What is the best NFT marketplace? Can you make money with NFT?

NFTs are quickly becoming the largest area of not just profit but also innovation in the cryptocurrency world. At the moment, all of the top NFT collections are being traded primarily on OpenSea, the most popular NFT marketplace.

What is an NFT Marketplace?

An NFT marketplace is simply a website that facilitates NFT trading.

There are many sites that fall under that umbrella and most of them have distinct benefits over their competitors. An NFT, or non-fungible token, is a unique token on a cryptocurrency blockchain that is provably unique. The technology enables utility through play-to-earn games and stylish profile pictures. They are also extremely useful for digital collectors because they don’t need to worry about falsified collectibles or proving that their collection is real.

Almost all NFT platforms are integrated with a popular blockchain. Most of them are on Ethereum which can be troublesome for smaller investors because it can incur massive fees. Others support much cheaper blockchains like Solana or Polygon. NFT traders should be careful in choosing the best platform for them because it can be instrumental in their success. Different marketplaces have different fees, varying lists of wallets and NFT collections that they support, and various selections of trading features and statistics.

What To Look For in an NFT Platform?

There are a ton of different factors to consider when choosing the best NFT platform for you. One of the most important factors is whether you can use it at all. Different platforms support different wallets like MetaMask, Coinbase Wallet and more. Not only will you have to make sure your wallet will work with the platform, but you also need to ensure it has the NFT collections you want to invest in. Each platform doesn’t have every single NFT project, so you might have to switch platforms to invest. OpenSea is likely the best platform if your main concerns are wallet connectivity and collection support. You can trade almost all of the top NFT projects on it.

Decentralization is another factor that many investors consider when choosing the best marketplace for NFTs. They fear centralized control causing inequality and censorship. No NFT platform is completely decentralized, but each one has a different amount of centralized control. OpenSea is pretty close to as decentralized as any other popular NFT marketplace. However, even though it is decentralized for the most part, it can lock projects or users in cases of illegal activity or copyrighted material. NFT platforms like Tom Brady’s Autograph.io and FTX NFT marketplace are mostly centralized. Centralization isn’t necessarily a bad thing for everyone. There are noteworthy benefits to platforms with greater control like much better customer service. OpenSea’s customer service is little more than useless, while FTX and Autograph can be more helpful.

Can you make money with NFT?

The answer is yes. Blockchain technology and non-fungible tokens (NFTs) offer digital artists and content creators a unique opportunity to monetize their digital creations and digital products.

What makes NFT art so spectacular is that an artist or content creator who creates his artwork on the blockchain does not need an art gallery, store or museum. He also does not need an agent or even a large number of followers on social media to make money.

The other differential is that the artist can receive compensation, usually between 5 to 10% royalties when his work is resold on the secondary market, as well as his copyrights are protected.

And finally, since Ethereum is the second-largest cryptocurrency, it has a market value of over $420 billion. Selling a digital artwork today for 1 ETH (which, at the time this article was written, is about $3,500 USD), can be more valuable over time if 1 ETH appreciates to $10,000 USD. (Just like it is to buy shares for example). NFT art can also be considered a short and long-term investment.

Pros and cons of NFTs

The value of some NFTs has skyrocketed in the past year and attracted a lot of attention from the investment community. There certainly are some merits to consider when buying and using NFTs:

Certain physical collectibles (such as art) have a long track record of appreciating in value, and digital art could exhibit the same price appreciation.
Buying and selling digital assets as NFTs yields access to potentially far more buyers and sellers than in the past.
“Smart contracts,” meaning a set of coded commands built into the blockchain, can ensure that artists and creators get paid based on the use and resale of their work in the future.

But there are also some reasons not to invest in and use NFTs:

Since most NFTs represent static assets that don’t generate any income on their own, they are primarily valued by subjective metrics such as buyer demand. Consequently, sky-high prices may not last forever, and NFTs could lose considerable value.
Creating and selling NFTs isn’t free, and the fees can add up to more than an NFT is valued by other users on a marketplace.
NFTs and the blockchain technology they’re built on have an environmental impact since they use up a significant amount of energy to create and verify transactions.

The Best NFT Marketplaces

You don’t necessarily need to choose only one of these marketplaces. Many investors use more than 1 and switch back and forth when a different exchange is better suited to what they want to do.

OpenSea

If you know anything about NFTs, chances are you have at least heard of OpenSea. It’s the most popular NFT platform by far and almost every important collection is traded on it. It’s a relatively simple marketplace with a decent profile dashboard and useful statistics. Anyone trading NFTs will likely need to use OpenSea at one point in time, but it’s still full of bugs. A new platform with all the same features and fewer bugs could possibly take over its market share.

FTX or FTX.US

FTX is one of the only major cryptocurrency exchanges that also offers NFT trading. At first, it only offered NFTs on the much less popular blockchain, Solana, but it recently integrated with Ethereum too. Now it offers one of the easiest ways for new investors to buy into top NFT projects. It by no means has every collection, but it has many of the top ones newer investors have heard of. It also has a slightly lower transaction fee than OpenSea at 2%.

Rarible

Rarible is often considered a second-tier NFT marketplace behind OpenSea for various reasons. Its most important flaw is that it offers fewer collections and far fewer users. In NFTs, you usually want to buy into projects that have a lot of liquidity so you can resell your investment easily. On slow platforms like Rarible, this might be much more difficult. Otherwise, it is quite similar to OpenSea and charges the same fee of 2.5%. One benefit of using Rarible often is that the most active users are rewarded with the platform’s governance token, RARI.

Foundation

While most platforms like OpenSea and Rarible offer a wide range of NFT collections, Foundation focuses on a specific market, digital art. It has a ton of beautiful pieces of art by some of the best digital artists from around the world. If you want to invest in a profile picture collection like Cryptopunks, Bored Ape Yacht Club, or Doodles or a play-to-earn NFT game project like Wolf Game, you will need to use a different platform.

Can you make money from NFT?

Yes, you can. This is the second option to making money with NFT. Selling NFTs isn’t just for creators. Some entrepreneurs and investors utilize NFTs like stocks and profit by buying and selling them.

What platform can I sell NFT?

There are lots of online platforms you can use to make and sell an NFT. Some of the most popular NFT auction platforms include OpenSea, Rarible, SuperRare, Nifty Gateway (used by Paris Hilton to auction her curious Crypto Queen NFT, pictured above), Foundation, VIV3, BakerySwap, Axie Marketplace and NFT ShowRoom.

Can I sell my NFT on different marketplaces?

If the buyer decides to resell their NFT artwork, they can transfer it to a different marketplace if they are based on the same blockchain. Upon sale, they will also pay a royalty fee to the original artist.

Are NFTs worth it?

NFTs are valuable digital assets largely because they cannot be copied. … Though most NFTs do not sell for millions of dollars, some are selling for tens of millions. It is quite possible an NFT you buy for hundreds or thousands of dollars will exponentially appreciate in price as time progresses.