Did you know that you can resell NFT artwork and make money?
After Beeple’s Dailys : “THE FIRST 5000 DAYS” sold for over $69 million in March 2021, interest in media coverage of NFT artwork has increased.
So, in this article, we will explain why NFT artwork can be profitable, tips for resale, and what to watch out for.
- 1 Why Reselling NFT Artwork Can Be Profitable
- 2 Tips for reselling NFT artwork
- 3 Things to keep in mind when reselling NFT artwork
- 4 Summary of Resale of NFT Artwork
Why Reselling NFT Artwork Can Be Profitable
Here is a summary of why reselling NFT artwork can be profitable.
- The NFT market is gaining attention and expanding
- Compared to other markets, there are fewer rivals
- You can buy NFT artworks at low prices, which are expected to increase in value.
NFT market is attracting attention and expanding
The NFT market has grown rapidly over the past several years.
In 2020, the cumulative volume of the NFT market was approximately $46 million, with the gaming, art, and finance markets generating huge revenues.
By the end of 2021, we had achieved a staggering $41 billion in transaction volume.
As time goes on, it is becoming more obvious that companies as well as individual investors will spend even more money in 2022.
Fewer rivals compared to other markets
The NFT market still has fewer rivals than other markets.
This is because the concept of NFT itself is still not that widespread, and its scale is small compared to virtual currency and financial markets.
You can buy NFT Artworks that are expected to rise in price at a low price
It is believed that there are many artworks lying dormant that are expected to rise in price in the future, and buying them at a low price now will allow you to earn large profits in the future.
Tips for reselling NFT artwork
Now, let’s talk about resale tips. Please pay attention to the following points.
- Always do a market analysis
- Buy NFT artwork at a discount
- Hold the NFT artwork for a while and wait for the price to rise
- Select the appropriate NFT marketplace for resale
Always perform a market analysis
When reselling, be sure to conduct a market analysis, paying attention to the following items.
- What types of products are likely to sell well?
- Look for new, inexpensive pieces.
- Do not buy expensive pieces.
NFTs are usually least expensive when they are newly released and created on the blockchain.
Finding inexpensive NFTs can be time consuming, so we recommend using NFT tools commonly used by NFT investors, such as rarity.tools or UpcomingNFT.
You can also find new projects on social media, but it will probably take more time.
Buy NFT Artwork at Low Prices
If you have sufficient funds, you can purchase popular NFTs.
However, finding inexpensive NFTs that have the potential to skyrocket in price can be difficult, and the price may not be higher than when you purchased it.
As a way to buy on the cheap, Rarity.tools, for example, allows you to see the latest NFT collections on the Ethereum blockchain.
It summarizes the blockchain used, social media links, and minimum NFT fees.
Hold NFT artwork for a while and wait for the price to rise
Do not sell artwork purchased at a low price immediately, but hold on to it.
This is because many works of art become scarcer over time.
The following are examples of NFT collections associated with good NFT buckets on the Ethereum blockchain.
The original and iconic 10,000-item NFT collection was launched in 2017 and has become one of the most expensive collections on the NFT Marketplace. With any luck, prices will start at 50 ETH (~$150,000).
Designed similarly to CryptoPunks, the Bored Ape Yach Club NFT collection offers additional benefits to its owners.
The project has a roadmap and each NFT serves as a membership ticket to the community. Prices are approximately 80 ETH (~$240,000), but since this is a market auction, prices will fluctuate.
Initially, the prices of the pieces were low, but now they are very expensive.
This is a good example of how important it is to buy early works at low prices.
Selecting the Right NFT Marketplace to Resell
Choosing the right marketplace is also important.
The best marketplaces are those that hold a large number of quality, inexpensive NFTs.
Things to keep in mind when reselling NFT artwork
Here are some things to keep in mind when reselling NFT artwork
- Do not buy fakes
- Be careful of scams
- Distribute information in English when selling.
Don’t buy fakes
There are many fake or copies out there, so don’t get caught with a fake.
To avoid buying fake or copied works, you need to identify the real ones.
A proper NFT project website should contain all the information a new investor needs to know, including a roadmap, white papers, founding team members, partnerships, and links to social media channels.
You can also check the website, so never buy a fake.
Beware of Scams
One thing to be especially careful of in the secondary market is rampant scams.
Most virtual currency scams are privacy-related, but be aware of phishing emails as well as wallets and other security controls.
It is also not advisable to invest in projects that refuse to disclose the identity of their founders.
Given the increasing number of online scams on the Internet, these risks should be avoided.
When selling, disseminate information in English
The third point to keep in mind is how to disseminate information.
Currently, the overwhelming majority of users of marketplaces such as OpenSea are from English-speaking countries.
Therefore, it is better to communicate information in English when selling in order to increase the probability of sales.
Summary of Resale of NFT Artwork
This is a summary of this article.
- NFT market still expected to grow in the future
- Reselling NFT requires market analysis
- Buy artwork at a low price, hold it for a while, and wait for the price to rise.
Read this article carefully to understand the characteristics of NFT artworks and make money by reselling them.