You can easily make money from buying and selling NFTs on OpenSea. However, you need the right tips to maximize your profits. Remember, these tokens are getting more popular by the day, subjecting people to find ways of benefitting from them. Do not be left behind.
This article will look at some of the tips that will help you buy and sell NFTs on OpenSea for generous amounts of profits. We are destined to make you an expert at flipping NFTs and riding on this new wave. Therefore, take some time and watch out for our articles. Here are some useful tips to consider:
1. Try as Much as Possible to Reduce Gas Fees
A major reason most people make meager profits from the sale or acquisition of their NFTs is the high gas fees incurred when transacting on the Ethereum Blockchain, common in OpenSea. These fees are often dependent on the number of simultaneous transactions. Since Ethereum is a common option among millions of NFT traders and enthusiasts, OpenSea users normally spend a lot of money.
However, what if I told you that you don’t have to incur such exorbitant costs when buying or selling your NFTs? The left tab filter on OpenSea has different supported chains used to host NFTs, such as Ethereum and Polygon chains. You can choose to put a new creation on either. How exactly does this help to reduce the gas fees required for transactions?
Well, an NFT minted on Ethereum requires a gas fee whenever it is purchased, sold, or interacted with. You will pay for listing the NFT, lowering the listed price, and canceling the listing, which is quite unbearable for those working on smaller budgets. On the other hand, Polygon does not attract such exorbitant gas fees, which can go up to $100 NFTs for a small adjustment or purchase.
We advise you to use the Polygon blockchain to maximize your profits as you will not spend much on transaction fees. You will mostly incur a dollar or two when unlocking your wallet. However, you are free to settle for Ethereum if you have a bigger budget since this blockchain has several verified contracts and NFT projects. Most of its NFTs also have a higher demand.
2. Sweep the Floor Tactfully
One of the surest ways of increasing your NFT profit potential is to buy these tokens at extremely lower prices and sell them at higher amounts. Knowing how to look for underpriced projects is an asset as it guarantees you maximum profitability. How do you do this?
It would be best to scalp the floor price, which is the lowest selling price of an NFT. Click on the top right side of the platform and choose ‘recently listed’ to sort through the collections since almost everyone is looking out for these listings. Look through the offerings and note whether they are verified projects or not. These normally have a little blue checkmark on the side. Click on the project, followed by the collection’s name, and toggle to buy now, an option found on the left-hand side of the platform to avoid auctioned NFTs that you can’t buy instantly.
You will see both the floor and the lowest price. Note that the floor price is not usually updated constantly. If it is 2ETH, but the recently listed low price is 1.5ETH, there will be roughly 0.5ETH to be made, which will earn you some profit after sweeping the floor and listing the NFT at a higher value. This is one of the easiest ways of maximizing profits in the NFT world.
3. Buy NFTs With Underpriced Traits
One of the ways of knowing the right NFT to buy is by looking at its traits. An NFT with underpriced traits has higher growth potential and will increase value if held for a short duration. Remember, most people are willing to pay large amounts for lowly listed NFTs.
How will you know that these traits are underpriced? The rarity test. Note that NFT projects contain tokens with rarity traits, which make them unique. You can click into any of them and view their properties, which should tell you some of these traits. Traits under 1% are extremely rare and will fetch a good price on the market. You can also click on the particular rare trait and view the floor prices of all NFTs with the trait. Buy the lowly priced ones and force the price to jump up, list them at a relatively lower price than the remaining ones, and make your profit.
4. Go Through an NFT’s Discord Community Before Acquisition for Unverified Assets
You can easily access a non-fungible token’s discord community right from the listing. These communities have sales bots that will show you the digital assets that are currently selling, their frequency of sale, and the amounts people are parting with to own them. This idea normally comes in handy for unverified projects.
5. Set the Right Time Limit When Listing Your NFT
You have to set a time limit when listing your NFT, which shouldn’t exceed six months on OpenSea. However, you are at liberty to choose any duration, including a few hours to six months. Even though this sounds like a cool idea, you have to do it well.
First, changing your listing price or canceling it attracts a gas fee, hence eating into your profit. You will spend lots of money if you do these continuously. The best option is to set short durations, maybe a few weeks or a month. You can then reset the time limit free of charge instead of canceling or adjusting it and incurring avoidable costs.
A short expiration date will also favor you when the market is turbulent, resulting in a fluctuating floor price.
6. Consider the Rarity Levels of Your NFT
It would be best if you always remembered that NFTs differ in rarity. They are unequal since some are more unique than others. It is common sense that rarer NFTs go for higher prices than their counterparts. Therefore, ensure that you check just how rare your NFT is to avoid empowering others to make higher profits while missing out.
What makes a non-fungible token rare? Its traits. A digital asset with traits not found in most assets of its category becomes automatically rare. Remember, selling these for the same amount as relatively common NFTs is a blunder as you will be giving a discount to collectors out for a steal. You don’t want someone heavily benefitting from your work just because of your ignorance. Remember, most people are making thousands of dollars flipping NFTs with rare traits.
How do you check for rarity? You can use Rarely. Tools. All you need to do is click ‘All Collections’ and look up your project by keying in the asset identification number and searching it. This tool will rank the non-fungible token against those present in the collection. Remember, it also prevents you from overpaying for an asset. A project not appearing on the tool may result from a misspelling or non-listing. Only listed NFTs will pop up on the platform.
OpenSea also has filtering capability, which may also come in handy. You can easily go through the pricing of assets with a similar trait and obtain the lowest floor price. A good move would be combining these two means, which can easily help you conquer the market.
Alternatively, you can use tools such as Howrare, which has been performing quite well recently. All in all, find something that works for you, provided you confirm how uncommon your NFT traits are.
7. Do Not Publicly List Your NFTs if You Have a Ready Buyer
OpenSea allows NFT traders to set a private listing. This is quite different from normal listings where the NFTs are available for everyone. It ensures that only a specific person can access and buy the NFT and comes in handy for P2P deals where you can offer a given price or ensure that only a specific entity buys your NFT.
However, note that you will need the recipient’s Ethereum address. This option is available while listing an item for sale.
8. Consider a Timed Auction When Dealing With Unique, Serialized NFTs.
OpenSea offers you several means of selling your NFTs. You can either settle for a fixed price or auction it to the highest bidder. Even though the first one is faster and comes in handy if you need immediate liquidity, auctioning guarantees you high-profit margins. When trading unique or serialized objects such as profile pictures, always settle for it.
You can focus on the method, duration, or reserve price when auctioning. Under the method, one may sell their item to the highest bidder. Remember, the price of the item increases as more people bid, and it finally goes to the person who puts forward the highest amount when the time limit fades.
If you decide to set a reserve price, keep in mind that your NFT won’t sell if the auction doesn’t hit the special price. Even though this is not always necessary, it comes in handy, preventing your product from selling at an extremely low price. It is a good market test to deduce the possible selling prices of your NFT. Bidders will not view this reserve price before it is reached.
Note that the buyer will be charged a transaction fee when your auction goes through. Expect to pay OpenSea or Creator fees on your side.
9. Your Email Notification Should be On
It is impossible tracking the listed item every time. Most people who treat NFTs as a secondary source of income are often engaged in their 9-5s and other daily activities. How can they know of the activities going on in the marketplace?
We advise our readers to turn on their email notifications after signing the sale transaction. The platform will inform them of any relevant occurrence or activity, such as offers from different buyers. They also come in handy since MetaMask, the most common wallet used on OpenSea, does not notify holders if a sale happens. You have to enter your email setting in the account settings to get occasional briefings when a listing sells or gets offers.
10. Be Patient and Transact When the Network Is Less Congested
As you get used to OpenSea, you will realize that the gas fees incurred during transactions are not constant. You can spend $50 on a transaction and $70 later on a similar one because Ethereum is extremely popular. Most of its NFTs have high demands, meaning that hundreds of thousands of people transact at any particular moment.
Whereas this may be good news for a seller looking for buyers, it comes at a disadvantage since the greater the number of transactions, the higher the gas fees. These transaction costs are highly dependent on the congestion of the blockchain at any particular moment. You will have to adjust accordingly since our main aim when trading NFTs is to get and maximize profits.
Therefore, hold on and only transact when the number of Ethereum users at a given point reduces. How will you know? Well, some tools can help you track when ETH is less congested, allowing you to save on gas fees. Remember, you can only make a good profit from the low transaction and miscellaneous costs.
Less congestion normally means that the blockchain is recording the transactions quickly and using less energy, often referred to as gas, resulting in lower gas prices. This is particularly important if you trade NFTs hosted on the Ethereum blockchain.
11. Deal With the NFTs You Believe in
You have to adhere to this important tip to profit from your NFT purchases. Buying an asset you are interested in is important since, as human beings, we tend to look up as much information as possible on the things that we love. You will have better insight on an NFT category you love or believe in, which is important as it increases your chances of buying a token with higher profitability.
Buying what you believe in puts you in a better position to make educated decisions as opposed to hopping on trends and acquiring things you know nothing about. Remember, NFT acquisition and sale should be enjoyable in as much as we need profits. You will also be supporting a creator dealing in things you believe in.
NFTs should be treated as normal acquisitions. Humans rarely buy things that do not interest them. Make sure that you pick something that will give you an easy time finding out more about it. For example, choosing an art NFT that will give you a higher return on investments is possible if you love or read a lot about art.
Fortunately, OpenSea has several categories you can choose from. Browse through the platform and only purchase a token that excites you. You will not end up too disappointed if things do not work out in the end as opposed to blind buying.
12. Consider the Potential Profit of an NFT Before Acquisition
There are hundreds of NFT categories on OpenSea for anybody interested in non-fungible tokens. The list is consistently growing as many sectors and players join the market every day. However, only pick NFT categories with huge profit margins if you choose to participate in the NFT trade.
How will you know? Well, a look at the NFT categories in OpenSea reveals that there are four main categories any buyer can easily profit from. These are art, photography, gaming, and music. However, you will still need tact before making a purchase.
When you decide to focus on art, pick something with future value. It can also be memorable or ‘out of the world’. Try to consider well-done artwork with rare traits as their value often skyrockets after some time. If done well, you can’t go wrong with an art selection.
Gaming is one of the most dominant sectors when it comes to NFTs, owing to several video game platforms allowing people to buy and sell in-game items. Therefore, investing in popular game collectibles for future profits may be an excellent idea worth pursuing. You must have read about people buying Crypto Kitties, breeding them, and finally selling them at a profit. Well, that is just one of the many examples.
Lastly, people have been making as high as $20 000 on photos simply because these digital pieces capture priceless memories that some may want to cherish forever. You can either buy photographs from the marketplace or mint yours and sell them at a profit. Remember, you will not lose your copyright or reproduction rights if you are a photographer.
Blindly buying and selling of NFTs on OpenSea may result in losses. You should make sure that you use all the tools at your disposal to reduce transactions and entice buyers and earn handsomely from your NFTs. We hope that this article captured the gist of what you should know about OpenSea’s profitability.