Guide to Using an NFT Marketplace in Australia – Forbes Advisor Australia
Just as there are many different types of cryptocurrencies that can be used to purchase NFTs, there are also many different NFT marketplaces that facilitate these sales. They’re also not location dependent, meaning Australians aren’t locked into using an Australian-based platform.
“NFT marketplaces are global in nature,” says Fogarty. “That’s one of the attractions of Web3 — the blockchain knows no boundaries.”
Fogarty says that when choosing an NFT marketplace – as with any marketplace, regardless of product – it comes down to what you’re buying or selling, and the audience that is in that marketplace.
Depending on which NFT marketplace you use will determine the types of NFTs available, the transaction fees, payment options and other rules or membership regulations. When comparing NFT marketplaces, consider the following:
Audience and visitors
Fogarty says it’s important to consider both the size of the visitor base and the type of audience attracted to the NFT marketplace you might be considering. After all, more users mean more people to buy from and sell to – but are they interested in buying the kind of products you offer?
Collection size
When comparing NFT marketplaces, it’s important to consider the size of the pools – that is, how much “stock” a marketplace has.
“Stock brings the visitors because it gives them something to buy. But will your product be lost in the market and rarely seen?” Fogarty asks those who want to sell their own minted NFTs.
For those looking to buy, a wider collection size may be more attractive due to increased selection.
Payment methods
As CoinSpot Head of Business Development and Partnerships Tim Wilks explains, some marketplaces are quite limited in terms of buying options.
“Make sure you can buy NFTs with the cryptocurrencies you have or have the ability to buy,” advises Wilks. Some marketplaces may only be compatible with one or two cryptocurrencies, while others offer hundreds.
To bring buying and trading into the mainstream, some NFT marketplaces now offer users the option to pay with a debit or credit card at checkout.
When you do, the payment server will convert the fiat currency into the NFT marketplace’s default cryptocurrency to complete the sale. A credit card processing fee will apply and conversion fees may also apply depending on your banking institution and marketplace.
If you use ETH, you may also incur gas fees – which is a fee paid to transact on the Ethereum blockchain. Gas prices rise and fall depending on how busy the network is.
Whichever payment method you choose, you will still be required to have a crypto wallet, as this is where your NFT purchases will be stored. If you already have a crypto wallet, it is worth finding an NFT marketplace that is compatible with your existing wallet.
NFT Marketplace Fees
In addition to the potential gas fees explained earlier, many NFT marketplaces also incur other costs to the user – such as service and transaction fees, subscription fees, or royalties paid to the original artist.
These costs vary depending on the NFT market, with transaction fees typically around 2.5%.
Ease of use
Wilks says it’s important to note that there are wide variations in ease of use and complexity in the NFT market, and individuals – regardless of where they are in their NFT trading journey – should consider finding a platform that can help with the most streamlined trading experience.
But for people venturing into the world of cryptocurrencies and NFTs for the first time, it can be an overwhelming experience, he says.
“This is only made more complicated by having to go through the registration process and learn to use multiple platforms – one for your wallet, one for trading, one for browsing NFTs and so on.
Therefore, Wilks suggests that beginners should look for platforms that offer all these NFT marketplace services under one roof.
“For beginners, a unified platform means greater convenience, less room for user error and the ability to access customer support if needed.
