In the market of digital assets, you can find a lot of strategies that investors use to make money on non-fungible tokens. Among them, the BeInCrypto editorial team has highlighted seven of the most popular ones.
Buy at the bottom
The essence of the strategy is to buy NFTs at the early stages of sales in order to sell tokens at a higher price during the wave of hype.
As a rule, creators of collections of non-interchangeable tokens warn market participants about the start of sales. Many projects put potential buyers on waiting lists in order to inform users.
An investor must understand the market sentiment. Otherwise, it is possible to miss the moment for a profitable resale of a non-interchangeable token on the secondary market.
Work according to Google trends
The essence of the strategy: analyze Google search queries to identify promising projects.
You can study the moods of market participants through analyzing Google search queries. For this purpose, many users use the Google Trends service, which shows current trends. The platform can be used to analyze the potential level of demand for a particular collection of non-interchangeable tokens.
Team up with other market participants
The essence of the strategy: make arrangements with other market participants to buy back the collection in order to fix the NFT price.
As a rule, collections of non-interchangeable tokens are bought up by market participants who are not related to each other. Disassociation allows NFT owners to set the price tag of assets independently. Some sellers may reduce the value of a non-mutualizable token for one reason or another. Such market participant behavior will negatively affect the overall valuation of the collection.
Preventing localized NFT sales that reduce the value of a collection can be prevented through joining forces with other buyers. This would require users to form internal agreements in advance that would govern the price formation of non-mutually exchangeable tokens under their control.
An alternative could be a sole buyout of the entire NFT collection. In this case, the owner of non-mutualizable tokens will be able to set prices independently.
Important: It is worth remembering the risks. It is possible that buyers of assets on the secondary market will want to resell them at lower prices. This behavior of new NFT owners can reduce the overall value of the collection.
Working through NFT value analysis
The essence of the strategy: buy up non-interchangeable tokens that are valuable.
The more valuable the NFT, the more growth opportunities open to the digital asset. Market participants who can recognize the potential of tokens in time, make money on the gradual growth of NFT prices.
Buy market leaders
The essence of the strategy: buy up the most sought-after non-interchangeable tokens.
On many platforms, you can sort tokens by a number of parameters. For example, some platforms offer NFT output by price: from the most expensive to the cheapest. As a rule, tokens that fall into the first lines of the sorting output, attract a lot of attention. Users’ interest in such assets can be capitalized on.
