From $21 million to $3.5 billion
That was the jump in the dollar volume of sales made on the NFT marketplace known as OpenSea between 2020 and 2021. In that 12 month span, the marketplace saw a 12,000% increase in sale volume as a result in a massive jolt in interest in Non-Fungible Tokens (NFTs). OpenSea is riding the wave (pardon the pun) of excitement over NFTs, and they even have big-name celebrity backers that you had heard of such as Ashton Kutcher and Mark Cuban. Even though OpenSea is still very young as a company, they have already garnered a $1.5 billion dollar valuation, TechCrunch says:
It's been a wild 2021 for NFT auction marketplace OpenSea. The startup was exceedingly well positioned in a niche space when NFTs exploded earlier this year, seemingly out of nowhere. Since then, the startup has found its user base expanding, the total volume of sales skyrocketing and more investor dollars being thrown at them.
Given the boom in popularity of NFTs and the OpenSea marketplace itself, you are probably asking yourself how you can take part and get your own piece of the NFT pie. Buckle in and listen up as we provide you with two ways to join in on the feeding frenzy that is OpenSea.
How does OpenSea work?
OpenSea is a completely decentralized marketplace where buyers and sellers of NFTs meet with one another to exchange NFTs. All trading is done via crypto currencies in order to keep the process as unregulated as possible. Participants in this type of market prefer to keep their trading unregulated in order to keep the marketplace as open and transparent as possible without any kind of overseer attempting to intervene. In fact, many traders are wary of the government and other regulators and will refuse to trade on any platform that has any type of centralized authority.
Prepare Ethereum and sign up for an account
If you would like to participate, you can sign up for a free account on OpenSea to begin to trade. You will need the cryptocurrency known as Ethereum in order to participate in this market at this time. You can purchase Ethereum via any number of crypto wallets and then transfer those funds over to your OpenSea account to do what you need to do.
Creators of NFT artwork may post their work for sale on the platform at whatever price they would like to see it sell for. They may get a bid from a willing buyer if:
- Their work is unique.
- Their work is appealing to look at.
- The buyer believes that the work will be of an even higher value to another buyer down the line.
Explore the market with its best cases
It is challenging to say which pieces of NFT artwork will take off in a marketplace like this and which will sit for a long time without a bid. However, there are some artists who are truly taking off and making small fortunes for themselves via their artwork. Take the story of an 18-year transgender artist who goes by the username FEWOCiOUS who sold an NFT depicting his life as a transgender youth between the ages of 14 and 18. Decrypt reported that the artwork sold for a sum of $2.1 million dollars!
Now, this is far from the typical story in the world of NFTs, and you should not assume that you become an instant millionaire just because you are able to paint something that looks nice. There are many factors that go into which pieces catch on with the public and which do not. That said, it is a wonderful thing that an NFT marketplace exists where there is a possibility that someone previously unknown can suddenly become a major star in this world.
Learn how to trade/flip NFTs
You do not have to be a creator or an artistic type at all to profit from the OpenSea platform. If you are a talented speculator with reasonably deep pockets, you can also potentially cash in on the NFT craze. Buying NFTs with the intent of selling them to another person is a great way to potentially earn some income on OpenSea. You just need to be particularly talented at selecting the right NFTs at the right price to get what you want at a price that makes sense for you.
Just like an investor in anything else, the person who comes into the OpenSea market with the intention of flipping NFTs is looking for a great value. They want to buy something today that they firmly believe someone will pay more for at a later date. Fortunately, OpenSea makes it easy to search for various NFTs based on what that particular NFT is all about. In other words, you can do a search by keyword to find the types of NFTs that you want. Investors will look for NFTs related to a certain topic that they believe is likely to catch on in pop culture in the near future. If they get the timing just right, they might be able to snap up a number of NFTs related to that subject right now while the public isn't paying much attention. Later, when everyone is talking about those topics, the value of the NFTs could skyrocket.
A quick look around on the OpenSea stats page shows that some of the top performers on the platform have NFTs that are increasing in value anywhere from 5% to 500% in a 24 hour period. Again, those are the top performers, and those results are not typical, but it goes to show you how much interest and frenzy there is in this market at this time. Those who are talented (or perhaps a little lucky) at picking the right NFTs to invest in right now might make significant headway towards claiming their own piece of the NFT landscape and make a lot of profit doing so.