The crypto exchange Binance finally has its own native marketplace. Is it any good? Here's everything you need to know about it.
In 2021 alone, Bitcoin broke its own record and hit an all-time high price, the Ethereum blockchain surged, institutional investors began entering the crypto world, and metaverse somehow became a popular buzzword. But apart from all of that, one thing that everyone seems to be really obsessed with is NFT (Non-Fungible Token).
Simply put, NFT is basically a blockchain-based token that represents a particular digital object such as digital artwork, images, videos, collectibles, and many more. Smart contracts (the code that powers NFTs) make it possible to transfer and sell NFTs rather easily across games, metaverse worlds, etc. As a "non-fungible" token, each NFT is unique and one of a kind, so its value may rise in the future due to its authenticity.
Huge artists, athletes, and celebrities have also released their own NFTs, pushing the popularity of the digital token even more. The digital artist Beeple, marked a new promising future for NFTs by successfully selling a piece of his artwork for $69.3 million in early March 2021.
Following the so-called "NFT boom", many NFT marketplaces started to emerge. There are several popular NFT marketplaces in the world at the moment, including OpenSea, SuperRare, Rarible, Ethernity Chain, and GhostMarket. Among them, the globally-recognized crypto broker Binance also joined the hype and released their new Binance NFT marketplace.
Introduction to Binance NFT Marketplace
In April of 2021, Binance announced that it would be launching its own NFT marketplace with the same name. The marketplace was finally launched in June 2021 and officially opened for business. The Binance marketplace is a platform where users can create, purchase, and sell NFTs. It aims to be the world's top NFT marketplace and aspires to unite various artists, crypto enthusiasts, gamers, and public figures from all across the globe.
See Also: 10 Best NFT Games to Win Rewards
Though fairly new to the NFT sector, the Binance NFT Marketplace can bring a fresh addition to the table and even make changes to the NFT ecosystem as a whole. Thanks to Binance's wide recognition in the crypto space, the marketplace is able to provide great liquidity as well as support the distribution of NFTs.
There are three main functions on Binance NFT Marketplace, namely:
- The Marketplace – You can mint, list, purchase, and bid on NFTs created by digital content creators. With the user-friendly interface, you can pick and make transactions rather easily.
- Premium Events and Auctions – Premium events showcase the works of high-performing artists, musicians, and celebrities that are held for a certain period of time. You can participate in the event by making bids or buying a specific work on display.
- The Mystery Box – You can buy a mystery box that contains one random NFT. Although it's randomized, some of the prizes are quite decent. There are four levels of rarity that you can get, including normal, rare, super rare, and super rare. You can also sell the unopened mystery box or the NFT that you got from it.
Moreover, if we talk about the architecture of the marketplace itself, Binance NFT operates as a dual chain system. It means that it integrates both the Binance Smart Chain (BSC) and the Ethereum Network. Even though it is essentially programmed to mainly operate on the BSC due to the low gas fees compared to the Ethereum network, Binance Marketplace allows users to view Ethereum-based NFTs in their Binance wallets. Not only that, but users can also transfer NFTs between the two chains.
See Also: 7 Most Popular Ethereum Based Tokens
How to Purchase NFT on Binance
There are two ways that you can choose when it comes to buying NFT on Binance Marketplace, namely by auction or fixed price. Here are the easy steps to do it:
1. Create an account
First, head over to Binance's official website and click "Register" on the top-right corner of the front homepage. You will see a new page that requires an email or phone number and a strong password. Next is the verification process. Verify your account by typing in the code sent to your email. Once verified, you can free to use it on the marketplace.
2. Buy crypto
In order to buy an NFT, you need to deposit some crypto coins in a crypto wallet. Thankfully, Binance provides all users with a crypto wallet so you can use that to easily store the coins. You can simply go to the Binance official website again, click the "Buy Crypto" tab and choose your desired crypto. However, keep in mind that using the default wallet from the exchange may not be the safest option to keep your coins. For further safety, it would be better to have a personal crypto wallet elsewhere. Some of the popular wallets are MetaMask, Trust Wallet, Binance Chain Wallet, and more.
See Also: Which Wallet is Safe for Cryptocurrency?
3. Buy the NFT
Once you have the coins ready, now it's time to shop around and pick the NFTs. Firstly, go to the NFT homepage and click on "Marketplace". This is where the available NFTs are displayed. You can search the NFT you wish to buy or the creator that you wish to buy from.
As mentioned earlier, you can either buy NFTs through auction or fixed price. Simply find the NFT you want and click "Buy Now" underneath the picture. You can either pay the full price if you want to buy at a fixed price or enter a bid if the item is listed in an auction. Once the transaction is complete, the NFT will automatically be sent to your Binance wallet. Then you can transfer it to your personal crypto wallet (if you want to).
How to Create an NFT in Binance
Creating an NFT in Binance is actually very easy to do and might not even take more than 5 minutes of your time.
First of all, head over to the Binance NFT Marketplace homepage and click the "Create" button. You will then see an upload page where you can choose the item you wish to turn into an NFT. It can take many forms of digital files, such as images, videos, audio, or others. Once you select the item, you will need to add the information needed to describe your NFT. You will also need to have some BNB coins in your account to cover the minting fee. Once you're done, click "Create".
After the process is completed, you will see the "Minting Completed" sign on the screen, which indicates that your NFT has been successfully created. You will be able to see your newly minted NFT on your collections page. You can also send your NFT to a personal crypto wallet.
How to Sell an NFT in Binance
Similar to the process of purchasing, selling NFTs in Binance can also be done by auction or fixed price. Here are the steps that you need to follow:
1. Create an account
If you already have a Binance account before, then you can skip this part and go straight to the selling process. But if you don't have one yet, you will have to create one to sell NFTs on the marketplace.
2. Choose the NFT to Sell
First of all, you will need an NFT to sell one. You can either create the NFT yourself or sell the one you already own. If you choose the latter, then you simply have to find the NFT from your crypto wallet first. Send the NFT to the Binance exchange by clicking on the "Deposit" button, which is located on the "User Center". You will then have the option to deposit via either the Binance Smart Chain or the Ethereum blockchain.
Is the Binance Marketplace Safe?
Before we register, we must ensure that the marketplace is safe to use and able to give the protection we need as a user. First of all, in terms of regulation, we should note that the Binance NFT Marketplace is backed by the larger Binance crypto exchange.
The official regulation for the exchange is actually still unknown since the company has never claimed a primary headquarters. However, over the years, Binance has attracted more than 10,000 clients and has always been in compliance with the regulations in the countries that it operates in.
Security is in fact, one of the things that top the priority list of Binance. There are several security measures implemented on the marketplace such as 2-factor authentication (2FA) for all account access and basically any operation on the platform.
See Also: What are AML and KYC in Cryptocurrency?
Opening an account on Binance doesn't need ID verification, but access to crypto or fiat transactions does require verification. Other than that, the crypto assets are stored offline in cold storage, but it's still unknown whether this includes the NFT assets as well.
The Pros and Cons of the Binance Marketplace
To help you even further, here are the pros and cons to consider when it comes to Binance NFT Marketplace.
- It's free of charge. You can just create a free Binance account to access the NFT marketplace and make transactions.
- Beginner-friendly. The interface of the platform is very easy to navigate even for beginners.
- Low NFT minting fee. Since the Binance marketplace is supported by the larger Binance exchange, the fees for minting NFTs are relatively lower compared to other marketplaces.
- Good security features. Integrating the marketplace with the bigger Binance exchange also means that the ecosystem is safer and more reliable.
- Minting permissions. The minting permission in Binance Marketplace is slightly more restrictive than other platforms. This can be an issue for some NFT creators.
- Latecomer. Binance Marketplace is still very young compared to others, so the products are still rather limited, especially when it comes to rare NFTs or collectibles.
Binance NFT Marketplace is a new addition to the NFT world that's definitely worth checking out. With its dual chain architecture, the platform is able to provide higher flexibility for users to operate both in the Binance Smart Chain and the Ethereum network.
The marketplace is also integrated with the larger Binance crypto exchange, so it can offer more liquidity, safety, and lower fees compared to other marketplaces. Since the registration is free, you can easily try it out and look around before deciding to join the community.
Nobody knows what the future of NFTs might be, but there's a high chance that it's going to be more mainstream as we go deeper into the NFT boom in 2022.
Besides NFT Marketplace, just summer last year, the world's largest exchange also successfully launched Binance Savings where traders can simply hold their assets and earn interest from them.