NFTs, short for non-fungible tokens, have swiftly emerged as some of the most coveted digital assets on the market. Although they’ve been around for a while, these Ethereum-centric tokens are now making waves in the cryptocurrency landscape.
Among the vast array of platforms available for NFT trading, one stands out for its allure and accessibility. OpenSea .
Operating as both an auction house and a marketplace, this platform not only facilitates NFT transactions but also provides a user-friendly, code-free experience to design your own NFTs, or even an entire collection.
NFTs – A Basic Introduction
If you're well-versed in the world of NFTs, feel free to skip ahead. For everyone else, let's explore what NFTs are and why they've captured the public's attention so dramatically.
In simplest terms, NFTs are indivisible Ethereum tokens. You either own them as a whole or not at all. Each NFT carries a unique identity, and some are so rare that only a single unit exists.
These days, NFTs serve as proof of ownership. They could represent anything from a digital piece like an artwork or song, to in-game assets like weapons or properties, or even rights to reproduce content such as IP. They can also indicate ownership of real-world items such as real estate or vehicles. Though they can be on various blockchains, let's zero in on Ethereum-based NFTs found on platforms like OpenSea.
To dive deeper into NFTs, check out our detailed manual on how to both create and collect them here .
With introductory details covered, let’s delve into how OpenSea operates from buying and selling to minting.
Buying NFTs on OpenSea
OpenSea resembles eBay in its ease of use, welcoming users to trade or create NFTs. It supports most modern Ethereum wallets, including MetaMask.
To get started, head over to OpenSea's official web page and click on the prominent blue explore button. This will open a treasure trove of collections, items for sale, recently sold pieces, and more.
Prices are typically displayed in ETH, but some listings might offer alternatives like USDC or DAI.
The platform accommodates both auction formats and buy-it-now options. Buyers can propose an offer, allowing sellers to either accept or decline it. Alternatively, buyers can make an immediate purchase at the listed price.
Using buy it now requires payments in ETH or any compatible token the seller specifies. For participating in auctions or placing offers, buyers must use WETH, which stands for wrapped Ether. In the official FAQ , the OpenSea team explains it this way:
Auctions use WETH because, unlike raw ETH, WETH can be transferred instantly using the ERC20 transferFrom function.
Converting ETH to WETH is a straightforward process within OpenSea.
Creating and Selling NFTs On OpenSea
If you've accumulated some NFTs and wish to sell them, begin by setting up your profile and linking your wallet holding these digital treasures. You’ll need to execute a few transactions and cover gas fees to permit the platform contracts access to your NFTs, as outlined in the FAQs. Once done, you can list items without gas fees, merely needing your wallet’s digital signature for approval.
When selling, decide the sale style for your listing. Currently, options include fixed price, declining price, and auction. The first two are as expected, while the declining price auction offers a competitive edge, decreasing the price gradually until the timeframe ends and the listing is removed.
If you're a creator—be it an artist, musician, or content producer—and you're eager to mint and sell NFTs, OpenSea's mint feature could be your ideal platform. Initiate by visiting the OpenSea Collection Manager and configuring your account. Similar to selling, minting entails gas fees, so it's financially savvy to wait for lower rates if you’re minting in volume.
The $82,500 Pixel Art Avatar
Among the pioneers of NFT projects is the iconic CryptoPunks art collection. Unveiled in 2017, CryptoPunks comprises 10,000 pixelated avatars, with some pieces fetching enormous interest. As of now, we've seen CryptoPunk #7746—a pixelated character donning a cowboy hat and shaded eyes—sold for 55 ETH.
With today’s ETH valuation, that's a rough $82,500—notably high for these NFTs. Citing OpenSea data, the average transaction value for a CryptoPunk hovers over 18 ETH. page for the collection Is it justifiable for digital art to command 55 ETH? In essence, possessing NFTs mirrors any art acquisition: market value can fluctuate. Take CryptoPunk #7746, originally purchased three years ago for a mere 0.1 ETH.
It's important to note that not every NFT achieves such astronomical desirability or pricing. For instance, a Memecash trading card featuring 'CZ Binance' is up for merely 0.0001 ETH, approximately $0.14. Some pieces, like a rudimentary MS Paint-inspired black-and-white sock known as 'ALT SOCKS 3', lack set pricing altogether. While not critiquing the artistic value of any NFT, demand varies considerably.
OpenSea is not without its flaws. The principal drawback lies in the difficulty of discovering NFTs unless you know exactly what to search for. The categorical search needs significant refinement, making it hard to locate specific types of items.
Consider the Blunders
For illustration, if you're keen on a song represented as an NFT, there's presently no dedicated music category for exploration. Searches using keywords like 'music' or 'song' result in matches based solely on those terms. Moreover, distinguishing between mere representative tokens and full ownership licenses isn’t straightforward.
Another challenge involves unauthorized use of copyrighted material. Browsing the artwork section reveals numerous instances of potential copyright violation, featuring characters from well-known franchises such as Star Wars and Harry Potter, alongside celebrity images and GIFs. It's uncertain if copyright owners approved these NFTs or received corresponding compensation.
Lastly, similar to any emergent technology, the platform is inundated with submissions of low quality that might never attract buyers. While this isn’t inherently problematic, it complicates finding valuable pieces amid the surplus—especially absent enhanced search and filtering capabilities.
NFTs represent a burgeoning frontier with inevitable challenges. Thankfully, OpenSea adopts a user-friendly, jargon-free style to welcome novices and experts alike. However, ensure due diligence before making purchases to grasp an NFT’s true essence and worth—or lack thereof.
Final Thoughts
Is OpenSea the ultimate platform for NFT trading, or is another option superior? Share your thoughts in the comments section below.
Robert serves as the News Editor for Blockonomi. As a staunch advocate for the autonomy, privacy, and independence inherent in the future digital economy, he has been immersed in the cryptocurrency arena for an extensive period. Reach out to [email protected]
