NFT marketplaces: where to buy NFT tokens?
Best NFT marketplace - Bybit
NFT marketplaces — where to buy NFT tokens:
-
Bybit NFT - best NFT marketplace
-
Binance NFT - offers traders to buy and sell NFT tokens of any type
-
Alibaba NFT - focuses on trading copyrights
-
OpenSea NFT platform - the largest NFT marketplace in 2023
-
Rarible NFT - one of the most promising platforms for trading NFTs
-
Axie Infinity - a blockchain game that allows players to buy, breed and raise different animals, objects and others
NFT token technology was launched in 2017. It is a new type of cryptocurrency asset that carries unique information. Each token or a group of tokens has its value and there is no total capitalization. NFT tokens can be used as investment assets, as their price can grow, reaching very high values. For example, the most expensive token was sold for USD 532 million.
NFT tokens are traded on special marketplaces. TU analysts will explain what an NFT marketplace is, offer the list of the best marketplaces to buy NFTs and also provide you with a guide on non-fungible token technology.
What is an NFT token?
NFT token or non-fungible token is a special type of digital asset. Unlike traditional tokens, NFTs are not mutually interchangeable. For example, if you have a token or cryptocurrency, let’s say Bitcoin, you can sell it and buy it back and you will still have 1 BTC on your account. With NFT tokens, the situation is different.
With NFT tokens, the situation is different. In the case with NFTs, each token or a group of tokens has their value. It is impossible to give away one token or group and get back the same one. For example, if you have a token associated with a photo, you will not be able to exchange it for the same one. The information encrypted in them is unique.
Different items can be encrypted in NFTs, for example:
-
Photos, art;
-
Music;
-
Collectibles;
-
Domain names;
-
Luxury items;
-
Gaming items, etc.
Anything that has a certain hypothetical value and uniqueness can theoretically become an NFT. For example, Twitter CEO Jack Dorsey sold his first tweet posted back in 2006 as an NFT. An ordinary technical message was sold for over $2.9 million!
NFTs are also now being used to confirm the ownership right or a stake in an object or item. For example, a non-fungible token may contain information about an apartment that you own.
What is an NFT marketplace?
NFT tokens are not traded on traditional trading platforms. They are unique and therefore each of them can be bought only as a separate item, for example, a collectible card. Therefore, special NFT marketplaces have been developed for them.
Therefore, special NFT marketplaces have been developed for them. An NFT marketplace is a special trading platform developed specifically for the non-fungible tokens, where users can buy or sell them, hold them and exchange them. As a rule, cryptocurrency is used for trading, most frequently Ethereum (ETH), although some marketplaces accept Bitcoin (BTC), other cryptocurrencies and stablecoins. For example Binance NFT marketplace accepts its own cryptocurrency Binance Coin (BNB), stablecoin Binance USD (BUSD) and others as payment.
Purchase and sale are carried out approximately like on Amazon or any other marketplace. Some NFTs can be bought straight away by just clicking on the Buy button and paying for your purchase. Others are traded at an auction, where you will have to compete with other bids.
As a rule, NFT tokens can also be stored at the marketplace, or they can be withdrawn to another cryptocurrency wallet. For example, non-fungible tokens developed by the Ethereum standard (ERC-721 for instance) can be held in the official Ethereum wallet or in the crypto wallets that support ERC tokens.
Types of NFT marketplaces
There are several types and methods of classification of NFT marketplaces.
For example, in terms of limitations for token placement, there are two types:
-
Open. Every user of the marketplace has the right to place their own token on the platform.
-
Closed. Only some developers, as a rule, the project’s team, has the right to place tokens.
Also, marketplaces can be classified by other criteria, for example type of ownership.
In this case, there are the following types of marketplaces:
-
Common. These marketplaces, as a rule, do not have one owner or organization. They are created by a group of users. Common marketplaces are generally fully open.
-
Private. These marketplaces are created for specialized organizations or for a small group of people that publish their works. Top Shot, the official NFT marketplace of the National Basketball Association (NBA) is an example of a private marketplace.
The platforms of this kind are also classified by the types of content published on them.
In terms of this criterion, there are three types of marketplaces.
-
With free publishing. These marketplaces accept NFTs with any type of content. The platforms feature a large number of categories.
-
Thematic marketplaces, which publish the content of only one theme. For example, the most expensive tokens Crypto Punks are first published on the namesake NFT marketplace.
-
Curated. The administration of such marketplaces decides which types of tokens have higher value. Therefore, the users first offer their NFTs and then the project’s management approves their publication.
Purchase of non-fungible tokens is performed freely on all these marketplaces. Therefore, if you decide to invest in NFT, there won’t be any issues. Now, let’s review the Top 10 marketplaces, where you can buy such tokens.
Top-11 marketplaces to buy NFT tokens
There are thousands of different marketplaces, where you can buy NFTs. Therefore, investors may find it difficult to make a choice. TU analysts have compiled a list for you consisting of 11 platforms for trading non-fungible tokens.
Our list includes the following services:
-
1
-
2
-
3
Alibaba NFT
-
4
OpenSea
-
5
Axie Infinity
-
6
Rarible
-
7
SuperRare
-
8
Foundation
-
9
KnownOrigin
-
10
Nifty Gateway
-
11
Sorare
Below is a brief overview of each of these platforms.
Bybit NFT
In 2022, Bybit, a renowned cryptocurrency exchange, expanded its offerings by launching an NFT marketplace. This platform caters to traders interested in buying and selling a wide variety of NFT tokens. You can manage both your NFTs and traditional cryptocurrency assets from the same trading account, making it convenient for users. The marketplace accepts various payment methods, including Ethereum, USDT, and BIT—the latter serves as the pricing token for NFTs.
Uploading tokens for sale on this platform is straightforward and free of charge. You don't need administrative approval to list your work. Moreover, sellers enjoy flexibility in how they display their NFTs, which adds a personal touch to each listing.
When it comes to fees, Bybit's NFT marketplace stands out for its affordability. A nominal 1% trading fee applies to each transaction for NFT sellers. Additionally, sellers owe a 1% royalty fee to the original creators of the NFTs. The exact fees can differ based on specific agreements between the marketplace and the sellers or creators.
Special features like weekly Mystery Boxes add a layer of excitement to the platform. These boxes are available at a fixed price, and you can purchase them using the same payment methods applicable to individual NFTs. After successfully completing a purchase, whether it's an NFT or a Mystery Box, you can click "View Now" to examine all the transaction details.
Binance NFT
Binance is the largest cryptocurrency exchange in the world established in 2017. The listing of the trading platform features over 300 cryptocurrencies and tokens and it is continuously updated. Binance is one of the most reliable and reputable cryptocurrency exchanges in the world. Recently, Binance launched its own marketplace for NFTs. Binance NFT offers traders to buy and sell NFT tokens of any type. Publishing of tokens is free and no approval of the administration is required. Payments for NFTs are accepted in Ethereum and also own cryptocurrencies Binance Coin and Binance USD. Traders can trade NFTs and traditional cryptocurrencies and tokens from a single trading account.
Binance NFT marketplace
Alibaba NFT
Alibaba is one of the largest global trading companies of China. The organization owns Alibaba and AliExpress marketplaces. In January 2023, Alibaba NFT, the platform for trading NFT tokens was launched. The peculiarity of the marketplace is that it focuses on trading copyrights. The clients can buy NFTs associated with copyrights for art, music, software, games, patents for different ideas, etc.
Alibaba uses a unique token for creating NFT; the service is based on the New Copyright Blockchain developed by the Sichuan Blockchain Association. At the moment, there is no separate platform for trading yet, so NFTs can be bought in the special section of the website Alibaba Auction.
Alibaba NFT Marketplace
OpenSea
OpenSea NFT platform is the largest NFT marketplace in 2023. The daily turnover on the platform exceeds $40 million. The platform is fully open; every user can buy non-fungible tokens or sell their own NFT there without additional confirmations and verification.
Different types of tokens are sold on OpenSea, including collectible cards, art and gaming tokens. You can buy individual tokens as well as collections. Images, music, GIF animation and a lot of other things are encrypted in the NFTs. Trading on the OpenSea marketplace is mainly performed with Ethereum.
NFTs that comply with ERC-721 and ERC-1155 standards are published on the platform.
OpenSea NFT marketplace
Axie Infinity
Axie Infinity is a blockchain game that allows players to buy, breed and raise different animals. At the same time, Axie Infinity offers an NFT marketplace, where the gaming objects are sold. This marketplace actually became so popular that it ranks second after OpenSea by the daily trading volume. The daily volume of transactions on the platform is $25.5 million.
Axie Infinity marketplace offers trading of different gaming attributes – characters, objects, territories. Some people even use Axie Infinity for business, buying gaming items and then reselling them at a higher price. The non-fungible tokens are based on the Ethereum blockchain. Thanks to the success of its NFT marketplace, Axie Infinity is predicted to finish 2023 with $1 billion in profits.
Axie Infinity NFT Marketplace
Rarible
Rarible NFT marketplace was launched in 2020. As of 2023, the average daily traffic on the platform is over 2 million unique users. Also celebrities publish their lots on the platform. For example, NFTs placed by Lindsay Lohan could be purchased on Rarible. The platform is integrated with OpenSea, so similar lots can be found on these two marketplaces. The NFTs featured here are associated with different objects – photos, art, music, etc. NFTs with domain names are sold on Rarible.
Rarible is one of the most promising platforms for trading NFTs. In January 2023, the marketplace held a Series A fundraiser raising $14.2 million. Therefore, the marketplace has a resource for development.
Rarible NFT marketplace
SuperRare
SuperRare is a digital art NFT marketplace. Here, the traders can buy non-fungible tokens with different photos, paintings, animations, videos, etc. Users can buy NFTs right away or participate in auctions. The platform also features a search by authors, price, NFT type, etc. Payments are accepted in Ethereum.
You can also publish your works on SuperRare, but there are certain specifics to that. This is a curated NFT marketplace, which means that every author who wishes to sell their works must submit an application and pass a strict selection.
SuperRARE NFT Marketplace
Foundation
Foundation is another digital art-focused NFT marketplace, where users can buy NFTs associated with different art objects. The platform is a digital auction, where the buyers can bid for different tokens. The platform also uses Ethereum for payments.
Foundation is also a curated marketplace, like SuperRare. However, its ownership structure is different – this platform is managed not by certain people or a company, but by a community. The sellers can share their works in Discord. Access for new authors is granted upon invitation received from another user. The authors can invite new colleagues after the first sale of their work.
Foundation NFT marketplace
KnownOrigin
KnownOrigin NFT marketplace is also focused primarily on digital art. This platform is suitable for the artists, photographers and designers, who are planning to sell their works. Files in jpeg and gif formats can be encrypted in the NFT tokens.
Known Origin works not only on Ethereum. There is also an internal currency – KnownOriginDigitalAsset (KODA). This token is developed by the ERC-721 standard. You can also confirm the copyright of a photo or animation using this token.
KnownOrigin Marketplace
Nifty Gateway
Nifty Gateway marketplace is also focused on art objects and is also curated. It is one of the oldest NFT marketplaces. It was established in 2108 practically right after the launch of the NFT technology by the brothers Tyler and Cameron Winklevoss, who created Gemini cryptocurrency exchange.
Among all Digital Art platforms, Nifty Gateway is best suitable for investing. Its key feature is that only celebrities can publish their works there. For example, you can buy photos made by the personal photographer of Beyonce on this NFT marketplace. Singer Grimes sold her NFT album through Nifty Gateway. You can also find collectibles of famous figures of art, music, sports, etc. on the platform. Unlike other marketplaces, you can buy NFTs on Nifty Gateway for a fiat currency – US dollars.
Nifty Gateway NFT Marketplace
Sorare
Sorare is a marketplace for sports fans, particularly football. Here, you can buy collectible cards of famous football players encrypted in NFTs. The platform is Ethereum-based. Only the cards of the players and clubs that officially work with Sorare are sold there.
The peculiarity of Sorare is that it is factually a platform for the Fantasy Football game and operates on the principle of popular cards Panini. The players can buy packages of cards containing certain types of NFTs. Every year, the platform issues 100 rare tokens and 10 super rare tokens, which can cost quite a lot. You can buy your tokens also directly on the platform. By the principle of operation Sorare is similar to Axie Infinity.
Sorare NFT Marketplace
Tips for choosing an NFT marketplace
When choosing an NFT marketplace, consider the following criteria:
-
Security and Reputation
Prioritize a platform well-known for its robust security measures and solid reputation. High-value NFTs need protection, so go for marketplaces that bolster their security with features like two-factor authentication (2FA) and advanced encryption. Ensure the platform has a track record of safeguarding user assets -
Wallet Integration
Find out whether the marketplace allows you to integrate your chosen wallet. Wallet integration streamlines transactions and gives you complete control over your NFTs and finances -
Marketplace Fees
Scrutinize the fee structure of the platform. Some marketplaces offer lower fees for creators, whereas others have more attractive rates for buyers. Align your choice of marketplace with your financial objectives, whether you're a creator or a collector -
User Interface and Features
Pay attention to the platform's design and functionalities. A clean, user-friendly interface simplifies your journey as either a buyer or seller. Also, take note of any additional features like auctions, bundles, or social engagement options. These extras can enhance visibility and add value to your NFTs -
Selection and Quality of NFTs
Assess the variety and calibre of NFTs the marketplace offers. A diverse, high-quality selection elevates the platform's appeal and can benefit you as a buyer or a seller. Ensure that the marketplace has a vetting process for authenticating the NFTs and maintaining a high standard of quality -
Community and Support
Gauge the strength of the marketplace's community and the reliability of its customer support. A vibrant community allows for networking with other creators and collectors. Reliable customer service is crucial for resolving any issues or queries you may have
What you need to know about investing in NFTs
NFT tokens are widely used for investing in crypto assets. However, the principle is different. In the case with NFT, you are not investing in cryptocurrency, but in an actual unique object. For example, Icecap offers its clients to buy an NFT token that gives them ownership rights to a diamond or a share of some stone. Therefore, investment in NFTs can be compared to an investment in unique, collectible items.
In the case of NFTs, the traditional for cryptocurrencies trading strategies, and trading signals don’t work. There are factually two ways to earn a return here. The first one is to quickly re-sell the token to an interested buyer. The second one is the Buy and Hold strategy. You can buy a collectible token and after some time its price may increase. Profitability of this investment can be quite high. For example, as of 2023 the collectible card Crypto Punks is the most expensive NFT token. It was sold for over $500 million. However, it is important to remember about the risks of such investment. Not all tokens can grow in price. For example, if you bought a token of a celebrity and he or she got involved in a scandal, the value of such a token can decrease.
How Do I Invest in NFT Tokens?
Investing in NFT tokens can be an exciting venture, but it's essential to follow a well-planned approach to make the most out of your investment. Here's a step-by-step algorithm to guide you through the process.
-
Select and Fund a Crypto Wallet. First, you'll need a secure digital wallet to store your cryptocurrencies. Wallets like MetaMask, Trust Wallet, or Coinbase Wallet are popular choices. Once you've picked one, go ahead and fund it with cryptocurrency. Typically, Ethereum (ETH) is widely used for NFT transactions, but some marketplaces also accept other types like Binance Coin (BNB) or Flow
-
Choose a Marketplace and Create an Account. Next, select an NFT marketplace that aligns with your interests and financial goals. Marketplaces like OpenSea, Rarible, and NBA Top Shot offer various types of NFTs, including art, collectables, and sports memorabilia. Sign up for an account on your chosen platform and complete any necessary verification steps
-
Connect Your Wallet to the Exchange. Now, link your funded crypto wallet to the NFT marketplace. This usually involves navigating to the "Wallet" or "Account" section on the platform and following the prompts to connect. Ensure the marketplace supports the type of wallet you've chosen
-
Choose and Buy an NFT. Once everything is set up, you're ready to invest in an NFT. Browse the marketplace to find an NFT that catches your interest. Check the pricing, historical sales data, and any other details that might influence your decision. When you're ready to make a purchase, click on the "Buy Now" or "Place a Bid" button, depending on the marketplace. Confirm the transaction in your linked crypto wallet
Summary
NFT tokens are a popular type of digital assets. However, these tokens are very different from traditional tokens and cryptocurrencies. One of the differences is that they cannot be traded on traditional platforms. Purchase and sale of NFTs, just as any collectibles or objects or art, is performed on special trading platforms. In this case, that’s NFT marketplaces.
You can buy, sell, and hold your tokens on the marketplaces. Some of them offer features for creating NFTs. There are several types of trading platforms and it is important that you choose the one that suits you best. It is important to work only with reliable marketplaces in order to avoid the risks of fraud.
FAQs
Do NFT marketplaces require state regulation?
No. An NFT token is not a means of payment or security. Actually, it is the same trading platform as eBay or Amazon.
Can I issue my own NFT?
Yes, any person can issue an NFT. However, if you are a beginner, it is best to publish them on open marketplaces.
How much can I make on NFT?
The amount you can earn on NFT is not limited by anything. It all depends on the tokens you are working with, where you trade, etc.
Is it true that NFT can only be bought for cryptocurrencies?
Mainly, yes. However, some trading platforms, Nifty Gateway for example, allow users to buy NFTs for fiat money.
Glossary for novice traders
-
1
Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
-
2
Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
-
3
Cryptocurrency
Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
-
4
Ethereum
Ethereum is a decentralized blockchain platform and cryptocurrency that was proposed by Vitalik Buterin in late 2013 and development began in early 2014. It was designed as a versatile platform for creating decentralized applications (DApps) and smart contracts.
-
5
Bitcoin
Bitcoin is a decentralized digital cryptocurrency that was created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto. It operates on a technology called blockchain, which is a distributed ledger that records all transactions across a network of computers.
Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).