often support real-life initiatives. For example, when you buy a Crypto Barista, you’re supporting sustainability, equality, and the restoration of the supply chain of the coffee industry.
- Utilities. There are also NFTs that are built around utility. For example, some tokens are used as tickets to get into events. There’s even a company that sells wine NFTs that can be redeemed for the actual bottle of high-end wine.
Step #2: Make a List of Marketplaces That Have the Collectibles You’re Looking For
Once you’ve decided what you’re looking for, it’s time to find a few marketplaces that have it. As mentioned above, OpenSea is the world’s most popular marketplace and has at least limited quantities of just about anything.
However, if you’re looking for rare art collectibles, you may want to consider marketplaces like Rarible and SuperRare that focus their efforts on bringing one-of-a-kind pieces for top-notch digital artists to the world.
The best way to build a list of the types of marketplaces you’re interested in is to use your favorite search engine. For example, if you want rare art NFTs, type “rare art NFT marketplace” into your favorite search engine and make a list of the top results that pop up!
Step #3: Compare Marketplaces
Now, it’s time to compare the marketplaces on your list. All NFT marketplaces are private businesses that went into the business for the purpose of making money. Moreover, NFTs are still relatively new, so there’s no real standard in terms of fees and services. That said, each NFT marketplace will be different from the last. Consider the following as you compare marketplaces:
- NFTs Available. Some young NFT marketplaces only have a limited selection of crypto collectibles available while others will have more than you care to comb through. Make sure you sign up for a marketplace with plenty of options to choose from.
- Fees. All marketplaces charge transaction fees. In most cases, transaction fees range from 2.5% to 15% of the entire amount of the transaction. So, make sure you pick a marketplace that’s closer to the 2.5% price point.
- Who Pays the Fees. Buyers pay the fees on some marketplaces while sellers pay the fees on others. If you can find a marketplace that requires sellers to pay the fees and offers the types of NFTs you’re looking for, you could save quite a bit of money.
- Functionality. Finally, you’ll have a hard time purchasing your first NFT if the website you’re buying it on is so shoddy it’s hard to navigate. Look for a marketplace that’s easy to use and navigate. Moreover, some marketplaces allow you to make offers on NFTs that aren’t listed for sale. If you want to get your hands on a rare piece someone else owns, make sure the marketplace you choose has this functionality.
That’s All There Is To It!
That’s all for today my friends. Now that you know how to find the best marketplace to use. Go pick one so we can show you want to do with it next Thursday!