The NFT market continues to grow in 2022, even as volume has declined in recent weeks. Thus, for those who want to take advantage of this market and make money from it, it is very important to develop strategies for it. So, I have prepared 5 strategies that can help you start making profits from NFTs.
Look for undervalued NFTs
First, it is important to understand the difference between price and value. The price is how much the project costs, and the amount that needs to be paid in monetary terms for that. Value Indeed, what is attributed to your NFT and what it provides to the customer, value cannot be measured in money and it can be different for each person.
Moments when the market is down can be a great thing to take advantage of. The idea is to look for projects that were already of greater value at a lower price. However, it is very important to know if the fundamentals of the project are the same and nothing has changed, as the project is starting to lose value, and its price will also decrease. However, if the project is still of the same value and its price has dropped, then this is the price you should actually buy it for.
Buy rare NFTs
If you have the money to invest in high value NFTs, this is a good choice. This means that rare NFTs can become more expensive if there is more demand for the project. These products are also popular in the rare NFT collectors market. A good way to use this strategy is after uncovering NFT arts, as their prices are still low and many people are not checking their NFT rarity.
Even if you are sure that the NFTs you are buying will be worth millions soon. But you should not invest all your money in one asset. It is important to diversify your portfolio. You never know how the market will behave in the future. Hence, you need to hedge your risk. Therefore, you can purchase multiple NFTs from the same pool. In addition, you can buy NFTs from different projects, which is better for diversification. Remember that every investment must be analyzed at the very beginning of the path. It is recommended not to spend more than 10-20% of the total cost of your portfolio on a single investment, and NFT is no exception.
Be active in the NFT community
No matter which NFT project you’re interested in, consider getting active in the community. Doing your due diligence can help you choose a good investment over a potential scam.
Notice: The text displayed in this column does not necessarily reflect the opinion of CryptoFácil.