- AlexIsBuilding gives practical tips on buying NFT on the floor.
- He even lays out key pointers to purchase min-rares.
- He provides expert advice on dealing with super rares.
@AlexIsBuilding explains that investing for liquidity is different from buying not because users like it.
A question I get a lot is:— 🇦🇺 Alex is Building (@AlexIsBuilding) October 29, 2022
“Should you buy NFTs at floor, mid-rares or super rares?”
As someone who has been selling a mid-rare BAYC for 6 months,
I have a VERY strong opinion on this.
He says that even if users are buying because of its look and feel, users should consider the below information:
Now talking about buying an NFT as an investment, ‘what’ users buy at floor matters. With most collections, there’s high volume at floor prices, which kind of makes NFTs at floor ‘fungible’ and easier to sell.
When the time comes, users need volume.
Don’t purchase the cheapest NFT as most buyers are looking for a good deal.
Good deal = For the price, it is aesthetic or rare.
Take the example of the five cheapest NFTs, the rarest aesthetic ones at that price is likely the one that will be easiest to sell.
Now, speaking about RARES:
He says that mid-rares are liquidity graveyards. If users are purchasing 30% above the floor price, and if it’s a good deal, users will probably find it challenging to sell it quickly in future.
Consequently, users might drop users sales to the near floor upon needing cash quickly. But this won’t be a concern if users are stuck buying floor NFTs.
That’s where users may get some incredible deals. He says that users can make a massive profit if users track listings and spot someone trying to quickly liquidate a super rare.
Things to know while investing:
– Volume for specific traits
– Historical price averages for traits
– How long it may take users to sell it
He suggested users stick to floors if still unsure.
1. Purchase the best in the bottom 5-10
2. Avoid mid-rares
3. Purchase SUPER rares as it can be great for profits.