First, there was Bitcoin and Dogecoin, now there are non-fungible tokens (NFTs). NFTs can take many different forms, such as art, music, memes, and domains, all of which come with a unique digital identifier to prove authenticity. You can think of it as similar to buying a first-edition novel or authentic movie memorabilia, except all NFTs are digital instead of physical items.
Also similar to collectibles and memorabilia, NFTs are available on online marketplaces, like the OpenSea platform, one of the largest NFT platforms available and the first of its kind. With an OpenSea account, you can buy, trade, sell, and collect all of the NFTs your heart desires.
If you want some more information about the platform, keep reading for all of the ins and outs of OpenSea.
What is OpenSea?
OpenSea.io is a large-scale online marketplace to purchase, store, trade, collect and sell NFTs, a new digital assets type not unlike cryptocurrency. In addition to its expansive size, OpenSea is the first NFT marketplace of its kind despite similar platforms that followed, like eToro, Dapper, and Rarible.
On this platform, peers can interact with other peers to do with their crypto-collectibles as they see fit. Users can set up a profile, peruse the marketplace for discoveries, interact with traders and sellers, and build their collections.
OpenSea’s inventory includes NFTs and crypto-collectibles like gaming items, digital art, music, and domain names backed by ethereum blockchain. Each NFT transaction requires a secure digital contract that verifies authenticity and ownership.
How Does OpenSea Work?
Before you delve into the world of NFTs, you must install a compatible ethereum (ETH) wallet first since ETH is one of the currencies used to buy and sell digital goods. Some of OpenSea’s preferred ETH wallets include:
- Coinbase Wallet
Once you’ve installed an ETH wallet of your choosing, you will need to input some general information, like a valid email address. But, before you start snatching up NFTs, you’ll want to purchase ETH or another valid cryptocurrency; standard currency won’t apply. Then, you can browse articles, auctions, collections, and categories for new and existing NFTs.
What Currencies Can You Use on OpenSea?
While ETH is the most commonly used cryptocurrency used to purchase NFTs, OpenSea accepts many other variations, such as:
Besides those listed above, OpenSea permits many other cryptocurrencies.
What Types of NFTs Can You Buy on OpenSea?
The question should be, what types of NFTs can you not buy on OpenSea since the platform has a vast selection of new and existing digital goods. You can search for specific NFTs manually or filter through the broad categories listed on the site’s Explore page. For example, OpenSea offers NFTs related to:
- Domain Names
- Virtual Worlds
- Trading Cards
You can find original mixtapes, memes, digital avatar clothing, gifs, basketball cards, and other popular NFT types within these broad categories,
How Do You Buy an NFT on OpenSea?
OpenSea makes buying NFTs so effortless that beginners can figure it out in a snap. You only have to find the NFT you want to buy, then follow the steps below:
- Click “buy now.”
- Review purchase details to ensure authenticity and avoid scams.
- Agree to OpenSea’s terms and services disclaimer.
- Click “checkout.”
- Click “confirm.”
After you’ve completed the necessary steps listed here, you can call yourself the proud new owner of an NFT and view the item in your wallet. If you don’t see the NFT immediately after your purchase, give the system a little time to process the transaction first instead of panicking. Sometimes OpenSea can take a moment or two for due processing.
Do You Need to Store Your NFTs?
Once you own NFTs, it would be best to store them in a secure location to ensure their protection. NFTs can cost a chunk of money and can hold sentimental value depending on what you purchase. The last thing you want is someone hacking into your account and taking the NFT right out from under your nose.
Therefore, OpenSea requires a cryptocurrency wallet installation when you create an account. These wallets give you a place to store your NFTs and often require two-factor authentication alongside specific password requirements, such as touch authentication or a unique seed phrase.
However, you don’t have to rely solely on the crypto wallet. Instead, you can install an InterPlanetary File System (IPFS) too, which gives you added security measures that a standard crypto wallet does not.
You can also opt for a hardware wallet alongside OPenSeas wallet suggestions. Hardware wallets offer the most security since they work offline and require a device password.
How Do You Sell an NFT on OpenSea?
Since OpenSea is one of the largest NFT marketplaces out there, you can, of course, sell your NFTs if you want to free up some ETH for a future buy, or find yourself no longer wanting some of the NFTs you have. No matter your reasoning, selling an NFT on OpenSea isn’t difficult. You only need to follow a few simple steps.
Select and Click Sell
First, you’ll navigate to your wallet and decide which NFT you’d like to sell. Once you choose the NFT, you can locate the sell button in the top right page corner, which will bring you to a listing page.
Choose Your Price, Type and Time
Once you make it to the item list page, you can choose a fixed price or another price type, like a timed auction sale. For fixed prices, you can choose any amount you see fit for the NFT, while auctions allow you to set a starting price.
Then, for both price options, you can set your sale duration, whether that’s a day, week, month, or however long you see fit to leave your NFT up for sale.
After filling out all required information surrounding your NFT sale, OpenSea will have you confirm the posting. To do so, you will need to sign a transaction contract, giving your authorization of the NFT’s sale on OpenSea and agreeing to OpenSea’s service fees and commission on said sale.
Once signed and confirmed, you’ll see a pop-up letting you know that you’ve successfully listed your item and giving you the option to view or share the listing.
As mentioned briefly above, OpenSea has some service fees that go with each listing. This fee stands at a fixed rate of 2.5% per sale, meaning for each NFT sale made on the platform, OpenSea gets 2.5% back, no matter if the NFT sells for 10,000 ETH or 1 ETH.
Is OpenSea Safe to Use?
As one of the largest and first NFT marketplaces available, OpenSea remains a safe and effective place to buy, sell, and trade NFTs. However, like most online platforms, OpenSea is not without potential cyber threats you might want to know about before taking your business live.
One of the threats you might want to consider is that OpenSea uses ETH as its primary cryptocurrency. ETH has been defined as a riskier blockchain option when compared to other cryptocurrencies because of its versatility. Since ETH can be used for practically anything and as well as more than currency, it opens it up to more potential attacks.
OpenSea also poses a potential phishing threat to users and fake bidding. Fake bidding primarily occurs on OpenSea because the platform lets people bid with USD currency, which is significantly cheaper than ETH.
While this seems like an easy thing to avoid since the currency is listed in the bid price, people on the site can scam you with cryptocurrency in place of profile pictures, which distracts you from seeing the actual currency type.
That said, OpenSea is still a safe platform to use for your NFT needs. When it comes to potential threats, you mostly need to look out for human error.
Pros and Cons of OpenSea
Take a look at a brief overview of OpenSea marketplace below to see the site’s pros and cons.
- Gives sellers/creators the opportunity to make commissions on their sales in addition to the sale price.
- Huge NFT inventory.
- Available as a mobile app for convenience.
- Easy for beginners to navigate and learn about the ins and outs of NFT buying and selling.
- Does not charge high commission fees for NFT sales.
- High-quality security regarding smart contracts and NFT authenticity.
- Does not charge gas fees.
- Commission opportunities for sellers are not as high as they might be on other NFT sites.
- Requires a cryptocurrency wallet to create an account.
- Does not support USD currency.
Frequently Asked Questions
Still, have a few more questions about whether or not OpenSea’s the best NFT marketplace for you? Take a look at some more answers below to consumers’ most frequently asked questions.
How Does OpenSea Make Money?
OpenSea makes money because it charges transaction fees for sales made on the platform. While the fee is only 2.5% for each sale, the amount adds up given the thousands of NFTs in OpenSea’s inventory.
What is the Best Wallet to Use for OpenSea?
While many cryptocurrency wallets exist and are compatible with OpenSea, you might want to consider installing Coinbase Wallet. This secure crypto app makes buying and selling NFTs easy and is widely used.
How Do You Get Verified on OpenSea?
OpenSea gives you the option to submit your collection or account for verification, giving you a coveted blue checkmark next to your account name that proves you’re the real deal. However, you need at least 50,000 Twitter or Instagram followers to qualify for OpenSea’s verification process.
You must be a high-profile figure, organization, or have a 100 ETH trading volume at a minimum for NFT collections verification.