How to Choose Best NFT Platform to Trade

Non-fungible tokens (NFTs) appear to have exploded out of the ether this year. These digital assets are selling like 17th-century exotic Dutch tulips, with some fetching millions of dollars. They range from art and music to tacos and toilet paper.

 

Is it worth the money—or the hype—to invest in NFTs? Like the dot-com bubble and Beanie Babies, some experts believe they are about to burst. Others believe that NFTs are here to stay and that they will forever alter the investment landscape.

 

What is a Non-Fungible Token (NFT)?

 

A Non-Fungible Token (NFT) is a unique digital token that is permanently linked to a piece and encrypted with the artist's signature. It ensures that the piece is genuine and belongs to the rightful owner. It's a digital asset that can be used to represent real-life art, music, video, and in-game content.

 

They're frequently encoded with the same software as other cryptos, and they've bought and sold online, frequently using cryptocurrency. For example, money is fungible, which means that one rupee can be exchanged for another. 

 

By definition, a non-fungible token cannot be compared to another non-fungible token. Each NFT has its own unique code and is one-of-a-kind or part of a very limited run.

 

How to choose an NFT platform?

 

In the wake of this NFT gold rush, many blockchain companies are launching marketplaces for non-fungible tokens. Artists, digital creators, and musicians can mint, trade, auction, and collect NFTs on an NFT marketplace.

 

It's important to note, however, that not all marketplaces are created equal. In either case, the best option is determined by your NFT requirements and aesthetic preferences. 

 

We'll show you what to look for in an NFT marketplace in this quick guide so you can make an informed and regret-free decision. Here are the six key factors to consider:

 

1. Take into account the Platform's Token Standard: NFT marketplaces may perform similar functions, but they are not identical. Depending on your NFT application, each token has advantages and disadvantages.

 

2. The user verification process on the platform: As the popularity of NFT marketplaces grows, so does the number of imposters posing as naive buyers and collectors. 

 

As a result, you'll want to make sure that a marketplace's verification process is stringent in order to keep out shady creators and general users. Without the express permission of the original owner, some creators can sell these collectable collections. To avoid all of these issues, look for a marketplace that offers a thorough verification process.

 

3. Price Discovery: While many marketplaces have yet to add a price discovery feature to their platforms, it is critical for both buyers and sellers. If you're selling your mintable artwork on the NFT marketplace, the price discovery feature allows you to estimate the right rates that will entice buyers. 

 

Similarly, before spending thousands of dollars on a worthless collectable, buyers can use the price discovery feature to make informed purchasing decisions.

 

4. Token fractionalization: This allows collectors to buy a piece of a highly valued NFT rather than the entire collectable. Both buyers and sellers benefit from this.

 

5. Wallet Compatibility: The ecosystem of the NFT marketplace would be incomplete without a connection to fiat currency. Before minting or purchasing NFTs, users must first load their wallets. You'll want a platform that works with a variety of wallets, or even better, the one you prefer.

 

6. Other User Incentives: There are dozens of active NFT marketplaces, with more on the way, giving you a wide range of choices. However, as with any other platform you use on the internet, you want the one that gives you the most value for the time you're using it. The incentives offered by different NFT marketplaces differ. Keep an eye out for a monetary reward for using the platform. (source)

 

Avoid platforms that demand you pay a hefty upfront fee just to get access to the user interface. If you find the right marketplace with relevant, innovative features, NFTs can be a lot of fun. 

 

For a better experience when minting, selling, or buying collectables, consider these features before signing up on any NFT marketplace.

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Some NFT Platforms

 

• Decentraland

 

Decentraland is entirely based on the fantasy world known as the "METAVERSE." Decentraland, to be more specific, has an open world that works similarly to the real world. 

 

Cryptocurrency can be used to buy assets, lands, and other items on the decentral platform. The concept was initially chastised for failing to grasp the magnitude of its impact and influence in the crypto sphere.

 

The platform is quickly becoming the largest monopoly in the crypto meta platform, with a market capitalization of more than $6 billion. The platform is thought to be a forerunner to what we are seeing now in the crypto market, according to alternate verse.

 

• Axie marketplace

 

The NFT-powered video game Axie Infinity hosts the second-largest NFT marketplace, with a total trading volume of more than $2.1 billion on Dappradar. It only deals in Axies, which are cute Pokémon-style digital pets that can be bought and traded on the Axie Marketplace.

 

You can also create new Axies using the game's built-in breeding mechanics, which you can then sell on the Marketplace. Unlike art NFTs, which are merely collected for the sake of collecting, Axie Infinity's NFTs have a purpose: they can be used in-game to fight monsters and other players, earning tokens that can be used to breed new creatures. 

 

NFTs from Axie Infinity has proven to be so profitable that some players in the Philippines and Indonesia now make a living off of them. 

 

However, Axie Infinity is one of the most difficult NFT services to use for new users, and you'll have to jump through a few hoops before you can even start playing the game.

 

• OpenSea

 

OpenSea is the market leader in terms of NFT sales. OpenSea has a wide range of digital assets available on its platform, and it's completely free to sign up and browse the extensive offerings. It also assists artists and creators, and there is a straightforward process for creating your own NFT (known as "minting").

 

Because it supports over 150 different payment tokens, the platform's name is apt. If you're new to NFT, OpenSea is a great place to start.

 

• SuperRare

 

SuperRare is yet another popular NFT marketplace that accepts a wide range of NFT assets, including art, music, videos, and other types of NFT assets. This acts as a link between traders, influencing the market by providing a very smooth and responsive NFT minting medium that is far more efficient than traditional minting strategies. Super Rare was one of the first marketplaces to start minting coins.

 

SuperRare's market capitalization is in the hundreds of millions of dollars, and the platform is moving forward with greater efficiency. SuperRare intends to adopt and introduce a number of open APIs and wallets in order to establish a constructive medium in the crypto era. This improves the marketplace's efficiency to the greatest extent possible.

 

• CryptoPunks

 

CryptoPunks served as an inspiration for the development of the NFT standard as an early NFT project on the Ethereum blockchain. CryptoPunks is a collection of 10,000 pixel-art avatars of human, zombie, ape, and alien characters created by a computer. 

 

As a result, they are collectable art, with the item's rarity and the buyer's preferences determining its value. Over 3000 people own pieces from this collection, and a few have been auctioned at Christie's in London. This year's most expensive CryptoPunk was #4156, which sold for $10.26 million.

 

• Rarible

 

Rarible, like OpenSea, is a large marketplace for NFTs of all kinds. You can buy, sell, or create all kinds of art, videos, collectables, and music on the platform. However, unlike OpenSea, you'll have to buy and sell using the marketplace's own token, Rarible (CRYPTO: RARI). The Ethereum blockchain underpins Rarible (although artwork can be managed on OpenSea as well using Rarible tokens).

 

The company has partnered with a number of well-known businesses. Taco Bell (NYSE: YUM) has listed art on Rarible, and Adobe (NASDAQ: ADBE), a cloud software giant, recently partnered with Rarible to help secure NFT artists' and creators' work.

 

Also Read | Top 7 MetaVerse Crypto Coins

 

 

Cryptocurrency vs Digital currency vs NFT

 

The main distinction is that, unlike digital currencies and cryptocurrencies, NFTs cannot be traded or exchanged. Every NFT is unique, distinguishing it from fungible tokens like digital currency and cryptocurrency, which can be traded or exchanged without losing value.

 

Digital currencies are centralised, which means that a group of people and computers controls the state of the network's transactions. Cryptocurrencies and NFTs, on the other hand, are decentralised, and the majority of the regulations are set by their respective communities.

 

Furthermore, digital currencies lack transparency. An individual, for example, cannot select the wallet's address and view each money transfer because this information is private. 

 

On the other hand, cryptocurrencies and NFTs are completely transparent. Because all transactions are recorded in a public blockchain network, any user can see the transactions of any other user.

 

A central bank-backed digital currency is essentially electronic cash. A CBDC, like Bitcoin and other cryptocurrencies, is based on data and does not exist in the real world. CBDCs, unlike cryptocurrency and non-fungible tokens, are backed by governments, making them more likely to be recognised as money that can be used to buy goods and services. 

 

Also Read | Top NFT games to explore