Following digital currencies like Bitcoin and Ethereum, NFTs have made it popular in the crypto market. TECHBOOK shows you the best marketplaces to buy NFTs.
If you want to buy NFTs, your path will inevitably lead to one of online trading sites. There you can often not only buy after registration, but also sell some of them. Such trading venues are, for example, “Binance” or “OpenSea”, the largest exchange for digital art and other digital values such as videos, music, domain names, etc.
To buy NFTs, do so online
The road to a digital work of art is – especially for a beginner on the crypto floor – much harder than buying a physical painting. First of all, one should realize that the uniqueness of a digital object on the one hand can provide a huge price gain, so to speak, from zero to a few million, but on the other hand “the risk due to the extreme price fluctuations”. is even higher than with the already volatile cryptocurrencies such as Bitcoin, Ethereum and Co. “, according to” Wirtschaftswoche “. This is the case when no one, precisely because of its unique nature, is interested in the work in question. The risk is therefore difficult to assess.
Read next: What are NFTs and how do they relate to crypto?
The best marketplaces to buy NFTs
- Binance: Strictly speaking, like “Coinbase”, a cryptocurrency exchange with an associated marketplace for NFTs. You can buy via the marketplace, via an auction or via a mystery box – which means a bit “buy 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: In 2017 the first NFT marketplace ever and today the one with the largest offering (approximately 20 million NFTs). Unlike Binance, you can also sell your own NFTs.
- Super rare: 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 the profiles they have created. Everyone who is allowed to sell – you are selected – has done it. Fee to buy three percent, to sell 15 percent.
- rare: Rarible also offers a wide range of digital art of all kinds, from photos to videos to music. Unlike Superrare, almost anyone can sell here. Purchase / sale fee: 2.5 percent each.
- Smart Gateway: Particularly suitable for NFT beginners, as neither ether nor wallet is required, but payment is by credit card. According to “Wirtschaftswoche”, pop culture icons, such as Mick Jagger or Eminem, are said to have sold NFTs here. The selection of digital works of art is similarly exclusive. Here too, anyone who not only wants to buy but also wants to sell must first go through a selection process. Anyone who passes pays five percent plus a flat rate of 30 cents for the sale.
Choosing the right purse for NFT purchases
The catch when buying and selling NFTs: Only those who have the cryptocurrency ether can trade as the purchase is processed via Ethereum blockchain. Ether can (also) be obtained via apps from online crypto exchanges such as “eToro”, “Coinbase” or “BSDEX”. Depending on the provider, there may be a commission and / or the so-called spread. These are due to the difference between purchase and sale value. The ethers can now be transferred to a crypto-wallet such as “MyEtherWallet”, from where they can again be sent to one of the above mentioned NFT marketplaces. Since all the cost of purchasing most NFTs has to be paid with Ether, such a wallet is also a prerequisite.
In a way, “Coinbase” is a special case. “Coinbase” is one of the largest crypto exchanges and has its own wallet app. “Wirtschaftswoche” pointed out that this wallet is only available as a mobile app, but for both Android and iOS devices. According to Coinbase, a browser extension is now also available. If the wallet is ready for use after installation, it must still be linked to the buyer’s “Coinbase” account.
Custody or non-custody?
The big advantage of such a ‘custodial’ app (‘custodial’ means guardianship or custody) compared to a hosted (also: ‘non-custodial’) app is the usually greater security, as providers like “Coinbase” keep backups, thus that If you lose the ‘seed phrase’ (the password consisting of twelve randomly generated terms), the credit is not lost at the same time. A ‘depository wallet’ can therefore be described as a digital bank that, like a real bank, should be trusted by the user. However: If the account is hacked, “you will lose control and irrevocable transfers may result”, as the Internet portal “Blockbuilders” warns. In addition, a cryptocurrency exchange may be forced by a court to freeze a balance.
With a ‘non-custodial’ wallet, on the other hand, you have sole control over the data – which suspicious or already deceived users prefer. However, if data is lost because you forget the seed phrase or you can no longer find the paper on which the password was written, the credit is lost at the same time.
“Blockbuilders” therefore refers to a third variant: a hardware wallet, such as the one offered by “Ledger” or “Trezor”. This is a physical device the size of a USB stick that stores login data offline so that a possible hack can only cause relatively little damage. However, installing this software requires more effort. In short: You are best protected if several types of purses are used.
You can see: Depending on the type, it takes time and / or money to set up the wallet. But then you are able to act. With “Coinbase”, for example, you click on the menu items ‘Trade’, then ‘Select coin’. Here you finally decide on ‘NFT’ and the previously determined marketplace and can now pay for the desired object from the ether balance.