The rising popularity of Ethereum, regardless of how its price trajectory has evolved over time, led to an increased interest in non-fungible tokens, which can be seen when looking at how many investors have poured money into them along the way. The NFT marketplace will rise to US$1,601.00 million by 2023, growing at a compound annual growth rate of 18.55% and possibly reaching US$3,162.00 million by the end of 2027.
After taking the internet by storm in 2020 and becoming among the best applications for emergent blockchain technology, non-fungible tokens remain a major trend that individuals, from collectors to speculators, are still gushing over. Exactly their growing prominence catalyzed a lot of questions, from what are the motivators behind individuals’ desire to build, own, purchase, and sell these assets, to what makes a marketplace trustworthy enough to be the chosen one.
Therefore, if you want to profit from the NFT wave while it is still at its peak, a major step in your venture is finding the ideal marketplace for your needs. Making informed decisions about which marketplace to use begins with learning about the important factors. Let’s take a look at them!
What exactly is an NFT marketplace?
Those who have recently ventured into the NFT sphere may need a solid understanding of the NFT marketplace and its implications, as various internet definitions may produce more confusion than clarity. As such, a successful dip into the NFT’s waters starts with grasping the NFT marketplace’s use cases and peculiarities.
An NFT Marketplace is where non-fungible tokens are sold, traded, and purchased. It works as a public blockchain platform, and even though it is still in the developmental stages, this platform is gaining traction and motivating companies and developers to build marketplaces. Some spaces are more user-friendly and intuitive, while others are more complex and demanding to navigate. The platform’s convenience weighs heavily in the decision-making process.
No service or product can make it into customers’ charts or hearts unless it guarantees a critical element, namely security. As with any platform, different marketplaces employ different security features and tools, whether it’s the moderation, encryption, or verification process you’re looking at. It would be best to choose a marketplace with a great reputation in this regard, as you’re trusting them with your NFT assets and your financial and personal information. Go with a platform that makes security its top priority, has a transparent policy, and employs strong encryption technologies.
A reputable marketplace has plans and keeps users constantly updated on their next moves, plans to add new collections and features, and so on. To put it simply, the right marketplace provider will keep you updated on their plans and additions.
As the NFT ecosystem matures, selecting a marketplace that can adapt and grow with it is essential. Look for providers with a well-defined roadmap and a dedication to constant development, innovation, and integration with emerging technological advances. By prioritizing these aspects, they ensure they stay relevant for their customer base and survive the fierce competition, keeping pace with the ever-growing NFT trends.
Additionally, dynamic features like multi-source NFTs, customizable NFTs, and cross-chain compatibility can help grow your assets’ valuation.
User base and community
Probably one of the first aspects you look into before downloading and registering on a platform or any online service is the number of users and engagement of the platform, as they’re telltale signs of how reliable it is. A thriving and active community indicates a healthy place that prioritizes visibility and potential sales for your non-fungible tokens. Some marketplaces employ all sorts of social features, chat rooms, feedback mechanisms, and forums, permitting collectors and creators to share impressions, collaborate, and connect. A high level of engagement is a valuable sign that you’re in the right place.
Extra tools and features
There’s no such thing as too many features and tools when it comes to your security. However, they must be good enough to do their job properly. As such, if a marketplace has more features that protect your information and financials, the more chances it stands to be reliable. Indeed, there’s more that you should consider, such as how these implementations improve the user experience and if you find the website easy to surf and use. The most important features should be easily findable so that you don’t waste time scrolling relentlessly without finding what you’re looking for.
Selection of NFTs
The quality and selection of assets provided have a say in how successful your venture is. A user-focused marketplace will put at participants’ disposal a wide selection of tokens to choose from, growing the appeal of their platform and the customer base. The right service provider will check asset genuineness through a process that ensures the authenticity and quality of their offerings.
Assert the risks before choosing a marketplace
Investments can be more or less volatile, depending on your chosen industry. Cryptocurrencies are good examples: they’re highly volatile assets whose prices can fall or rise in a split second without giving any notice.
When we talk about non-fungible tokens, we can quickly see that their case is not that far from their counterparts, cryptocurrencies. Their popularity and demand establish their value, representing two elements subjected to price fluctuations depending on investor sentiment. As such, you want to make informed and unbiased decisions at every step of your NFT journey.
Besides the intrinsic risk you expose your revenue to when involved in volatile investments, you also need to pay attention to different vulnerabilities that marketplaces are prone to. NFT marketplaces aren’t exempt from the possibility of experiencing security breaches that may put your information and account at risk. Attackers may exploit security gaps and flaws in the platform’s infrastructure and jeopardize user login details.
Conducting trades with non-fungible tokens on NFT marketplaces is not all about raking in big bucks. The platform you’re using makes a huge difference in your journey, so make sure you contemplate the considerations presented above.