Non-fungible tokens, or NFTs, have long ceased to be a trifle. According to The Generalist: In the third quarter of 2021, NFT had sales of $ 10.7 billion.
OpenSea is a market leader in the purchase and sale of unique tokens. It maintains leadership because tokens on the platform are easy to create, find, buy and sell.
Let’s look at what this popular platform is and how to create, buy and sell NFT on it.
OpenSea.io is the world’s first and most famous NFT marketplace. It creates, sells, buys, and collects digital artwork tied to non-fungible tokens.
Anyone can upload their art (image, music, video, 3D model), turn it into NFT, put it up for auction, and earn cryptocurrency. Also on sale on OpenSea are:
- domain names;
- plots of land, clothing from game worlds;
- virtual collectibles.
The site’s capabilities are actively used to create and promote thematic communities, to support fan movements in the world of professional sports.
The OpenSea platform was founded in November 2017. It is the largest trading platform for buying and selling digital concepts. The platform offers over 300 types of assets and over 10,000,000 items.
Suppose your Ethereum wallet contains digital collection parameters, then with the help of OpenSea. In that case, you can also put them up for sale. Ha OpenSea, NFT artifacts from many popular blockchain games are also available for you.
OpenSea allows you to create a custom trading platform for ERC-721 or ERC-1155 tokens if you are a developer.
How to open an account on Opensea?
On DeFi resources, the registration of an account is replaced by the connection of a wallet compatible with the Ethereum network. To work with OpenSea, they use MetaMask, Bitski, Fortmatic, WalletConnect, Coinbase, Arkane, Dapper, and others.
Here’s how to connect:
- Open the main page. Click on the wallet icon in the upper right corner and select your financial application from the drop-down menu.
- Select the account or accounts that will be linked to the site.
- Allow viewing of the account address and complete the linking.
- If everything is in order, then the partial address of the connected wallet and its balance will be displayed. Suppose there is no money in the account. In that case, you can immediately replenish it from any crypto exchange or a bank card.
- If you wish, you can change the avatar and banner on your page.
Now you can fully use the site.
How to buy on OpenSea?
The site is similar to a classic online store, so there should be no problems with purchases. Here’s how to purchase NFT:
- Go to the Marketplace section. A large feed of goods will open. You can sort the results by the principle of “piece or set,” price, date of creation, views.
- On the left is the Filter menu, where you can set up a detailed search by status, price frame, collection, network, categories, currency.
- Click on the art you like, having a fair price.
- Read a detailed description, study price dynamics, and other statistics. Click Buy now.
- Get acquainted with the level of reliability of the seller and his products (OpenSea Confidence Score), the number of transactions. Check the box that everything is fine and click Continue.
- Check the final shopping list, agree with the rules of the service. Click Checkout.
- An error may occur – the site throws it to a stub page with a requirement to enter the wallet, despite this having already been done. It means that the wrong network is set in the settings of the payment application. We need to return Ethereum.
- Even for free NFT, you’ll have to fork out gas fees.
- Before paying, you will be asked to put a virtual signature under the Terms & Conditions.
- Once the transaction is confirmed, the NFT will be credited to the buyer’s account.
Auction is the most popular selling and buying method on OpenSea because it adds excitement. You can sell a token or kit at an inflated price. WETH tokens are used for payment, so it is recommended to purchase them in advance. Here’s how to buy from the auction:
- Select On auction in the filter on the left.
- Find an exciting option in the feed and click on it.
- Read the description, bid history, and price dynamics. Click Place Bid.
- Agree to the terms, enter your offer, click Place Bid again. If the wallet does not have wETH, then select the Convert ETH option.
- Once a bet has been placed, the corresponding amount will be blocked. If no one interrupts her before the end of the auction, then the money will go to the seller and the NFT token to the buyer. If the offers are interrupted, the funds will be unfrozen and available for new operations.
How to sell on OpenSea?
There are two main selling methods on OpenSea: Set Price and Auction.
- Let’s consider how to add your token to the product feed and set up the transaction details:
- Go to the My Collections section and select the desired NFT. Click on the Sell button in the upper right corner.
- Choose a method: final price, highest bid (auction), combined with other art.
- For the classic method, select Set price, and in the window below, set the amount in ETH. Additional settings include deferred listing, final expense, privacy.
- If you select Highest Bid, specify the starting bid, reserve price, and the bidding period.
- Click Post your listing.
- Pay the OpenSea commission.
Upon completing the transaction, the new NFT token will appear in the marketplace feed. Digital art connoisseurs and collectors can purchase it.
On the NFT page, you can find a blue “Sell” button in the upper right corner. You will be presented with a choice of three methods to sell a painting on OpenSea:
- Bundle. It’s a feature that will allow you to list multiple items for sale at the same time. We go to a personal page and just put a checkmark on the necessary NFTs. Then click Sell to sell. Further, all the set sale settings will be applied not for one token but the entire set. When someone buys this kit, they will receive all of the items from it. In this way, you can group up to 30 NFTs to pay for a shipment only once.
- Highest Bid. It’s an auction. You set the minimum bid, the starting price, and the time for the auction. When the time is up, the highest bidder will automatically receive the NFT. If there are no bids equal to or higher than the initial price, the auction will end without a sale. The starting price must be at least 1 ETH. Otherwise, the auction cannot be created.
- Set Price. It’s a fixed-price setting. Any price, except 0, can be set here.
How to create NFT on OpenSea?
The most mysterious and creative process is also simple. It requires neither the skills of a crypto developer nor a digital artist. It is enough to have a digitized picture/video/track. The instruction looks like this:
- On the main page of the site, click Create. Connect wallet, if not already done.
- Click Create a collection. If you click on three dots, a list of other smart contracts will appear in the drop-down menu, where you can create an art token.
- Add 350×350 logo, collection name, short description. If such a name already exists, it will be highlighted in red. Click Create.
- The collection album has been created. You can add items – Add Items.
- In the menu that opens, click Add item again. If nothing happens, then perhaps you forgot to put an electronic signature under the site’s terms. Open your wallet and see unconfirmed actions.
- In the NFT-manager, add the art itself (size no more than 40 MB), indicate the name, external link to your site with a description of the product, a brief description. Add subtle settings if desired. Click Create.
- Ready. The token will hang in the verification mode for 1-2 days. If plagiarism is not found, then you can immediately put it up for sale.
The OpenSea rules state that the creation and listing of tokens using the Collection Manager are free. The site is interested in filling the tape with many lots and making life easier for digital artists. NFT is not uploaded to the blockchain until the first transaction or sale, so there is nothing to pay.
Suppose this is your first listing on the OpenSea platform. In that case, you still have to pay for the gas associated with the initialization of a new account.
Directly during the sale, a 2.5% commission will be withheld, thanks to which the platform exists.
Any purchase implies that the NFT from the seller’s wallet is sent to the buyer’s wallet. As for any transaction on the Ethereum network, you will need to pay a commission. The commission in the Ethereum blockchain has nothing to do with commissions within the service. Consider this as a separate price for the courier service.
In some cases, the buyer will need to pay for the shipment, and in some, the seller. For example, consider any job in the OpenSea directory. There are two ways to get it:
- The buyer can buy the work immediately by clicking on the “Buy Now” button. Then he will pay the cost of sending.
- The buyer can make his offer. To do this, he clicks “Make Offers.” In this case, the funds on his account are reserved, and the seller will need to pay for the shipment.
The price per transaction in Ethereum can range from $ 10-20 to infinity, depending on network congestion. You will need to have this amount on your MetaMask wallet in ETH tokens to pay for sending NFT. Once you submit the NFT, receive your fee from the buyer.
Pros and cons of OpenSea
The OpenSea concept is simple – it is a marketplace for buying and selling NFTs. However, the company thought in advance about the functionality that would allow it to take a leading position in the market:
- Listing of tokens. You can place your NFT on OpenSea in a few clicks. It is this simplicity that sets OpenSea apart from the competition. Since then, other venues have followed OpenSea’s lead, simplifying the listing process. But thanks to the platform doing it right away, the founders managed to attract token creators and users and increase liquidity.
- Wide range of assets. OpenSea divides tokens into eight broad categories: art, music, domain names, virtual worlds, cards, sports, utility, and collectibles. The heterogeneity of the catalog says one thing: NFTs on the platform can be absolutely anything.
- Search filters. NFT projects vary in both form and detail that provide value. And OpenSea manages to efficiently catalog tokens and help users find the most expensive ones.
OpenSea was able to gain leadership in the non-fungible token trading market and capitalize on the NFT boom. However, she also has her weaknesses.
Although OpenSea is often considered the best trading platform, the users themselves do not particularly like it. They complain about internal fees, high gas prices on the Ethereum network, and the lack of a decentralized governance system and a native token.
To address suggestions, OpenSea has opened a suggestion platform where users can submit ideas and vote on what they like. One of the most common requests is to add support for other blockchains: Cardano, Tezos, or Solana.
Connecting Solana should be a top priority for the company. He could offer OpenSea lower fees, faster transaction processing, and his Solanart NFT marketplace as an aggregator.
The challenge for OpenSea is to keep pace with the market’s growth, add more collections, and efficiently sort the increasingly complex tokens. The platform will have to expand its functionality and possibly develop auxiliary products.