Ever since CyptoKitties (a cryptographically designed game featuring a host of digitized cats) hit the global collectible asset space, a lot of people have started to take notice of this niche’ market sector. To further elaborate on this point, the rarest cats within CryptoKitties can typically trade for “thousands of dollars” primarily because of their overall rarity and immutability.
Another point worth noting is that, unlike bitcoin and some other alt-assets, each of these digital cats are non-fungible — i.e. they are cryptographically unique. Simply put, once you have bought a digitally signed crypto kitty, there is no way to duplicate it.
In terms of their value and financial worth, collectors have said in the past that that by trading their Cryptokitties, they were able to make profits in excess of $40,000.
Even though the Cryptokitties market has slowed down a bit over the past six-months or so, during the same time frame, over 50 new crypto collectible platforms have sprung up all across the internet. In this article, we will explore the easiest ways in which to get involved with this ever-evolving market in the easiest manner possible.
Buy, Sell And Trade Blockchain-Based Crypto Collectibles
Let’s Get Started:
Step1. Install Metamask: Nearly all of today’s crypto-collectible platforms make use of a free Chrome plugin called ‘MetaMask’. The application is needed to facilitate crypto transfers and can be procured extremely easily by going to MetaMask.io and following the outlined instructions.
Also worth remembering is that, during the installation process, the app provides the user with a “set of seed words” (which are needed in case a customer forgets his/her account password).
Step2. Procure Some Crypto: The next step in the entire process is for users to go get some Ether. This is essential since purchases carried out via MetaMask can only be completed through ETH. Not only that, users need to possess at least $15 worth of Ethereum to start trading on most crypto-collectible platforms.
The simplest way to procure the currency via MetaMask is by clicking on the “deposit button” and then using Coinbase or some other trusted crypto exchange to make the purchase. Credit cards as well as bank transfers can be used for this purpose.
Step 3. Exploration: After gaining some experience with MetaMask and how the whole crypto-collectible scene works, buyers can then choose to add larger sums of Ether to their accounts. One of the most cost-effective means of trading large amounts of fiat for crypto is by using a full-featured cryptocurrency exchange (such as Coinbase).
How Do I Go About Picking The Right Crypto-Collectible Platform?
This is one of the most important facets of the entire trading process, especially since there are so many platforms available for buyers to choose from (with new one’s even hitting the market each and every day).
While some crypto-collectible platforms such as CryptoPunks allow for digital assets to be sold like real-life objects (i.e. all collectors have to do is buy them and hope that their as prices go up). However, there are other platforms like Etheremon and Mytherium, that can be integrated into games (thus making them much more appealing and attractive to customers).
What Is The Crypto-Collectibles Market Like?
In terms of the activity these aforementioned crypto-collectible platforms witness on a day to day basis, we can see that it is essentially the initial hype that drives the prices of most digital assets in an upward direction. But once the furor starts to die down, market flipping no longer remains a viable option. To elaborate further on this point, we can see that just under a year back, the official CryptoKitties site attracted over 10,000 daily visitors. However, as per latest statistics provided by dAppRadar, the site now only draws in a total of 300-400 people per day.
What Is The Money Involved Like?
One thing investors need to understand clearly about this sector is that even brand new crypto-collectible markets can be quite expensive from the get go. For example, Gods Unchained, a brand new card game that hasn't even been released for commercial purchase, but has already amassed a total of 146 Ether for its rarest in-game card.
While there is no assurance as to whether the price of this card will increase in the future, but if Gods Unchained delivers on its promises, the card in question could very well witness an unprecedented surge in its value in the near future.
How Can I Buy These Assets?
There are two primary ways in which the buying and selling of crypto collectibles can be initiated:
1. Official Product Website: This is the most straightforward method of buying a collectible. The primary advantage of this method is its simplicity since all you have to do is simply click on the product that you want to buy. Once a choice has been made, users can employ their MetaMask wallet to make the necessary payments.
With that being said, the main drawback of this method is that buyers are often limited to buying randomized packs. For example, in the case of Gods Unchained, there is no way of buying specific cards unless users take part in an auction.
2. Crypto-Collectible Marketplaces: As the name suggests, crypto-collectible marketplaces provide customers with virtual avenues for buying/selling digital assets with ease. Listed below are some of the most popular destinations for buying/selling such items:
(i) OpenSea: This is one of the largest crypto-collectible marketplaces on the internet. Some of the supported collectibles on OpenSea include:
- Gods Unchained
In terms of OpenSea’s UI, the website has a useful menu on the left side of the screen that displays all of its supported platforms along with the number of collectibles that are available for purchase.
Other key aspects of OpenSea include:
- The site lets collectors buy/sell individual collectibles
- Crypto-collectible bundles can also be procured from the website.
- OpenSea’s interface is easy to use.
However, the one downside of OpenSea is its high processing charges (which amount to nearly 2.5% of the sale amount for every successful transaction).
(ii) Rare Bits: A new entry within this market space, Rare Bits currently supports 20 crypto-collectible platforms and does not charge customers any sort of transaction fees. Lastly, the website’s interface is quite similar to OpenSea and can be used easily by individuals with varying degrees of technical know-how..
(iii) OPSkins: While OPSkins primarily serves as an online marketplace for Counter-Strike skins, it also supports a wide variety of popular gaming-oriented crypto-collectibles (such as CryptoKitties and Etherbots.)
Another core advantage of using OPSkins is that it allows fiat payments and withdrawals ( a feature that is currently not available on either OpenSea or Rare Bits) .