Nifty Gateway review
Nifty Gateway is one of the centralized marketplaces focusing on enabling tools suitable for buying, selling, and minting NFTs. Since 2018 when it first launched, the platform has strived to set itself apart as an NFT marketplace known for its high penchant for facilitating the trade of exclusive digital items albeit without all the convoluting processes associated with decentralized NFT marketplaces. In light of the peculiarities of NFTs, it has emerged as one of the top NFT ecosystems in the last couple of years even as it continues to lure some of the most prestigious offerings in the NFT landscape.
In this guide, we will explore the most compelling features of Nifty Gateway, highlight what it entails to buy or sell NFTs on the platform, and the major things to look out for before using its infrastructure.
What is Nifty Gateway?
Nifty Gateway is one of the first set of marketplaces that identified the potential of NFTs and sought ways to make them accessible to art lovers and investors alike. For Nifty Gateway, the goal has always been to eliminate the barriers to entering the NFT market. To achieve this lofty goal, the creators have opted to simplify the processes involved in the buying, selling, and managing of NFTs. As such, Nifty Gateway has implemented a less ambiguous model for trading and minting NFTs such that those without programming skills can still partake in the market, even if it means that they will have to relinquish some level of control over their assets.
In other words, Nifty Gateway promises a quality user experience at the expense of users’ autonomy. What this means is that Nifty Gateway functions as an intermediary that takes up some of the technical requirements of trading and managing NFTs on behalf of its users. More specifically, the platform stores NFTs on behalf of its users. This is very much similar to how centralized exchanges operate. In essence, we can classify Nifty Gateway as a centralized NFT marketplace.
Interestingly, the platform was launched in 2018 by Duncan and Griffin Cockfosters, and it was later purchased by Gemini LLC, the New York-based crypto exchange created by the Winklevoss twins. Ever since Gemini acquired Nifty Gateway, the platform has doubled down on its goal to enable a seamless gateway to the NFT market. In addition to this, it has built a reputation for itself as a high-end marketplace that facilitates some of the most exclusive NFT drops in the ecosystem. This means that you will likely find artistically creative minds listing their artworks on Nifty Gateway. Hence, the marketplace naturally attracts collectors interested in getting their hands on digital items that would potentially fetch a higher price on the secondary market.
Unlike decentralized marketplaces like OpenSea and Rarible, not everyone can list their NFTs on Nifty Gateway. This is because the platform prioritizes digital artists with some level of pedigree in the art world. Interested sellers must undergo a strict verification process designed to ascertain the authenticity and artistic merit of the applicant’s artwork. On the other hand, buyers do not need to undergo these rigorous checks before they can start bidding for NFTs.
How to register on Nifty Gateway
Like most NFT marketplaces, Nifty Gateway has set up a framework that requires new users to register an account before buying or selling NFTs. However, in tandem with its simplistic approach to NFT, the platform’s registration process is as straightforward as they come. All you need to do is click on the signup/login button on the website’s homepage, enter an email address at the appropriate field and choose a password. Once your account has been created, you can choose to personalize it by submitting more information and uploading a profile image.
How to buy NFTs on Nifty Gateway
Once your account is up and running, you can start buying your favorite NFTs. But first, you should get to know the different types of NFT drops that you may encounter on Nifty Gateway. They are:
These are NFTs available for sale at a fixed price for a specific duration. For example, if an NFT priced at $5,000 is said to be an open edition, you must pay $5,000 before the end of the sales to purchase the NFT. The number of editions purchased will determine the number of NFTs that will be minted. In other words, such NFTs are not minted until after the sales are over. Therefore, you may not be able to access the NFT immediately after you make payment.
A pack is composed of a mix of unique NFTs. When you purchase a pack, you will access a set number of NFTs with varying degrees of uniqueness.
This is a more common model. Here, you are required to outbid other interested buyers publicly before the auction period comes to an end. The individual with the highest bid at the close of the auction will eventually be afforded the chance to purchase the NFT at the said bid price. Note that these auctions typically last for 24 hours.
Here, collectors are expected to place blind bids. As such, you will not be able to see the bid price of other bidders. At the end of the auction period, each of the 100 highest bidders will receive an edition of the NFT collection. The edition numbers will be distributed according to the bid price of each of the selected collectors.
This is a bit similar to the bidding model discussed above. The only difference is that the bid prices of all the participants are made public.
This is a more inclusive framework because collectors are randomly picked and offered a window of opportunity to pay the asking price of the NFT. To become eligible for selection, you have to have a validated profile and a verified payment channel.
First Come First Serve
As its name implies, these NFTs are sold on a first come first serve basis as long as they can pay the asking price.
Supported Payment System
Now that you know all of the different types of drops available on Nifty Gateway, it is time to buy your first NFT. This you can do by adding and verifying your credit card or loading your in-app Ethereum wallet. The Pre-paid ETH is a feature that allows users to deposit Ethereum on the Nifty gateway’s in-app wallet. There is also the option to make payment with your Gemini exchange balance. This is an ideal option for those who already have an account on Gemini. With this payment option, users can make purchases with DAI, USD, and GUSD. Note that Nifty Gateway only supports one fiat currency which is the US dollar.
Nifty Gateway Fees
Since Nifty Gateway is a centralized entity, it is important to consider its fee structure. The first thing you should know is that users have to pay a 5% fee and extra 30 cents on all secondary sales to cover the credit card processing and platform maintenance cost. Also, when purchasing or selling assets on the platform's secondary market, it is important to confirm whether the NFT comes with royalty fees. In most cases, the original creators implement royalties that allow them to claim a certain percentage of the amount paid to purchase their NFTs on the secondary market.
Other NIfty Gateway features
Below are some of the extra features that you can enjoy on Nifty Gateway
As an added advantage, Nifty Gateway has launched a display app for Android devices which will allow users to showcase their NFTs. This tool is compatible with Android TVs and tablets.
With this tool, you can set price alerts for a specific NFT type. You can do so by setting a specific price such that you will be alerted via email whenever an NFT that matches your preferred type is listed below your specified price.
You can also configure your account such that Nifty Gateway will send you notifications whenever your favorite NFTs are listed, bought, sold, or auctioned off.
What about the security?
Nifty Gateway wants us to believe that its affiliation with Gemini, which is known for its sophisticated security infrastructure, is enough reason to trust its competence. However, everyone that is familiar with the dynamics of the crypto world knows that centralized platforms are target practices for hackers. As such, you are always at risk as long as you rely on the infrastructure of a third-party service for the safety of your digital asset. This is why the security incident reported by Nifty Gateway’s users in March 2021 was not all that surprising. However, following a preliminary investigation, Nifty Gateway explained that this was a minor incident and that those involved were users who have not implemented two-factor authentication as extra protection.
The Nifty Gateway website comes with a loaded FAQ section. Also, users can report issues via email.
What are the pros and cons of Nifty Gateway?
The pros of Nifty Gateway
It is easy-to-use
The Nifty Gateway website is easy to navigate, thanks to the platform's decision to simplify the process required to mint NFT.
Nifty Gateway supports both fiat and crypto payments
The payment infrastructure of Nifty Gateway combines both conventional and decentralized payment methods. And so, it is safe to say that the platform is ideal for new NFT investors.
It prioritizes exclusive NFTs
The chances of accessing exclusive and genuine digital artworks are high when using Nifty Gateway.
The cons of Nifty Gateway
It is centralized
You will agree that using a centralized digital asset platform exposes users to a high degree of risks including hacks, data privacy abuse, and service restrictions.
High barrier entry for artists
As mentioned in this guide, you need a level of experience in the art or entertainment world to have your NFT listed on Nifty Gateway. This is unlike what we have on decentralized marketplaces where NFT services are available to all and sundry.