Investing in a digital world is more convenient and comes in many forms. Whether you want to trade foreign currency or stocks from a global company, this era of the internet and digitization has made investment more accessible. But apart from making the traditional forms accessible, it has also created new ways to invest and earn. Through blockchain, digital currency came to be where people can trade and earn profits.
This is in addition to other blockchain investments like Non-Fungible Tokens (NFTs) whose market is growing by the day. And if you’re interested in joining the NFT caravan of opportunities, there are various ways you can do that. First, you can become a creator and start minting from your own collection. Secondly, you can become a trader and buy and sell NFTs for speculation and profit.
The third option lies in NFT marketplace development. This can be said to be a safer way of getting started in the NFT market. You’ll be creating a platform that connects collectors, traders, and creators. This article will discuss all you need to launch a successful NFT marketplace that attracts and retains creators and traders.
Why an NFT marketplace?
According to some reports, the anticipated growth in the NFT global market is likely to cause a corresponding increase in the demand for trading platforms. You can be the broker that bridges the gap between buyers and sellers. That means if you’re looking for an entry into the NFT market, you can take action now and develop a marketplace.
You earn money on marketplaces from commission fees, registration fees, and advertising. But as with any other investment, you need to take the right steps that will help you fulfill your goal. Here is a simple guide on what you need to do.
Define your niche
You need to conduct in-depth research before deciding on the niche you want to take on. This means knowing your target audience and defining the most suitable niche for you to take on. You also need to do competition analysis to see what other marketplaces are doing, and what’s working and what’s not. This can help you to take advantage of their weaknesses and gain a competitive advantage.
The most popular niches are art, sports memorabilia, gaming assets, video, and music. Each niche has its development dynamics that’s why you need to decide early. For example, the token mechanics of crypto games could differ from those of artwork or memorabilia.
To complete this step more successfully, it’s best to seek the help of an NFT consulting company. As experts, they can help you match your needs to the most appropriate niche. Successfully finding your niche is the first step to building a successful platform.
Create a budget
Your niche of choice and the features you need on your trading platform will determine the amount of time and resources you need to accomplish the project. Consult with your developer to come up with the appropriate budget and timelines to complete the platform. If you go for a ready-made one size fits all kind of development, the costs might be lower. However, a custom platform might be the better option as it will cater to the specific requirements you have for your project.
Build a community
The NFT marketplace is becoming an increasingly competitive ground and you don’t want your voice to be lost in the background. After you know what you want your marketplace to trade, you need to become proactive in creating hype and interest around your project. You need to make people aware of your entry into the market, and offer incentives, information, and direction that’s valuable enough to make you a voice they want to hear. Basically, create some authority.
Engage with people on social media and online communities that are interested in NFTs and build a following of people who can potentially trade on your platform. This is an essential step bearing in mind the means to earn money from the marketplace is through sign-ups, commission fees from trades, and advertising. All these will work if you have a good number using your platform.
Choosing a blockchain platform
With your niche all set, the next logical step is doing the same process to choose the best blockchain network to build your marketplace on. Some blockchain platforms like Ethereum are quite popular but it does not mean that it’s suitable for every project.
Your choice should be based mainly on the size of your project. If you’re starting and your project is quite small, the cost of running a marketplace built on the Ethereum network can be rather costly. Evaluate all the platforms and find alternatives like third-generation platforms Solana and Cardano to find which makes the most sense in your case economically and functionally.
Design and development
A good user interface is a key to good user experience and the probability of people using your marketplace above others without an intuitive and appealing design. As you look into the intricate parts of development like the important features, consider high functionality as well. The architecture of your trading platform should be well-designed and developed.
The main features of your platform should include a shop window, wallet, trading history, notifications, support, payment processing, and a search engine. You also need a creating ad feature to help sellers advertise and sell their collections faster.
Creating smart contracts
At the core, an NFT marketplace is a transactional platform and it needs to have properly binding contracts. As a virtual platform, it uses smart contracts to execute purchases and sales, ensuring that each party in the transaction fulfills their side of the deal before a transaction completes. Let your developer test the smart contract before deployment to confirm that it works as it should. They should also look for vulnerabilities that fraudsters may try to exploit.
Going into the NFT market by creating a trading platform requires you to do enough research into the niche you want and evaluate your goals against what competitors are offering. There are many other things you’ll need to launch a successful NFT trading platform. The ones above are just a sample of how the process goes. You might need to consult with an NFT developer for guidance and the development of a strategy.