How to Start NFT Trading

 

Introduction to the NFT Trading OpenSea Use Case

NFT, Non-Fungible Token, is a digital certificate of authenticity that, through blockchain technology, associates a single digital file containing the data and information of an asset:

  • Tangibles such as: real estate, furniture, paintings, sculptures, sports team uniforms, sports tournament cups.

  • Intangibles such as: characters, land and buildings for electronic games, photographs and images of sporting events, autographed images of famous artists and athletes.

Where do these active investors buy?

With the growing popularity of NFT, hundreds of online marketplaces have emerged, selling everything from virtual collectibles to digital art at every price imaginable.

We introduce you to three of the top platforms that trade these assets, to immerse you in this wonderful digital world.

 

The main platforms:

For illustrative purposes, we present three of the more than one hundred existing NFT trading platforms.

 

1.     OpenSea

OpenSea, is an American online NFT marketplace based in New York City. Devin Finzer and Alex Atallah in 2017 founded it. It offers a marketplace that allows the direct sale of NFTs at a fixed price or through an auction. Blockchain tools used:

  • Ethereum Smart Contract (SC) ERC721.

  • SC Polygon which is a layer 2 (L2) protocol.

  • SC standard KIP-7 from Klaytn, another public blockchain.

  • SC standard SPL for Solana, another decentralized blockchain.

As of January 2022, the company is worth $13 billion and is the largest NFT marketplace.

 

 2.      Rarible

Rarible, is a DAO (Decentralized Autonomous Organization), a platform owned by the community of holders of its RARIBLE cryptocurrency token, built on Ethereum, and one of the leading NFT marketplaces.

 Rarible allows:

  • Digital artists and creators to issue Smart contract ERC-721 and ERC-1155 to represent ownership of digital artwork.

  • It incorporates the features of a Decentralized Autonomous Organization (DAO) and merges them with the capabilities of NFTs into a single platform.

  • Users are in charge of making all network governance decisions.

  • The team behind this is working to make Rarible a functional DAO and this is where their RARIBlE coin comes into the picture.

 

3.    LooksRare

LooksRare is an NFT marketplace that indexes all NFT collections on the Ethereum blockchain. The site went live this year.

  • Created by two anonymous co-founders known as Zodd and Guts. Their proposed solution is to offer a marketplace that rewards participants and creators on the platform.

  • Users who buy or sell NFT-eligible collections can earn their native utility tokens, LOOKS.

  • The platform has a standard 2% commission on all NFT transactions, which is lower than OpenSea's 2.5%, which goes to users who bet on LOOKS tokens.

 Use case: OpenSea.

We present a series of steps on how to use the OpenSea platform:

Step 1.- Click to enter the website:

Step 2.- Scrolling down the web page, we have the most relevant collections of the last 24 hours:

Step 3.- There are also collections that are trending in all categories:

Step 4.- In the NFT by category, we select one of them Art:

Here we find an online community of creators, developers and traders who are pushing the art world into additional territory. It all started with CryptoPunks, a set of 10,000 randomly generated punks that demonstrated the demand for digital ownership of intangible objects and collectibles in 2017, and since then the market has evolved rapidly.

 

Step 5.- When browsing the art collections, we select one, Fvckrender (in each category the location of the collections changes).

Step 6.- The Fvckrender Collection features 1043 items by futuristic digital technology artist Fvckrender, who is a self-taught creative working in Vancouver, Canada. With a definite affinity for architectural geometry, radiant future landscapes and sparkling crystalline arrangements.

From this collection we selected the second article, the work called spirit_stone.

Step 7.- Clicking on the spirit_stone image presents information about the owner, how many users have viewed the item or work, how many indicated that it is their favorite, final sale date of the work, the price set in ETHERS (the native currency of the Ethereum blockchain) and finally two actions can be performed:

  • Buy now (Buy at the price indicated).

  • Make offer (Make an offer, propose another price).

Step 8.- When executing one of the two actions indicated above, a list of crypto-wallets accepted by OpenSea appears:

  • Metamask.

  • Coinbase.

  • Phantom, etc.

Step 9. - In my case I have installed the Metamask wallet, the wallet connects, writes the secret key (like the one used in emails).

Step 10.- The wallet account allows you to automatically register with OpenSea (if once registered, you activate another account in the wallet to interact with OpenSea, it will not give you the login for transactions).

Step 11.- When you click again to buy or bid, the transaction is initiated.

Step 12.- In the verification window, indicate the NFT price of the selected work by clicking on Complete purchase, execute and close the purchase.

 

Final Observation:

Using the wallet involves knowing all the details of how to acquire ETH (the Ethereum blockchain currency). In addition to the price of NFT, you must have enough to cover the cost of the transaction.

 
Carlos Sampson