By Yogesh – 9 Min read
If you’re new to OpenSea, the chances are that this question has crossed your mind at least once: can I make money selling on OpenSea?
After all, you could say that’s the true essence of this platform – getting gamers (or game developers, as the case may be) and other interested parties together and letting them do business with each other.
So it stands to reason that one of the most common questions about OpenSea is whether or not it’s possible to make money selling digital items on it.
will you make money on the open sea? The answer to this question is yes – definitely!
Table of Contents
Why is OpenSea the best platform for NFTs?
OpenSea is a trusted, community-driven marketplace for NFTs. As far as I know, we’re one of only two major marketplaces focused entirely on NFTs.
This means that you can use our reputation and commitment to building value in crypto to protect yourself from scammers and bad actors: if a user creates a maliciously-designed token or displays bad behavior like scamming others, they will likely be banned from our site (and no longer able to sell any tokens).
With over $50M worth of real transactions each month, you’ll be dealing with people who are serious about trading their digital assets.
How OpenSea works?
OpenSea offers a unique, never-before-seen trading platform for crypto collectibles. If you have no idea what crypto-collectibles are, don’t worry—we explain that in a bit.
The first thing you need to know about OpenSea is that it uses an order book system similar to major cryptocurrency exchanges.
If you already understand how those work, then you won’t be too far behind when using OpenSea.
Once your account is created and verified (which takes less than 24 hours), you can start searching through thousands of available items and their prices (which are listed in both US dollars and Ether).
3 Points to Understand for All Users:
When you find an item that looks promising, simply place a bid or ask—just like any other crypto exchange. To ensure your transactions go smoothly, keep these three points in mind:
- One, use MetaMask or a compatible wallet to make transactions safely.
- Two, avoid sending payments from known exchanges such as Coinbase or Kraken; these accounts will likely get blocked because they haven’t passed verification procedures.
- Three, pay close attention to fees—too high fees could mean lost profits. For more information about OpenSea itself, check out our comprehensive guide for beginners.
Is it free to sell NFT on OpenSea?
NO, OpenSea charges a 5% fee to sell assets. This fee is comparable to other marketplaces and, in fact, lower than most.
As with any marketplace, reputation (measured by a seller’s feedback score) determines whether or not you can take advantage of a zero-fee listing.
Sellers must have at least 500 reputation points to qualify for a free listing. If you’re new to OpenSea, start building your reputation now by selling cheap items or trading ETH for NFTs from other users who are willing to pay more than you’re asking.
In time, your feedback score will grow and it will be easier for you to list more expensive items without taking a hit on your profits. Always remember that higher-priced items should net more profit!
What does NFT stand for?
NFTs (non-fungible tokens) are ERC721 tokens. In layman’s terms, they’re non-interchangeable assets.
Think about real-world assets for a moment: Apple shares and Star Wars action figures have no value in common—they can’t be exchanged for one another.
NFTs aren’t fungible because they each come with unique sets of data—some more valuable than others. So, if you own an individualized asset like a specific soccer ball or piece of artwork, you don’t have to worry about that asset becoming worthless due to greater supply entering the market.
The same concept applies here with blockchain technology. For example, using CryptoKitties as an example again, there are 100% Gen 0 kitties that exist only once and will never be able to be replicated again.
These same kitties also possess attributes that make them attractive or unattractive depending on their DNA sequencing paired with their traits.
There is a finite number of CryptoKitties in existence and their traits can vary from one cat to another making them 100% unique from one another.
How does one promote a collection of NFT art on OpenSea?
To increase your chances of selling art, you’ll want to increase exposure to it. First and foremost, you’ll want a collection page for your inventory so people can find your NFTs easily.
With that said, there are three simple ways to market your items:
1) Manually go into each marketplace, and
2) Use our email alert system.
3) Twitter communities as a way to promote NFT these methods have been shown to help sell assets.
How does OpenSea make money?
OpenSea charges a 0.5% fee for using their platform, and they make money by collecting these fees in both crypto (via their internal wallet) and USD via Stripe.
Here’s how it works: if you want to buy an item for $30, you send $30 worth of ETH to OpenSea.
They’ll hold onto that ETH until it sells and then takes your $30 worth of ETH from whoever bought it from you and put that into your seller account.
How do I sell my photos on OpenSea?
To sell photos, you will need to first upload them to OpenSea.
- Once you’ve uploaded your photo, click Verify Photo next to it. Fill out all of your information in order to get your account verified by our team.
To get your account verified as quickly as possible, be sure that both your Ethereum address and name are correct.
How much can I earn?
The main way to earn money from selling your digital goods is through direct sales, like commissions or ad revenue.
If you sell a $2 digital good on OpenSea, you could expect to earn about $1-$3 in commission for each sale.
On top of that, you can earn additional income if someone views your product page but doesn’t purchase it—for example, if they see an item and use it as inspiration for their own design work.
Each view earns a modest amount of ad revenue depending on how many times your product has been viewed by others in a 24-hour period.
The more views you have, the more money you make! However, due to our low market penetration, we currently don’t have enough users to generate significant revenue through advertising.
Is NFT’s Opensea legit?
If you’re wondering how you can make money with NFTs, Opensea is a good place to start.
That’s because it’s a marketplace for non-fungible tokens (NFTs) that focus on allowing users to build customized portfolios of digital assets – which sounds pretty similar to what NFT experts think will happen in 2019.
The site lists a variety of games and collectibles already available, with many more being added as they are released (or at least when they’re tradable).
The whole user experience was streamlined specifically for NFT purchases and trading, which means everything feels intuitive.
Is there competition?
First, you need to look at the listing and see if there are similar items for sale.
If so, how many people are competing with you for attention, sales, and profit? If there are too many similar listings to yours out there already, it might be a tough sell when it comes to profits.
However, just because there are competitors doesn’t mean your product can’t succeed; after all, one of your competitors may have recently used OpenSea to sell their item for an insane markup and free up some space in their inventory. Who knows – maybe that was your selling point!
Does it cost gas to list on OpenSea?
Don’t let high gas prices scare you away from using OpenSea to buy and sell crypto collectibles.
Unlike traditional exchanges that charge high fees, no gas is needed to list an item for sale.
However, like any other decentralized exchange, your items will be sold without escrow protection and it’s up to you to make sure buyers pay in time before their bids expire.
For more details, check out the How It Works Guide.
What happens when an auction ends on OpenSea?
When an auction ends, one of two things can happen: If you’re a seller who chose to pay a buyer fee, you’ll be required to send their payment.
Once we’ve received your payment, we’ll notify your buyer that they have 48 hours to purchase from you or risk losing their purchased items and Ether (their deposit).
After 48 hours, if there is no purchase from a buyer, we will refund your Ether deposit and recover all sold items back into your account.
If you’re a seller who chose to not pay a buyer fee, then it’s up to you if/when to release your purchased items.
Despite how new it is, it’s pretty obvious that OpenSea has a lot of potentials. The community looks very active, and there are certainly plenty of items available for sale.
I don’t think anyone should be surprised if new users flock to OpenSea over the next few months, bringing increased traffic and even more sales.
However, it may not yet be worth devoting a significant amount of time to selling things in their marketplace: you might make money quickly when you first get started (with little investment), but as more sellers come online and competition increases your profits will likely decline.