The OpenSea platform is perhaps the most well-known entry point into the NFT sector. As an investor, you might be contemplating it as the marketplace through which you can learn about and participate in the area.
However, the initial steps might be difficult for many, according to many crypto advisors. Therefore, you must have a basic grasp of how it functions before you begin. All you need to understand about OpenSea is right here, such as how to make, purchase, and trade NFTs.
But first, let’s have a brief review of the fundamentals of NFTs and why you’ll require a marketplace like OpenSea to get your hands on cryptocurrency trading.
What are NFTs?
Individuals have become more exposed to buying and possessing the best NFT tokens and other digital assets that exist only in the digital domain ever since the birth of bitcoin in 2009. With blockchain as its foundation, cryptocurrency allows users to possess and move money via the world wide web without the need for a third party. Surprisingly, NFTs extend this capability to generate new opportunities based on the exclusivity of virtual currencies.
Unlike fungible or exchangeable cryptocurrencies, such as Ethereum, NFTs use blockchain technology to create virtual currencies that are one-of-a-kind and unexchangeable. In precise, NFTs offer the non-fungibility that is required for introducing new solitary digital and real-world assets to blockchain technology.
NFT symbolizes visual art, an in-game asset, music, or any other thing that has to be authenticated in the online environment for its novelty, rarity, and ownership status.
Without engaging third-party vendors, control of an NFT could be exchanged in return for virtual currency. However, prospective buyers and sellers should complete this process on a platform developed specifically for the listings, purchasing, and trading of NFTs. NFT marketplaces are the term for such platforms.
What is OpenSea?
OpenSea is an NFT platform that jumped on board quickly enough to become not just the top option for NFT developers but also the favorite place for NFT traders. Aside from its first-mover benefit, OpenSea’s popularity may be attributed to its open-world concept that permits anybody to manufacture NFTs for free and purchase and trade them on a credible blockchain-based network. Because there are few or no limitations in existence to hinder innovational and exchange activities, this open-world architecture has attracted a large number of NFT developers.
Though some see this as an important feature of OpenSea’s functioning, the absence of limits has been highlighted as a ticking time bomb to the point that OpenSea temporarily limited the quantity of NFTs each individual may mint, only to change its position following community outrage.
Despite the concerns regarding OpenSea’s procedures, it continues to be the largest NFT marketplace, processing over $3.5 billion in Ethereum-based NFT deals in August 2021 alone. To put this figure in context, OpenSea only had $20 million in NFT transaction activity for the entire year of 2020.
What are the features of OpenSea?
When working through the OpenSea platform, keep the following things in mind;
- One of OpenSea’s main advantages is that it operates through a decentralized platform in which all transactions and activities are registered in real-time on the blockchain network.
- It is indeed important to note that OpenSea has made all of its primary functionalities, such as minting, purchasing, and selling NFTs, simple to grasp. To put it another way, you don’t need any coding knowledge to utilize the service.
- Furthermore, it has extended its activities across three blockchain systems: Ethereum, Polygon, and Klatyn. In precise, on OpenSea, you may buy NFTs depending on any of these chains.
- Finally, because of Polygon incorporation, it provides a gasless or feeless method of constructing NFTs. For those new to Polygon, it is a blockchain platform that allows trading Ethereum coins and interacting with Ethereum-based apps by being more affordable.
How to create NFTs on OpenSea?
- One must first create an account before you may engage with NFTs on OpenSea as a new customer. To do so, you’ll have to create a wallet, ideally with the MetaMask Chrome extension.
- Move ahead with the steps given below to create an OpenSea account after you have your Metamask wallet ready.
- To link your freshly generated wallet, head to the OpenSea web portal homepage and select the account icon in the right top corner. A popup will appear, asking you to choose your selected wallet. Then choose your preferred wallet (in this instance, MetaMask) and continue the connecting procedure from your account.
- You’ll be sent to your default personal page on OpenSea after validating your account. Users must personalize their OpenSea account because it is initially in the default configuration. OpenSea will ask you to sign a contract before proceeding. After you complete this step, you may personalize your profile by creating a username, creating a bio, and uploading a cover photo.
- Now, you are prepared to begin minting NFTs at this step. Although, keep in mind that, based on the blockchain you want to use to manufacture NFTs, you may want to have sufficient tokens in your account to ulfil the trading costs. After that, you may begin minting by following the instructions below.
- If you simply choose to develop single NFTs, visit your profile page and click “Create,” then give a name, descriptive URL link, as well as other details that you would like to include. Then, to release it on the blockchain platform, move to the end of the page and press the lower “Create” button.
- To produce a list, open your profile icon and opt for “My collections.” Next, select “Create” beneath “Create new collection” to title the selection, add the information, and submit an image. You may experiment with the numerous editing features on this site to create a very diverse collection.
- Select “Add New Item” to mint an NFT under the category you just established. You will be sent to a tab where you may input the NFT’s name and add information regarding the NFT, including a picture, video, or voice file. You may also provide attributes such as when the NFT was generated to assist potential purchasers in filtering NFTs in your inventory.
- Finally, you can unlock goods that are only available to the NFT’s user. You can, for example, provide a route for redeeming significant real-world assets associated with the NFT in question, such as a real depiction of the artwork or a ticket to an event.
- Once you’re happy with everything you’ve accomplished so far, choose “Create” and sign the text on your linked account. You are not required to pay a processing fee to finish this NFT minting procedure if you have elected to publish your NFT on Polygon. Issuing the NFT on Ethereum, on the other hand, will entail a transactional cost for you.
How to sell NFTs on OpenSea?
After making your NFT, you may sell it on the OpenSea platform. You can accomplish this by following the steps mentioned below:
- Choose your display picture on the top right side of your user’s login page to see the Profile settings. Choose “Profile” to be sent to your wallet, where you may choose which NFT to sell.
- After you’ve chosen the NFT and are directed to the NFT’s description tab, select “Sell” on the upper right corner of the page to proceed to the listing screen.
- On the listing page, you may choose to assign a fixed price for the product or to hold a timed auction in which prospective bidders must outbid themselves in order to obtain the product. You may also establish a time limit for the sales or secure the NFT for a certain customer.
- It should be noted that OpenSea will impose a 2.5 percent service charge on all sales also a 10% royalty payment to the NFT’s primary inventor.
- After examining the sale’s information, you will be asked to sign a deal on your wallet to finalize the purchase. Because this is your first time trading a product on OpenSea, you must first initialize your wallet before proceeding. In addition, if you imported the NFT from another platform or you have not generated it on Opensea, you will have to perform an additional verification step to allow OpenSea to trade the NFT on your part.
How to buy NFTs on OpenSea?
When purchasing NFTs on OpenSea, you have the option of paying set pricing or offering a good deal. You may acquire NFTs at set pricing by following the given steps:
- Browse the featured NFTs to pick the one you’d want to buy. Once you’ve discovered one, make sure to properly research the NFT’s information, such as its pricing history, to verify that the NFT in issue is worth purchasing. Look for warning signs for popular NFT frauds.
- After confirming that the NFT is genuine, select “Buy Now” to further evaluate the transaction before being directed to a checkout popup screen where you may witness the final price of your transaction.
- If everything looks to be appropriate, click the “Checkout” icon to finish the purchase. While doing so, OpenSea will take you to your wallet, where the relevant gas fees are mentioned. To complete the transaction, select “Confirm.” You may examine the NFT in your wallet after sealing the deal by returning to your personal page and tapping “In-Wallet.”
Now that you’ve learned how to acquire NFTs at set pricing, the steps below will show you how and where to buy products during bidding:
- Locate an NFT that you want to purchase on auction and select the “Make Offer” option after reviewing the auction specifics and the asking prices of certain other willing customers.
- Before a new bid may be approved, it has to be at a minimum of 5% greater than the existing bid price of the NFT.
- Individuals may be requested to check the NFT once more to guarantee that it is not a forgery.
- Next, choose the virtual money in which you want to accept the deal. If you choose a coin that you have not previously used to buy an item on OpenSea, you may be required to pay a one-time charge.
Choose a bidding price as well as an expiry date for your proposal. After that, all you have to do is wait for the vendor to settle on the optimum price for selling the NFT. If the item is a highly in-demand NFT, you may need to continuously raise your deal in order to survive in the long run.
What are gas fees, and when it need to be paid?
Gas is a fee that users must pay in order to complete transactions on the Ethereum blockchain. Since OpenSea is built on Ethereum, every OpenSea trade would have consumers paying gas costs.
Therefore, the challenge is, when should you pay for gas?
First-time vendors must pay two trading fees when registering their NFT. The initial transaction is to authorize OpenSea to place sell orders on your behalf. When a sale happens, the second trade is required so that OpenSea may acquire your NFT.
Based on the part of a deal, sometimes the buyer may be required to pay for the gas, while in others, the sellers may be required to pay for gas. For example, when buying a fixed-price product, buyers will simply have to settle the processing fee, and sellers will have to spend on gas when accepting the bid.
On Web3.0, OpenSea is by far the most popular and largest peer-to-peer (P2P) NFT marketplace. With a US$13.3 billion value, the business was founded in 2017 by Alex Atallah and Devin Finzer and is currently one of the most expensive crypto companies.
Unlike other NFT markets that exclusively offer a certain form of NFT, OpenSea does not specialize in one type of NFT and supports all types. It includes anything from popular art and collectibles to web3 domain names and virtual worlds.
If you want to know in-depth about the cryptocurrency world, then you can start by enrolling in cryptocurrency courses. There is a wide range of cryptocurrency courses with certifications available on Blockchain Council. You need to select the course according to your requirements.