Each of us, to some extent, is aware of the new emerging trend in NFT and NFT marketplace. Today, we are here to cover the Coinbase NFT marketplace specifically.
But, before we dive into the never-ending discussion of the NFT market and its affiliation with Coinbase, let’s look into Coinbase first.
Coinbase is known as a popular cryptocurrency exchange platform based in America, and it comes under the listing of NASDAQ and currently supports crypto trading. With a large global presence, Coinbase is considered one of the leading crypto exchanges in the world.
Now, getting back to Coinbase NFT, the platform has not entirely opened its door to NFT yet (which we will get to in a second). However, Coinbase is already seeing tons of competition from other NFT marketplaces such as LooksRare, OpenSea, etc.
So, what exactly is Coinbase NFT? Can you purchase NFT from Coinbase? And when is Coinbase launching NFTs? These are some of the major questions we will be covering in today’s blog post. Let’s get started!
What is Coinbase NFT?
Coinbase NFT is an upcoming peer-to-peer marketplace aimed at making the process of showcasing, minting, purchasing, and/or discovering NFTs much easier for people. Coinbase NFT will cater towards providing a more cooperative environment through interaction among users & creators.
Similar to how Coinbase helped tons of individuals access Bitcoin during its initial stages in an easy & reliable way – Coinbase is looking to do the same with NFTs through their marketplace.
This means Coinbase, as a digital currency exchange platform, progresses to a new type of online marketplace where users can buy, sell, promote and mint NFTs (Non-Fungible Tokens).
To keep it brief, NFTs are crypto assets that represent a digital form of ownership via various NFT collections such as photos, original artworks, music, etc.
The NFT Coinbase currently utilizes one of the rising cryptocurrencies, i.e., Ethereum (ETH), as its medium of exchange. Although the Coinbase NFT marketplace is still in formation, users can still purchase NFT on its platform. How? We’ll find out below in a sec.
How to Purchase NFT on Coinbase in 6 Easy Steps
Certain cryptocurrencies such as NFT can be purchased only through another cryptocurrency on a decentralized exchange platform. So, to purchase an NFT, you’ll have to first buy ETH or Ethereum, which is then used to purchase the NFT of your liking. And to formulate this entire process of moving from ETH to NFT, you’ll need a self-custody crypto wallet.
Here are 6 steps to follow using the Coinbase wallet to purchase NFT:
1. Download the Coinbase Wallet
The first step required to purchase non-fungible tokens (NFTs) is to get a self-custody wallet such as the Coinbase wallet, which can be accessed through its mobile application or a browser extension.
2. Give the Coinbase Wallet a username
As part of the setting up process, users are required to keep a username for the wallet. This “username” allows other Coinbase users to transfer your crypto. The username can be kept private. However, it is mandatory to hold one to gain access to your account.
3. Note down your recovery phrase
While creating the self-custody wallet, users are provided a recovery phrase consisting of 12 random words. This “recovery phrase” holds the key or, in other words, access to your crypto. Hence, anyone with the recovery phrase can gain access to your crypto. Make sure you note it down somewhere in secret and don’t share it with anyone else!
4. Understand & plan for Ethereum (ETH) network fees
Fees often vary depending on the network status (busy or not), the complication involved in the transaction, and the speed of the transaction. So, understand the path you’re walking on and put some money aside.
5. Buy & transfer ETH (Ethereum) to your Coinbase Wallet
Transferring Ethereum to your wallet will first require you to have an active Coinbase account, so make sure you have already signed up for Coinbase, potentially by being referred to the exchange by a friend participating in the Coinbase referral program with a Coinbase promo code for the both of you to enjoy a crypto gift. The transferring process also varies a bit depending on the mode of application, i.e., mobile app or browser extension.
6. Use ETH to purchase NFT
If the Coinbase wallet is accessed through the mobile app, users can instantly purchase NFT through the app itself. You can go to the “trade” tap and swap your Ethereum for any token running on Ethereum standard, aka “ERC-20 tokens“. You can tap on “choose coin” and proceed to select NFT. You can choose the amount of Ethereum to be exchanged for NFT.
For those using the browser extension, you can tap on the “convert” button, look for NFT and then input the amount of Ethereum to be exchanged for NFT. Always make sure you’re leaving enough for transaction fees as well (for both app and browser).
When is Coinbase NFT coming out?
As a powerful leading exchange platform, Coinbase is still yet to put the green light on NFT trading. The platform made its initial announcement for its own NFT marketplace last October 2021. Soon after, many crypto holders lined up quickly for the official release date of this new market of NFT space.
However, Coinbase still has not confirmed the official launch date for the Coinbase NFT launch. If you head over to the announcement section of Coinbase’s official site, the page still states ‘Coming Soon‘ for NFTs. But, the good thing is that Coinbase does allow prospective NFT holders to register on the Coinbase NFT waitlist.
Coinbase firmly states that its new NFT marketplace (to be called Coinbase NFT) will include “social features” and bear the idea of a “creator economy” – a term used in describing people that make money by posting content online.
It is also stated that the Coinbase NFT marketplace will be supporting Ethereum-based ERC-1155 and ERC-721 tokens the first time around before shifting to multi-chain support.
As of now, we haven’t received the final word from Coinbase itself. However, major sites such as TechCrunch and The Verge reports that the platform will launch the Coinbase NFT “later this year,” i.e., 2022.
4 Things to Keep in Mind about Coinbase NFT
Many people are aware that Coinbase already allows its users to store Non-Fungible Tokens (NFTs) in its external wallet. But the new Coinbase NFT marketplace is where things will take a turn.
The new NFT marketplace will head towards making things such as minting, buying, selling, showcasing, etc., easier than ever. The idea of Coinbase is to make the purchase of NFT as easy as buying a t-shirt or any other online product.
That said, here are 4 things to know about the new product of Coinbase:
1. Users won’t require crypto to purchase NFTs with Coinbase
As with many aspects of the crypto industry, buying NFT is a lot less intuitive. For one, users must possess an external wallet with the correct digital currency, which is often ETH or Ethereum. However, other networks such as SOL (Solana) are also emerging as a popular option for NFTs.
Coinbase wants to make this whole process easier. The platform has even partnered up with the leading payment tech company, Mastercard, to allow any individual with Mastercard (either debit or credit) to purchase an NFT. Users will still require their crypto wallet to keep their purchase, but the partnership does eliminate one of the painful hindrances for users.
2. More than 3 million individuals have registered
Since the platform’s initial announcement of its NFT marketplace in October 2021, Coinbase has amassed over 3 million waitlisted individuals for this new market product. Being waitlisted means you gain early access to Coinbase’s new marketplace along with receiving essential notifications such as the official launch date.
3. Users can move up the waitlist via its referral program
The higher you are on the waitlist, the sooner you’ll get to utilize the new Coinbase NFT marketplace. This depends on how early you registered and the number of people you refer.
Once the registration email is submitted, users receive a referral link, which can be used to move into a higher position on the waitlist.
4. It’s currently open to only U.S. residents
Coinbase customers residing outside of the U.S will be waiting around a little longer before gaining access to the new Coinbase product. The platform plans on releasing its NFT marketplace first to the U.S audience. However, Coinbase’s plan to make an international launch is also in the works.’
Coinbase NFT FAQs
Users can receive NFT on their Coinbase crypto wallet by swapping their ETH (Ethereum) for any kind of token, including NFT. This can be executed via the “Trade” tab. After confirming the exchange, the selected NFT will be reflected on your Coinbase crypto wallet.
Yes, users can transfer Non-Fungible Tokens to another crypto wallet through OpenSea. First, make sure your crypto wallet is connected to OpenSea. After this, you can head over to the profile section, find the NFT to be transferred, tap the transfer icon (gift icon) placed at the top right, enter the crypto wallet address, and hit transfer.