Crypto Academy Week 12 - Homework Post for [Professor @levycore] on crypto selling and buying NFT

In this week's class, professor @levycore continued with the Non Fungible Tokens (NFT) but this time around, we concentrated much on how to trade NFT that is buying and selling NFTs. Also, we looked at markets available for trading NFT and the advantages and disadvantages of NFT markets.

I am very happy to be part of this week's class, and my homework is solved and presented below.

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Non Fungible Tokens (NFTs) as discussed in the last class are digital assets that are unique and cannot be copied, they are used to prove ownership of digital items such as text, image, sound, video, etc. Two NFTS cannot be exchanged or interchanged since they would have different values, also they are specifically secured by the Ethereum blockchain which helps to avoid multiple ownership. NFT became popular in 2017 as a result of a game called cryptokittis and currently has gained much grounds and their markets are on the rise too.

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Select the NFT market that you want to try to sell and buy NFTs and why did you choose this market.

Solution

As the popularity of NFTs rises, the number of marketplaces available for trading them is also on the increase and their prices are also becoming extraordinary and staggering. Not all NFT marketplaces buy and sell all kind of NFT, trader will often sellect the marketplace that support a specific NFT token standard. Most NFT marketplaces will require the buyer to have a digital wallet and use cryptocurrencies to pay for their transactions. They are several NFT market platforms, of which include, OpenSea, Rarible, SuperRare, Foundation, AtomicMarket, Myth Market, BakerySwap etc.

I personally prefer OpenSea to trade NFT. OpenSea is presumably the world's largest and popular digital marketplace for crypto collectibles and non-fungible tokens (NFTs), it offers several and a wide range of NFTs of which include virtual world, collectibles, arts, sports, trading cards etc. It also includes ERC721 and ERC1155 assets, you can also sell and discover exclusive asset such as Cryptokitties, ENS names, etc. Creators can create their own asset on this platform using the OpenSea's items minting tool, and it can be used to make collection and NFTs for free. OpenSea can be accessed with several methods and access asset and product without necessarely logging in to the platform and if you are selling an item on OpenSea, you can sell it for a fixed price, create a declining price listing for items, or you can make an auction listing.

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How to Buy NFT in OpenSea marketplace.

Solution

The following steps below shows the process to buy NFT from OpenSea.

Step 1: Open into the OpenSea marketplace through the web address https://opensea.io on your a web browser, and then click on the Explore option on the front page.

Step 2: now choose the product you want to buy in the category, in this illustration, we choose the product marked with red below. The price of the product is 0.03ETH.

Step 3: Now click on the product you want to buy and sellect the Buy Now to start the buying process.

Step 4: To be able to proceed with the purchase process, we have to connect to a wallet, there are almost eleven wallets we can choose from to proceed our purchase process. But for this illustration, I will sellect and sign in using my METAMASK wallet.

Step 4: the payment page will pop up as below, payment cannot be completed since I do not have enough ETH in my metamask wallet. ETH can be added to the wallet for payment using the add funds option.

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How to Sell NFT in OpenSea marketplace.

Solution

Step 1: Open into the OpenSea marketplatform using the web address https://opensea.io on your web browser, we then sellect the create option and click on it.

Step 2:In the "My Collections" page, Click on the create option to create your asset.

Step 3: I designed my logo, and name my collection, and described the collection after that click on create.

Step 4: Click on Add items to add an item to the collection.

Step 5: after creating my collection, I will then click on "Add New Item" to add an item to my collection.

I accept the signature request by signing in as shown below.

Step 6: at this stage, I will create a new item which can be video, audio, image or a 3D model by filling in all the requirement provided. The name of the product, a URL will be created for the product, describing the product, properties, level, and stats for the product. After filling all the information, click on create.

Step 7: I wiil go back to my collections and sellect the item I want to sell and click on the sell button, you have to set the price specification, sale type and other information required such as start price and end price. I then click on "Post Your Listing" to list my item.

I will not be able to finish my transaction because I have to pay a gas fee of $89.7 and there is no enough assets in my metamask wallet.

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Mention and explain the advantages and disadvantages of the NFT market you have chosen

Solution.

Advantages

The popularity of Opensea is one advantage has over its competiters, this makes it sell and buy all kind and variety of NFTs. The platform makes you buy and sell NFTs on the secondary marketplace and also allows you to create your own original collection of items to sell on the primary marketplace. The platform for recent times charges lesser fees as compare to most of its competitors, making it more attractive for NFT collectors.

OpenSea platform can be log in with eleven wallets which makes it more preferable to other platforms. To use OpenSea, one have to use an Ethereum wallet that can be connected to a decentralized application (dapps). Dapps are programs built on Ethereum blockchain that allows you to sell and buy items or assets via smart contracts making fraudulent activities pratically impossible, the most commonly used wallet for Dapps is metamask, but OpenSea also supports several wallets of which include Dapper, Coinbase, Formatic, etc.

OpenSea is a market platform for digital collectibles, since it uses smart contract for transactions. The website do not hold your collectibles, instead you manage your own collectibles in your Ethereum wallet connected to OpenSea. there is no need to own an account before you can access the platform, all you need to do is just connect with your crypto wallet.

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Disadvantages

One of disadvantages of OpenSea to me is that it involves a lot of process when creating collectibles on the platform. Also, only a crypto wallet can be used to buy and sell on this marketplace unlike other platforms like Nifty Gateway which allows its users to transact NFTs with USD this makes it easier for collectors who do not own cryptocurrency to sell and buy NFTs.

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Conclusion

Non-Fungible Tokens (NFTs) are fast arising in the crypto world and so with their marketplaces, OpenSea is one of this market platforms traders can create their collectibles. NFT should also be an option for traders to venture apart from the fungible tokens which are well known and patronised in the crypto market.

Thank you so much professor @levycore for this wonderful lecture, I have learnt a lot and cannot wait to meet you again for your next class.