NFT Buying Strategy: When to “Buy Now” and when to “Make An Offer”
Nobody wants to over pay for an NFT, but at the same time you don’t want to miss out on a rare opportunity that could slip away. Below is a quick guide on buying strategy for optimal success long-term.
Three key factors to consider are the amount of NFTs listed for a given collection, sales volume (how quick is the floor moving), and rarity (where does the specific NFT rank in the collection). Typically the higher the number NFTs listed for a project the more time you will have to purchase. I like to divide the total amount of NFTs listed by the total amount in the project to get a percentage of the current supply.
Example: 1000 NFTs were minted and 100 are listed for sale — 100/1000 = .1 (10% of the supply is available)
Daily, NFT teams release updates on their projects and market demand can change significantly. Positive or negative news will cause increased sales volume and the price floor will move accordingly. Good news will cause people to buy and the price will go up. Bad news will cause the floor to drop, lowering the price. This isn’t always a bad thing, especially if it is a little hiccup and people are overreacting.
Rarity is a big piece to the timing puzzle. Not everyone checks the rarity or rank of a specific NFT before listing it, but this directly affects demand. If a high ranking NFT hits the floor it will be purchased much quicker than a low ranking NFT in the collection.
When to use “Buy Now”:
- A “rare” NFT hits the floor (the NFT is below market value)
- Volume is high and you want an NFT close to the floor (there’s a lot of hype around the project and people are piling in)
- If you simply love the specific NFT and you feel like none of the others are like that one (you would have major fomo if you miss out on that specific one)
When to “Make an Offer”:
- Supply is on the high side and sales are slow
- Utility is more important than rarity (make low offers for floor NFTs)
- You are going after a more rare NFT well above the floor
- Unfavorable news has been released and sales volume has slowed
I have lost out on plenty of NFTs because I wanted a deal, but over time I came up with this guide. The more time and research you put into a project the better you will do. Buying NFTs for most of us is an investment, so the best deal you can get is of the utmost importance. The simple equation is to get the rarest NFT for the lowest price. Happy hunting!
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