OPENSEA TUTORIALS: BUY, SELL, How to invest in NFT
NFT, or irreplaceable tokens, is fast becoming one of the hottest digital commodities. While not entirely new, Ethereum-based tokens are often quick to break into the crypto trend.
One of the more attractive platforms to buy and sell NFT is OpenSea.
Not only does this site act like an auction and buying site, it also provides an intuitive and no-code way to create your own NFT - or even a whole bunch of them.
NFTS - BASIC INTRODUCTION
If you are familiar with NFT, please skip it. As for the rest of us - what are NFTs and why have they suddenly become so popular?
In its simplest terms, the NFT is an inseparable Ethereum token. They can only be held or sold as a whole. Every NFT is uniquely identifiable, and some of them have only one unit of total existence.
Today, they are used to represent ownership of something. It could be a digital item like a work of art or a song, it could be an in-game item like a weapon or a house, it could be a license to copy something ( intellectual property) or it could be proof of real-world property ownership like real estate or an automobile. NFT may exist on other blockchains but for now we will focus on Ethereum-based blockchains like the ones offered at OpenSea.
With that, let's take a look at OpenSea and how buying, selling and minting works.
BUYING NFT ON OPENSEA
OpenSea is a user-friendly eBay-like platform that allows anyone to buy, sell, or create their own NFT. Like many DeFi platforms, OpenSea works with most modern Ethereum wallets like Meta Mask.
To get started, visit the official OpenSea platform website and select the blue explore button. From there, you can start browsing collections, items for sale, recently sold items, etc.
By default, prices are listed in ETH, but some items have alternate prices like USDC or DAI.
Site works in auction or buys it now. The potential buyer can make the offer and the seller decides whether to accept the offer and complete the sale. Alternatively, the buyer can pay the full requested price and receive the item by selecting the buy now option.
When using buy now, transactions are paid for with ETH or any compatible token required by the buyer. To bid and offer, buyers need to use WETH wrapped Ether. In the Official FAQ, the OpenSea team explains it this way:
AUCTIONS ARE HELD IN WETH BECAUSE, UNLIKE ETH, WETH CAN BE TRANSFERRED INSTANTLY USING ERC20'S "TRANSFERFROM" FUNCTION.
ETH can be wrapped into WETH directly inside the OpenSea platform.
CREATE AND SELL NFT ON OPENSEA
Do you already own some NFTs and want to sell them? First, you will set up your account and connect the wallet containing the key to the NFT. Next, you will need to make a few transactions and pay for gas "to grant exchange contracts access to your items" under FAQs. Then, list items for sale that don't require gas - just an electronic signature from your wallet to approve the listing.
When selling NFTs, you will need to choose the type of sale you want for your listing. Currently, the options are fixed, discount and auction. Fixed prices and auctions are just the way you envision them. A discount is a more competitive auction in which the price of the item periodically drops until the deadline is reached and the listing is deleted.
If you're an artist, content creator, musician, or anyone with a digital item they want to mint into NFT and sell, OpenSea's minting might be a good choice. To get started, visit OpenSea Collection Manager and set up your account. Just like becoming a seller of existing NFTs, setting up for minting requires some gas. The minting process also costs gas. If you have a lot of things to cast, it would be smart to wait until gas prices are low.
$ 82,500 PIXEL ART AVATAR
One of the earliest NFT projects was an art collection called CryptoPunks. Launched in 2017, CryptoPunks is a set of 10,000 pixel artwork. Some CryptoPunks are in high demand. At press time, we have found a sale of CryptoPunk # 7746 - a pixel coin shaped like a cowboy hat and blue eyeshadow - selling for 55 ETH.
For today's prices, that's around $ 82,500. That is the highest price of the spectrum for these NFTs. According to the OpenSea for collection page, the average transaction price for a CryptoPunk item is just over 18 ETH.
Is a digital work of art really worth 55 ETH? In some ways, owning an NFT can be like possessing any other art form. It has a market value that can move in any direction. Take CryptoPunk # 7746 as an example. Three years ago, it was acquired for just 0.1 ETH.
Of course, not all of the NFTs are in such high demand or are priced so high. For example, the Memecash trading card with “CZ Binance” is currently listed for just 0.0001 ETH, or about $ 0.14. Some items don't even have a price tag, such as the rudimentary MS painted black and white socks called "ALT SOCKS 3". While not judging the artistic merit of any given NFT, it is clear that some items will be required and others will not.
However, OpenSea is not perfect. Our main complaint against the platform is that it is difficult to spot the NFT unless you know exactly what you are looking for. Classified searches require a lot of polish. Therefore, it can be difficult to find items of a particular type.
For example, let's say you want to purchase the NFT version of a song. Currently, there is no music category to search. Entering words like 'music' or 'song' will only yield results that contain that word. It is also very difficult to distinguish which NFT is just a proxy token and which is an ownership license.
Another problem is the abuse of copyrighted material. A quick look at the art shows lots of examples of potential abuse of copyright. We found copyrighted characters from series like Star Wars and Harry Potter, animated celebrity animations and GIFs, etc.It's unclear whether the copyright owner allowed these NFTs to be created. be compensated for them or not.
Finally, as with any new technology, the platform is loaded with low-quality submissions that no one might want. This isn't necessarily an issue, but it can make finding gems between chaffs a lot harder - especially without better searching and filtering features.
The NFT is truly a new frontier. So there will definitely be bumps along the way. Thankfully, OpenSea has a very friendly approach, with little jargon, welcoming newcomers as well as experts. Just be sure before you buy anything you understand what it really is and what it is worth - or not.
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