Coinbase NFT
Coinbase NFT is an NFT marketplace that lets you buy and sell non-fungible tokens with a compatible crypto wallet.
Highlights
Auto Track Available
0 - 1,000%
Asset Class Return•1Y
#8 Rank
In NFTs•30d
Invest from
$1
Overview
Popular crypto exchange Coinbase launched Coinbase NFT in April of 2022 as a social marketplace where Coinbase users can buy and sell NFTs. User profiles are styled like social media bios, adding a social aspect to the marketplace that allows users to engage more actively in the NFT community. Like other NFT marketplaces, Coinbase NFT also has its own exclusive drops. Anyone can create a Coinbase NFT profile and start trading NFTs with a crypto wallet. Coinbase NFT uses WalletConnect, so all wallets supported by WalletConnect are compatible with this marketplace, including Coinbase Wallet and MetaMask.
Things to Know
You make money on
Value
Fees
0%
Min Investment
$1
Payout frequency
Asset Sold
Term of investment
Zero
Target Return
Varied
Liquidity
Moderate
Open to
All Investors
Mobile Application
No
Top Perks
Trade NFTs simply with your Coinbase wallet
No charges, just ETH gas fees for transactions
Quick, easy-no sign-up just use your crypto wallet
See inside MoneyMade’s 6-figure multi-asset portfolio
6-Figures
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How you make money
To make money off of NFTs, you either have to mint and sell your own or buy an NFT that you can later sell for an elevated price. You can do this either by identifying undervalued NFTs or by purchasing NFTs during major drops that you expect to appreciate in value. You can then make money by holding onto your NFT and re-selling it (often on the same marketplace) once it's gone up in value.
How Coinbase NFT makes money
Currently, Coinbase NFT doesn't charge any fees, although you will have to pay the gas fees associated with ETH transactions when you buy and sell NFTs on this platform. Coinbase makes most of its money through fees associated with its crypto exchange, so it can afford to provide a fee-free NFT marketplace. However, Coinbase NFT is currently in its Beta version, and it's possible that future iterations will incorporate transaction fees to help support the platform as it becomes more popular.
Is it safe?
Coinbase is an established crypto platform and one of the top crypto exchanges in the world by volume, so its Coinbase NFT arm is legitimate. The Coinbase Wallet is secure and trusted by crypto investors and NFT collectors alike. As a self-custody wallet, it gives you complete control over your crypto and NFT assets. If you're worried about security, there are additional security options available.
Established
2022
Country Available
Worldwide
Assets Managed
n/a
How you’re taxed
Capital Gains
Income Tax
There are two tax considerations to be had when purchasing NFTs:
Buying an NFT using Crypto
When The IRS states that “if you exchange virtual currency held as a capital asset for other property, including for goods or for another virtual currency, you will recognize a capital gain or loss.”
For example - if you purchased a unit of ether for $100 in 2018, it would now be worth around $1,700. If you used that ether unit to buy a $1,700 NFT, you would have to pay tax on the gain of $1,600 as part of the NFT purchase. You would owe the IRS — assuming a top capital gains rate of 20% — a tax of $320. You’re not spending currency, you’re spending an appreciated asset.
Selling an NFT for profit.
Profits earned from the sale of NFTs, the same as crypto, are taxed like stocks (short and long term capital gains). Whenever you sell an NFT, you incur a capital gain or loss. For example, if you bought an NFT for $10,000 of ETH (this is your cost-basis) and then sold it for $15,000 of ETH, you would incur a taxable capital gain of $5,000.
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