The Binance NFT marketplace can be a great pick if you're looking for an easy-to-use platform with low fees. Read our full review to figure out if it's the right choice for you.

NFT trading has exploded in popularity ever since it started trending a few years ago. About two billion dollars of NFTs have been bought in the Q2 of 2021 alone and about 3,000 NFTs are sold every day as of March 2022. Many digital artists, celebrities, sports stars, gaming companies, and public figures have made their contributions and even released their own official NFTs. Long story short, NFTs are massive and it's only a matter of time before people caught up in the exchange of value between the digital asset.

Binance NFT Marketplace

As the popularity of NFTs has grown significantly, more NFT marketplaces have also emerged. Currently, there are over 200 NFT marketplaces that allow users to buy, sell, store, and display NFTs for various purposes. These platforms basically handle the transfer of an NFT from one party to another in exchange for a fee. Today, we're going to be focusing on a marketplace housed by one of the largest crypto exchanges in the world, Binance.

 

Binance NFT Marketplace Overview

Binance is a leading crypto exchange that has been around since 2017. The exchange is known for its advanced technology, massive user base, and various interesting features. In 2021, Binance released its own NFT platform called Binance NFT. It aims to be the world's top NFT marketplace and aspires to accommodate all NFT holders, digital art enthusiasts, art collectors, musicians, and others from all around the globe. It is also expected to attract new customers and allow Binance to expand its business further.

Though the marketplace is still considered new in the NFT sector, Binance NFT has gained popularity across crypto communities. The new platform uses Binance Smart Chain (BSC) and Ethereum, so users can transfer NFTs between the two blockchains and perhaps more in the future. Keep in mind that this marketplace is only available for Binance users and this excludes US residents. Binance has a separate exchange for US residents called Binance.US, but it currently does not sell NFTs.

 

Platform Features

Binance NFT marketplace is an accessible platform that offers a bunch of new and innovative features. Users can access the marketplace via web browsers or mobile app, and the trading fees are relatively low compared to others. Here are some key features to consider:

 

NFTs Offered

Binance offers a wide range of NFTs on the marketplace. There are seven categories of NFTs available, including premium, art, sports, gaming, entertainment, collectibles, and NFT for Good. In addition, Binance NFT offers mystery boxes that might contain random NFTs ranging from a common NFT to a super rare one. It is pretty much like blind box toys, so buyers won't know exactly what's inside until it's bought and opened.

According to Binance, the marketplace has added more than 1,000 unique artists and listed more than 2.5 million NFTs in 2022 alone. In total, the marketplace supports more than 300,000 unique digital assets, making the platform suitable for various types of NFT investors, including beginners who are looking to start a new collection and experts searching for new sets of NFTs to buy.

Moreover, the platform allows users to sort NFTs based on categories, file types, sale types, and currencies. The price will be shown in the user's native currency, so there's no need to convert the currencies beforehand.

 

Services

Binance NFT marketplace allows users to buy and sell NFTs easily. Apart from that, the platform allows pre-approved artists to mint their own NFTs and put them on the market. Users can get their hands on NFTs by directly buying the asset, participating in an auction, or buying mystery boxes.

 

Blockchain

Binance NFT marketplace was originally built on the Ethereum network but was later moved to Binance Smart Chain. Even so, the platform supports both blockchains since it was developed as a hard fork. Users can still make transactions, deposits, or withdraw by using either crypto network. Nevertheless, please note that NFT minting is currently available only on the Binance Smart Chain.

Although Ethereum is still the largest NFT network at the moment, Binance Smart Chain offers some advantages that cannot be ignored. For instance, Binance Smart Chain uses a much more efficient technology and is able to reduce the cost of gas fees. While Ethereum's gas fees have surged to a ridiculous level, gas fees on the Binance Smart Chain are generally very low.

 

Supported Wallets

Before you start anything in cryptocurrency, you need to own a crypto wallet. So far, Binance NFT marketplace supports several wallets, including WalletConnect, MetaMask, and Binance Chain Wallet. MetaMask is one of the top NFT wallets on the market at the moment, but Binance claims that Binance Chain Wallet is a good option too. The crypto wallet can easily integrate with the platform and is guaranteed by the exchange's insurance fund, Secure Asset Fund for Users (SAFU),

 

Payment Methods

Binance offers several payment methods, including the native Binance Coin (BNB), Binance USD (BUSD), and Ether (ETH). So far, users are still not allowed to directly buy NFTs with cash, but since the platform is heavily connected with the Binance exchange, users can just easily deposit fiat money and convert it to crypto.

 

Fees

There are several types of fees that you should be aware of. For trading fees, Binance charges 1% of the total transaction. Meanwhile, the minting fee is 0.000001 BNB. There is no cost for making deposits and withdrawals, but users need to pay gas fees depending on the network. As for the royalty fees, the creator is entitled to a 1% royalty charged from the sellers.

 

Top Advantages

Binance NFT marketplace has grown into one of the top marketplaces out there in a relatively short time. Let's see what makes the platform stands out among its competitors:

  • A Reliable Provider: Binance is known as one of the top and most trusted exchanges in the world. Although the platform itself is still relatively young, it already captured the hearts of thousands of users and is able to convince them to stay.
  • High Security: Binance has always been serious about protecting users and users' funds. In Binance NFT marketplace, all data transferred from your device to Binance servers are encrypted, which means no one can read or use the data for any purpose. Additionally, you can set a two-factor authentication to add a protective layer to your Binance user account.
  • Low Fees: Most NFT marketplaces charge at least 2.5% transaction fees, but Binance NFT only charges 1%. In addition, the platform allows artists to mint their own NFT with only 0.000001 BNB.
  • Low Royalties: A 1% royalty might not be good enough for some artists, but it's definitely good for collectors. If you decide to sell your NFT collection, your profits won't be much affected by royalty payments.

 

Notable Disadvantages

While all of the above sounds fantastic, there are still some risks and disadvantages that are worth considering:

  • Double Fees: Some users may not know that most marketplaces only require either the buyer or the seller to pay the transaction fee, but Binance NFT requires both parties to pay even though the amount is relatively smaller than its competitors.
  • Low Royalties for Artists: We've mentioned that low royalties are a disadvantage for artists. The problem is that some artists who want higher royalties might refuse to sell on Binance and as a result, collectors might have trouble finding their favorite creators on the platform.
  • Low Liquidity: While the market seems well-crowded and pretty much alive, it is still considered low in liquidity. Thus, you might find it hard to find a buyer for your collection or you might sell it at an unexpectedly low price.
  • High Risk: Every trader must know that NFTs are very risky on their own. Binance's mystery boxes add even more risk as the products inside are completely random. Users can gamble and buy a lot of boxes only to find that they are unlucky and end up getting NFTs with low values.

 

Final Thoughts

Binance may be a new player in the NFT sector, but it certainly gives a rather huge impact on the industry. Since its launch in June 2021, the platform has become one of the most recommended NFT marketplaces out there, alongside older sites like Opensea, NBA Top Shot, and others. As mentioned in the article, there are many big advantages that users can get such as low fees, dual chain architecture, high accessibility, and more. On top of that, the marketplace offers a broad range of NFT products available from many worldwide creators.

Although there are some considerable drawbacks like low royalties and added speculation, Binance NFT marketplace is certainly worth trying. Just remember that the crypto industry is still relatively young and the NFT sector is even younger, so the future of crypto-related products is hardly predictable. Therefore, always be mindful and consider the risks before investing. Learning from these common NFT scams might help you be careful in choosing the right asset.