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OpenSea Guide – The Ultimate Guide to Trading NFTs

OpenSea Guide - The Ultimate Guide to Trading NFTs

Artists and producers who want to sell their artwork on the blockchain are becoming increasingly interested in Non-Fungible Tokens (NFTs). It might be difficult for some people to take the first steps. Here’s a guide on how to transform your artwork into NFTs and learn the ins and outs of OpenSea.

What Is OpenSea?

OpenSea is a well-known name in the NFT community. Whether you are an NFT professional or just starting, OpenSea is a name you’ve undoubtedly come across.

When it comes to buying, selling, and creating NFTs, one of the most popular places to go is OpenSea. OpenSea was founded in 2017 and has since become the biggest NFT platform with billions in trading volume.

OpenSea claims to be the first and biggest NFT marketplace in the world. In other words, OpenSea can be thought of as like Amazon for digital collectibles. OpenSea offers many non-fungible tokens, from simple artwork to virtual worlds. OpenSea, unlike other NFT marketplaces, doesn’t concentrate on a single niche. It’s an open market where anybody can buy, trade, and make whatever NFTs they want.

It wasn’t until OpenSea came along that any of these things were possible. Even though it’s technically a marketplace for NFTs, OpenSea serves as a user interface layer between the blockchain and the general public, making NFTs accessible to everyone.

With OpenSea, you don’t need any previous experience to make NFTs. To get started, you’ll need a collection of NFTs. Afterward, you’ll be able to upload NFTs in the required format. 

As a result of their fascination with the introduction of the NFT series CryptoKitties, software engineers Alex Atallah and Devin Finzer launched OpenSea in 2017. They saw the potential of NFTs to allow genuine ownership of digital objects for the first time.

How OpenSea Works

There is no centralized body in charge of transactions on OpenSea’s marketplace since it is non-custodial. Self-executing smart contracts are used to ensure fair trading instead. On OpenSea, a transaction is either completed, and both parties participate, or it does not occur, making the platform very secure.

Since OpenSea is a peer-to-peer market, there isn’t any middleman to get in the way of transactions. Despite this, the platform maintains a 2.5% share of each sale. 

Using the Wyvern Protocol, which is a series of smart contracts on the Ethereum blockchain, OpenSea’s structure is able to buy and sell unique digital goods. In addition to supporting Ethereum, Polygon, and Klatyn, the platform is cross-blockchain compatible.

OpenSea’s Advantages

Opensea’s Polygon-based gas-free marketplace allows artists to mint NFTs for free, which is a major advantage for them. Another feature of OpenSea is that the artist of an NFT may opt to receive a royalty fee for every secondary-market sale of the token indefinitely.

Buying NFTs on OpenSea is easy because you can search for them by price, status, native blockchain, and rarity. Buyers may also check the purchase history of each NFT, such as how many times it was sold, who acquired it, and its pricing.

Another advantage is OpenSea’s active community; as previously stated, the biggest NFT market is OpenSea. According to reports, OpenSea has more than a million registered members and is actively engaged in the community.

More than a dozen digital wallets are supported by OpenSea, with MetaMask and Coinbase Wallet being among the most popular.

OpenSea’s Drawbacks

One of the primary drawbacks of OpenSea is that due to it utilizing the Ethereum blockchain, there can be significant gas fee prices during peak network congestion. To solve this issue, OpenSea provided cross-chain functionality for Polygon and built a gas-free marketplace. This problem is also being addressed by Ethereum 2.0, a much more eco-friendly and cost-efficient proof-of-stake version of the system.

OpenSea has also experienced a service provider outage, ongoing database difficulties, higher API failures, and slow response times. As a result of these problems, the company now publishes a monthly report on website reliability that details the problems that have occurred in the previous month and the efforts that are being made to fix them.

Misuse of OpenSea has resulted in financial losses for some customers. In September 2021, OpenSea’s head of product was suspected of trading NFTs based on insider knowledge. The executive was utilizing hidden digital wallets to purchase NFT drops before they could be displayed on the platform’s site and sell them soon after being released to the public.

In January 2022, people discovered a heist on OpenSea worth 332 ETH.  OpenSea claimed it contacted harmed users individually and compensated them. But added that the issue is intrinsic to blockchain markets and told all users how to manage their accounts to prevent this vulnerability.

How To Buy An NFT On OpenSea

Without wasting any more time, here is a little tutorial on how to purchase NFTs on OpenSea.

Step 1: Fund Your Digital Wallet

To purchase NFTs, you’ll need a digital wallet that has funds in it. You will purchase items on OpenSea using the cryptocurrency Ethereum (ETH). For this article, we’ll utilize MetaMask, one of the most popular digital wallets for NFTs.

If you don’t already have a digital wallet, go over to metamask.io to download it as a browser extension and link it to OpenSea. Go to OpenSea and click on profile in the upper right bar to do this. You’ll be led to a new page requesting you to link to your wallet and then choose  MetaMask.

Allow OpenSea to use your digital wallet and sign the signature request by granting it the required rights.

Once it has been set up, you may begin browsing the OpenSea marketplace for NFTs. Go over to the MetaMask wallet and choose “Buy” to make a crypto deposit or use a debit/credit card if you don’t already have Ethereum in your MetaMask wallet.

"Connecting

Step 2: Choose An NFT

Firstly, you will need to select the NFT you wish to buy. Log in to your OpenSea account and choose “Explore” from the menu. Then, you will see all of the NFT collections that are available to you.

You may narrow down your search on the top right bar by filtering it.  You can choose filters such as Trending, Top, Art, Collectibles, Music, Photography, etc.

"Choosing

Step 3: Buy The NFT Or Make An Offer

A purchase can be made immediately, or you can make an offer when you see an NFT you want. The “Place Bid” feature exists on certain NFTs if you want to make an official offer to buy a specific NFT. When you see an NFT like this, check the number of previous bids to discover how much you can bid.

Every bid on OpenSea needs to be at least 5% greater than the one before it in order to be accepted. In this case, we’ll only purchase at a predetermined price for demonstration purposes.

"Buying

Step 4: Finalise Your Purchase

When you’ve discovered the perfect NFT for you. Buy it by clicking “Buy now.” 

After doing so, you’ll find information on the NFT, such as its name, collection, subtotal, and total. Go over to Confirm Checkout. 

Then, OpenSea will load your MetaMask digital wallet onto your computer. A breakdown of your purchases, including estimated gas costs and processing times, can be found here.

Please bear in mind that cutting the gas fees will significantly impact transaction speed. If you want to use MetaMask to make a purchase, wait until the Ethereum network is less congested.

Press the confirm button when you’re ready to make a purchase, and sit tight while your payment is being processed.

"Finalizing

Your brand-new NFT will be added to your collection in a matter of seconds at most. Once you’ve returned to your profile, wait patiently for your new NFT to show up.

How To Sell An NFT On OpenSea

If you want to sell an NFT on OpenSea, simply click on “Sell” at the top right bar of your screen, and you’ll be sent to a new page where you can fill in the terms of the sale.

Choosing if you want to sell it at a set price or a scheduled auction, the currency, and the expiry date are all of the options you need to consider before selling your NFT. OpenSea takes a 2.5 percent cut of every sale in addition to the standard listing fee.

Once you’ve selected your NFT, go to the “Details” section by clicking on it and scrolling all the way down. There, click on “Contract Address,” and then you will be sent to the Etherscan page for your NFTs address.

Copy the address and then go back to your MetaMask wallet. The option “Import Tokens” is located below. Select “Custom Token” from the drop-down menu. Paste the specific address you copied from the Etherscan page.

"Selling

A token symbol is simply the public nametag, and Token Decimals are merely a means of seeing your NFTs.  It won’t affect the amount you are holding.

We will add “0” in this scenario, and then we’ll go ahead and click on add custom token.

You’ve successfully listed an NFT for sale on OpenSea. Congratulations!

How To Create An NFT On OpenSea

OpenSea users can not only buy and sell NFTs, but they can easily mint their own NFTs using an easy-to-use method provided by the platform. Here is a small tutorial on how to do just that.

Go to “Create” or “Collection” if you’re minting a collection to begin the process of creating your NFT.

Then, enter the name of your NFT or Collection.

"Creating

Keep in mind that your OpenSea URL can be customized, and you can also add a description of up to 1000 characters.

To make it easier for others to locate your NFT on OpenSea, you can categorize it and add any social and website links.

If you’d like to include a royalty percentage, keep in mind that it can only be as high as 10%.

Once you’ve chosen your blockchain (Ethereum or Polygon), click Create to complete the process.

OpenSea Features

OpenSea, one of the world’s most well-known NFT marketplaces, has several special features that set it apart from the crowd. Here are a few of them.

Multi Crypto Wallet Options

Many NFT marketplaces are dependent on just a few wallets. OpenSea, on the other hand, supports plenty of them. The following are a few of the digital wallets that are compatible with the platform: Coinbase, Portis, MetaMask, TrustWallet, Bitski, Dapper, Kaikas, and many more.

Completely Free

In the beginning, you can use OpenSea for free. However, each sale on the marketplace is charged a 2.5 percent fee by the site. On the other hand, there aren’t any monthly or recurring charges.

Gifting

OpenSea’s gifting function is its unique selling point. To gift an NFT, all you have to do is send someone the Ethereum address of a wallet. The developer will then provide the asset to a trader, who will subsequently add it to their current collection of NFTs.

NFT Minting

As we mentioned above, users have the option of minting their own NFTs in addition to purchasing and selling pre-existing ones. You’ll have to gain access to the OpenSea API to accomplish this. You may do this after you’ve created an account on the platform. Creating a new type of NFT that isn’t supported by the platform is a straightforward process.

Mobile Application

OpenSea is a very up-to-date platform. Because of their effort to create an NFT marketplace that is accessible and simple for all dealers and collectors, they are unmatched.

Their smartphone app, for instance, is a good example. The program has a clean interface, is simple to use, and is absolutely free. OpenSea allows you to monitor your NFTs from anywhere with an internet connection, making it easy to keep records of your transactions.

Tips On Using OpenSea

Ethereum gas costs are expected to fall short. As of now, though, gas prices are quite high. As long as you don’t feel the need to rush, you may wait until gas costs are cheaper before starting the collection. Late in the evening and early in the morning are often the best times to get a deal. You should never pay more than necessary.

Keep your NFTs until you’ve finished listing a collection before you sell them. The first step is to set up a collection for your NFTs. To complete the collection, you add the NFTs one by one. Your whole collection of NFTs is transferred to the Ethereum blockchain as soon as you sell one on OpenSea. After that, adding additional NFTs costs more Ethereum. 

Don’t hope to sell a lot of NFTs in the first few months. NFTs by new artists are rarely purchased. NFT enthusiasts, on the other hand, are unlikely to leap right into OpenSea. As a collector of NFTs, you will have to market your collection to other collectors. It’s important to show NFT collectors that you have a unique perspective and that you’ll be around for the long term.

OpenSea’s transaction speed is critical for purchasing or minting NFTs, so make sure you select it correctly. In order to maximize your chances of successfully purchasing or minting an NFT, we recommend using a medium or high speed for NFTs. You run the risk of losing your gas fee if you select the low option, and the transaction is prone to failure.

Everything should be double-checked before the metadata is frozen.  

Once they purchase your NFT, serious customers want to know that the listing will not alter. It is, however, impossible to tamper with the information after it has been frozen. The item can be removed and re-minted if you can’t sell it. However, this imposes significant gas expenses.

Staying Safe On OpenSea

Trading NFTs on OpenSea is not as difficult as you might imagine. Although there are many fraudsters in this industry, you should be aware that the market may be quite unpredictable at times.

It is fairly rare for individuals to lose their assets to fraudsters that use phishing or rug pulling to scam. Additionally, the NFT industry is plagued by wash traders, who inflate the trading volume of specific collections in order to make them more enticing to investors.

However, it’s crucial to remember that this is a relatively new sector that is mostly unregulated in the majority of jurisdictions, so caution should be used. As a result, it is vital to treat it as such and to take the required measures to protect your financial assets. Accepting bids should always be made with caution, and you should make sure the offer is already in your currency of choice before accepting it.

If OpenSea customer service contacts you about a problem you’re having, be extremely wary. This is a frequent ruse scammers use to gain access to your account. Even if someone appears to be from OpenSea support, never reveal your wallet’s secret phrase or grant anybody else access to your device.

Other NFT Marketplaces Like OpenSea

However, OpenSea is not the only NFT marketplace. Additionally, it claims the widest selection of categories and the lowest costs. However, other options are growing in popularity.

Rarible

Another well-known NFT marketplace is Rarible. Rarible’s native token, RARI, is required for NFT purchases and sales inside the platform. This is distinct since RARI is a governance token. As a result, those who own RARI have a say in how the platform is run.

Fractional

Fractional, for example, provides a novel technique for minting and trading NFTs. By purchasing fractional ownership in major NFTs, consumers may save money and lower the entry barriers while still getting a portion of their preferred digital assets, as the name implies.

Other notable NFT markets include SuperRare, Foundation, Nifty Gateway, and Larva Labs, all of which have their own distinct characteristics.

Frequently Asked Questions (FAQ)

What Currencies Can I Use On OpenSea?

When it comes to OpenSea, the most prominent currencies are Ethereum (ETH), WETH (WETH), and DAI (DAI). Fiat currencies like USD and Euro are not yet supported, despite having over 150 different payment coins.

What Wallets Does OpenSea Support?

Despite the fact that just a small number of crypto wallets are directly supported by OpenSea, this already covers the majority of those in use today. Some are designed for mobile devices, while others can be used on a variety of platforms. Your preferences will play a major role in deciding which one to choose. MetaMask, CoinBase, TrustWallet, Portis, Venly are some of the digital wallets that OpenSea supports.

Is OpenSea Safe?

As a rule of thumb, yes. Measures have been put in place by OpenSea to keep an eye out for potentially harmful content and phishing schemes. To avoid being conned, you should conduct your own research on the NFT developers and stick to certified collections when purchasing NFTs from large public figures. Also, make sure you’re on OpenSea.io at all times, and never reveal your wallet’s recovery phrase to anyone.

How Does OpenSea Make Money?

All transactions that occur on the platform are subject to a minor fee charged by OpenSea. This tiny fee assists in the fulfillment of asset transfers and smart contract transactions in the shortest amount of time.

Takeaways

  • OpenSea is one of the best marketplaces to buy, sell and create NFTs in an easy and simple way.
  • It offers a wide range of NFTs ranging from simple artwork up to virtual lands that you can purchase and trade on the platform.
  • OpenSea offers its users a way to create their own NFTs through a process known as minting”.
  • It uses the Ethereum blockchain, which has high gas fees during peak network congestion, making it quite expensive.
  • Buying and selling NFTs on OpenSea is quite simple; all you need is a digital wallet containing funs, an OpenSea account, and a network connection.
  • While using OpenSea, beware of scammers and never give out your digital wallet secret phrases. 
  • All in all, OpenSea is a great platform for selling, buying, and creating NFTs.

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