Investing With A Plan

The question you need to ask yourself now is, "should I flip or hold on for dear life (HODL)?" Trading NFTs is a high-risk endeavor and it's important to note that most NFT projects will go down to zero. Hopefully, you've bought into a collection with OG potential and so simply HODLing will pay off in the long run. Most NFT traders agree that you can make more money being patient than just flipping immediately after the drop. If, however, you wish to engage in trading NFTs the most lucrative ways to make a profit is by spotting listings that are undervalued through your research. This, of course, is subjective, as an NFT is only as valuable as what someone is willing to pay for it.

Start With Primary Marketplaces

Buying directly from the creator on the primary market through their website or Discord (that we covered above) affords you the opportunity to buy in at the best possible price before anyone has had a chance to relist it for a higher price. When you’re buying on the secondary market, you can never be certain that you’re getting a good deal on something as you’re buying in at a price that someone else has set.

Consider Taking Part in An Auction

Some marketplaces have bidding features that work the same way as any other online auction would on eBay. There is a set period of time where interested buyers can make their bid in the hope that it is the highest when the auction ends. It’s possible that a seller could have listed a highly undervalued NFT that does not garner a lot of attention that you can pick up at a steal and flip for a big profit later.

Have A Diversified Portfolio Across Low-Cost Listings

It’s impossible to know which NFT projects are going to be winners, so another strategy might involve buying into a few low-cost projects that you have vetted to hold onto if they become the next Spacebudz or Clay Nation. Again, it’s all about doing your own research and using the available tools to inform your investment decisions.