OpenSea is the largest web3 marketplace for NFTs and other crypto collectibles. The platform lets investors create, buy, sell, and trade NFTs and other crypto assets. With more than $35 billion in trading volume since the platform launched in 2020, Opensea remains one of the most popular platforms for NFT investors and supports multiple blockchains including Ethereum, BNB Chain, Solana, and more.
In January 2022, Opensea announced a $13.3 billion valuation, following a $300 million Series C round.
Taxes on NFTs may vary depending on where you live in the world, so make sure to read our crypto tax guides for more information in your country, this said, generally speaking, NFTs are viewed as a kind of crypto asset and taxed as such. This means you may pay Capital Gains Tax or Income Tax on your NFTs depending on the transactions you've made:
An important note for US investors though - the IRS has just updated their NFT guidance to state that NFTs, where the underlying asset is deemed to be a collectible (including works of art), may be taxed as collectibles. Long-term gains from collectibles are still subject to Capital Gains Tax, but at a higher rate than for other assets.
Wondering why OpenSea can't just generate tax documents for you? OpenSea tax reporting is complicated.
Crypto taxes - including NFT taxes - are incredibly convoluted. For platforms with millions of users spread across the world, the tax rules vary from country to country. As well as this, OpenSea doesn't have your other crypto transaction records to make calculations with. So for example, if you bought an NFT on OpenSea with Ethereum, OpenSea doesn't know your original ETH purchase price and therefore can't calculate any gains.
That's where Koinly comes in. Koinly makes generating your OpenSea tax documents easy. All you need to do is connect to Koinly and Koinly will calculate your gains, losses, and income for you and generate your OpenSea tax forms. Here's how it works.
To import your OpenSea transactions into Koinly so it can calculate your taxes, you'll need to connect each wallet you've used to interact with OpenSea to Koinly.
This is really easy to do, you just need your public address from each wallet - but remember, you’ll need to do this for each wallet you use to interact with OpenSea in order for Koinly to correctly identify your cost basis, transfers, sales, swaps, and more.
You can find steps on how to connect a variety of popular wallets to Koinly on our integration pages, but here’s an example of how it generally works.
1. If you've bought NFTs on different blockchains using the same wallet, you'll need to get your address for each of these blockchains from the wallet and add all these to Koinly. For example, if you'd bought an NFT on the Ethereum blockchain and an NFT on Binance Chain using your MetaMask wallet, you'd need both your Ethereum address and your Binance Chain address from that wallet and to add these to Koinly in order for it to calculate your taxes correctly.
2. It’s really helpful to name your wallets when you’re adding them to Koinly. This can help you find any transactions you believe have errors later on much more easily!
We’ve got plenty of help at hand if you’re having any trouble connecting OpenSea to Koinly:
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Wondering how to use OpenSea? OpenSea is a peer-to-peer NFT marketplace and the largest of its kind. You interact directly with other sellers to buy, sell or trade NFTs using non-custodial wallets, meaning you retain complete control of your NFT and crypto at every step. To use OpenSea, you'll need to have a compatible non-custodial wallet. Some of the most popular supported wallets include:
As well as this, users can connect a number of other popular crypto wallets using WalletConnect. The right wallet to choose depends on the blockchain you're interested in buying or selling NFTs on. OpenSea supports many blockchains, including:
Once you have your wallet, you're good to go! Let's look at how to use OpenSea for a variety of common transactions.
It's easy to buy an NFT on OpenSea, just follow these instructions:
If you're looking at bidding on an NFT instead of buying a fixed price NFT, the steps are a little different:
It's easy to sell an NFT on OpenSea. Just follow these instructions:
Wondering how to create an NFT on OpenSea or upload an NFT to sell on OpenSea? Here's how:
You can then sell your newly minted NFTs on OpenSea by following the steps above.
Yes. Tax offices generally agree NFTs are taxable and you'll need to pay tax on any gains or income you make as a result of your transactions on OpenSea. You can find out more in our NFT taxes guide.
This very much depends on where you live and your transactions. For example, in the US, you'll pay up to 37% tax on short-term gains from NFTs and potentially up to 28% tax on long-term gains from NFTs deemed collectibles!
There's two main reasons OpenSea is unable to issue users with tax documents. The first is the inability to track cost basis. So if you've bought an NFT with ETH, OpenSea doesn't know the cost basis of your ETH (the original price). It therefore can't calculate your gain or loss as a result and inform you of your tax liability from a transaction. Secondly, crypto taxes are complicated. OpenSea is a global platform, so to successfully support users tax reporting requirements, it would potentially need to generate dozens of different forms for tax offices around the world. However, while OpenSea can't issue tax documents - Koinly can help!
Your exact OpenSea tax reporting requirements depend on where you live and your tax office. But generally speaking, you'll report any gains, losses or income from crypto and NFTs in your annual tax return. You can find out more about NFT reporting requirements in your country in our crypto tax guides.
A select few states have made it clear that you'll need to pay sales tax on NFTs. OpenSea does not calculate or withhold sales tax for users, so the responsibility lies with you to calculate and pay any sales tax due. You can see more about crypto and NFT state taxes in our US tax rates guide.
OpenSea has a ranking feature that lets you see the top NFTs on OpenSea which is regularly updated.
Yes. You can connect MetaMask to OpenSea, just go to OpenSea and select connect wallet, then MetaMask. Follow the prompts in your MetaMask wallet to connect.
OpenSea generally charges a 2.5% fee on all secondary sales on the platform, and you may pay network fees to confirm transactions.
To get verified you'll need to meet the verification criteria requirements. This includes:
- Ownership of a collection with at least 75 ETH of volume sold (or equivalent for another cryptocurrency)
- A username
- A profile picture
- A verified email address
- A connected Twitter, Instagram, or Discord account
If you meet all of the requirements, you can apply for verification under profile settings.