NFT marketplaces in crypto: how they work today
NFT marketplaces let you buy, sell, or mint NFTs with a crypto wallet, but blockchain trades are usually final and buyer recourse is usually limited.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- Most trades need wallet approval and a network fee.
- Fake or stolen NFTs are hard to reverse.
- Buying a token usually leaves copyright with the creator.
NFT markets in cryptocurrency today are platforms where people buy, sell, and mint non-fungible tokens with a crypto wallet.
What is an NFT marketplace?
An NFT marketplace is the venue for those trades. It shows listings and seller details, then connects to your wallet when you choose an item. An NFT is a unique digital identifier on a blockchain that certifies ownership and authenticity.
How does an NFT trade work?
A creator mints an NFT by writing a new token to the blockchain, then lists it for sale. A buyer connects a wallet, confirms the item and fee, and approves the transaction.
- Connect a wallet for the right blockchain.
- Confirm the item, seller, and rights.
- Check the network fee and total cost.
- Approve the transaction in your wallet.
Which marketplaces lead today?
OpenSea, among the first NFT marketplaces, began operating in 2017. It started on Ethereum, where the ERC-721 standard was published in 2018. It has since added other networks.
What can go wrong for buyers?
Blockchain transfers are usually final, so a fake or stolen NFT can stay with the buyer after a report. A public ledger does not force the holder to return it, and marketplaces usually cannot reverse a trade. Buyer recourse is limited.
How is it different from exchanges?
An NFT marketplace is not a crypto exchange. A crypto exchange trades coins that are interchangeable. An NFT marketplace trades unique tokens, so each listing is different.
A traditional art auction uses contracts and physical custody. An NFT marketplace settles on a blockchain instead.
Frequently asked questions
Usually no. You need a wallet with crypto to pay the network fee.
Yes. The IRS treats crypto as property, so selling an NFT can create a capital gain or loss.
The NFT stays on the blockchain in your wallet. Another compatible wallet can usually view it.
Not like stock brokerages. Money transmission rules and securities laws can apply.
