Is There a Marketplace for Bitcoin NFTs?

In 2021, non-fungible tokens (NFTs) became a global phenomenon, attracting billions of dollars, mostly on the Ethereum chain. Since Bitcoin is the largest cryptocurrency by market cap, many have been looking for a solution to create NFTs on the Bitcoin chain and tap into an even larger market. 

NFTs cannot easily be created on Bitcoin, so developers had to search for workarounds. 

Is There a Marketplace for Bitcoin NFTs?

In late 2022, Bitcoin mainnet developer Casey Rodarmor was searching through the Bitcoin chain in hopes of finding a way to get NFTs on the platform. He found that one of the updates to the Bitcoin chain allowed users to attach images and other files to specific Satoshis (100 million Satoshis in one Bitcoin). While this mechanism operates differently from traditional NFTs, it still allows for images to be traded on the Bitcoin blockchain. 

Rodarmor took this idea and created the Ordinals protocol. The project allows users to create and upload images for each Satoshi that they own, called inscriptions. The specific image is attached to the token, which can be traded. 

A traditional NFT acts as its own asset. It has its own code on the blockchain and can be transferred between wallets. Bitcoin inscriptions are attached to each token and cannot be traded separately. 

Since Ordinals has only gained popularity recently, they are not available for trading on many sites. This article looks at the sites that offer Ordinals, as well as some of the top NFT sites in general. 

Best NFT Marketplaces

Let’s take a look at some of the best options for NFT trading. 

OpenSea

OpenSea is the largest NFT marketplace. Operating on the Ethereum chain, it provides varied services, ranging from secondary trading to allowing users to create NFTs. It also allows you to track some of the most popular mints, as well as highly anticipated ones to come. 

Magic Eden

Magic Eden has a broader audience than OpenSea, allowing for Solana, Ethereum, Bitcoin and Polygon NFT trading. This allows the marketplace to house all of the biggest NFT projects and can be a one-stop shop for all things NFT-related. It also supports the Bitcoin chain, so you can buy and sell Ordinals on the platform. 

LooksRare

LooksRare is another Ethereum NFT marketplace. However, it has a unique business model that has attracted a good amount of users. Unlike other sites, LooksRare has its own token (LOOKS). The token is used to pay rewards to users who trade NFTs on the site. In addition, users can use LOOKS tokens to buy exclusive NFTs and gain access to other rewards. 

Solanart

With Solana becoming more popular over the past several years, Solanart has emerged as the top NFT marketplace for the chain. It charges zero fees on all trades. 

Kraken NFT

Kraken is a crypto trading platform and an NFT marketplace, which is attractive for those who do not want to deal with a third-party wallet service. It offers some of the largest projects on the Ethereum, Polygon and Solana chains. 

How to Use Bitcoin to Buy NFTs

Since there are only a few NFT projects on the Bitcoin chain, let’s take a look at how you can convert your Bitcoin into a different token, which you can use to buy NFTs. 

Buy Bitcoin: If you want to use Bitcoin to buy NFTs, first you need to buy Bitcoin. To do so, you can navigate to a crypto trading platform. Benzinga recommends Webull, Coinbase or Kraken. From there, you sign up and verify your account. You link your bank to fund the account and begin trading. 

Convert Bitcoin to another token: To convert your Bitcoin to another cryptocurrency, you can use the exchange feature on your trading platform to convert your tokens into different ones. Select your Bitcoin holdings in your portfolio and convert them into a different token. Some of the more popular tokens for NFT trading are Ethereum (ETH) and Solana (SOL). 

Send tokens to a wallet: You cannot use tokens on an exchange to buy NFTs in most cases. To use your crypto on an NFT platform, you need a wallet. To open a wallet, you can download the software and create an account. You can then send the crypto from your exchange to the wallet. Coinbase Wallet and Ledger Hardware wallets work well for this step. 

Buy an NFT: Use the converted BTC to buy an NFT. To do so, navigate to one of the NFT marketplaces discussed above. From there, you can browse popular collections or search for a specific one. Once you have found an NFT that you like, you can connect your wallet to the marketplace and buy it. 

Another alternative to using Bitcoin to buy an NFT is to buy on Magic Eden, which allows users to access a marketplace to trade Ordinals.

Another option would be to create your own NFTs using the Ordinals Protocol. You could then sell these NFTs on Magic Eden. 

Benefits of Owning NFTs

Since NFTs are still new, it can be difficult for some to understand their uses and where they get value. Here are some of the major benefits of owning and using NFTs.

Exclusivity: Many NFT collections are released in limited quantities and are never released again, which can make certain NFTs rare and desired. 

Ownership: NFTs are stored on the blockchain, which means that the information they hold cannot be changed or moved around. This enhanced security is desirable for many blockchain users. 

Price appreciation: Finally, NFTs can appreciate and gain in value, which is beneficial from an investment standpoint, as you can earn capital gains from buying and selling NFTs. While selling NFTs for a profit is not a guarantee, it is certainly something that can happen. 

Compare NFT Marketplaces

If you are interested in learning more about NFT marketplaces or looking for more comprehensive guides, Benzinga offers insights and reviews for a handful of the leading marketplaces. 

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