Auctions can be an exciting way to sell your NFT.
This guide explains the two types of auctions available on OpenSea:
1) Sell to the highest bidder: where the highest bid wins at the end.
2) Sell with declining price: where the price falls until someone purchases.
Let's take a closer look so you can make the best choice to sell your NFT on OpenSea.
Sell to the highest bidder
Also known as an English auction, OpenSea will automatically complete this transaction if a "Sell to the highest bidder" auction finishes above 1 ETH, with OpenSea paying the gas fee in the process.
If the auction finishes below 1 ETH, it's up to the seller to accept the highest offer. The seller is under no obligation to complete the transaction.
Making a bid on this kind of acution is like making an offer on a fixed-price listing. The seller can choose to accept it at any time, but the buyer will need WETH to create an bid.
Please note: Any bids made in the last 10 minutes of an auction will extend each auction by 10 more minutes. Popular auctions are often extended by new bids offered in the last 10 minutes.
You may cancel an auction at any time, but doing so will require paying a gas fee.
If you are doing a "Sell to highest bidder" auction you can set a "Reserve Price". If you don't receive any bids equal to or greater than your reserve price, the auction will end without a sale.
In the example below, I've set a reserve price of 2 WETH with a starting price of 1 WETH.
Auctions can't have a reserve price lower than 1 ETH because OpenSea covers the transaction fee when the auction ends successfully.
The seller can always choose to accept a bid below the reserve price at any time during or after the auction, but the seller will have to pay gas to do so.
⚠️ Please note that once an auction starts, users are unable to change the reserve price.
For more information on who pays gas fees and when, check out this article!
Sell with declining price
Also known as a Dutch auction, these are similar to fixed-price listings, but the price falls over time. You can buy at any time in the listed currency or make an offer.
In the example below, my listing begins with a starting price of 2 ETH but has an "Ending price" of 1 ETH after a duration of 3 days.