Why trade NFT’s and how can you make money with them?
Posted On January 9, 2020
This whole blog is about trading NFT’s.
If you don’t know what an NFT is, read this explainer post first.
Trading NFT’s to Make Money
NFT’s are actually in game items/assets that have certain characteristics. Although I focus on trading, others may focus on playing the game(s) or using the NFT characteristics in game.
Some Axie’s are strong and can be used in battle to win tournaments or breed to make stronger Axies.
Some Gods Unchained cards look cool and are extremely rare. Some people might want to boss them out during a tournament match.
Some Decentraland lands are close to other projects, (purple land), and an investor might want to build cool games on them with potential of high traffic.
Basically each NFT is valued differently and when 100’s of investors get involved, suddenly there’s an active marketplace where there are 1,000’s of sales being made.
A digital marketplace is similar to something like eBay or Gumtree but in this case, instead of exchanging physical goods, you’re simply exchanging Digital items that have different values based on what value people give them at the time.
Some people might only pay $50 for a certain Card but others might really want it and pay you $100!
So How do you Make Money Trading NFT’s?
Basically you’re an online hustler.
Maybe you’ve met some in real life that buy and sell cars, mobile phones and on a larger scale, develop appartments and renovate and re-sell houses.
It’s all very hard to imagine how this happens online but let’s look at a scenario.
Gods Unchained Chests.
Each chest contains 6 packs of Genesis Cards. Each pack is 5 cards. So that’s 30 cards that can be any Genesis card. Genesis cards were the first ever set to release on Gods Unchained, there’s around 7 Million cards in total and investors spent around $5M to buy them. Packs are no longer available to buy, only in the form of chests from other sellers.
In the last 2 months we’ve seen a stead increase. From 0.1 Eth to 0.3 ETh.
Here is an all time chart for this asset.
At time of writing this, there are only 11,500 unopened chests in circulations.
These are getting more and more rare as people open or hold on to them.
Constant buy volume means it’s ONLY going to get more rare so which direction is the price going to go?
Early on I noticed buy volume was strong and traditionally unopened packs of cards even in real life have more value once you can’t buy them anymore.
This is just one example of the many case studies I have on this blog.
Trading NFT Strategies
The strategy between trading cryptocollectibles or NFT’s differ for almost each game/asset.
Some are a buy and hold for a long time, (like the chests above). Some, you may be able to negotiate hard and buy in bulk, eg, Decentraland land. These you can sell right back on the marketplace to an investor who might like that EXACT location.
As you learn more and keep in touch with the NFT world, the more opportunities you will find.
The best way to learn is through real world examples. Read the Case Studies on this blog to get a better grasp of exactly how I’ve spotted opportunity in the past.