OpenSea vs. Foundation: Which NFT Marketplace Is Right for You?

Non-fungible tokens (NFTs) have become very popular as more people look to buy digital collectibles such as art, music, videos, and other online media. NFTs are one-of-a-kind assets that exist on a blockchain network. OpenSea and Foundation are two of the largest NFT marketplaces where you can buy and sell NFTs. This review will help you decide which may be best for you and your needs.

OpenSea takes 2.5% of every NFT transaction. Users and partners can create NFTs for free at any time. Creators on OpenSea can set a royalty of up to 10%. This means they can earn revenue every time their NFT is sold using OpenSea.

Gas fees are transaction fees paid to miners on Ethereum to successfully carry out a transaction on the blockchain. OpenSea does not control or receive these fees. For gas fees, the payment only guarantees your transaction will be processed. Users pay ETH gas fees on OpenSea on a recurring basis for certain activities such as buying an NFT or accepting an offer and on a one-time basis for contract approvals.

Foundation takes 5% of all sales on the primary and secondary market. NFTs minted on Foundation receive a 10% royalty, any time a piece is resold. The royalty is directly sent to the wallet that minted the NFT. Foundation has an agreement with OpenSea that all secondary market sales will receive the 10% royalty if the work is resold on OpenSea.

Users will have to pay a gas fee on Foundation. Gas prices are determined by two things: how quickly users want the transaction to be completed and how busy the network is at the time of the transaction. If gas prices are too high at a certain time, users can wait until they go down in price. Users can also submit their ideal price and wait until the network processes it.

OpenSea states that it is the world's first and largest digital marketplace for NFTs and crypto collectibles. OpenSea was founded in 2017 and currently has over 42 million items that can be bought, sold, or traded in its marketplace. There are over 1.8 million registered users on OpenSea. According to the OpenSea founders, the platform was the first open marketplace for any NFT on the Ethereum blockchain. This integrated marketplace allows consumers to trade their digital items freely, and allows creators to launch new digital works.

Foundation was launched in February 2021 and currently has over 400,000 NFTs in its marketplace. Foundation was founded to provide a platform where creators can use the Ethereum blockchain to value their work and build stronger connections with their supporters. Anyone can purchase NFTs on Foundation, but creators can only join Foundation if invited.

From February 2021 until May 2022, OpenSea sold close to $31.4 billion worth of NFTs with 16.8 million transactions. The average sale per NFT on OpenSea is about $1,870. In comparison, Foundation sold over $180.8 million worth of NFTs with 80,785 transactions. This comes out to $2,238 per sale on Foundation.

While OpenSea is more than 100 times larger than Foundation, the average sale price per NFT on Foundation is 20% higher than OpenSea. OpenSea has a broad audience and is best suited for those new to NFTs. There is more competition on the platform. Foundation has a smaller audience geared primarily towards art collectors and less competition for creators.

Your crypto wallet holds all of your NFTs and cryptocurrency. Just as there are many banks and credit cards to choose from, there are also many different crypto wallet providers out there. Although they each serve the same purpose, each one takes a different approach and has different trade-offs. Users need to connect their wallets to OpenSea and Foundation to use these platforms. There is no need to sign up for an account to buy NFTs.

OpenSea

Here is the full list of wallets supported by OpenSea.

• MetaMask: A browser extension and a mobile app. MetaMask is Web3's most popular wallet and one of the oldest players in the industry.
• Coinbase Wallet: The Coinbase Wallet app allows users to explore the decentralized web with a dApp browser. You do not need a Coinbase account to use the Coinbase Wallet app.
• TrustWallet: A non-custodial mobile wallet that stores your private key locally with an additional layer of security.
• Portis: Connect to dApps with an email address and password, from almost any web browser, on any device -- including mobile phones.
• Fortmatic/Magic: A user-friendly wallet from an innovative team that allows you to sign up with your phone number from any device.
• Venly: Formerly known as Arkane, all a user needs is a PC and web browser to take advantage of this wallet.
• Authereum: A usability-focused wallet with no transaction fees and a fiat currency on-ramp.
• Bitski: An easy-to-use wallet that allows users to sign up with an email and password.
• Dapper: A browser extension that pays gas fees for you.
• Kaikas: A browser extension for Chrome that interacts with the Klaytn network.
• OperaTouch: Opera Crypto Wallet works with both your Opera computer browser and your Opera Touch for iOS browser (or Opera for Android) on your mobile device.
• Torus: A low-friction wallet that allows you to log in with Facebook, Google, and other OAuth providers.
• WalletConnect: WalletConnect is a protocol supported by many different dApps and wallets. You can install any mobile wallets that support WalletConnect protocol.
• WalletLink: WalletLink is an open protocol that lets you connect your mobile wallet to dApps running on any browser like Coinbase Wallet.
• Phantom: Phantom is a popular non-custodial crypto wallet designed for Solana that lets you do more than just deposit and send cryptocurrency.
• Glow: Glow is a fast, easy-to-use wallet for Solana.

Foundation

Here is the full list of wallets supported by Foundation. Unlike OpenSea, it only supports a few crypto wallets.

• Coinbase Wallet: The Coinbase Wallet app allows users to explore the decentralized web with a dApp browser. You do not need a Coinbase account to use the Coinbase Wallet app.
• MetaMask: A browser extension and mobile app. MetaMask is Web3's most popular wallet and one of the oldest players in the industry.
• WalletConnect: WalletConnect is a protocol supported by many different dApps and wallets. You can install any mobile wallets supporting WalletConnect protocol.

The core currencies on OpenSea are Ethereum (ETH/WETH), Solana (SOL), USD Coin (USDC), and Dai (DAI). OpenSea supports a few other payment tokens. It is not currently possible to use non-crypto currencies like USD and the Euro on the OpenSea platform. People will have to buy crypto using their local currency on crypto exchanges and then send the crypto to their OpenSea account.

In order to buy and sell on OpenSea, users will need Wrapped Ethereum (WETH). WETH is a currency that allows users to make pre-authorized bids. ETH and WETH are worth exactly the same amount and can be exchanged directly on an OpenSea profile.

Users can only use Ethereum (ETH) to buy and sell NFTs on Foundation. Users will need to connect their wallet to Foundation to participate in the marketplace. They then need to buy ETH from a cryptocurrency exchange like Coinbase or buy directly from MetaMask using Wyre or Transak. After connecting their wallet, they can then buy NFTs.

OpenSea recently came under fire due to issues with stolen and plagiarized NFTs. As a result, OpenSea launched a new feature that automatically hides suspicious NFT transfers from view on the platform. This will help protect users from scammers and ensure that only legitimate transactions are visible. Frequent thefts and scams on OpenSea have investors dissatisfied with the platform's efforts to combat theft.

Foundation uses the Ethereum public blockchain, which increases Foundation's transparency and, as a result, its security. Foundation states that it employs a number of technical, organizational, and physical safeguards designed to protect user's personal information. Both OpenSea and Foundation do not take custody of the NFTs. Users connect their secure wallets to the platform. The platforms are merely intermediaries for users to buy, sell, and trade NFTs.

Both NFT marketplaces are popular and among the best-known in the industry. OpenSea is the largest NFT marketplace and the best choice for beginners looking to get started with this technology. OpenSea also has a wide variety of NFTs and creators. The platform has 100 times more NFTs for sale and also a wider audience. Its transaction fees are half of what Foundation charges.

Foundation has a smaller user base but is more akin to an art gallery. Creators can only sell NFTs on Foundation if invited, so generally only the top creators have a presence on Foundation. Their market share is smaller, but art collectors are willing to pay more for NFTs on Foundation. Prices are on average 20% higher, and its fees are 5%, double that of OpenSea. Foundation may be best for those looking for exclusive art from select creators.