How to Trade NFTs?

BeginnerDec 24, 2022
How to trade non-fungible tokens (NFTs) in a safe and convenient way
How to Trade NFTs?

Introduction

In the digital era, a simple copy and paste can produce homogeneous files. Though it’s convenient for people in their work and life, it can also result in rampant piracy, which seriously damages the interests of creators. To solve this problem, NFTs came into being and are becoming rather popular in games, movies, music, art collectibles, etc. In this article, we will provide you with a deeper understanding of what NFTs are and how to trade them.


Image source:beincrypto.com

What is an NFT?

An NFT refers to a non-fungible token, an encrypted asset built on the blockchain. As the name suggests, it is a non-fungible, indivisible token. An NFT is special for its unique and exclusive identity, meaning that no two NFTs can be interchanged with each other.

To a certain extent, NFTs are like pointers in programming, which proves the ownership of the asset and that it can be stored on the chain, such as an avatar on the IPFS, or off the chain, such as a video in a centralized server, or even a house in the real world. NFTs “digitize” these tangible assets, making it more convenient and secure to trade. Because it is built on the blockchain which eliminates intermediaries, it simplifies the way transactions are done and therefore reduces the possibility of fraud.

What NFT buyers own is not the artwork itself, but part of the “ownership” of this tokenized work, a voucher for the rights to enjoy, listen, download, and share. On some platforms, the ownership of the work still belongs to the creator, and the number of NFTs to be released is determined by the issuer. However, on some music NFT marketplaces, such as Royal, NFTs stand for copyright.

Moreover, network fees will incur in each transaction you make, which varies depending on different blockchains. For example, Ethereum, currently boasting the largest ecosystem of NFT Dapps, has the most expensive fees.

To trade NFTs on a platform, buyers must pay transaction fees, miner fees, etc. NFT creators can set the royalties of NFT works to any value when listing them for trading.

To start NFT trading on a platform, you’ll need to create a cryptocurrency wallet that is connected to the NFT blockchain you want to use. Most NFTs currently use the Ethereum blockchain, where ETH must be used to make the payment.

What Are Popular NFT Platforms?

There are many NFT trading platforms, each providing different features, such as comprehensive, art, game-based, NBA-related, etc. Different platforms support different cryptocurrency wallets. Currently, there is no one wallet that can be used on all platforms.

OpenSea is the first and largest NFT trading platform in the world. Founded in 2017, OpenSea has now developed into an industry leader, with a market share of about 90%. In addition, other platforms, such as Looksrare, Nifty Gateway, and SuperRare, that provide NFT asset trading in specific fields, are also popular among users.


Image source: NFT Analysis

In addition to NFT platforms on the Ethereum blockchain, some NFT platforms on the Solana blockchain are also popular. Due to its scalability and lower transaction fees, Solana has grown rapidly in recent years and became the biggest competitor of Ethereum. Popular NFT platforms on Solana include Magic Eden, Solanart, SolSea, and Alpha.

Magic Eden has its own DAO, Launchpad, and game-specific sections, and also provides API services for other platforms, holding over 90% of the secondary market share. It is also the most active NFT platform on the Solana chain.

How to trade NFTs on Gate.io

Gate NFT has attracted world-renowned artists and creators. It is currently one of the most popular NFT trading platforms, where users can create, buy and trade NFTs. With its clear and convenient web design, it is a comprehensive NFT trading platform offering various types of NFTs, including mystery boxes and physical item-backed transactions.

Before trading NFTs on Gate NFT, investors need to complete the following tasks first:

  1. Register a Gate.io account.

  2. Register a crypto wallet. You need a crypto wallet to store and trade NFTs through the unique address.

  3. Link your wallet to Gate.io to start trading.

Gate NFT supports 10 cryptocurrencies as payment tokens, such as BTC, USDT, etc. Handling fees on Gate NFT are preferentially paid in USDT, so we recommend you to purchase a certain amount of USDT first, and then start browsing NFTs.

Step 1: After entering the Gate NFT homepage, click “Marketplace” and then select the NFT category you want to browse.

Step 2: By clicking on any NFT work, you will see the following: sale countdown, sale price, purchase, offer, trade record and others.

Step 3: If you have considerations regarding the price, you can click “Offer”. But if you really like this NFT artwork, click “Purchase” to buy it immediately. Normally, the transaction will be completed in 1 to 3 minutes. The time it takes is determined by how high the handling fee is.

Step 4: Investors can also buy their favorite NFT works in the “Auctioning” category.

Step 5: Here you can “bid” for NFT works. If a buyer’s bid is the highest within the auction period and is no lower than the reserve price set by the seller, the deal will be made.

Conclusion

The idea of NFT emerged as early as 2018, but only until 2021 did NFTs become popular. Many artists, influencers, and public figures have entered the market one after another. Following DeFi, NFT has injected new energy and innovations into the market.

Due to the lack of a clear regulatory framework in the NFT market, most NFT marketplaces are somewhat chaotic and there are lots of legal issues. Investors need to distinguish good NFT products from bad ones. Choosing a reliable platform for trading NFTs is also of great importance. For more real-time information, follow Gate Learn.

Author: Rena
Translator: Yuanyuan, Binyu
Reviewer(s): Hugo, Echo, Ashley
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