Magic Eden
Welcome to Magic Eden, a highly selective and community focused NFT marketplace that supports both the Solana and Ethereum blockchains. Submit a project to the exclusive Launchpad (that only accepts 3% of all minting applications) or make secondary trades with items from NFT games. If you want to get more involved then seek out a Magic Ticket and get direct access to the MagicDAO.
Highlights
Auto Track Available
0 - 1,000%
Asset Class Return•1Y
#8 Rank
In NFTs•30d
Invest from
$1
Overview
Magic Eden is an NFT marketplace that supports minting and trading on both the Ethereum and Solana blockchains. Additionally, Magic Eden offers a selection of NFT games. They had a recent 1.6 billion dollar vaulation and raised a series B funding round of $130 million. Magic Eden also has a partner project (Psychedelics Anonymous) as well as a Discord based DAO (MagicDAO). They pride themselves on a vibrant online community and a highly selective offering of NFTs.
Things to Know
You make money on
Value
Fees
Magic eden has 2% fee on all transactions, but there are also Royalties fees which are paid to and determined by artists. The Royalities fees are paid immediately after a sale and vary artist to artist.
Min Investment
$1
Payout frequency
Asset Sold
Term of investment
Zero
Target Return
Varied
Liquidity
High
Open to
All Investors
Mobile Application
iOS, Android
Top Perks
Creators get ultralow min offers, retain royalties
NFT fans: Enjoy low-fee trading experience
Curated offerings of NFTs
See inside MoneyMade’s 6-figure multi-asset portfolio
6-Figures
12+ Assets
50+ Platforms
4yr+ Returns
How you make money
Trade exclusive NFTS on both the Ethereum and Solana chains and make money as the value of your assets increase. If trading isnt really your style, then try your hand at minting and make money as your digital creations becomes the next big thing.
How Magic Eden makes money
Magic Eden makes money by taking 2% of the cost of all transactions on their platform. They are widely celebrated for their fees being low and reasonable.
Is it safe?
Magic Eden’s primary risk is that it involves NFTs. NFTs are an incredibly risky asset that has attracted swaths of investors. Magic Eden has received $130 million in funding and institutional investors seem to be pretty confident in the success of the platform. In addition, Magic Eden offers low transaction fees that makes a bad trade sting a little less. They also claim to be a web3-first and community-focused enviroment which could bring price stability and consistent demand. However, no matter where you trade them, NFTs are a high-risk investment asset.
Established
2021
Country Available
Worldwide
Assets Managed
$62.4B
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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