A number of NFT marketplaces out there operate in a custodial way. What does this mean, and why do NFT creators and NFT collectors want a non-custodial NFT marketplace? Read on to find out.
How are they different?
A custodial NFT marketplace manages and controls your wallet's private key and holds your NFTs in custody. In other words, a custodial NFT marketplace has full control over your NFTs, can manipulate your account and must give you permission to transfer your NFTs. The best example of a custodial NFT platform is the Binance NFT marketplace, where you must register or login with a registered account.
A non-custodial NFT marketplace on the other hand gives NFT creators and NFT collectors complete ownership and control of their wallet and NFTs at all times. As a user, you can trade NFTs directly from your wallet. This eliminates third-party involvement, as a non-custodial platform uses smart contracts to enable any NFT transaction.
Benefits of a non-custodial NFT marketplace
1. Decentralized and full ownership of NFTs
The main advantage of a non-custodial NFT marketplace is the NFT creator's full control over his NFTs and the ability to choose the type of NFT transaction fees. An NFT creator can move his NFTs at any time, even if the NFT marketplace is not running, since the private is kept on the user's crypto wallet and not on the NFT marketplace's.
2. No forms, No selfies needed
Non-custodial NFT marketplaces do not require any type of documentation to create or sell NFTs. In other words, as an NFT creator, you don't need to provide your ID or passport, just a legit or unique NFT asset to trade.
What are the best non-custodial NFT marketplaces to mint NFTs?
AirNFTs is entirely a non-custodial NFT marketplace that supports multichain NFTs like Binance Smart Chain, Polygon and Fantom. We do not have access to manipulate our users' NFTs or transfer their NFTs, as we would need their secret phrase to do so. Instead, their wallets own their NFTs and no one else can manage their NFTs. In this way, AirNFTs is more secure as an NFT marketplace for NFT collectors and NFT artists.
OpenSea does not control or have custody of its users' NFTs. Your NFTs do not leave your wallet until they are sold because Opensea does not execute any purchase, sale or transfer of NFTs, nor does it control the blockchains you interact with.
On SuperRare, all NFT transactions are peer-to-peer, and no one has access to the funds or NFTs except those trading on the SuperRare NFT marketplace.
When an NFT sale occurs on Rarible's NFT marketplace, the smart contract you agreed to when you listed your NFT activates and removes it from your wallet, depositing the funds owed to you in your wallet in exchange.
Foundation will not take custody of your NFTs. The platform only serves as an NFT marketplace where NFT buyers and NFT sellers can connect. To store your NFTs, you will need to use a web3 wallet, such as MetaMask or Trust Wallet.
Knowledge of the key differences between custodial and noncustodial NFT marketplaces is intended to help NFT enthusiasts decide how best they want to secure and manage their NFTs.
Want more control over your NFTs? With AirNFTs, you can mint on Binance Smart Chain (BSC), Polygon as well as Fantom (FTM) for less than a penny and have absolute control over your NFTs.