Why cost of OpenSea is very expensive – 2022

OpenSea is an online platform and decentralised marketplace, used to buy and sell NFTs. NFT means Non-Fungible Token, it can be anything like in-game assets, audio, video, picture, art and so on. OpenSea is the world’s first and largest marketplace made for NFT purchases. It is absolutely free to all their users to use their platform. They don’t get money for setting up and using your account. However, they receive 2.5% of each sale made in OpenSea. So, the OpenSea platform has lots of fee structure for their users. We have explained those structure details to you in an easy way to understand. 

 

Gas fees on Ethereum

The transaction fees on Ethereum are called Gas fees. But the OpenSea will not receive these fees and also it is non-refundable. Below, I stated the situations, when you have to pay these fees. Moreover, I also discussed the two categories of gas fees, which you face on OpenSea. 

 

Need of Gas fee on OpenSea

There will be a requirement of Gas fees on OpenSea, when you send crypto to another wallet or you made a purchase of NFT on OpenSea. 

There are two possible ways that will require ETH gas fees on OpenSea. They are called as,

1. One-time fees

2. Recurring fees.

 

One-Time Fees

When you’re using Ethereum for the first time, there will be few one-time fees you are required to pay. These fees are required to provide permissions to your transactions between your OpenSea and wallet. 

 

Account Registration Fees

You need to pay an Account initialization fee, when you’re just starting to list your items on Ethereum. Depending on the Ethereum network congestion, this fee may vary widely. Account initialization fee will be slightly higher, when compared with Ethereum transactions. The reason is, it is granting permission to your OpenSea and wallet. Moreover, it allows your OpenSea account to access NFT items during future sales. 

 

Token or Contract Approval ( WETH , USDC )

Suppose your item was minted through a custom NFT collection contract instead of listing on the OpenSea. In that case, you are required to pay a one-time fee for authorising the transactions between that particular contract and your wallet. You need to approve WETH, if you’re listing your items in an auction for the first time. WETH is used for auctions and it is a particular type of ETH. 

Whenever you try to interact with a cryptocurrency, token approval is required for the first time. It also has some other popular currencies like USDC and DAI.

 

Recurring Fees

The following are the situations, you’re requested to pay the fees called Recurring Fees.

  • Accepting an offer
  • Transferring (or Gifting) an NFT to someone
  • Buying a NFT
  • Cancelling a listed NFT
  • Cancelling a Bid
  • Converting ETH to WETH and vice versa
  • Freezing your metadata
  • Withdrawing ETH to and from Polygon

 

Reason for Failed Transactions

The reason for this may be encountered with major two reasons.

  1. Dropped and Replaced:

It occurs when your transaction was dropped or replaced with another item. 

  1. Out of Gas:

It occurs if your Gas limit of the transaction was set too low. The chances of failed transactions occur when the gas limits are changing settings.

 

Requirement of cost to Mint an NFT on OpenSea

The non-fungible tokens (NFTs) are becoming the game-challenging concept in today’s world. A senior strategist, Robert Martin lost more than 200 dollars in NFT minting costs. After this, he stated that the buying and selling of NFTs are not so simple. He also paid for the conversion cost from WETH to USD. The cost required to Mint an NFT is not the same as on other platforms.

Costs:

  • 1+  NFT lazy minting Free / 5% of final value fee
  • 1+ on-chain mint $55-$200 + 5% final value fee
  • Approval $10-$30

Calculating the minting costs of NFT is a little complicated. As I mentioned earlier, the mining NFT costs will depend on the platform. However, some platforms cost some percentage of the final sale price and provide the free minting services. Here OpenSea is the largest NFTs marketplace, providing their producers to sell their things for free. But in exchange they took 2.5 % commission on each item when it was sold. 

 

Ethereum Minting Fees Why is it so expensive? 

As I said earlier, when the demand and popularity increases, eventually the prices for the Gas fee increases. Ethereum One of the widely used blockchain networks for the purpose of cryptocurrency transactions and NFT minting. If you compare the Ethereum Gas fee with the past few years, you may note down how drastically the price has increased. 

Way to sell on OpenSea without paying Gas Fees:

So now you’re clear with that,  when you transfer the crypto to another wallet or purchase an NFT on OpenSea, it is required to have enough ETH in your wallet. It is for covering the initial transaction and the gas fees. Recently, OpenSea has introduced a new marketplace called Polygon. There it is possible to sell NFTs without the Gas fees. 

Steps to create a Polygon collection:

  1. On the right side, click on your profile picture then select “My Collections”
  2. Select the “Create a Collection”.
  3. Now, you are required to fill in the details like, adding the logo, description, and setting the royalties. 
  4. Now you can select the blockchain to create NFTs. Then select the “Polygon” from the dropdown menu. 

 

Frequently Asked Questions

 

How much does OpenSea charge for Ethereum Gas fees?

OpenSea being the largest marketplace for NFT, it charged $3.79 million as a gas fee.  It deals in Ethereum and also some on Polygon blockchain. 90 percent of the transactions in OpenSea are done in Ethereum. So the average fee will be 5.23%.

How to make money in OpenSea?

There are various options to make money on OpenSea. It is an open marketplace, just like a stock market, where you can buy digital assets and wait for an increase in price. Moreover, you can easily create your own digital assets and as an owner you can sell them. 

How can one promote on OpenSea?

First of all, you need to open a page on the official OpenSea website. Once you are done with signing up to a marketplace, you can start minting digital tokens. It is done by uploading the information and then validating it. So it will be placed to the public for sale and then press sell.

 

Conclusion:

Nowadays, OpenSea has a huge community, where people do daily trading activities. The NFT is going to get a lot of attention in upcoming years. It makes for interesting and thinking factors for the investors. If you have enough knowledge on this platform, you can easily make more money. Here in this article, I have discussed all the fee details that belong to the OpenSea platform. I hope that this article helps you to begin your investment on digital assets. 

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