What is NFT?
A non-fungible token or an NFT is an exclusive unit of data engaging technology that permits digital content—from images to videos to songs—to develop logged and verified on cryptocurrency blockchains, mainly Ethereum. Once the content is registered onto the blockchain, each transaction from sales to transfer is documented on-chain, creating a modestly available ledger of price history and provenance. The key influence of NFTs is making it easy to own, buy and sell digital content.
What is OpenSea?
OpenSea launched in 2017 with an eye to capture blockchain market, started charging commission of 2.5% which was less than the usual market rate of 3.5%. It is a marketplace similar to Amazon, Etsy, and eBay, but all the items listed are exclusive digital collectibles in the shape of NFTs that users can mint buy and sell. OpenSea is a peer-to-peer, decentralized exchange that permits users to handle transactions with each other, nonstop in a trustless manner. Here you can find the list of OpenSea alternatives.
Ethereum blockchain is the basis of OpenSea platform. An Ethereum wallet is necessary to have in order for users to trade non fungible tokens on OpenSea. Various digital wallets including MetaMask, TrustWallet and Coinbase validates the OpenSea platform. Numerous blockchains including Polygon (MATIC) and Klatyn (KLAY) supports the OpenSea platform. To ensure anyone can buy and sell items on the platform, OpenSea provides more than 150 payment choices to choose from.
The Ethereum blockchain famous for its smart contracts were in exiting phase of the beta test of their new standard called ERC-721. This allowed the ability to code smart contract on the blockchain which later on became the basis of NFTs. Opensea took advantage of this new smart contract and created a marketplace of digital commodities that can be exchanged and traded like bitcoin but kept each individual token unique.
After raising $423 million in three different rounds of funding in less than a year, opensea broke open the market at the perfect time in February 2021. Unlike ebay that offers some product to the highest bidder, opensea implemented the same idea on NFTs in addition to proof of ownership, chain of smart contract handling offers and a secure exchange. This allows the authentic approval of owning a digital commodity with no ambiguity.
How does OpenSea works?
Smart contracts developed to trade digital assets are used by OpenSea as a decentralized marketplace. The smart contracts permit users to have an safe environment of the custody of their NFT possessions in the platform, therefore giving security for their work. OpenSea expedites the NFTs transactions, but you can do buying and selling without any intermediary with other users after connecting your supported Web3 blockchain wallet with OpenSea account.
The open-source blockchain is used by OpenSea beside Ethereum, ERC721 and ERC1155 to verify and approve that the NFT collector owns the assets they are listing on the marketplace. Moreover, to allow low-cost and fast trading, OpenSea has launched the Polyhon blockchains.
Non Funglible Tokens Gifting
The platforms permits users to send NFTs to other users as a gift. You can use your friend’s wallet’s address to send NFT gift if there is problem finding username on OpenSea search. In fact NFT gifts can be received on any platform sent by your friends.
Non Funglible Tokens Minting
The OpenSea Platform allows the minting of NFTs. Apart from 2.5% service fee on the final sale, OpenSea does not charge any minting fee on NFTs.
NFT Cost
It is totally free to make your own marketplace onOpenSea. However, for each sale a 2.5% fee is charged by OpenSea. This fee is moderately reasonable as compared to NFT marketplaces.
Supported Wallets
Various wallets can be use on the OpenSea Platform. following is a full list of wallets validated by the platform:
Magic / Formatic
Coinbase Wallet
TrustWallet
Kaikas
Portis
Dapper
OperaTouch
Torus
WalletLink
WalletConnect
MetaMask
Bitski
Authereum
Venly
How to buy and sell on OpenSea?
An Non Fungible Token lister has two options to sell his NFT on OpenSea platform. They can either has fixed price listing or auction their digital content where a number of buyers can make a bit to purchase the NFT.
What can you buy on on OpenSea?
Following is a list of some of the types of NFTs available on the OpenSea marketplace:
- Art
- Sports
- Music
- Web3 domain names
- Trading Cards
- Utility-based
- Virtual worlds
- Collectibles
To create an NFT the first thing to do is to pay the “mint” fee. A digital wallet should be established to buy any cryptocurrency for this reason.
How to create a digital wallet to purchase NFTs?
Your digital wallet should have some deposited amount in order for you to start.
A cryptocurrency called ether should be purchased because it is supported by the OpenSea platform. For example, you go and play games in the case of an arcade. But to play the arcade games you need to buy some tokens to get started. Considering the same concept here, with exceptions the tokens are called ether and you are apparently starting with a small fraction of ether, instead of buying a lot of tokens at once.
A google chrome browser extension known as MetaMask is recommended by OpenSea because it supports various digital wallets.
It will take roughly thrity seconds (depending on your internet connection) to install the plug-in and entering the password.
- On the upper right side on the website, click the profile icon.
- Press the button “MetaMask”.
- Press on the “Install MetaMask” for Chrome or any other browser you are using. This step will install the plugin for your browser.
- Click on the “Get Started” button.
- Now click on the “Create Wallet.”
- Select “I agree” for the feedback sharing option.
- Enter your desired password.
- The most important part to have an access to your backup and your account is that you will be given to write a secret sentence. Do not lose this sentence, otherwise, it can create huge problems for you.
- Click on the “Next” button and approve the secret sentence.
- In your OpenSea account select “MetaMask”.
- Сick “Next” to connect your account to the digital wallet.
- Now press the “Connect”.
Congratulations, you now have an OpenSea digital wallet. Next step is to buy some ether so that it can be spend on NFTs.
How to buy Ether?
There are multiple crypto exchanges where you can buy various cryptocurrencies. Some of the popular cryptocurrency exchanges are Coinbase and Robinhood.
- Just at the end of your URL box, click on the top right of your browser.
- Press the icon.
- Press the “Buy” button and then press “Directly Deposit Ether.”
- Press the “Follow Wyre” button.
- Now, enter the ether amount you want to purchase.
- Press the “Next” button.
- The next will be to enter your phone number and your payment details.
- Click on the “Send” button.
- Enter the authentication code that you received on your phone number.
- You have to approve your purchase by typing in your bank account number to complete the Wyre transaction.
How to create and sell NFTs
Now, you have a cool digital art ready to sell.
- You can create your NFT on any online or offline platform.
- You can create one or more collections, for example, any images, gifs, videos, or cards you created.
- You can upload your NFT file in PNG, GIF, Mp4, or any other format by clicking the “Choose File” button. Your file should not exceed 30 Megabytes.
- Now you can put your desired price or leave it on “ Place on Sale”.
- Write your NFT name and description accordingly.
- The next step is to set your royalties. You will still be paid if it is sold on the secondary market.
- Click on the “Connect and create a wallet” button.
- Connect your wallet.
- You will be asked to Pay the Gas fee for listing your NFT which is around 10 to 30 USD.
- Press the “Start” button to sign a sales order using your digital wallet.
- Press “Sign”.
Congratulations! Now your NFT is listed and it will be displayed on the sales page. If your NFT is sold the transaction amount will be deposited in your digital wallet and you can use it to purchase more NFTs or cash in via your crypto exchange.
A great thing about OpenSea is that you can set up a creator earnings amount of up to 10%. Every time your NFT sells, you will get 10% revenue of that sale.
OpenSea fees
The fee model of OpenSea is pretty simple. They take 2.5% of every transaction that happens on the OpenSea platform.
Pros and Cons of OpenSea
| Pros | Cons |
|
+ Competitive commission + A huge diversity of NFT collections + Industry-leading security |
– Only accept payment in cryptocurrencies – A crypto wallet is necessary to buy and sell on the platform |
Is OpenSea safe?
OpenSea transactions are based on blockchain technology which relies on smart contracts to buy and sell between two entities. This allows a transparent transaction on an agreed price in a timely manner. The transaction will not be processed if the conditions are not met. You can now report nfts that seems to be fraudulent on OpenSea platform.
OpenSea employs all the measures necessary to watch for malicious content and scam. But, it is suggested to do your own research before buying Non Funglible Tokens from prominent sellers. The defrauders tend to imitate those NFTs. In addition, always verify whether you are navigating the OpenSea.io platform or some imposter site, and never share your confidential recovery phrase of your wallet.
FAQ
How do I create an account on OpenSea?
- Type opensea.io in your URL bar.
- On the top right corner press, the profile icon, and a drop-down menu will appear.
- You need to have a digital wallet in advance to create your profile.
- Select your digital wallet and install the browser extension for that.
- Enter your credentials and create a password.
- After the attachment of your wallet to the platform, you can now customize your profile. For example, add in your bio, make your username, etc.
What currencies can I use on OpenSea?
The major currency OpenSea support is Ethereum (ETH) / USDC WEDC and DAI. There are more than 150 payment tokens available like $WHALE and $UNI. Currently, OpenSea does not support any fiat currencies.
What is the Gas Fee at OpenSea?
OpenSea requires their new seller to pay two fees before they start selling their NFTs. That fee is called the “GAS FEE”. The first fee to initialize your account can vary from USD 70 to USD 300. You will only pay once the initialization fee for each account. While the second fee will provide the platform access to your NFT which can vary from USD 10 to USD 30.
Calculating gas fees is complex, there are several factors that determine the gas fee. GWEI is the measuring unit of gas on the Ethereum network.
1 GWEI = 0.000000001 ETH.
The minimum amount of gas required to process a transaction is 21000. So, to calculate the gas fee, we multiply the minimum amount of gas with the gas price in GWEI
