Buying an NFT can be a fun and enjoyable process if you like collecting non-fungible tokens as a form of ownership. The process can be daunting for first time users, as you will need to find an NFT marketplace that works for you. Today we will look at how to buy some Ethereum, as this is an essential component of the NFT purchasing process on some of the sites, and what you need to know about NFTs in Canada.
NFTs come in a range and variety of formats and sizes, but are most often images that are converted into non-fungible tokens on the Ethereum blockchain. While there are other blockchains that support NFTs, such as Binance Smart Chain, Flow, Tezos, Polygon, Wax, and others, Ethereum is still one of the most popular blockchains for purchasing NFTs. There are plenty of NFT marketplaces that offer sales of NFTs, often branded as NFT marketplaces, or NFT launchpads, and these NFT marketplaces can be fun to visit to browse the wide variety of NFT collections available.
NFTs are often sold for cryptocurrency that can be bought on most crypto exchanges, and this is an essential part of the buying process. Once you visit an NFT markeplace, and login using a metamask wallet or other Web3 protocol, you will be able to begin shopping on the NFT website by browsing collections of NFTs so you can find one that suits you best.
You can search the collections by keyword, or just search the newest, most expensive, or trending items as part of your NFT purchasing journey. In this article, we will look at five NFT marketplaces that are good for Canadians to begin their journey in the NFT world, so that you will have a better understanding of how to go about beginning your NFT collection.
The five NFT marketplaces
Some of these marketplaces are becoming household names for people who like NFTs. Consider them the cool places to buy and sell.
At some of the NFT marketplaces, like Binance NFT marketplace, you can buy your Ethereum and then head over to the marketplace and buy your NFT, otherwise, you will have to go to a crypto exchange and buy your Ethereum and send it to your Metamask or Trust wallet. Ethereum wallets are where your NFTs are stored when using the Ethereum blockchain, and is how your transaction is processed.
You should know that it is essential that you spend some money to get started, as most NFTs are not cheap. There are gas fees associated with each transaction at most of the NFT markeplaces, ranging from $7 to $70 in some cases. Buyers may need to pay a commission to use the site. In each of the 5 NFT websites we look at, we will discuss the buying process, fees, and look at the NFT offerings.
On Opensea.io you are entering a decentralized marketplace that allows you to shop a variety of collections using the Web3 protocol through your Metamask, Trust, or Coinbase wallet. To get started, there is a wallet button in the upper right hand corner of the NFT marketplace where you can click and sign into your wallet using a single sign-on process. Once you have clicked your wallet and signed on, you are able to shop and buy using your available wallet balance. There is also an option to buy Ethereum directly on the platform using Moonpay via a credit card if you haven’t had the opportunity to send funds from an exchange. You will have to pay gas fees on your purchase relevant to the price of Ethereum gas at the time of transaction. The collections themselves are organized by themes so that you can find what you are looking for easily as well as browse the content in an organized fashion. Some of the themes include Trending, Top, Art, Collectibles, Domain Names, Music, Photography, Sports, Trading Cards, Utility, and Virtual Worlds. Once you have logged in, you will see the collections and marketplace similar to this:
Opensea.io claims to be the largest marketplace in the NFT world, as well as the first, and caters to buyers around the world. It is presented as a decentralized marketplace, so there is no KYC or identity verification, making the process easier for buying without any hassle or verification wait times. Some of the downsides are that you pay a 2.5% commission on purchases, and are subject to the current Ethereum gas fees at the time of transaction.
2. Binance NFT Marketplace
The Binance marketplace is an NFT marketplace that is tied in with the Binance exchange and allows for NFTs to be created, bought, and sold using a smart wallet on the Binance NFT website. You can buy NFTs using a variety of currency types including BUSD, BNB, and ETH, and can obtain these currencies directly from the Binance crypto exchange as part of the process. You will need to go through a formal registration with Binance and verify your identity to secure your account.
The verification process can take up to 10 days to complete, and requires a facial recognition scan that is somewhat of a hassle. However, once approved, shopping is quite simple and easy, and there is little to no gas fees and a small commission of 1% when using BUSD, as it is a stable currency that uses transaction costs under $1. That is really inexpensive compared to some of the other NFT marketplaces that use Ethereum, where gas can range from $7 to $70 dollars per transaction. The marketplace looks something like this:
The perks of the Binance NFT website are that you can save fees from gas costs because of the alternate payment methods besides Ethereum, which include BUSD and BNB. These are relatively feeless transactions conducted in the form of micropayments. There are also thousands of NFTs to choose from, and a centralized exchange so you can have all your assets in your wallet on the exchange.
3. VirgoCX NFT Marketplace
The VirgoCX marketplace, which is one of the features of the Canadian-based VirgoX crypto exchange, is an over-the- counter marketplace that allows buying and selling NFTs in ETH. Creators can apply to create a collection, and buyers can also register using an email, where they can get access to buying options through agents. The marketplace is easily visible when landing on the NFT marketplace, and you can see the image and pricing clearly to give you an idea of how much each item costs. Here is an example of some of the NFTs and how they are presented on the VirgoCX NFT website:
To buy an NFT, you need to load your account with funds prior to making a purchase. Because the NFT site is not tied to a central, decentralized crypto exchange, you will need to buy some Ethereum and send it to your VirgoCX wallet. Once you have some funds in your wallet, you can go ahead and begin shopping by choosing your NFT, then contacting an account manager to select your over-the-counter NFT and begin the settlement process.
Moreover, you also have the option to subscribe to The Pulse newsletter that showcases new and upcoming NFTs, as well as trends and industry insights. There is a slight commission for each of the purchases that is charged by VirgoCX, and they are as follows:
There are gas fees also associated with the transaction, and they are determined at the time of purchase as relevant to the Ethereum blockchain. The service is customized through the brokerage and offers a more personalized experience than some of the other decentralized NFT marketplaces out there.
Rarible is an NFT marketplace that allows for purchasing NFTs across multiple blockchains including Ethereum, Flow, and Tezos. Flow and Tezos offer lower gas fees than Ethereum and are a prime choice for new users who want to grow their collection without paying large fees. You will have to have a compatible wallet for the blockchain you want to buy on, and this requires you to switch networks as NFTs are not compatible from network-to-network on the NFT site.
To shop on Rarible.com you need to be at least 13 years-old, and agree to the terms of service. The commissions on Rarible are competitive and are based at 2.5%, which is similar to Opensea.io. However, there is the option for the artist or creator to pay the commission up front on listing, thus making some sales commission-free. The interface is similar to the other marketplaces when you browse, and looks something like this:
Some of the perks of Rarible.com as an NFT site are the options to use Tezos and Flow blockchains for buying NFTs which can save on the expensive gas fees elicited by Ethereum. The interface is clean and easy to navigate. There are no KYC issues for buying or selling, and only a simple Web3 login is required to begin your NFT purchasing journey.
5. Crypto.com NFT
Crypto.com is a cryptocurrency platform similar to the Binance Exchange, and offers users the opportunity to also engage in the buying and selling of NFTs in their NFT website area. Buyers can get their Ethereum or cryptocurrency directly from the exchange and deposit it to their wallet, then use these funds for buying the NFT of their choice. There are a range of creators on the platform where auctions are held for rare collectibles.
The interface is similar to many of the other marketplaces out there, with some slight variations on the browsing and navigation of the site. Some of the top categories that buyers can view are All, Art, Celebrities, Gaming, Sport, Music, Crypto as you can see in the following image:
To get started you will need to register on the site with a username, password, email, and enter your full name. Then you will need to buy some crypto on the exchange and use it for purchasing your NFT. The one thing about the Crypto.com NFT marketplace is that there are no commissions on buying and selling NFTs as they collect the 0.4% commission from the buying and selling of crypto on their exchange.
While this may change in the future, Crypto.com is the cheapest NFT marketplace that we reviewed because there are also no gas fees as the price of the NFTs are listed in USD. While Canadians are still eligible for registration and buying of the NFTs, they will have to use the exchange to purchase crypto into their NFT wallet prior to making a purchase.
NFT marketplaces in Canada
Buying NFTs can be fun and exciting and choosing an NFT site is a great way to get started. There are centralized NFT marketplaces like the Binance NFT market and the Crypto.com NFT market where you have to register and purchase crypto from their exchange in order to get started. The VirgoCX exchange is an over-the-counter process that is more personalized because you have to deal with a broker during your purchase. It is also centralized, and likely requires some verification during the purchase process.
Most of the sites charge a small commission, and gas fees are respective to the blockchain that you choose to buy on. NFT storage and sending is usually done within your wallet, whether it be on a centralized NFT marketplace, or a decentralized marketplace like Opensea.io or Rarible, that both utilize the Web3 protocol. We hope you learned some good starting points for your NFT shopping, and enjoy the 1000s of collectibles out there as you search to find the perfect NFT.
Compare dozens of Canadian crypto exchange platforms and find the one that best suits your needs.
About The Author: Arthur Dubois
Passionate about personal finance and financial technology, Arthur Dubois is a writer and SEO specialist at Hardbacon. Since his arrival in Canada, he’s built his credit score from nothing.
Arthur invests in the stock market but doesn’t pay any fees because he uses National Bank Direct Brokerage online broker and Wealthsimple’s robo-advisor. He pays for his subscriptions online with his KOHO prepaid card, and uses his Tangerine credit card for most of his in-store purchases. When he buys bitcoins, it’s with the BitBuy online platform. Of course it goes without saying that he uses the Hardbacon app so that he can manage all of his finances from one convenient place.
More posts by Arthur Dubois