Often very often we talk about great projects to get into, but rarely have we spoken when and how to get out of them. I wanted to share this post to give some pointers on what to look out for when considering selling NFTs
It is worth mentioning you will benefit from developing your own trading strategy with regard to NFTs - and I haven’t been a big flipper of NFTs in the past. However, understanding the need to sell and also what to look out for when doing so is important!
Here are some key indicators and tips to look out for:
MENTALITY to selling
- Remove regret - buying the bottom and selling the top is a myth
- Profit is profit
Look at VOLUME
- Rising at a steady/healthy pace (positive)
- Slowly bleeding out with the floor (negative)
- Blow off top (FOMO buyers / possible sell signal)
Use OpenSea for volume stats and basic chart OR https://icy.tools/ for the paid version
Look at FLOOR PRICES
- Where are they at compared to mint
- How much have they risen in the last few hours, days, weeks
- Are they feeling euphoric (match with volume)
FREE tool for floor price activity:
Manage RISK
- How much are you up already
- Do you own more than 1 - partial profit-taking is a great way to secure gains
- Waiting for crazy numbers like 100x is usually a dream and 1/1000 will get there
- Others will sell before you if you live off hopium and not reality
- Floor prices are as fragile as low cap micro coins - if sell volume picks up and people begin to sell off then they can very quickly move in the other direction - this is just basic human nature
HYPE
- If things get euphoric quickly then a great time to SELL
- Huge social interest (Twitter, Influencers, etc)
- Big announcements with long time horizons provide a selling opportunity (price will usually revisit lower entries post FOMO if wanting to re-enter)
NFT Portfolio Management
- Consider it like any other trading portfolio
- Consistent profits are fine and think of increasing your ETH balance as much as what your NFT portfolio is simply worth on paper
- Sell ETH to $ as well makes sense
Holding NFTs is also a great strategy in many instances, this is just some things to consider if you’re trading, reducing risk, or happy to move on from lower conviction plays.
The NFT market is filled with FOMO but is also very fickle and tomorrow's hype always supersedes today’s. If you’re trading, use volume, floor prices, social indicators, and your own intuition to indicate good times to sell. NFTs are an art, not a science