NFT stands for non-fungible token. NFTs are unique digital tokens that represent ownership of a digital asset, which in some cases are linked to a physical item such as a watch, or a piece of art.
But where do you buy these NFTs?
There’s an expanding range of NFT marketplaces selling digital art and rare collectables. Here’s a look at some of the leading virtual marketplaces.
The easiest way to acquire an NFT is through a marketplace. There’s a wide range of NFT marketplaces selling digital art and collectable items.
Note that all marketplaces charge a percentage fee on sales. For example, the service fee on the best-known marketplace, OpenSea, is around 2.5%. So, you were to sell an NFT for 100 SOL, OpenSea would take 2.5% of that sale.
The fee is charged to the receiver of the funds. So, if you sold your NFT for 100 SOL, 2.5% of that sale would go straight to OpenSea, and you’d receive the remaining 97.5 SOL.
Also, thanks to how NFTs are programmed, artists can place commission on the resale of their artworks. When an artist is up-and-coming, their artworks may sell for a relatively cheap price. Later on, as the artist grows, the price of their art may appreciate in price.
Typically, in the traditional art world, once artwork is bought from an artist, the artist doesn’t receive any commissions from after-sales.
This is where NFTs come in.
When publishing an NFT, the artist can decide on a commission. The artist may decide to place a 5% commission on their 100 SOL artwork. So when sold, 5 SOL would go directly to the artist’s wallet, (the 2.5% fee would go to the marketplace), and the remaining amount goes to the seller.
Solana vs Ethereum marketplaces
Note that Solana marketplaces are much quicker than Ethereum marketplaces. On an Ethereum marketplace, it may take around 10-15 minutes for your transaction to be finalised.
Also, when you buy or sell an NFT on an Ethereum marketplace, you’ll need to pay a gas fee. On Solana marketplaces, transactions are almost instant and gas fees near negligible. Hence why we typically recommend that someone starts with Solana NFT marketplaces, at least until they’re familiar with marketplaces.
Leading NFT marketplaces
Let’s look at some of the leading NFT marketplaces.
The one-stop shop for all Ethereum NFTs
OpenSea is the biggest NFT marketplace right now. It’s hosted on the Ethereum blockchain and is decentralised, which means that users retain ownership of their assets, even when listing them. And, as everything is hosted on the blockchain, anyone can list their own collections.
While it is positive that every artist has access to the marketplace, it does mean that scammers can take advantage. So, to make sure artists and users are protected, when an artist’s collection surpasses 100ETH in volume, OpenSea will verify that collection to ensure every piece is authentic.
However, before the verification process is completed, scammers may copy artwork from a project that has seen a lot of hype but is not yet verified and try to list them and make them look authentic.
So, always make sure to exercise extreme caution when buying from OpenSea, or any NFT marketplace, from an unverified collection. Try to find the OpenSea link from the NFT project directly, via the project’s social media profiles- they should be publicly available. And before buying, make sure to check multiple times.
Also, make sure to remember the gas fees when transacting on OpenSea.
The leading NFT marketplace on Solana.
Magic Eden is the leading NFT marketplace on Solana. It focuses on listing profile picture projects like Solana Monkey Business, and the Degenerate Ape Academy.
The marketplace has seen rapid growth and adoption leveraging Solana’s near-instant confirmation time and sub-penny gas fees to offer a smooth and frictionless experience.
Note that Magic Eden charges a 2% fee on all transactions. However, there is no listing fee.
Royalty amounts are set by the artist and paid immediately after a transaction happens. You can view the royalty % set by the artist on the item detail page.
Solana Monkey Business
Degenerate Ape Academy
Fine art and photography curated marketplace on Solana
Exchange.Art is another Solana marketplace that focuses on unique pieces from artists and photography collections. It offers a curated approach, selecting the best artists in the Solana ecosystem to promote, via its curated panels. It’s definitely worth a visit to see some great art.
There is no listing fee on Exchange.Art but the platform does charge a 2.5% transaction fee.
Artworks include those created by John Le, a 1:1 NFT artist.
Disclaimer: NOT FINANCIAL NOR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.