NFT marketplaces are where creators go to list their works for sale to collectors and project supporters.
In this article, we'll discuss primary vs secondary NFT marketplaces for creators, as well as collectors and go over the main differences between both to help you figure out which type of marketplace may be the right fit for you.
The first type of marketplace where you can buy and sell NFTs is often referred to as a "primary" marketplace.
It is coined as such because it gives creators who want to build their own online storefront to sell their own artwork or other products more control over pricing, marketing and visual display of their pieces.
Going this route is usually better suited for artists who already have a decent following and can generate enough awareness to sell.
Other types of primary marketplaces like The Art Suite are a great way to get your work out there to a wider audience if you'd like a bit of a head start as opposed to building out your own website. As an artist you’re able to add a wide array of digital assets like music, photography, 3D art, film, and even tattoo art!
For creators, primary marketplaces can be utilized for a number of reasons if you're not going to do it all by yourself. Some offer services to help digitize traditional artwork into an NFT in order to enhance your creations online, and breathe new life into them.
Another reason why artists typically prefer selling their NFTs on a primary marketplace like The Art Suite, is that you have a bigger say in the pricing of your work and can even auction your NFTs off. This increases your chances of making a better margin on your original artwork.
Aside from the added profits, most primary marketplaces are built for creative souls who might need a bit of guidance on how to mint and trade your NFTs. You can rely on the expertise of the in-house experts to hold your hand throughout the process.
Primary marketplaces also allow you to leverage existing payment portals. These work with most wallets, and offer faster, safer, more efficient payments.
Finally, creators can effortlessly share profits with collaborators and co-creators. This ensures good, healthy working relationships with companies and creators who profit from collective projects.
Collectors have the unique opportunity of getting “early bird” access to projects, which means getting in at the ground floor with attractive pricing before it hits the secondary market and also increases the likelihood of minting a rare NFT.
Collectors are also able to buy a stack of NFTs of a single collection, and then resell them on the secondary market for a profit. Additional perks for the early bird on the primary market include airdrops, early access to new NFT drops and more.
The second type of marketplace for NFT art is often referred to as a "secondary" marketplace because it's where collectors go to buy NFTs after pre-sale has happened on the primary market — usually because they missed out on the primary mint.
These sites allow collectors to buy NFTs from other collectors and resell them at a profit if they want to get rid of them later on down the line due to changes in taste or financial circumstances.Examples of secondary NFT marketplaces on Cardano are JPG Store and CNFT. These platforms allow users to buy and sell virtual art that are unique digital assets created on the Cardano blockchain.
As a collector, the secondary marketplace is your hunting ground. Here you can scope out good deals and even outbid other collectors in auctions by simply linking your Cardano wallet to transact with ease, and possibly even find that elusive NFT you missed to add to your private collection.
These secondary marketplaces allow you to filter NFTs by price, listing date, and view NFT metadata. Here, you can discover bluechip NFT projects by DYOR, complete with all the project details you need.
Plus, you can invest with confidence through verifying an artist’s collection via their unique policy ID.
Even though primary marketplaces seem to be a better fit for creators, there are some really great NFT marketplaces to choose from where you can list your Cardano-specific projects.
If you’re a creator, and the new kid on the block(chain), and you’d like to be discovered, then consider leveraging the wider audience and exposure a secondary marketplace might offer you. While you might not be able to win on higher profit margins, you could win on mass awareness.
With marketplaces like JPG Store can mint a collection on these secondary marketplaces and verify its authenticity through your unique policy ID, and reach a wide audience of legitimate buyers.
Transaction costs are relatively low, so you still make a healthy profit on sales of your work, and you can add royalties on some secondary marketplaces so that when the NFT sells again, you earn a bit extra with each subsequent sale.
Primary and secondary NFT marketplaces each have pros and cons for artists, collectors, and the broader art community. Each marketplace offers benefits, features, and functionality that facilitate the listing and selling of desirable digital art.
It is essentially up to you - as creator or collector - to determine which marketplace (primary, secondary, or both) is ultimately the best fit for your needs and goals.