What Is the Best Strategy to Profit by Trading NFTs?

It's just buy low and sell high, right? Actually, not that easy. You need clear strategies, an understanding of on-chain metrics, and getting whitelisted in Galler play a key role for every NFT investor. We will guide you through some of the best strategies to profit in the Metaverse.

Galler is a multi-chain decentralized NFT marketplace, accessible by anyone, anywhere, to freely and securely create, import, manage, discover and trade NFTs through an easy, fun and rewarding experience.

Only in Galler you are able to trade assets from different blockchains using tools such as its unique Launchpad, Whitelistings and the Order Book - that last one gives you the possibility of placing an order for the entire NFT collection, instead of doing it one by one. Thanks to that, all holders can take that offer and sell their NFTs  in a blink of an eye.

Seems easy to profit, right? But it's not. Even in the best marketplace you need to have a level of knowledge to profit in the market. Today we will share with you two of the most effective strategies to profit in the NFT space. So let's get started:

#1 Use launchpads & get whitelisting

Most crypto users are already familiarized with Launchpads that are used to release new tokens on the market. Usually those are very profitable investments since you're able to invest in the early stages. But have you thought about taking part on a launchpad before the majority of the users and getting those tokens with a discount? It's the closest you can get to private or seed investors! And that's exactly how whitelisting works in the NFT space.

For basically every project that launches on Galler, you can get a whitelisting spot. Different projects will have different processes in order to distribute the whitelisting spots but for Galler you just need to keep an eye on its Twitter and mainly its Discord to guarantee your spot by completing simple tasks. It makes the profit potential much higher when compared to the non-Galler community.

After minting an NFT through whitelisting, higher the chances of you to be on the profitable side of things since its floor prace (cost of the cheapest NFT) will be already higher than what you paid to mint - although nothing is 100% guaranteed.

#2 Analyze specific on-chain data

On-chain data always reveal things we can't see with ease. And for NFT there are some important metrics you need to check in order to know if the tendency is good or bad for the collection.

The Floor Price works in a similar way to the price of a token. That's what everyone is tracking because the tendency is no NFT from that collection is going to sell below that number. In order to spot a potential raise in the floor price it's very relevant to track overall metrics related to holders, supply & volume.

Is the number of unique holders increasing over time?

This is an important metric as it shows that community numbers are expanding and that supply Is less likely to be controlled or influenced by a smaller number of holders. With that in mind it is also important to check the distribution of number of holders vs count of NFTs held. Use this as an example: if 1% hold more than 10-20%, then this could be considered concerning (of course, if those are not marketplace addresses).

How is the supply listed on marketplaces trending?

When comparing different projects, it's important to keep an eye out for those collections that have low amounts of NFTs listed for sale - for example, 3-4% listed supply can be seen as a benchmark on some chains. It’s a good differentiating factor when assessing multiple projects, from which you only want to select one that really stands out or "check all the boxes". If that set metric is matched, it can be an indication of a strong community, which has the mindset of holding long term instead of listing for sale.

Volume is also important for NFTs

Doesn't matter the collection, you have got to check for liquidity. The specific preferred metric for volume varies from chain to chain since the ecosystems are totally different. Think of it this way: if a token with low volume is a problem, an NFT collection with low volume is an even bigger problem. This is very important for short term traders - they need to ensure liquidity is there in order to execute trades on a timely basis.

Extra things to keep in mind when assessing a collection:

Staking Percentage
Is the percentage of total supply being staked increasing over time? How is price reacting to this? Sometimes there is a ‘divergence’ between staked amount and price which could eventually result in a ‘supply shock’. This in return causes price to increase - primarily due to a lack of listed supply met with excess demand.

Rarity is also part of the game
For buying or getting better deals within collections, you must find NFTs that have higher (rarity) ranking but are sitting closer to floor price. Think of this scenario: In a collection with 10k supply, if you find a 1000-2000 rank NFT that is sitting around floor price, given that project has strong liquidity, you can then probably sell that NFT for a higher price, more in line with its ranking.

In Galler we have built-in tools to help you filter the collections through their attributes and gather a big chunk of that information. With available tools and info combined with the possibility of whitelisting through the launchpad, we guarantee that there's no better place to have an easy, fun and rewarding NFT experience. 

And since we are still in our first months, keep in mind that early adopters may be rewarded. Visit galler.io

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