Table of ContentsToggle
Who thought Art exhibitions could also go online? The advancement in blockchain technology has indeed made things possible that no one ever thought to go digital even in their wildest dreams. Non-fungible tokens (NFT) have currently taken the entire digital art and passion for collecting rare objects by storm. The lives of digital artists have changed thanks to the surge in sales to the revolutionized crypto audience.
The celebrities have also jumped into the bandwagon of creating, buying, and selling NFT. Celebrities have found a new way to connect with their fans. However, creating digital art is not just the only way to use it. There are several use-cases of NFTs. As the world is advancing, NFTs have expanded their use-cases. However, before that, we must understand what is NFT? and the top NFT marketplaces to buy, sell and create NFT.
What is NFT
Non-fungible tokens or NFTs are digital assets that often represent real-world objects such as music, art, in-game items, and videos. They are created digitally and thus one can buy and sell NFT online through various NFT marketplaces. They are encoded with the same underlying software which is used for the creation of many cryptocurrencies.
Although NFTs have been in existence since 2014 they have gained mainstream attention in recent years. An amount of $174 million has been spent on NFTs since November 2017.
People often confuse NFTs with DeFi. Well, NFT is a concept entirely different from DeFi although both the projects utilize blockchain technology. Here is a detailed overview of NFT vs DeFi.
NFTs are generally one-of-a-kind, limited digital creations. They create digital scarcity. These are absolutely in contrast to most digital creations that are generally present in abundance. The price of any commodity increases if the supply decreases, the same fundamental is applied in the case of NFTs.
Many NFTs are old video clippings or digital creations that already exist in some form or the other on the Internet such as NBA game clips, images, etc. Why are people spending millions of dollars on something which can be easily found on the internet and downloaded? The reason is NFT gives the buyer ownership of the original item. Not just that, it contains built-in authentication which serves as the ownership proof.
Collectors value these digital rights of ownership more than the item itself.
Now, since we are clear on what is NFT let us dive deep into what are the best NFT marketplaces and how one can create, buy and sell their own NFTs.
Additional Read: How to Create an NFT and Sell it?
How to buy NFTs
If any crypto geek is into NFT collection there are certain key things that he/she shall need:
The first thing is to create a digital wallet that lets you store NFTs as well as cryptocurrencies. Looking for some dapps wallet? Read more about the latest Dapp wallets.
The collector first needs to purchase some cryptocurrencies such as ether, ENJ, etc depending on the type of cryptocurrency accepted by the NFT provider. These cryptocurrencies can be bought at exchanges like CoinDCX. You can then move the cryptocurrency from exchange to the wallet of your choice. This is then used to buy NFT at an NFT marketplace.
Additional Read: How to assess the value and worth of NFTs?
Top 5 NFT tokens by Market capitalization
Theta is a decentralized video delivery network. It is an open-source protocol that allows decentralized apps to be created on the platform to enable movies, education, esports, music, peer-to-peer streaming, etc. The video streaming network of this protocol is powered by a dispersed network of users who donate their computer resources as well as spare bandwidth in exchange for Theta fuel.
Chiliz is the pioneer in building a decentralized fan interaction platform. It is the world’s first blockchain-based reward network and fan interaction platform. It is a premier digital currency for entertainment as well as sports. Branded fan tokens can be bought and sold on this platform along with voting and influencing club-related polls and surveys. This startup aimed to bridge the gap between passive and active fans by giving the sports fans a fan token. The fan tokens can be bought by the fans using CHZ, the on-platform money. This native token of this platform also gives governance powers to the users within the Socios app.
Axie Infinity is a blockchain-based battling as well as a trading game that is partially owned as well as operated by the players. Axie Infinity allows these players to breed, raise, collect, battle, and trade token-based creatures called axies. These axies are non-fungible tokens (NFTs) each with different strengths as well as attributes. These axies can even be bred together to produce unique and new offsprings which are then sold in the Axie marketplace.
There is a governance token for the Axie infinity ecosystem called AXS. These give key voting rights to the holders who even get to dictate how the funds in the Axie community treasury should be spent.
Additional Read: AXS Technical Analysis
Decentraland is a virtual reality platform backed by the ERC20 standardized ethereum blockchain. This platform lets the users create, experience, and monetize content as well as apps. Since its inception in 2017, users have built numerous ethereum backed Dapps, games, and NFTs on this interactive platform.
The plots acquired on the virtual land are also used to develop, navigate and monetize. This is a very unique platform and has given a great boost to the NFT market.
Additional Read: Is Decentraland a Good Investment? Deep dive into MANA
Enjin Coin is a project under the flagship of Enjin providing a blockchain-based gaming environment. It is a social gaming project where users can build clans and websites and communicate and well run virtual stores. It also has its in-game items that act as NFTs and have their value.
These in-games assets are tokenized by the ethereum blockchain. The digital assets are backed by an ERC20 token ENJ. These assets are then purchased, sold as well as exchanged with real-world money.
Source: CoinMarketCap. Prices latest by 6, March 2022
Top 3 NFT marketplaces
Once the users have their wallets set up as well as funded there is no shortage of NFT sites where you can buy and sell NFT as well as create some of your own. The best NFT marketplaces are:
- OpenSea.io– OpenSea is a peer-to-peer platform that is famous for listing rare digital items as well as collectibles. To get started with this platform all the user needs to do is create an account and browse through the NFT collections. To discover new artists one can even sort pieces by sales volume.
- Rarible– This platform is quite similar to OpenSea and is a democratic open NFT marketplace that allows the creators and artists to create NFT art as well as sell them. The native tokens RARI issues by the platform give holders the right to weigh features such as community rules and fees.
- Foundation– Foundation is a blockchain-based platform where artists receive ‘úpvotes’ from their fellow creators for posting their NFTs. To bear the exclusivity of the community as well as entry costs the artists must purchase the gas required to mint their NFTs. This boasts higher-caliber artwork. It is a great platform for collectors as well as artists who seek to capitalize their NFTs.
We also have a detailed blog on the top 10 NFT marketplaces that everyone should know about.
Summing it Up!
Non-fungible tokens are unique items that cannot be replaced or broken down. They are one-of-a-kind digital assets. The NFT market has surged more than ever. While many investors consider it to be a bubble some creators and artists have found a way to monetize their art through them.
The NFT market is a billion-dollar industry with different NFT trends emerging each day. Some creators want to know how to create NFT while there are collectors who are in constant search of the best NFT marketplaces. It does not matter what the NFT is the original ownership rights over the internet are what makes them so special. The scarcity of the item and the bragging right that the owner gets with it has great value.
Confused about the blockchain jargon terms or want to understand what crypto is? Start your crypto education today with CoinDCX Blog. CoinDCX, India’s simplest and easiest bitcoin and crypto app that lets users buy cryptocurrency without any hassle. Buying crypto and investments have never been this easy!
Disclaimer: It is advisable to dive into an investment after conducting thorough research. The article is not aimed at any financial advice.
What makes crypto such a different game?