Welcome to the exciting world of non-fungible tokens (NFTs), where creativity, technology, and finance collide! If you’ve been thinking about dipping your toes into the digital economy, then trading NFTs could be your perfect starting point.
But, how do you ensure you always make a profit when selling NFTs?
Don’t worry, we’ve got you covered!
In this blog post, we’re going to take you through the A-Z of trading NFTs. But we’re not just going to teach you how to trade. We’ll show you how to do it right and do it profitably. We’ve bundled together the best strategies and tips to help you navigate this unique marketplace with confidence.
So, whether you’re an experienced trader looking to expand your horizons, or a complete beginner just starting to explore, there’s something here for everyone. It’s time to start your exciting journey into the world of NFT trading. Get ready to learn, explore, and most importantly, make profits!
1. Avoiding Reliance on Luck in Trading
One should not count on luck when revealing their trades. If one perceives their luck to be adverse, selling prior to the reveal to leverage the pre-reveal pump could be the ideal move.
This is because a significant number of projects tend to experience a dump post-reveal, causing a selling frenzy.
2. Overcoming FOMO
The Fear of Missing Out (FOMO) can be a harmful trap. It’s essential to learn the art of profit booking. If one holds more than a couple of NFTs, it’s advisable to secure profits from at least three or four for optimal gain.
The remaining can be retained for the moon bag or hidden folder, but without greed. Expecting a legendary NFT pull out or selling each NFT at its peak isn’t realistic.
3. Handling Missed Opportunities and Regrets
It’s normal to feel regretful if you exited a trade too early or if the price skyrocketed after your exit.
But dwelling on past trades can be counterproductive. With new projects being launched every day, opportunities for making money are plentiful.
Thus, one should never let regret hold them back.
4. Keeping Emotions Aside in Trading
The key is to not get too emotionally attached to your trades.
The focus should be on risk-taking and profit-making. Sometimes, not making a trade can be a better strategy. Learning from missed opportunities and investing energy in exploring new ones is the best way to succeed in the NFT market.
5. The Importance of Exit Planning
Every NFT purchase or minting must have an exit plan. Although some NFTs are intended for long-term holding, one should always be prepared for a sudden drop in value.
Profit targets should be set, and an exit plan should be in place to avoid regrets later.
6. Psychological Barriers in Listing NFTs
Understanding the psychological barriers that affect NFT pricing is key. To increase the likelihood of your NFT getting sold at your target price, you might want to consider listing it slightly below common psychological price points.
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7. Respecting Your Money
To accumulate wealth, one should show respect towards their money. Valuing money is a reciprocal process – if you value your money, it will value you in return.
8. Creating a Savings Wallet
Regular profit booking and setting up a separate wallet for saving is a wise move.
Even if the profit from a trade is small, transferring a part of it to the savings wallet can lead to significant savings over time.
9. Cost Averaging and Profit Booking
Investing in reliable projects with high first collection floors can provide an opportunity to lower your average cost by buying more during dips.
This strategy can help reduce your breakeven point and lower your entry price.
However, it’s equally important to learn how to book your profits when trading in small amounts.
10. Using WETH Offers Effectively
Learning how to use WETH offers effectively can be especially useful when the volume of a certain project is low. This strategy involves making offers lower than the floor price and closely monitoring the activity to avoid missing opportunities.
11. Trading Wisely During Weekends
During weekends, when the NFT market can be slow, taking the time to observe the market and learn can be beneficial. It’s often advisable to avoid high-risk trades during this period and instead focus on making wise investment decisions.
12. Booking Profits Proactively
It’s crucial to book your profits when you feel you’ve reached the top. Always remember to book your profits and send a portion of it to your saving wallet to value your money.
13. Avoiding Blind Following of Whales or Founders
When big founders or whales make a move, people often follow them without understanding that the risks for them might be substantially different. It’s vital to be independent and work hard to ensure that your investments are sound.
14. Avoiding Panic Selling
Panic selling often leads to significant losses. If a token has dropped significantly in value, selling it at a low price isn’t the best strategy. Always have an exit strategy in place and respect your money by investing wisely.
15. Pump and Dump Schemes
Projects that appear suddenly and mint quickly can be part of pump and dump schemes orchestrated by large investors or botters. It’s essential to avoid falling for these schemes due to FOMO.
16. Working Smart in the NFT Space
In the world of NFTs, it’s more important to work smart than hard.
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Building connections with key individuals such as Founders, Community Managers, and Moderators can be more beneficial than grinding to impress moderators or gain whitelist status.
17. Optimizing Trade Exits
Many people struggle to sell their trades at the right time. It’s essential to stay alert when entering a trade and to set your sell target based on project volume and market conditions. Always remember to be active in trading and list your NFTs based on the market conditions.
Bottom Line
Trading NFTs opens up a world of exciting possibilities for investors who are willing to navigate its unique challenges. Remember, the NFT market is an evolving space, filled with potential yet also fraught with volatility.
As a trader, it’s important to be patient, stay informed about market trends, and diversify your portfolio to mitigate risk. Above all, only invest what you are prepared to lose. While our tips provide a useful starting point, they are by no means exhaustive or a guarantee of success.
Keep learning, stay curious, and remember that the best investment you can make is in your knowledge and understanding of the market. Happy trading!
Note: This blog post is intended solely for educational purposes to provide general information about trading NFTs. The content does not constitute financial advice or recommendations. The NFT and cryptocurrency markets are highly volatile and subject to significant risks. Before making any investment decisions, we strongly recommend you to conduct thorough research. Remember, investing involves the risk of loss, including the potential loss of your entire investment.