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In addition to DeFi, NFTs are the big hype topic on the crypto market. In 2021, NFTs also made their big breakthrough in the mainstream. NFT means “Non-Fungible Token” or non-fungible token. This means nothing other than that each token is unique or quite limited. In this article, you will find important information on how to make money by trading NFT on platforms like OpenSea.
You can read more about NFTs in the following article.
Why are NFTs so popular right now?
In 2022, NFTs have become a digital phenomenon. Since an NFT is unique, limited, and non-reproducible, interest in these digital objects increases massively. The driving force is a new “digital art market”. NFTs are auctioned off as works of art and sometimes reach six-figure sales prices on digital exchanges. In this list, you will find the most expensive NFTs of all time.
The advantages of NFTs in the art trade are obvious:
- NFTs can not be counterfeited or otherwise reproduced. They are unique and therefore have a high material but also emotional value for the owner.
- Thanks to digital marketplaces such as OpenSea , the digital art trade is open to everyone with internet access. Exclusive offline events with physical auctions can not offer such inclusion .
- The processes of auctioning and selling NFTs are extremely simple and very secure thanks to blockchain technology.
The popularity of NFTs doesn’t stop with art, however. The influence and integration of non-fungible tokens are also increasing in other areas such as the music industry (songs as NFTs) or virtual real estate. A lot of money can now be made with NFT trading.
How to make money Trading NFT OpenSea in 2022?
If you see NFT trading as an extreme opportunity in 2022, then you have the opportunity to make money trading digital artworks. NFT marketplaces are ideal for this. They specialize in buying, selling, trading and auctioning NFTs.
The most well-known trading venues of NFTs include the following platforms:
- OpenSea
- Rarible
- Super Rare NFT
There are also well-known crypto exchanges that mainly trade cryptocurrencies, but also have sections where NFTs can be traded:
- Binance
- FTX
- Crypto.com
If you want to read more about our favorite NFT platforms, check out our article!
How does NFT trading work on OpenSea?
OpenSea is a decentralized trading platform for NFTs on Ethereum. The platform has existed since 2018 and is growing as new NFTs are constantly appearing and being made available for NFT trading.
Most NFTs on Ethereum are derived from the ERC-721 standard. This implements the function setApprovalForAll. This function is called by the token holder and gives the transferred address the rights to transfer the NFTs. Anyone who logs into OpenSea with their Ethereum address calls this function and gives OpenSea the rights to transfer.
This is the reason why the tokens remain stored at the owner’s address until the trade takes place. If there is an exchange, the OpenSea smart contract fetches the NFTs from the addresses of the buyers and transfers them to the buyer. OpenSea gets 2.5% of the price for each exchange.
How do I log into OpenSea?
If you have not yet had any contact with OpenSea and NFT trading, we recommend our OpenSea instructions for beginners.
How to Buy NFTs on Opensea?
Purchasing the NFTs you want is relatively easy. You look for the desired token on the website, click on it and pay the required price. You can also make the seller an offer for a better price. In doing so, one commits oneself to buy for the proposed price, or this is regulated by the smart contract. OpenSea currently supports trading with Ethereum, Polygon, and Klaytn.
How to Sell NFTs on Opensea?
1- Create a normal offer:
If you want to sell NFTs, you first have to give OpenSea access to the address where you keep your NFTs, as described above. There are several ways to sell NFTs. You can simply set a fixed price and wait for a buyer to respond.
2- Dutch Auction:
There is also the possibility to create a Dutch auction for NFT trading. At a Dutch auction, there is a starting price and a closing price. The final price is less than the starting price. Over time, the price decreases evenly to the final price. The price keeps going down until either the final price is reached or someone strikes at the current price. The falling price is effective in terms of game theory because the interested buyer is under pressure to grab the good before the others, he cannot wait long for a further falling price, so to speak, because of the competition.
For the Dutch auction, press the slider (red framed field) and further fields will appear. In the “Ending Price” field (yellow framed field) enter the ending price. And at “Expiration date” (framed in green) how long the auction should last.
In the example, a starting price of 0.22 Ether is set, the end price is 0.1 Ether and the duration of the auction is 5 days. Now the price falls steadily to 0.1 Ether in these 5 days unless someone buys at the current price. 0.12 Ether (0.22-0.1) price decrease in 5 days means the price then decreases by 0.001 Ether/hour.
The normal auction (“English auction”) is technically easier to set up. Click on “Highest Bid” above, enter the starting price and the end time (“Expiration Date”). Now the buyers can outbid each other from the starting price. Whoever has bid the most by the end gets the NFT.
Bundle NFTs
You can also sell several NFTs of one type or series as a bundle. To do this, click on “Bundle” and select the desired NFTs. The bundles can then be sold as with the options already described.
Referral Bonus
OpenSea offers a referral bounty for every offer you create. This can be set when creating the offer (between 1% and 2.5% of the price). Anyone who sees the sales offer can have a referral link generated and spread it. If someone buys through this link, they get the bonus. However, you must have assigned an email address to your Ethereum address on the OpenSea off-chain.
Example: Someone sells a CryptoKittie for 100 Ether. You see the offer and have a buddy who might be interested. Now go to the offer and generate the referral link. If your buddy now buys the NFT with this link, you will get 1-2.5 Ether, depending on what the seller has set.
How to Pay on OpenSea?
OpenSea is not only characterized by high usability or a large selection of NFTs, but also by versatile and secure payment options for NFT trading. The platform provides over 200 options for transactions. ETH is considered the default, but other tokens are also available, including:
- DAI and USDC stablecoins,
- wBTC,
- mana,
- REVV and SAND,
- WHALE,
- MEME
Why is OpenSea good for NFT Trading?
In recent years, OpenSea has developed into by far the largest NFT exchange. The marketplace offers the largest selection of NFT collections of any NFT marketplace. The functionality of the platform is kept particularly simple so that beginners can easily find their way around. Still, there are numerous different ways to sell your NFTs.
Monthly trading volume on OpenSea has grown to over $3.5 billion this year. With increasing popularity, this should continue to grow in 2022. So you can continue to earn a lot of money with NFT trading in the coming months.