Crypto Academy Week 12 - Homework Post for @levycore | Buying and Selling NFTs

Hello everyone in Crypto academy community, hope you are all doing great.

Today I will be attending to the homework task of professor @levycore the homework is really based on practical "How to buy and sell NFT on any NFT market place"
I choose Rarible market place because of the platform user friendly but before that let me recap on NFT.

What is NFT

NFT the short form of Non Fungible Token are digital assets such as Collectibles, game pieces, virtual art, event tickets, domain names built on the blockchain. The ownership of NFT can be easily monitored and verified on the blockchain.

Rarible Marketplace

Image source

Rarible is one of the most common market place for buying and selling non-fungible tokens (NFTs). The NFT market place was founded in 2020 by Alexei Falin and Alexander Salnikov. The platform allow users with no coding skills to build and mint their own NFTs, while traders can purchase creative digital tokens. The platform is also the first in the NFT space to introduce a governance crypto token.

How does How Rarible Works

Rarible is a platform that links vendors, such as content developers or digital artists, with buyers who can buy ownership of pieces directly from the seller, bypassing the middleman. Rarible transactions take place via a smart contract and are logged on a blockchain ledger, which provides market participants with transparency and protection.

On the blockchain, an NFT is created when creators upload and mint their files on Rarible. Each NFT is distinct and cannot be substituted. This allows NFTs to be exchanged between wallets, just like other Ethereum tokens.

Royalties on Rarible

Users on Rarible can program royalties on the assets they create and sell. A percentage of potential sales can be set by creators, and a portion of subsequent sales will be automatically removed to the creator's digital wallet.
For example if a user imputed a 20% royalties on an asset he/she wants to sell, that means whenever a copy of the asset is sold, 20% of the amount would be his/her own.

Fees on Rarible

Rarible charge a 2.5% service fee either to buy, sell and create NFT this fee act as listing fee. Nonetheless the seller has the option of paying part of the fee which will cost 5% of the final selling price. Moreover the buyer is charged a transaction fee to create NFT. It connects to your crypto wallet automatically when it goes through Rarible's call contract form.

The other fee on Rarible NFT market place is the Ethereum gas fee.

Note Ethereum is the coin accepted by Rarible for any transaction on the platform

How to buy NFT

To buy NFT you need to first connect your wallet to Rarible site.

I'm making use of Trust wallet so all the screenshot will be from my Trust wallet.

• Open Trust wallet and click on Dapp

• Go to Rarible website or paste this link in your dapp browser Rarible

• Click on "Connect" to connect your wallet to the site

• Connect to Trust wallet by clicking on the Trust wallet logo

• Confirm if your wallet has been successfully connected

Now that your wallet is connected let proceed to "How to buy NFT"

• Select the NFT you want to buy, there are different categories Art, Photography, Music but you can select "All" this will bring all the NFT available for sale.

• I select the NFT I want to buy which is "Ela umbrella"

• I click on "Buy" at the bottom of the page

• Click on "Start" to approve and confirm the transaction

• It requires $118.89 in total that is the price of the "Ela umbrella" ($53.54) plus the ETH gas fee ($65.34).

Note: The ETH gas fee is different from the 2.5% fee Rarible will deduct from the transaction as the service fee

How to Create and Sell your own NFT

Since the wallet has been successfully connected to create and sell your own NFT follow this instructions

• Click on "Create collectible"

• Select between "Single" and "Multiple"

Single That is if you want to sell only one asset.

Multiple If you want to create and sell more than one asset

Example: if you want to sell just one art work then select "Single" but if the art work is more than one select "Multiple"

• I select "Single" in this illustration, Then upload the files you want to sell it can be either Image, Video or Music.

Note: The maximum size of the file is 30mb

• Then enter the price you want to sell your NFT in ETH and also chose the collection type

• Enter the Title, description and also specify the royalties and properties.
  Click on "Create" to approve and confirm the transaction

• The final confirmation will pop up where you will be ask to pay an ETH gas fee, it advisable to do this when the ETH gas fee is low to reduce the cost of the transaction.

Advantages of Rarible

• Distribution of the RARI token: The biggest advantage of Rarible market place is that it distribute it's Token (RARI) to it's users. This token is distributed to the user whenever they buy or sell NFT on the platform.

• User friendly: The platform is user friendly, a novice in NFT trading can easy buy, sell and create his/her own NFT by following the tutorial I explained above.

• Open source Rarible is an open source market place which allow users to have full access to the platform meaning they can easily confirm and verify all transactions on the blockchain.

Disadvantages of Rarible

• High gas fee Apart from the 2.5% fee Rarible charge on user that buy or sell through the platform the gas fee to approve and confirm a transaction is very high base on the fact that the platform is built on Ethereum blockchain.

• No official roadmap or whitepaper This is one of the disadvantage of Rarible the platform doesn't provide any roadmap or whitepaper and this as cause a lot if controversy.

Conclusion

Rarible has established itself as one of the most famous NFT marketplaces. The exchange's usability has made buying and selling NFT accessible to a wide range of creators, including those with little or no experience with digital tokens.

Thanks to professor @levycore for this wonderful lecture on how to buy and sell NFT on NFT market place.