Sooner or later, anyone exploring NFTs for the first time is likely to come across the NFT marketplace OpenSea. As one of the oldest NFT trading platforms with the largest user base, OpenSea is the first name that comes to mind when discussing the secondary market for NFTs. But what is OpenSea and how does it work? We’ve got you covered, so read on!
What Is OpenSea?
OpenSea is an American-based digital platform founded in 2017 by Devin Finzer and Alex Atallah. It operates as a leading marketplace for non-fungible tokens (NFTs), allowing users to buy, sell, and mint digital assets across multiple blockchain networks. Originally inspired by the early success of projects like Ethereum’s CryptoKitties, OpenSea has grown into one of the most active peer-to-peer NFT platforms in the world. It supports various types of utility NFTs and has become a hub where collectors, creators, and developers engage with the evolving NFT ecosystem. By leveraging its user-friendly interface and growing integration with blockchain technology, OpenSea empowers users to explore the digital economy seamlessly.
The OpenSea NFT marketplace gained popularity during the 2021 crypto Bull Run due to the growing number of successful NFT collections, such as the renowned Bored Ape Yacht Club (BAYC), that entered the NFT space. During its heyday, when the NFT boom accompanied the Bull Market, daily trading volumes at the largest NFT marketplace exceeded $2 billion, attracting many leading investors, including Reddit’s Alexis Ohanian, Shark Tank’s Mark Cuban, and the NBA’s Kevin Durant. The latest valuation of the OpenSea decentralized marketplace was $13.3 billion as of January 4, 2023.
The History of The OpenSea
Founded back in December 2017 by Devin Finzer and Alex Atallah, OpenSea is a platform for minting, buying, selling, and viewing NFTs. Popular analogies have referred to the company as an “eBay for crypto assets” or a “Web3 Amazon”.
A major inspiration for OpenSea came from the new-at-the-time ERC-721 Ethereum standard, which enabled the early NFT projects that set the stage for the industry we know today.
Another inspiration for the OpenSea marketplace was the OG NFT collection CryptoKitties, which had its very own dedicated marketplace for trading. The idea then, was for OpenSea to be a single destination where people could manage and trade a variety of different NFTs.
For a while, it didn’t see all that much action and focused on building out its platform. Of course that all changed in 2021 when several factors including the increasing popularity of NBA Top Shot, Beeple’s landmark sale, and the success of CryptoPunks and the Bored Ape Yacht Club brought NFTs to the mainstream in a major way.
How Does OpenSea Work?
OpenSea operates as a non-custodial, peer-to-peer NFT marketplace. Non-custodial means no central authority controls the assets listed—users maintain control through connected crypto wallets. Peer-to-peer implies OpenSea doesn’t sell NFTs itself but enables users to trade directly with each other.
Built on Ethereum and other supported blockchains, OpenSea lets users create, buy, and sell utility NFTs. It uses smart contracts to support trustless transactions, allowing seamless wallet integration for secure NFT trading. The platform also offers gas-free minting, enabling users to create NFTs without incurring blockchain fees. Even NFTs from other supported blockchains can be listed and traded freely on OpenSea.
As with most online marketplaces, OpenSea makes money through transaction fees. Its fee at this time is 2.5% of the transaction. This number often comes up in criticisms of OpenSea as compared to some of its competitors with lower fees. Although in fairness, some other marketplaces have fees that are as high as 15%.
In addition to basic peer-to-peer trading functionalities, OpenSea offers robust analytics tools to enhance user experience. Through the “Stats” page, users can explore top NFT collections from the last 24 hours and filter results by category and blockchain. Further sorting options include key metrics such as price change, floor price, volume, sales, unique owners, and number of items listed. These insights empower users to make informed decisions when browsing or trading NFTs on the platform.
Source: Yo-kart
What Kind of NFTs Trade on OpenSea?
OpenSea initially catered only to Ethereum NFTs, the pioneering smart contract chain. Ethereum is notably the home of the most prominent NFT collections today. However, OpenSea has expanded to become a cross-chain marketplace, currently offering trading on NFTs on the Polygon, Solana, and Klatyn blockchains.
How to Use OpenSea?
The OpenSea platform is a decentralized marketplace that enables users to trade NFTs by buying and selling non-fungible tokens. At inception, the team behind the NFT market aimed to provide users with a safe and enjoyable place to trade efficiently. Since the OpenSea market runs on blockchain technology, any transaction you execute cannot be controlled by any government or entity, and neither do they hold your NFTs because you do in your non-custodial wallet.
The following is a step-by-step process for using the OpenSea platform:
Create an OpenSea account: The first step involves opening an account at OpenSea by registering on the official website. The minimum requirement for opening an account is a Web3 cryptocurrency wallet, such as MetaMask.
- Log in to the OpenSea website and navigate to the “Account” icon on the top-right corner.
- Sign in on the page and connect your wallet
- After connecting your wallet, the system will direct you to the OpenSea Dashboard
As simple as that, you are ready to enter the NFT market. Depending on what you intend to do in the OpenSea market; you need the appropriate cryptocurrency tokens in your wallet to make applicable payments.
Key Features of OpenSea
OpenSea is the world’s leading decentralized NFT platform, offering creators, collectors, and traders a wide range of powerful features. From supporting multiple blockchains to enabling fully non-custodial transactions, OpenSea empowers users to engage with NFTs in a transparent, secure, and highly customizable environment.
Here are the standout features that define the OpenSea experience:
- NFT Marketplace: A platform for buying, selling, and trading diverse NFTs—ranging from art and music to domain names and virtual land.
- Decentralized & Non-Custodial: Users retain full control of their crypto wallets and assets, with no custodial interference from OpenSea.
- Direct Trading: Enables direct NFT exchanges between users or collections without third-party involvement.
- Custom Marketplaces: Users can build branded storefronts and manage NFT collections with full design flexibility.
- Auction Options: Creators can choose between auctions or fixed pricing for NFT sales.
- Minting Tools: Built-in tools let creators mint NFTs on OpenSea, securing digital ownership and origin.
- Multi-Chain Access: Supports Ethereum, Polygon, and more—lowering gas costs through Layer-2 integrations.
- Secure & Transparent: Smart contracts automate transactions, ensuring reliability without centralized oversight.
- Community Engagement: Users can follow collections, comment, and explore educational resources on NFTs and gas fees.
- Global Reach: Available in multiple languages, designed for inclusivity and worldwide accessibility.
- Ongoing Innovation: OpenSea frequently updates its features and integrations to keep pace with Web3 advancements.
How to Buy a NFT on OpenSea
If you’re considering buying an OpenSea NFT, the prerequisite is having a cryptocurrency wallet and some cryptocurrency or a debit/credit card for particular items. Take the time to browse options until you find one you’re interested in. You can choose to click “Buy Now” and pay the listed price or make an alternative offer for the seller to consider.
Step 1: Set up a Cryptocurrency Wallet
Ensure you have a compatible wallet, such as Trust Wallet, Coinbase Wallet, or MetaMask. Install and set it up following the manufacturer’s instructions.
- After that, you need to create an account and remember to secure it with a strong password.
- Fund your wallet by transferring a supported cryptocurrency, such as ETH or any other required cryptocurrency.
Step 2: Browse and Find an NFT
Log in to the OpenSea NFT website and, using the search bar, browse through the NFT collection until you find something that interests you.
To verify the authenticity of any item, check whether it is genuine by verifying the contact address, especially if you’re getting an item from a specific collection.
Step 3: Buy the NFT
If the NFT you’re interested in is listed at a fixed price, click the “Buy Now” tab. However, if the NFT is being sold through an auction, you may choose to click on the “Make Offer” button and, indicate the price you’re willing to buy it and wait for the seller to respond.
- Confirm purchase: Once you’re comfortable with the pricing, the system will guide you through the checkout process, which may involve confirming your crypto wallet connection and relevant payment details.
- Pay and complete: Take the time to review all transaction details, remembering to include gas fees and blockchain fees where applicable in your calculations. Finally, confirm the purchase.
Step 4: After Purchase
Once the payment is approved, the NFT will be transferred to your crypto wallet. You should also be able to view your new NFT on your OpenSea profile.
How to Sell NFTs on OpenSea
The process of making NFT sales is the same whether you created one or you want to sell one that you bought earlier for a profit on the OpenSea NFT marketplace. The following is a step-by-step process for selling an NFT:
- Step 1: Navigate to the NFT: Log into the OpenSea NFT marketplace, and on your profile or crypto wallet, find the NFT you wish to sell.
- Step 2: Start the selling process: Click on the selected NFT, locate the “Sell” Button, and clock on it. You will find this button on the top right-hand corner of the item page.
- Step 3: Choose a sale type: Decide whether to list your NFT at a fixed price or set it up for a timed auction where buyers can place bids.
- Step 4: Set the price: If opting for a fixed price, specify the amount and currency clearly.
- Step 5: Confirm the listing: After setting the price, sign the transaction in your wallet to authorize the listing on OpenSea.
- Step 6: Manage your listing: You’re now free to wait for a buyer, cancel the listing, or adjust your profile.
OpenSea’s dominance of the NFT market so far
According to DappRadar’s rankings, OpenSea leads all NFT marketplaces in all-time trade volume, and is second only to the Axie Infinity marketplace on the Ronin sidechain in terms of user count.
Without a doubt, OpenSea used its years ahead of the curve well. Since its founding, it perfectly positioned itself for the explosion of NFTs in 2021. It made a marketplace that was relatively easy to navigate and available for anyone to trade on. This helped lead it to a higher rate of adoption than other NFT marketplaces.
Its large user base gives creators the biggest audience out there to market their NFTs. By the same token, NFT owners have an endless variety of NFTs to explore and collect.
Obviously, the rising interest and activity in NFTs equaled a massive surge in OpenSea’s userbase and transaction volumes. As a matter of fact, by the beginning of 2022, the company had secured $300 million in funding, amounting to an impressive $13.3 billion valuation.
Even so, OpenSea has faced many public challenges over the past months. Although it’s still the biggest and most used NFT market, its grip on the market has loosened somewhat.
What’s the outlook for the OpenSea NFT marketplace?
All things considered, OpenSea won’t be going anywhere anytime soon. While competitors spring up on a near-daily basis, the head start OpenSea got in establishing its NFT marketplace is holding on strong. To illustrate, it is still beating out its closest competition, LooksRare, by most metrics. To say nothing of the issues that the LooksRare platform itself has faced.
OpenSea also faces competition in the form of NFT marketplaces on other blockchains, like the top Solana marketplace Magic Eden. Nevertheless, with OpenSea now moving into the Solana space, Magic Eden might be facing stiffer competition in the future.
Between adding integrations for more blockchains, and adding other user-friendly features like card payment options, it remains to be seen if other NFT marketplaces could catch up to OpenSea soon. Let alone overtake it.
FAQs
What is OpenSea Used For?
OpenSea is a digital marketplace primarily used for buying, selling, and trading non-fungible tokens (NFTs). The platform enables users to find, collect, and exchange various digital assets, including real estate, music, art, and domain names. Since OpenSea is a decentralized platform, users don’t need the intervention of intermediaries to execute transactions as they rely on smart contracts.
What is the Gas Price on OpenSea?
Gas fees, which are transaction fees, vary from one transaction to another for processing transactions on the Ethereum platform. Gas fees are not fixed and depend on various factors, including the transaction’s complexity, network congestion, and the ETH price during the transaction time. The truth is that the OpenSea marketplace doesn’t have control over gas fees, as the Ethereum blockchain determines them.
How do you make money on OpenSea?
You can make money on OpenSea by buying NFTs at a low price and reselling them for a higher profit. This strategy, often called “NFT flipping,” relies on spotting undervalued assets early and selling when demand rises.
Can I withdraw money from OpenSea?
To withdraw money from OpenSea, simply enter the amount you’d like to withdraw in the Cash out tab, then follow the prompts to complete your transaction.
