Top 5 of NFT Marketplaces
What is NFT?
NFT simply stands for Non-Fungible Token, and it represents the ownership of a digital asset. Unlike regular money, an NFT cannot be exchanged for another item on a one-to-one basis. However, NFTs can be sold and bought with tokens or cryptocurrencies such as Ethereum, Solana, Dogecoin, Bitcoin, or BNB.
If you want to invest in NFTs and want to know more, you should read this first.
Where can you buy NFTs? The answer is, of course — NFT marketplaces.
With many marketplaces out there to choose from, it’s natural to wonder: which one is the right place for your NFT investment?
Don’t worry.
I have already sorted out the top 5 NFT marketplaces with their pros and cons for you. Check them out!
1. Opensea
Who doesn’t know about this marketplace? OpenSea is the first NFT marketplace and is the most popular and largest by far, with a trade volume of over $47.79M, according to DappRadar. It supports multiple blockchains and uses ERC-721 and ERC-1155 token standards. It is also well-known as the best marketplace for beginners in crypto art.
Pros:
- Low gas fees (OpenSea charges a 2.5% service fee and original creator earnings of 10%.)
- Wide variety of digital collectibles
- Gas-free for highest bid auctions
- Easy transaction process and simple platform
- Safe and strong reputation
- It has a mobile app
Cons:
- Limited customer support
- No consignment option
- Only accepts cryptocurrency
- Royalty fee fixed at 10%
2. Rarible
Rarible NFT marketplace was founded in 2019 by Alexei Falin. What makes this platform stand out is its partnerships with big companies and celebrities. It is quite similar to OpenSea, being one of the largest NFT marketplaces built on the Ethereum blockchain. Rarible has its cryptocurrency called RARI. This platform takes a 2.5% fee from both the buyer and seller on every sale happening in the marketplace.
Pros:
- Integration with OpenSea
- Easy for creating and selling NFTs
- Fast-growing marketplace
- Flexibility on royalty fees (up to 50%)
- Established a decentralized governance system
Cons:
- Charges 2.5% on both sides (seller and buyer)
- No mobile app
- Doesn’t support APIs or IPFS storage
- Limited customer support
3. Larva Labs — CryptoPunks
The popularity of CryptoPunks is why this marketplace is in the top 5. CryptoPunks are 10,000 unique collectible punk characters. Back in 2017, CryptoPunks were given away for free to anyone with Ethereum, but then they became rare, and now, to own one, you have to purchase it, which is really expensive. The current lowest price for one is 66.5 ETH, which is around $173,103.49. Phew~
Pros:
- High ROI for owning unique CryptoPunks
- Secure transactions using Ether cryptocurrency
- Transparent marketplace complete with statistics
- Simple platform
Cons:
- Limited wallet options
- High fees
- Doesn’t support other payment methods
- Not beginner-friendly
4. SuperRare
If you are looking for quality NFT collections, SuperRare is the platform you are looking for. Unlike Opensea and Rarible, in order to mint an NFT, an artist must wait for approval from the system. Hence, the NFTs you buy are guaranteed to be valuable since SuperRare focuses more on quality than quantity. It also uses its own cryptocurrency with the same name — SuperRare.
Pros:
- High royalty for the artist
- High-quality NFT art
- More flexibility in organizing and controlling your digital artworks
- Super safe
Cons:
- Hard to mint an NFT
- File sizes limited to 50MB
- Only accepts ETH as payment
- High fees (charges sellers a 15% commission on each sale and a 3% buyer’s premium)
5. Foundation
Foundation is a newer marketplace compared to others. It was launched in February 2021 by Kayvon Tehranian, and since then, creators have earned 55,484 ETH, equivalent to around $144,535,177.43. Foundation allows creators to buy and sell NFT art through auctions that last 24 hours once the minimum bid is placed. In this marketplace, artists are typically invited to join by the Foundation’s community. Arguably, this marketplace is beneficial for artists and creators.
Pros:
- Easy to use and navigate
- Community-driven and facilitates connections with other creators
- Runs on the Ethereum blockchain
- Offers high royalties for creators (10% for secondary transactions)
- Better customer service
Cons:
- Transaction fees in addition to Ethereum gas fees
- Accepts only ETH
- Artists need to pay a commission (15% on primary sales)
- Requires payment per listing
Based on the list of pros and cons above, it’s clear that each platform has its advantages and disadvantages. The choice should be based on your specific needs and circumstances. For beginners entering the NFT world, Opensea or Rarible would be suitable choices due to their beginner-friendly interfaces.
Additionally, conducting thorough research on market conditions and cryptocurrency values is crucial before making any investments. This ensures you’re informed and prepared to navigate the complexities of the NFT marketplace effectively.