NFTs are the rave of the moment in the crypto and blockchain space.
A successful NFT flipper, Cirrus summarizes the process of making success out of buying and selling of NFTs:
⦁ Pick a solid project.
⦁ Learn the prices so well that you can look at any of the 10k pieces of the collection and instantly know what it would sell at TODAY.
⦁ Hawk the listings page.
⦁ Price for quick sales at first.
⦁ Make connections and build trust.
An NFT investor and trader has explained how he made more than $450k trading and flipping non-fungible tokens (NFTs). The art collector with the username, Cirrus said that they made all the money mainly from two NFT projects.
NFT Profit for All
According to him, the strategy that he employed could be beneficial to anyone who is interested in making profit from the NFT space. He explained that the first strategy is:
Stick With Projects That Are “Proven”
Cirrus said that investing in projects that do not have good reputation or volume could make the investor lose their bankroll in wrong deals. His advise is that the investor sticks with those NFT projects that have high volume so that their market demand is high whether they’re buying or selling.
He said that “you just need the project to have consistent volume” even though a parabolic market volume wouldn’t hurt you.
Rarity of An NFT Matters
Cirrus said studying the rarity traits of the NFT project is another important aspect of the strategy. The use of sites such as rarity.tools would help the investor to determine how rare the NFTs they’re targeting are.
One oversight on the part of NFT investors is that they’re oblivious to the existence of listing platforms where the volume of sales and similar data are available. Apparently, NFTs that are rare are identifiable by the volume of sales made on them.
“This page is your textbook, study it nonstop.”
He continued by stating:
“I watched the Mutants listing page for a month straight before being confident enough to make my first purchase on something that I felt was a deal. Once you’ve learned the market well enough to be able to spot a deal as soon as it’s listed, you’re ready to start sniping/bidding.”
In buying an NFT, he suggests that the investor uses the auction or the listing page. He said that if the buyer has 1 wETH, they could place as many bids for the 1 wETH as possible. If one bid is accepted, the rest are nullified.
Bidding Aggressively for Rare NFTs
He said that the strategy is bidding aggressively and when accepted, to quickly resell the bought NFT to compound the profit. This helps the investor to recover their capital and enter another deal. This repetition would grow the investor’s capital quickly.
“The trick here is to find a balance between pricing your sales and always having eth available”
Cirrus said that a fair price for an NFT depends on the urgency of the sale. If the seller wants it sold quickly, they have to accept lower prices. Maximizing profit may take a longer time.
Liquidity is King
He said that is a wrong approach to be invest all your ETH in NFTs without having funds on hand to buy more NFTs if there is a downturn in the floor market price. A good strategy would be being able to buy from panic sellers.
“I get excited when I see the floor dropping because at this point I have the luxury of always being liquid enough to make a few buys. Periods of Panic and FUD on solid collections have proven time and time again to be the best opportunities to get the best buys. Buy fear, sell hype.”
Using Project Discord To Build Reputation
He stated that posting regularly in the Discord channel of the project helps the NFT investor to gain the confidence and trust of the community. The trust earned would lead to more private deals that help the investor to earn more from their NFTs and that of others. Private deals are secured through NFT escrow services such as nfttrader.io.
How I turned 0.6 eth into 150+ eth while sticking primarily to two projects.
No lucky mints, no whitelists, no bots, and no alpha groups. A thread diving into the strategy which worked for me that anyone can use to be profitable in the NFT space…
— Cirrus (@CirrusNFT) February 14, 2022