Binance NFT Marketplace Explained
Binance is a renowned cryptocurrency exchange that has gained popularity among crypto traders for its user-friendly experience and low fees. The exchange has expanded its offerings to include NFT, providing a platform for people to buy and sell a variety of NFTs, including art, gaming, sports, entertainment, and collectables.
However, it's important to note that this trading platform is exclusively accessible to Binance account holders and unavailable to US residents. This is due to regulatory requirements. For US residents, the exchange has a separate platform called Binance.US, which currently does not facilitate NFT trading.
Binance NFT marketplace features
The platform enables its users to trade NFTs through its app or web browser with lower fees than many other competitors in the market. It offers a diverse selection of NFTs, specifically emphasising gaming-related items.
The platform facilitates three distinct blockchains - Binance Smart Chain (BSC), Ethereum (ETH), and Polygon. Recently, it announced its integration with the Polygon network and mentioned that only selected ERC-721 collections are currently available.
Although Ethereum is widely recognised as the most prevalent NFT blockchain, its high gas fees have increased the popularity of alternatives like Binance Smart Chain. Overall, deposits and withdrawals of NFTs are feasible from either of the three crypto networks.
Binance NFT marketplace provides users a platform to buy and sell digital tokens. The platform enables pre-approved artists to mint their NFTs, although this feature is not presently accessible to regular users. The users can participate in auctions, purchase mystery boxes or opt for fixed prices while trading on the marketplace. The marketplace also features premium auctions, including five masterpieces from the Hermitage museum and a range of exclusive moments from the Associated Press.
When purchasing NFTs, buyers must consider a safe storage location for their digital assets, where wallets come into play. Binance supports several non-custodial wallets, including WalletConnect, MetaMask, and Binance Chain Wallet.
While some investors may choose to store their NFTs on the platform where they bought them, known as a custodial wallet, Binance claims that its custodial wallet is highly secure and backed by the Secure Asset Fund for Users (SAFU), an insurance fund created by the platform.
To trade NFTs on this marketplace, users are required to have Binance Coin (BNB), Binance USD (BUSD), Ethereum (ETH), or MATIC. It is important to note that direct purchase of NFTs using cash is not yet possible; however, depositing fiat money and converting it to cryptocurrency is relatively straightforward.
Transaction fees can be incurred for trading, depositing, withdrawing, or purchasing NFTs on the platform. Various factors, such as the current market conditions and the network status, determine the fee amount.
While depositing NFTs to the platform, the gas fees depend on the blockchain used by the user. For trading, the platforms charge flat 1% of transaction fees.
The minting fee for each NFT produced on the Binance Smart Chain is 0.000001 BNB. The amount of minting fees may vary based on the current market value of BNB.
The platform reimburses its original creators with a 1% royalty fee every time their created NFTs sell.
NFT range available on the platform
Binance NFT marketplace is a platform that acknowledges the significance of creators in the developing NFT ecosystem and strives to enhance value for all types of creators. The platform has adopted a creator-first approach to achieve this, offering some of the industry's most competitive transaction fees. Notably, Binance NFT's curated "Premium Event" collections provide artists with a 90% share of the purchase proceeds, setting a new benchmark for NFT rewards.
The marketplace offers various NFTs across categories: premium, art, sports, gaming, entertainment, collectables, and NFT for Good. Binance's NFT for Good collection aims to raise funds for charitable causes.
As of the beginning of 2022, more than 1,000 artists were onboarded on the platform, and more than 2.5 million NFTs have been listed. Users can filter their searches based on category, file, sale, and currency. The price is displayed in the user's native currency, eliminating the need for converting BNB, ETH, or MATIC into other currencies.
Binance strongly focuses on gaming NFTs and claims to be the largest gaming NFT platform. The platform provides an IGO for new gaming projects, allowing early access to buying land or in-game items.
Additionally, the Binance NFT marketplace offers mystery boxes for sale, which could contain a common or super rare NFT. Since the contents of the mystery box are not revealed until opened, purchasing them involves a certain amount of risk.
The Binance NFT marketplace offers its users a handful of trading perks using its platform.
The Binance NFT marketplace applies a fixed 1% fee for every transaction, which is comparatively lower than many other leading NFT marketplaces. While users are required to bear the gas fees associated with the transactions, which can be substantial on the Ethereum blockchain, they can minimise these fees by selecting the Binance Smart Chain. New purchasers seeking cost-effective NFTs can obtain items for as little as $1; however, it's essential to note that many less expensive NFTs are game-related.
Ease of use
A significant benefit of linking to a prominent cryptocurrency exchange is that new NFT purchasers are relieved of the concern of selecting the correct cryptocurrency and transferring it to an external digital wallet. The Binance platform manages all aspects, including depositing traditional currency and converting it to cryptocurrency. Moreover, Binance offers a comprehensive collection of NFT educational resources, such as webinars, that facilitate the process.
The platform has the advantage of being able to attract high-profile projects. The previous year, the company launched premium auctions in collaboration with esteemed institutions such as the Hermitage museum and the Associated Press. The Associated Press collection showcased noteworthy news events from the past century, such as the fall of the Berlin Wall and the first human spaceflight.
In addition, Binance established partnerships with prominent fashion labels, including Vogue Singapore, Balmain Paris, and Jimmy Choo, as well as renowned figures in the music and entertainment industries.
The Binance NFT marketplace has gained immense popularity by capitalising on the trend of non-fungible tokens. Since its launch in June 2021, it has established itself as a leading NFT marketplace in the industry, alongside Opensea and others.
The marketplace operates on a dual-chain architecture, which increases liquidity and enables regional and established artists to expand their reach through Binance's extensive user base and network effect. Users can access the marketplace using their Binance wallet account and view Ethereum-based NFTs on the same network as Binance.com.
Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.