Just as there are many different kinds of cryptocurrencies that can be used to purchase NFTs, there are also many different NFT marketplaces that facilitate these sales. They’re also not location dependent, either, meaning Australians aren’t locked in to using an Australian-based platform.
“NFT marketplaces are global in nature,” Fogarty says. “That is one of the attractions of Web3–the blockchain knows no borders.”
Fogarty says that when choosing an NFT marketplace–as with any marketplace, regardless of product–it comes down to what you are buying or selling, and the audience that is at that marketplace.
Depending on which NFT marketplace you use will determine the types of NFTs available, the transaction fees, payment options, and other rules or member regulations. When comparing NFT marketplaces, you should consider the following:
Audience and visitors
Fogarty says it’s important to consider both the visitor-base size and the type of audience who are attracted to the NFT marketplace you may be considering. More users means more people to buy from and sell to, after all–but are they interested in buying the type of products you’re offering?
When comparing NFT marketplaces, it’s important to consider the size of the collections–that is, the amount of ‘stock’ a marketplace has.
“Stock brings the visitors as it gives them something to buy. But will your product be lost in the marketplace and rarely get seen?” Fogarty asks of those looking to sell their own minted NFTs.
For those looking to purchase, a broader collection size may be more attractive due to increased choice.
As CoinSpot business development and partnerships executive Tim Wilks explains, some marketplaces are fairly limited in their purchase options.
“Ensure you can purchase NFTs with the cryptocurrencies that you hold or have the ability to purchase,” Wilks advises. Some marketplaces may only be compatible with one or two cryptocurrencies, while others offer hundreds.
To bring purchase and trading into the mainstream, some NFT marketplaces are now even offering users the option to pay with a debit or credit card at checkout.
When doing so, the payment server will convert the fiat currency into the NFT marketplace’s default cryptocurrency in order to complete the sale. A credit card processing fee will incur, and conversion fees may also apply depending on your banking institution and the marketplace.
If using ETH, gas fees may also incur–which is a fee paid to transact on the Ethereum blockchain. Gas prices rise and fall depending on how busy the network is.
Regardless of which payment method you choose, you will still be required to have a crypto wallet, as this is where your NFT purchases will be stored. If you already have a crypto wallet, it’s worthwhile finding an NFT marketplace that is compatible with your pre-existing wallet.
NFT Marketplace Fees
In addition to the potential gas fees explained earlier, many NFT marketplaces also incur other costs to the user–such as service and transaction fees, subscription prices or royalties paid to the original artist.
These costs vary depending on the NFT marketplace, with transaction fees commonly being around the 2.5% mark.
Ease of Use
Wilks says it’s important to note there are huge variations in NFT marketplace usability and complexity, and individuals–regardless of where they are in their NFT trading journey–should consider finding a platform that can assist with the most streamlined trading experience.
But for people venturing into the world of cryptocurrencies and NFTs for the first time, it can be an overwhelming experience, he says.
“This is only made more complicated by having to undergo the registration process and learning how to use multiple platforms – one for your wallet, one for trading, one for browsing NFTs and so on.
Therefore, Wilks suggests that beginners should look for platforms that offer all of these NFT marketplace services under one roof.
“For beginners, a unified platform means greater convenience, less room for user error and the ability to access customer support if necessary.