NFT Marketplace
An overview of what an NFT marketplace is, how the concept has evolved, what you need to join one, and why marketplaces matter for trading NFTs.
In order to participate in the exchanging, storing, or displaying of NFTs, one must be a member of an NFT marketplace. An NFT marketplace is similar to any other online platform where you can buy or sell goods, only with a few crypto caveats. Brands, artists, and fans all interact in an NFT marketplace as that’s the place to go to buy, sell, trade, and even mint NFTs.
NFT Marketplaces, a History
One of the first NFT marketplaces, SuperRare, was an Ethereum-based platform that launched in 2018. It was a place for crypto enthusiasts to collect and trade unique, single-edition digital artworks. Since SuperRare hit the scene, numerous other marketplaces have popped up both on the Ethereum blockchain, and off of it.
The structure of an NFT marketplace has evolved over time, with many new adaptations being incorporated since SuperRare. For example, some NFT marketplaces reward royalties to artists every time their NFTs are traded. Other marketplaces have tiered memberships that afford premium members exclusive advantages. Also, in 2022, we’re watching niche marketplaces pop up such as science-focused NFT marketplaces, or athletic-based marketplaces.
Many marketplaces today also offer multi-chain support, meaning users can participate using a wide variety of cryptocurrencies. However, it’s rare that two marketplaces are the same (which is part of the NFT fun!)
Joining an NFT Marketplace
But to get started on any NFT marketplace, like Fayre’s, users will need to check a few boxes before interacting with NFT brands and artists.
Checklist:
- Digital wallet - Add crypto - Make your account - Enjoy!
The first thing all users will need to participate in an NFT marketplace is a digital wallet to hold and spend cryptocurrencies from. This wallet must be compatible with the NFT marketplace of choice, and must be able to trade crypto that is fungible to what’s available in the marketplace.
After obtaining a crypto wallet, users need to pre-fill their wallet with crypto, regardless if they plan to buy, sell, mint, or trade any NFTs. With Fayre, brands, fans, and artists can use multiple means to buy crypto, however using the $FAYRE token affords highly beneficial advantages.
Once a digital wallet is filled, it’s time to create a user account. Some NFT marketplaces require KYC or whitelisting. This is to make sure every participant is legitimate, protecting users, the network, and the marketplace.
Generally, after this step, users can begin to participate in the marketplace by buying, selling, trading, or even minting NFTs!
Why NFT Marketplaces are Important
It’s important to have an NFT marketplace when looking to trade NFTs for a few reasons. First of all, marketplaces generally have rules and behaviors users are expected to adhere to. Regulations can help communities build and distribute art and creations appropriately.
Also, several NFT marketplaces hold high reputations, and so trading NFTs on their platform can earn brownie points, turn heads, or even accelerate the trading process when there is higher trade volume.
NFT marketplaces are quickly becoming an important structure in the crypto industry. As a place for fans and brands to connect, there’s an ever-growing hunger to join in on the emerging technology that is NFTs. Although there are a few early giants in the game, the potential for more major NFT marketplaces has never been greater.