NFTs currently dominate the world of crypto. As a result, you will have noticed that trading in NFTs exploded in 2021 and that this trend will continue into early 2022. Forbes Magazine shared that as much as $23 billion was traded in NFTs in 2021But
how do you know which NFT marketplace is best for you? There is a wide range, but they all have their advantages and disadvantages. In this blog, let’s take a look at Rarible’s NFT platform.
What is an NFT marketplace?
An NFT marketplace is a platform where you can buy and sell various NFTs. The NFT market experienced explosive growth in 2020 and this trend will continue into the first month of 2021. Never before have so many NFTs been traded and never before have so many NFT collections been added in a relatively short time. In addition to supply, demand is also booming for one reason: the return on an NFT can be particularly high.
There are now several NFT marketplaces, each with the same goal; namely being the leading platform where anyone can trade their favorite NFTs. We are now seeing more and more NFT marketplaces emerging, but they are all different or have a different focus.
The explosive growth of NFTs is nothing new. But we would like to substantiate this on the basis of data and statistics. Thanks to nonfungible.com, we can access all of this data. We can filter for different types of NFTs, such as
Here we gain more insight into which NFTs were traded the most and which type of NFT offers the highest return. We see that the top sales of the past year were the CryptoPunks, with a selling price of a whopping $10 million.
To gain more insight into the current market, we can look at the trading volume. Here we see that the most volume has taken place in gaming NFTs from Axie Infinity, followed by the Bored Ape Yacht Club. These statistics are very important if you want to be profitable with NFTs.
What is Rarible?
Rarible is one of the largest NFT marketplaces launched in early 2020 by two Russian developers named Alexei Falin and Alex Salnikov. In addition to a large platform such as OpenSea, Rarible is also a widely used NFT marketplace. At the time of writing, Rarible has had a whopping 1.6 million users who have traded more than $270 million worth of value on the platform.
Rarible aims to become a Decentralized Autonomous Organization (DAO) managed and controlled by the community and the users.’s native token RARI, users can participate in the decision-making process about the future of the platform. Users earn RARI Tokens by buying or selling NFTs on Rarible.
Each blockchain uses its own network. When we look at NFTs, we see that many NFTs are launched on the Ethereum (NFT) network. This token standard for NFTs will then be ERC721 tokens. But what we often don’t realize is that there are now a large number of networks, each of which is different. Every network has its pros and cons. The different NFT marketplaces have different network offerings. Rarible supports the following blockchains:
If we look at the Ethereum, we see that it is a very accessible one because it is also the largest network. The other side of the coin is that this network is often so overloaded that transactions are accompanied by high gas fees. This is no different in the trading of NFTs. As a result, many people still stay away from NFTs and you exclude people who are less wealthy. After all, 100 dollars for a transaction is unfortunately no exception.
That is why more and more blockchains are being added that want to tackle the problem of these gas fees in order to make transactions faster but also cheaper. This also applies to NFT trading.
Flow is a blockchain-focused on the use of developers to promote the growth of decentralized applications (dApps) and games. Some say that this blockchain was built specifically for the creation of NFTs. The makers of Flow are therefore no stranger, namely the team of Dapper Labs. She already had great successes in the early years of NFTs thanks to the blockchain game CryptoKitties.
Its specific architecture makes it an ideal network for scaling up usage without impacting network congestion and transaction costs.
The Tezos blockchain is a direct indication of the digital token, which is also called ‘Tez’. The smart-contract protocol is built in such a way that it can be scaled endlessly and where optimization is central. This also makes the Tezos blockchain suitable as a network for trading NFTs where smart contracts can be easily created and optimized.
Types of NFTs on Rarible
An NFT platform is a digital marketplace where you can search for NFTs that are of interest to you. Here you can easily filter on different categories so that you can start your search effectively. Depending on the marketplace, there are more or fewer categories. The types of NFTs on Rarible are:
Digital art is arguably the most popular category in the NFT world. This is also a very big concept and ranges from pixelated pictures to highly artistic works of art. Thanks to the different filters, you can look for the latest art, but you can also filter for a certain price. Have you found an interesting NFT? Then you can navigate further here where you will see more details about the artwork. Think of the number of bids, the maker, but also how many royalties the maker asks for this.
In the category of photography, you will find both static photos and animated photos. The advantage of blockchain technology and NFT development is that you can give free rein to your creativity and create whatever you want. Due to its decentralized nature, nobody can influence your decisions.
No one can deny how important NFTs are in the gaming industry. In addition to the aesthetic nature, they also often have a certain in-game application. For example, an NFT can make you a better player, achieve goals faster and potentially earn more money thanks to play-to-earn.
We see that all game-related NFTs on Rarible exist exclusively on the Ethereum network. This also means that you cannot use or import NFTs from other blockchains in games that exist in the Ethereum network.
An NFT is often part of an entire collection. This is a collection of similar NFTs by the same maker. A popular collection on Rarible is the Mutant Ape Yacht Club, inspired by the popular Bored Ape Yacht Club. At each NFT you can check whether it is part of a collection, if so, you can also view this collection.
Which wallets are on Rarible?
To use an NFT marketplace, you use a software wallet. We also see that there are more and more NFT marketplaces that have a built-in wallet. You only create your account, and they have a custodial wallet for you. Rarible supports no less than 5 different software wallets:
How to buy an NFT on Rarible
Are you connected to your software wallet? Then you are ready to buy an NFT on Rarible! With each overview of an NFT offered, you will receive a lot of information. This way you immediately see the creator, but you also see whether the NFT is part of a collection. For example, you could trade several NFTs of the same collection. But more important here is the price.
Depending on the creator’s choice, you can also place a bid. You do not agree with the full price, but you want to make an offer to negotiate. In the example above, bids are possible in the following currencies:
Do you not want to bid, but do you want to proceed with the purchase immediately? Then you can immediately buy this NFT for the full purchase amount.
How do I create an NFT on Rarible?
You can also create your own NFT on Rarible, by simply navigating to ‘create’ at the top right. As we mentioned earlier, an NFT can only exist on one blockchain. When creating your NFT, you will also have to choose which blockchain you want to mint your NFT on.
Here you get an overview of all options. You choose whether you want to sell your NFT at a fixed price, based on an auction or whether you want to use different bids. That way you can determine whether or not you agree with each bid. Not unimportant is of course the selling price.
Finally, you can also choose whether you want royalties and if so, how much. These royalties mean that with every sale, you as the creator get a certain share of the sale price. Do you have an NFT that explodes in value with every sale? Then you have a very nice passive income. Let’s give an example below. Let’s say you sell an NFT worth $1,000 with 10% royalties:
|Selling Price||Royalties (10%)|
As a creator, on 3 individual sales, you earn $1,800 dollars. This sounds too good to be true for many, but it is possible. If your NFT increases in value and is traded regularly, this is possible.
Before trading NFTs, it is important to understand how the different networks work. Each NFT is minted in a particular network. As of this writing, this NFT can only exist in that network unless it is mined again on another blockchain. The latter is relatively rare in practice.
This is important to know because the choice of your network comes with a number of advantages and disadvantages. Ethereum’s network is still the most dominant, meaning most NFTs are tradeable with Ethereum. This means more expensive gas fees, but also a wider range.
If you prefer to look for alternative blockchains as mentioned above, or, for example, NFTb which is built on the Binance Smart Chain (BSC), then you have fewer transaction costs, but the offer is also smaller. Here is also, to date, lower trading volume. It is therefore a decision that you as an investor have to make for yourself.
Crypto is and will remain a highly volatile market that carries its own risks. Nevertheless, we see a lot of people making absurd profits by trading NFTs. We see more and more messages from young people, who have become millionaires overnight by selling selfies as NFT. It is possible, but there are also risks involved. Not every NFT will increase in value, so you can also incur large losses.
But if you still want to take your chance, it is important to know which NFT platform you use. After all, you want to reach as many people as possible to sell your NFT with a certain profit margin. Rarible is an NFT platform that supports different blockchains and also distinguishes between different types of NFTs. You can buy both in-game NFTs and collectibles.
But the use of Rarible and the associated blockchains also comes with a more limited supply than with competitors such as OpenSea. It is important to make a choice for yourself about which platform and which network you use and whether you are willing to pay the higher gas fees.