How to buy and sell NFTs on Nifty Gateway

Non-fungible token (NFT) marketplaces traded approximately $82 million in 2020 and a staggering $17.6 billion in 2021, indicating a growing demand and high user interest in NFTs. This surge in digital asset trading ranged from whimsical cartoon JPEGs to National Basketball Association trading cards, artwork, music and more. One such marketplace for collecting and trading NFTs is Nifty Gateway.

Nifty Gateway was founded in 2018 by Duncan Cock Foster and Griffin Cock Foster. In 2019, it was acquired by Tyler and Cameron Winklevoss’ cryptocurrency exchange, Gemini. Positioning itself as an advanced NFT marketplace on the Ethereum blockchain, Nifty Gateway partners with top digital artists, musicians, athletes and brands to create exclusive limited edition launches. The platform has sold NFTs by Beeple, Pak, Refik Anadol, rapper Lil Yachty and other widely followed NFT artists.

During the NFT market peak between May 2020 and April 2021, the Nifty Gateway launched 6,623 NFTs representing the artworks of 418 artists with reported total sales of $403.8 million across the primary and secondary marketplaces.

Related: NFT Investing: A Beginner’s Guide to the Risks and Returns of NFTs

What makes Nifty Gateway unique?

There are three things that make Nifty Gateway’s Ethereum-based NFT marketplace stand out:

Curated and verified art

The artists who launch on the Nifty Gateway NFT marketplace are usually well recognized and acclaimed in the art community. Many of them have celebrity status in the crypto art community, making their work verifiable, legitimate and expensive.

Nifty Gateway is selective about who is allowed to display their artwork on the platform. Before artists are allowed to mint and issue NFTs, artists must complete an application and interview process. In this aspect, Nifty Gateway is akin to modern art galleries that collect, manage and present verified collections.

Exclusive drops

NFT drops often refer to a creator releasing a new limited edition NFT or a completely non-functional token collection for sale. Collectors can buy the dropped NFTs before they sell out. While many platforms do non-fungible token airdrops, Nifty Gateway is particularly known for its exclusive art drops, which are limited edition and in limited quantities, and they often sell out quickly due to high demand.

Nifty Gateway’s partnership with top artists, musicians and creators aims to ensure that the drops are made exclusively on the platform. This promotes Nifty Gateway’s brand exclusivity.

In February 2021, Beeple launched its “Crossroads” NFT and “Spring/Summer Collection 2021” via an exclusive drop on the Nifty Gateway. “Crossroads” was designed as a response to the 2020 US presidential election and sold for a whopping $6.6 million on Nifty Gateway.

Fiat availability on ramp

Nifty Gateway supports the US dollar fiat currency for US bank account holders and allows NFT purchases using debit and credit cards. This feature is rare for NFT marketplaces as others such as OpenSea, SuperRare and Blur are available via a Web3 wallet.

Nifty Gateway is a subsidiary of the Winklevoss twins’ crypto exchange company, Gemini LLC. This allows it to be powered by Gemini’s secure, institutional infrastructure to explore various crypto and fiat payment methods.

Related: Cryptocurrency on- and off-ramps, explained

How to get started with Nifty Gateway

The following steps explain how to set up a Nifty Gateway account:

Step 1: Account registration

Sign up at Niftygateway.com/signup with a valid email and password to get started. Alternatively, the option to connect via a Web3 wallet is also available.

Step 2: Fill in profile details

Once the account is created, it’s a good idea to enter other important information to improve the user experience. Uploading a profile picture and changing the profile icon to one’s liking is a good place to start.

Step 3: Add a payment method

Three payment options are available to choose from: connect your account to a Gemini Wallet, connect to a Web3 digital wallet such as MetaMask to verify transactions or add a credit or debit card.

How to buy NFTs on Nifty Gateway

The following steps will guide anyone interested in buying NFTs on Nifty Gateway:

• To buy an NFT, visit the Nifty Gateway marketplace.
• Browse available NFTs by artist, collection or category. The search function is also available to find specific NFTs or collections.
• Select an NFT and purchase it using your preferred payment method. The purchased NFT can be sent to your MetaMask wallet or Nifty Gateway account.

How to sell NFTs on Nifty Gateway

The steps on how to sell NFTs on Nifty Gateway are listed below:

• To list an NFT for sale, go to the “My Collection” tab on the Nifty Gateway and click on the “List an Item” button.
• Enter basic information about the NFT, such as name, description and price.
• Users have two payment methods to sell NFTs: They can put them up for sale directly from the MetaMask wallet for Ether (ETH), or they can sell them for US dollars by registering to be an authorized seller using Stripe. When someone buys the listed NFT, the funds are transferred to the associated wallet.

How to issue NFTs on Nifty Gateway

Gifting NFTs is one of the features offered by Nifty Gateway, whose account holders can send NFTs to other users on the platform as gifts to anyone via a valid email address.

How to send an NFT to a user on the platform:

1. Open the “My Collection” tab and select the NFT you wish to send.

2. A new page will appear. Click on “Send Nifty.” Enter the recipient’s username in the search box and select their profile (you can even add a personal note if needed).

3. Click “Send Nifty” to confirm the transfer. The transfer is instant with no gas fees for transfers within the platform.

Apart from this, Nifty Gateway also allows giving NFTs to anyone who is not on the platform via a valid email address, as explained below:

• Find the NFT you want to send as a gift and make sure it is available for gifting. Some NFTs may not be gift ideas, so check before proceeding.
• When you select the NFT to be given, click the “Gift” button. This will open a new page where you have to enter the recipient’s email address (and add a personal message if you want).
• You then choose whether you want to give the NFT immediately or on a specific date. After selecting the gift option, review the details and click “Confirm” to complete the transaction. Provide some funds to pay for transaction costs. The recipient will receive an email notification with instructions on how to claim the gifted NFT.

Nifty Gateway Fee Structure and Pricing

Nifty Gateway has a standard fee system consisting of two different models: V1 and V2, as defined by Nifty’s WalletHub documents.

V1 method

This model is for entries held in Nifty Gateway’s depository model. With this approach, Nifty Gateway takes a charge of 5% of the selling price. Credit cards, Ethereum wallets or Gemini accounts can all be used to make the payment. Also, there are no gas fees associated with these transactions.

V2 method

This applies to any vendor that lists an NFT for sale using an Ethereum cryptocurrency wallet such as MetaMask. ETH must be used to pay for these transactions and Nifty Gateway charges a fee of 2.5% of the total sale price. Users must pay gas fees when completing these transactions.

Is Nifty Gateway safe?

As with all NFT platforms, it is important to consider the safety and security of using them and ensure that your digital assets remain protected. In general, Nifty Gateway has taken steps to ensure the security of its users. The platform is backed by renowned investors and has been used by many high-profile artists and celebrities.

Nifty Gateway also uses industry-standard security measures, such as encryption and two-factor authentication, to protect users’ accounts and transactions. Also, Nifty Gateway benefits from parent company Gemini’s focus on maintaining best practices for security in the cryptocurrency industry.

Gemini completes routine banking compliances, adheres to financial regulations and uses hardware security and custodian services to maintain the security of the Nifty Gateway wallet. Its custody system model ensures that the marketplace has ownership of all NFTs listed on the platform.

Despite this, Nifty Gateway is not immune to hacks. In March 2021, a few Nifty users complained of an “account takeover”, where their NFTs had disappeared from their Nifty Gateway accounts. Nifty Gateway claimed that the site had not been infiltrated and that the affected accounts lacked two-factor authentication, compromising their own security. According to reports and certain consumers, Nifty Gateway was successful in recovering the stolen goods.

Also, as with any investment or financial transaction, there is always a certain level of risk involved. NFTs can be volatile and their value can fluctuate significantly over time. It is important to do your own research and understand the risks before investing in an NFT.