Look Out For New NFTs And Jump In Early
New NFTs are usually minted at super-low prices. This is the perfect time to buy them. They can quickly become valuable in the NFT marketplace and fetch high prices if you sell.
Benefit From The Secondary Market
You can also benefit from fluctuations that are constantly taking place in the secondary market. For example, Battle Infinity is trending now. If you are into fantasy sports leagues, you can acquire player NFTs and swap them out. Virtual land can also be rented out. This is a nice way to build up passive income. Here is a beginner’s guide to entering the market from Battle Infinity.
Hold On For Dear Life (HODL)
HODling is when you invest in NFTs and then simply refuse to sell no matter how the market moves. Going back to the 69.3 million purchases of an NFT mentioned at the beginning was an example of this strategy. While many other investors sold their NFTs due to a static market, those who followed the HODL principle were amply rewarded. Of course, you have no way of knowing which way the market will move but waiting it out may not bring you a loss and if the tides change, the astute investor will be quick to sell to minimize potential losses.
Flipping refers to buying NFTs while they are at a low price and selling them once the price increases sufficiently. The difference produces the profit. While HODling was a long-term strategy, flipping happens in a shorter period as you are not holding out for the ultimate win but applying this process repeatedly across platforms. Thus, you make cumulative gains.
Smart investors decide when to flip based on a constant assessment of the market factors. If the NFT is aesthetically appealing, you would want to hold off longer before selling until someone comes along who really wants it as their profile pic. Stay informed about the development team and how much backing from the community they have. Finally, consider its utility.
The drawback of flipping is the high level of competition that exists. Many other investors are also making use of this strategy and you have to outthink the majority.
Participating in NFT Play-To-Earn games can reap the rewards if you are a skilled player. P2E has grown in popularity and is featured in evermore great NFT games. Payment can be exchanged for FIAT in the platform’s currency. You can also use them to purchase game tokens, which generally take the form of NFTs or items that lead to improvements in your performance.
Get In On The Minting
If you own a digital asset, for example, in the form of digital music or art, you can add it to the blockchain. This is minting and places your NFT directly into the marketplace. You will need to stay abreast of trends and be creative.
Start with one strategy and gradually include others while you gain familiarity with the NFT market.