Rarible NFT Marketplace Review | The Ascent by Motley Fool – The Motley Fool

Top perks

Easy to use platform

Rarible’s platform is intuitive and beginner friendly. First-time users can simply connect their crypto wallets and buy or sell NFTs. It’s straightforward to explore available NFTs by using filters or following your favorite artists. The credit card payment option may also appeal to beginners, though there are cheaper ways to get crypto. It would also be nice to see more educational resources.

Supports several different blockchains

Ethereum (ETH) is still the most popular blockchain for NFTs, but its high gas (transaction) fees mean people want alternatives. Rarible supports four different blockchains right now and says it hopes to add more in the future. Users who want to reduce fees may appreciate the option to use Polygon (MATIC), Tezos (XTZ), or Flow (FLOW) instead.

Multi-wallet connection

Juggling different wallets and different networks can be a headache. If you keep your digital assets in more than one crypto wallet, Rarible’s multi-wallet support may appeal. You can connect up to 20 wallets to a single profile and manage all your NFTs and crypto assets in one place.

Gas-fee-free minting

Creating or minting an NFT can be expensive, especially on the popular Ethereum network. Creators can avoid these fees with Rarible’s lazy minting function. It essentially delays the process of recording the details of the piece on the blockchain until after it’s been bought. This also reduces the environmental costs. However, it does mean the buyer has to pay extra transaction fees to fully mint the item.

Creator and collector validation

Rarible manually checks the credentials of thousands of users every day. Verified users get a yellow checkmark, which gives them more visibility on the site. Yellow checkmarks aren’t a guarantee of authenticity, but they add an extra layer of confidence.

READ MORE: Best NFT Marketplaces

What could be improved

Credit card fees can add up

It’s great that Rarible lets people buy NFTs with a credit card. However, the fees can add up.

The transaction fees and minimum amount vary depending on the blockchain network you’re using. For example, if you’re using U.S. dollars to buy Ethereum (ETH) the total fee can be as much as 20%. Minimums and fees are lower to buy other cryptocurrencies, but it’s good to keep this cost in mind.

Doesn’t trade all types of NFTs

Rarible has a strong selection of NFTs, and has relationships with several celebrities who have used the platform. However, some categories are not available on its site. These include domain names, sports collectibles, music, and videos. If these are the types of NFTs you want to buy, you might want to look elsewhere.

No obvious anti-phishing measures

Phishing is an increasingly common online scam that tricks people into sharing personal data by mimicking legitimate companies. Some crypto exchanges have specific anti-phishing measures in place. For example, users can set up their own personal phrase or code that will be included in every email. Rarible does not have anything like this.

No compulsory know-your-customer (KYC) check

Rarible has a voluntary verification process to reduce fraud on the platform. However, users can buy and sell NFTs without providing any information about who they are or where the funds came from. Some may see this as a good thing, as anonymity is an important part of the crypto world. But if you’re worried about being exposed to laundered money, the lack of KYC screening is not ideal.

In fairness, none of the major NFT platforms have compulsory KYC screening. As a result of regulatory pressure, most centralized cryptocurrency exchanges require personal information from customers before they can trade. But the NFT industry hasn’t yet adopted these measures.

You want a lower-fee NFT platform: Binance NFT marketplace charges a flat 1% trading fee compared to 2.5% on Rarible. However, fees aren’t everything. Binance is not available to U.S. residents and has faced some regulatory challenges in various countries.

You want a wider range of NFTs: OpenSea is the biggest NFT platform out there. Not only does it have a huge quantity of NFTs, it also offers a broad range of types of digital items. Trading fees are similar to Rarible, but be aware that OpenSea has also had several high-profile security breaches.

Rarible is a popular NFT marketplace with a wide range of items and work from a number of artists. It is easy to use and its functionality will appeal to both beginners and experienced NFT traders. Stand-out features include its multi-wallet profiles, credit card payments, and gas-fee-free minting. Rarible also launched a mobile app last year for those who want to browse NFTs on the go.

Services

The Rarible NFT marketplace offers all the services you’d expect. You can buy, sell, and mint NFTs on several different blockchains. There are two ways to buy NFTs, through auction or at a fixed price. If you’re an NFT creator, check out Rarible’s lazy minting option. This is a way to mint NFTs without paying any gas fees, and can significantly reduce costs.

Blockchains

Rarible is ahead of many NFT marketplaces in that it works with four different blockchains. These are the blockchains Rarible supports:

• Ethereum
• Flow
• Tezos
• Polygon

The option to use more than one blockchain means users can avoid Ethereum’s often high gas fees and access NFTs built on other systems. There are also rumors that Rarible will soon add Solana (SOL) to its platform.

Supported wallets

Rarible works with all the major wallets, including MetaMask, Ledger, Rainbow, Coinbase, Fortmatic, Portis, and others. In total, Rarible users can connect almost 20 different wallets. If you have more than one crypto wallet, Rarible’s multi-wallet profile might appeal. It allows you to add multiple wallets to your profile and see all your NFTs in one place.

READ MORE: Best NFT Wallets

Payment methods

Rarible allows users to pay using both cryptocurrencies and credit cards. Whichever payment method you use, you’ll need a crypto wallet to use Rarible. The cryptocurrency options mirror the blockchains it supports — depending on which network you use, you can pay in ETH, FLOW, XTZ, or MATIC.

Rarible uses a third-party processor to handle credit card payments. It essentially converts the fiat currency into the crypto you need to buy that NFT. Users can also add funds via credit card through their profiles. Be aware that credit card payments will incur a fee and there’s a transaction minimum. The third-party processor will also have its own know-your-customer process.

Credit card fees

Fees vary depending on what crypto you buy and how much you spend. Rarible says fees vary from 2.5% to 4%, but when we tested the payment system, we found the fees could be much higher for smaller amounts. You may also pay a gas fee (a blockchain transaction fee) and you may not get a great conversion rate. Finally, there’s a minimum transaction fee that also varies by blockchain.

For example, to buy $50 worth of ETH, the fees came to almost $10 — about 20% of the transaction amount. Buying MATIC or XTZ was much cheaper. Nonetheless, it’s probably cheaper to use a top cryptocurrency app or exchange to convert your cash to crypto.

Fees

Rarible charges a straight 2.5% fee for buyers and sellers on every NFT sale. Artists can also set a royalty fee that’s typically 5% to 10%. This is the amount they receive when an item is sold. Users also should be aware that NFT transactions usually involve a blockchain gas fee — a bit like a toll you might pay to use a freeway. The fee depends on which blockchain network you use. Ethereum is the most popular, but its fees tend to be a lot more expensive.

Ethereum gas fees vary a lot depending on how congested the network is and what ETH’s current price is. Rarible has a handy tool that tells you what the fees are right now and whether they’re above or below the average. Here are some average Ethereum gas fees for various transactions at time of writing:

The Rarible platform has a clear page of information about its security measures and privacy policy. Since you store digital assets in an external crypto wallet rather than on the platform, to a large extent, you’re responsible for the security of your NFTs.

Investing in NFTs can be risky. There’s a lot we don’t know about how this market will evolve, and you may find you buy an NFT today that dramatically falls in value over time. In addition to the volatility, other risks include:

• Phishing. Phishing is where malicious actors imitate a service provider by email, SMS, or other methods. Users are then tricked into entering their personal information on spoof websites or in response to the message.
• NFT fraud. As digital collectibles have gained traction, the NFT market has become a target for scammers and criminals. For example, several artists have complained of people creating NFTs of their work without their permission. If you buy a plagiarized NFT, it could become worthless.

It would be good to see more information on Rarible’s site about how it avoids phishing attacks, and how users can protect themselves. In terms of avoiding fraud, Rarible manually reviews both collectors’ and creators’ accounts and gives a yellow checkmark to verified members. This helps safeguard against scams, but the system is not watertight. Rarible says it bans confirmed scammers from the platform, but the onus is still on you, the user, to do your due diligence.

• You’re new to NFTs and want an accessible platform.
• You want to use different blockchain networks such as Flow, Tezos, or Polygon.
• You want to use gas-fee-free or lazy minting to reduce costs.