What is Rarible? A Guide to Using Rarible for Buying and Selling NFTs

What is Rarible? A Guide to Using Rarible for Buying and Selling NFTs

Rarible is one of the most prominent decentralized NFT marketplaces that allows users to create, buy, and sell Non-Fungible Tokens (NFTs). It stands out by offering a platform that is not only community-driven but also decentralized, empowering users to participate in governance through its native RARI token. In this guide, we will explore how Rarible works, its features, and provide a step-by-step overview of how to buy and sell NFTs on the platform. Additionally, we’ll discuss some frequently asked questions and offer tips for using Rarible more effectively.

What Is an NFT and Why Are They Popular?

Before diving into Rarible’s functionality, it’s essential to understand what NFTs (Non-Fungible Tokens) are. NFTs are unique digital assets that represent ownership or proof of authenticity of an item, whether it be art, music, videos, or even virtual real estate. Unlike cryptocurrencies such as Bitcoin or Ethereum, NFTs are “non-fungible,” meaning each token is unique and cannot be exchanged on a one-to-one basis with another. This makes them ideal for representing rare items or collectibles, giving them substantial value in the digital economy.

The popularity of NFTs exploded in recent years due to their ability to revolutionize the way digital art and collectibles are bought, sold, and owned. Artists and creators can tokenize their work, ensuring a transparent and immutable record of ownership. Collectors, in turn, can buy and trade these digital assets in a marketplace. With platforms like Rarible, NFTs have become more accessible, even for those who are not particularly tech-savvy.

What Is Rarible?

Rarible is a decentralized marketplace that facilitates the creation, sale, and purchase of NFTs. It was launched in 2020 with the goal of providing a simple and accessible platform for users to interact with the world of NFTs. What makes Rarible unique compared to other platforms is its decentralized nature and the fact that it is governed by the community rather than a centralized company.

Rarible operates on the Ethereum blockchain, which ensures that transactions on the platform are secure, transparent, and immutable. Users can mint (create) their own NFTs, buy existing NFTs, and sell their digital assets in an open marketplace. Rarible’s decentralized governance structure allows the community to vote on key decisions related to the platform’s development, ensuring that it evolves in a way that meets the needs of its users.

In addition to its marketplace, Rarible has a native token, RARI, which is used for governance and reward distribution. Holders of RARI tokens can participate in decision-making processes related to platform upgrades and feature additions, giving them a stake in Rarible’s future.

Key Features of Rarible

Rarible offers a range of features that make it a compelling platform for both buyers and sellers. Some of its key features include:

• Decentralized Governance: Rarible is governed by its users through the RARI token. Community members can propose and vote on changes to the platform, making it a true decentralized marketplace.
• Minting NFTs: Rarible allows users to easily create their own NFTs without needing extensive technical knowledge. Users can mint their digital assets by uploading them to the platform and tokenizing them on the Ethereum blockchain.
• Open Marketplace: The platform has an open marketplace where anyone can buy and sell NFTs. Sellers can set prices for their NFTs or choose to auction them, while buyers can browse the marketplace for unique digital assets.
• Royalties for Creators: One of the major advantages for creators is that Rarible allows artists to set royalties on their NFTs. This means that every time an NFT is resold, the original creator earns a percentage of the sale price, ensuring that artists continue to benefit from the appreciation of their work.
• Social Features: Rarible also has social features that allow users to follow their favorite creators, participate in discussions, and engage with other members of the NFT community.

How to Buy NFTs on Rarible

Buying NFTs on Rarible is a straightforward process, and below is a step-by-step guide to help you get started:

1. Set Up a Wallet: To interact with Rarible, you first need a cryptocurrency wallet that supports Ethereum-based assets. Popular options include MetaMask, Coinbase Wallet, and Fortmatic. These wallets allow you to store Ethereum (ETH) and NFTs securely.
2. Connect Your Wallet to Rarible: After setting up your wallet, go to Rarible’s website and connect your wallet by clicking on the “Connect Wallet” button. Follow the prompts to link your wallet to the platform.
3. Browse the Marketplace: Once your wallet is connected, you can start browsing the marketplace. You can filter listings by category, price, and other criteria to find NFTs that suit your interests.
4. Make a Purchase: When you find an NFT you’d like to purchase, click on it to view its details. If the seller has set a fixed price, you can simply click “Buy Now” to initiate the transaction. If the NFT is listed for auction, you will need to place a bid.
5. Confirm the Transaction: Once you decide to buy an NFT, your wallet will prompt you to confirm the transaction. You will need to pay the price of the NFT plus any associated gas fees. Gas fees are the costs of processing transactions on the Ethereum blockchain and can vary depending on network congestion.
6. Complete the Purchase: After confirming the transaction, the NFT will be transferred to your wallet, and you will become the proud owner of the digital asset.

How to Sell NFTs on Rarible

Just as buying NFTs is easy on Rarible, selling NFTs is also a straightforward process. Here’s a step-by-step guide for selling your digital assets:

1. Set Up Your Wallet: Before selling NFTs, make sure your wallet is connected to Rarible. If you haven’t already done so, follow the instructions above to link your wallet to the platform.
2. Create an NFT: To list an NFT for sale, you first need to create one. You can upload your digital file (e.g., image, video, audio) to Rarible and mint it as an NFT. Once your item is minted, it will appear in your profile.
3. Set a Price: You can choose to set a fixed price for your NFT or list it for auction. If you choose the auction option, you will specify a starting bid and the auction duration.
4. List the NFT for Sale: After setting the price, click “Sell” to list your NFT on the marketplace. You will need to approve the listing transaction in your wallet and pay any associated gas fees.
5. Wait for a Buyer: Once your NFT is listed, potential buyers can view it in the marketplace. If your NFT is sold, you will receive the sale price, minus any platform fees, in your connected wallet.

What Are Rarible’s Fees?

Rarible charges various fees for transactions on the platform. These include:

• Minting Fees: When you create an NFT on Rarible, you will be required to pay a minting fee. This is a one-time cost to process the transaction on the Ethereum blockchain.
• Sale Fees: Rarible charges a 2.5% fee on every sale, which is deducted from the final sale price.
• Royalties: Artists can set royalties on their NFTs, which means they will receive a percentage of each resale. This is an additional fee that buyers must pay to the original creator when the NFT is resold.

How to Make the Most of Rarible

To maximize your experience on Rarible, consider the following tips:

• Engage with the Community: Rarible’s community is an essential part of its success. Engage with creators, buyers, and collectors to stay updated on trends and find valuable NFTs.
• Follow Creators: If you find an artist whose work you enjoy, follow them on Rarible to keep track of their latest releases and updates.
• Set Fair Prices: When selling NFTs, be mindful of the market. Setting realistic prices based on the rarity and quality of your work can increase your chances of making a sale.

Frequently Asked Questions (FAQs)

1. What is Rarible’s RARI token?

The RARI token is Rarible’s native governance token. It allows users to participate in the decision-making process related to the development of the platform. RARI token holders can vote on proposals and changes, making it a decentralized way to govern the platform.

2. Do I need Ethereum to use Rarible?

Yes, Rarible operates on the Ethereum blockchain, so you will need Ethereum (ETH) to mint, buy, or sell NFTs on the platform. You will also need ETH to pay gas fees, which are the transaction costs required to process actions on the Ethereum network.

3. How do I ensure my NFT’s authenticity?

Since Rarible uses the Ethereum blockchain, all NFTs on the platform are verifiable through the blockchain’s public ledger. This ensures the authenticity and ownership of the NFT, as every transaction is recorded and visible on the blockchain.

Conclusion

Rarible has emerged as a leading decentralized marketplace for NFTs, offering users the ability to create, buy, and sell digital assets with ease. Its decentralized governance, creator royalties, and social features make it a unique platform in the growing NFT space. Whether you’re a buyer looking for rare digital art or a creator seeking to monetize your work, Rarible provides the tools and community to support your journey into the world of NFTs.