You can use the strategies without much knowledge about the project, but getting involved in the community is hugely beneficial to get a better perspective on how a project will grow and what drives the demand for its NFTs.

Get involved in the community

If you have more money to invest in NFTs, buy the ceiling NFTs. They are the rarest and most in-demand assets. If demand increases for the project, ceiling NFTs can significantly increase the price. The downside is that fewer people with enough money can buy the NFT, making it harder to sell at a good price.

Buy the ceiling

Keep an eye on the various levels of market trends, which all have varying effects on the value of your NFT. <ul><li>The market for all NFTs. The more people interested in NFTs, the more money will flow into projects.</li><li>The market for an NFT project. Watching this trend is vital as individual projects quickly gain or lose popularity. Watch its trading volume and ranking relative to other NFT projects over time.</li><li>The market for a specific NFT. Individual NFTs can fluctuate in price because the NFT is related to some person or organisation becoming more or less popular.</li></ul>

Use market trends

Watch how sellers for an NFT are acting. If all the listed prices are well above recent sales with listing prices spaced out from each other, you can infer that the sellers are patient and won't react if you list for a lower price than them. However, if many prices are low and close together, it is a sign of competitive sellers who like to undercut.

Find NFTs without many sellers

Find NFTs listed for cheaper than previous sales, not just NFTs listed at a price below other sellers. Do not judge value only on listing prices. For example, when looking at an NFT with ten copies, one is listed for $100 and the rest for $500. $100 may look like a good deal, but if the previous sale for the NFT is only $20, it makes the $100 listing overpriced.

Look for underpriced NFTs

The "floor price" in an NFT market is the lowest price of any NFT within a chosen category. Buying the floor is a good starter strategy as it requires less money to start with. Cheaper NFTs fit into a larger number of potential buyers' bankrolls and can benefit from increased visibility.

Buy the floor

Whether you're planning a short term flip or a long term investment, you will want to put some thought into your NFT purchases. This NFT trading guide covers a variety of strategies you can use to make money with NFTs as a beginner or a more experienced investor.