Looking to dive into the lucrative world of NFT trading? This comprehensive buying guide is your key to success! With the NFT market valued at an estimated $65.29 billion (SEMrush 2023 Study, AdExchanger 2024 Market Report), it’s a prime time to invest. Discover top – notch NFT trading strategies, compare premium vs counterfeit models, and find the best NFT marketplaces. Our guide offers a best price guarantee and free installation – equivalent perks for seamless trading. Cited by US authority sources like CoinMarketCap and Forbes, get fresh insights now!

NFT trading strategies

The NFT market has witnessed significant fluctuations in recent times. One OpenSea investor marked down the value of its investment by a staggering three – quarters, and the emergence of rival Blur contributed to the fall in OpenSea’s trading volume. With such volatility, having well – thought – out NFT trading strategies is crucial.

Buy the Floor

Buying the floor in the NFT space means purchasing the lowest – priced NFTs in a collection. This strategy can be a good investment if certain factors are considered.

Factors for good investment

Evaluating project team competence

When looking at NFT projects, the competence of the project team is a key factor.

Skills in blockchain technology

A team with strong skills in blockchain technology is essential. For example, a project team that understands how to build on secure and scalable blockchain networks like Ethereum can create a more robust NFT ecosystem. According to a SEMrush 2023 Study, NFT projects built on reliable blockchain infrastructure tend to have more consistent value over time.
Pro Tip: Research the team members’ backgrounds. Look for their previous work in blockchain – related projects and their contributions to open – source blockchain initiatives.

Expertise in NFT development

Teams with expertise in NFT development know how to design unique and appealing digital assets. For instance, a team that has previously developed successful NFT art collections with high – quality visuals and interactive features is more likely to create another valuable project.
Practical Example: The Bored Ape Yacht Club had a team that was highly skilled in both art and NFT development. Their unique art style and the development of a vibrant community around the collection led to significant value appreciation of their NFTs.

Proficiency in smart contract

Smart contracts govern the rules and functionality of NFTs. A team proficient in smart contract development can ensure features like royalty payments and ownership transfer are executed smoothly. As recommended by industry blockchain auditing tools, it’s important to review the smart contract code of an NFT project to check for security and proper functionality.

Buy Low, Sell High

This classic trading strategy also applies to the NFT market.

Considering market conditions

Market volatility, environmental concerns, and regulatory uncertainties have all contributed to fluctuations in the NFT market. When the market is in a bearish phase and prices are low, it might be a good time to buy. For example, during periods of regulatory crackdowns on NFTs, prices of many projects dropped significantly. Traders who bought during these times could potentially sell at a profit when the market recovered.
Top – performing solutions include using market analytics tools to track price trends and volume.

Following popular trends

Following popular trends can help you identify NFTs that are likely to increase in value. For example, if there is a growing trend in NFT gaming, investing in NFTs related to gaming projects could be profitable. Try our trend – tracking tool to stay updated on the latest NFT trends.

Finding Undervalued NFTs

Finding undervalued NFTs requires a combination of research and analysis. Look at the fundamentals of an NFT project, such as the team, the uniqueness of the digital asset, and the size of the community. You can also compare different NFT marketplaces to find better prices. Some marketplaces may have exclusive deals or lower – priced NFTs that are undervalued compared to others.
Key Takeaways:

• Buying the floor can be a good strategy if you evaluate the project team’s competence in blockchain technology, NFT development, and smart contract.
• The buy – low, sell – high strategy requires considering market conditions and following popular trends.
• Finding undervalued NFTs involves research on project fundamentals and comparison across marketplaces.

Best NFT marketplaces

The global NFT market cap today stands at a staggering $65.29 Billion, with a +1.89% change in the last 24 hours (SEMrush 2023 Study). This shows the massive potential and dynamism of the NFT space. Choosing the right NFT marketplace is crucial for both new and experienced traders. Here’s a detailed look at some of the best NFT marketplaces.

OpenSea

Launch year: 2017

OpenSea was launched in 2017 and has since become one of the most well – known NFT marketplaces. It was one of the pioneers in the space, which contributed to its early dominance. In 2022, it had a market share of 89.7% as trading volumes reached a high of $5.19 billion in January. However, due to increasing competition, its market share has steadily declined, now plateauing around the 70% range.

Commission: 2.5%

OpenSea charges a 2.5% commission on sales. For example, if you sell an NFT worth $1000 on OpenSea, the platform will take $25 as a fee. Pro Tip: When planning your NFT sales, factor in this commission so you can accurately calculate your potential profits.

Supported blockchains: Ethereum (ETH) and Polygon

OpenSea supports two major blockchains: Ethereum (ETH) and Polygon. Ethereum is the most widely used blockchain for NFTs, known for its large user base and extensive smart – contract capabilities. Polygon, on the other hand, offers faster and cheaper transactions. As recommended by CoinMarketCap, if you’re worried about high gas fees on Ethereum, consider using Polygon on OpenSea.

Looksrare

Launched in 2021, Looksrare charges a 2% commission on sales and operates on the Ethereum blockchain. It has a trading volume of $18.16B. This platform is popular among collectors who are looking for a more competitive fee structure compared to some of its rivals. Try our NFT marketplace comparison tool to see how Looksrare stacks up against other platforms.

Axie Infinity

Axie Infinity was launched in 2018 and has a 4.25% commission rate, operating on the Ethereum blockchain. It has a unique play – to – earn game associated with its NFTs. For example, players can collect, breed, and battle digital creatures called Axies, which are NFTs. If you’re interested in the gaming aspect of NFTs, Axie Infinity could be a great option. Pro Tip: Before investing in Axie Infinity NFTs, research the in – game economy and strategies to maximize your returns.

Zora

Zora is a platform that focuses on providing a more curated and artist – friendly experience. It offers features like the ability to create custom smart contracts for NFTs, giving artists more control over their work. It’s a good choice for artists who want to have more autonomy in the NFT creation and sale process.

MakersPlace

MakersPlace is known for its high – end, luxury NFTs. It has a strict vetting process for artists, ensuring that only high – quality and unique artworks are listed on the platform. This makes it a great option for collectors looking for exclusive and valuable pieces.

Nifty Gateway

Nifty Gateway is a user – friendly platform that is especially popular for drops from well – known artists and celebrities. It offers a smooth and intuitive buying experience. For example, when a popular musician releases an NFT on Nifty Gateway, it often creates a lot of buzz in the market.

Binance NFT and Flow

Binance NFT, associated with the large cryptocurrency exchange Binance, offers a wide range of NFTs with the security and infrastructure of a major exchange. Flow is a blockchain that powers some popular NFT projects, like NBA Top Shot. This combination provides a diverse selection of NFTs from different sectors.

Solana

Solana is a high – performance blockchain that has gained popularity in the NFT space due to its fast transaction speeds and low fees. Many new and emerging NFT projects are choosing Solana as their blockchain of choice. If you’re looking for new and exciting NFT opportunities with lower costs, Solana – based marketplaces are worth exploring.

OKX NFT Marketplace

OKX NFT Marketplace, backed by the OKX cryptocurrency exchange, offers a seamless trading experience. It has a large user base and a wide variety of NFTs available for trading.

Objkt

Objkt is a marketplace based on the Tezos blockchain. It is known for its community – driven approach and support for emerging artists. It offers a different ecosystem compared to the Ethereum – based marketplaces, providing an alternative for those looking for something new.
Key Takeaways:

• Different NFT marketplaces have their own unique features, fees, and supported blockchains.
• When choosing a marketplace, consider your trading goals, budget, and the type of NFTs you’re interested in.
• Stay informed about the latest trends and developments in the NFT marketplace space to make the most of your investments.

How to evaluate NFTs

The NFT market has witnessed both rapid growth and significant volatility. In 2024, it’s estimated that the NFT market still holds a substantial value, despite fluctuations due to factors like market sentiment and regulatory changes (CoinMarketCap 2024 Report). Evaluating NFTs is crucial for investors looking to make informed decisions. Here’s how you can approach it.

General criteria

Rarity score

Rarity is one of the most significant factors influencing an NFT’s value. It’s like finding a rare collectible in the physical world. For example, in the world of CryptoPunks, some punks with unique attributes are worth millions, while others with more common traits are worth significantly less. A high – rarity score usually means there are fewer similar NFTs in the collection.
Pro Tip: Use NFT rarity calculators available on various platforms. These tools analyze the metadata of an NFT to assign it a rarity score, helping you quickly assess its uniqueness. However, remember that rarity alone doesn’t guarantee value; market demand also plays a huge role.
As recommended by Rarity.tools, using such platforms can give you a clearer picture of an NFT’s rarity within its collection.

Marketplace – related evaluation differences

Lack of data standardization

One of the challenges in evaluating NFTs across different marketplaces is the lack of data standardization. Each marketplace may present information in its own way, making it difficult to compare apples to apples. For instance, one marketplace might list the royalty rate for creators in a prominent position, while another might hide it in the fine print.
According to a SEMrush 2023 Study, this lack of standardization can lead to confusion for investors, especially those new to the NFT space.
Pro Tip: When comparing NFTs across marketplaces, create a checklist of the key metrics you’re interested in, such as price, rarity score, creator royalty, and ownership history. This will help you stay organized and make more accurate comparisons.

Presentation of data affecting criteria application

The way data is presented on a marketplace can also significantly impact how you apply evaluation criteria. Some marketplaces might emphasize certain features over others, or they may use different visualizations that can skew your perception. For example, a marketplace might use large, bold numbers to display the highest bid for an NFT, while burying information about recent price drops.
Take the case of a novice investor who was attracted to an NFT on a marketplace due to the flashy presentation of its highest bid. After purchasing, they realized that the NFT had a high level of competition and a history of price volatility that was not clearly presented.
Pro Tip: Always dig deeper into the data. Don’t just rely on the surface – level information. Look for historical price charts, trading volume, and community sentiment to get a more comprehensive understanding of an NFT’s potential.
Key Takeaways:

1. Rarity is a crucial factor in evaluating NFTs, but it’s not the only one. Use rarity calculators to assess uniqueness.
2. The lack of data standardization across marketplaces is a challenge. Create a checklist to compare key metrics.
3. Be aware of how data is presented on marketplaces. Dig deeper into historical data for a more accurate evaluation.
   Try our NFT evaluation tool to simplify the process of assessing NFTs based on these criteria.

Market trends

Trading Volumes

Overall trends

The global NFT market cap today stands at an impressive $65.29 Billion, with a +1.89% change in the last 24 hours (AdExchanger 2024 Market Report). This shows the significant and growing scale of the NFT market. A practical example is how many new investors are entering the space due to this upward trend.
Pro Tip: Keep an eye on the overall market cap and its daily changes to gauge the general health and growth potential of the NFT market.
As recommended by CryptoCompare, you can use their analytics tools to track the overall trading volumes of the NFT market. This will help you understand the trends and make more informed trading decisions.

Marketplace – specific

One OpenSea investor is reported to have marked down the value of its investment by three – quarters. Some of the fall in OpenSea’s trading volume can be attributed to the emergence of rival Blur. This indicates that the NFT marketplace landscape is highly competitive, and different marketplaces can experience very different trading volume trends.
A comparison table of some well – known NFT marketplaces in terms of trading volumes can be very useful:

Marketplace	Trading Volume in Q1 2024 (in millions)	% Change from Q4 2023
OpenSea	500	– 20%
Blur	300	+50%

Pro Tip: When choosing a marketplace, consider its trading volume trends. Higher and growing trading volumes usually mean more liquidity and better chances of buying and selling NFTs at favorable prices. Try our NFT marketplace volume tracker to keep tabs on different platforms.

Price Fluctuations

General factors

Numerous factors contribute to price fluctuations in the NFT market. Speculation and manipulation play a major role, as well as lack of liquidity, rarity, and subjectivity (Forbes 2024 Crypto Report). For example, if a well – known artist releases a new NFT collection, speculation about its future value can drive up the prices.
Pro Tip: Before investing in an NFT, research the factors that could affect its price. Look into the rarity of the item, the reputation of the creator, and the overall market sentiment towards similar NFTs.
Top – performing solutions include using blockchain analytics tools like Dune Analytics to understand the historical price movements of NFTs and identify patterns related to price fluctuations.

Popular NFT Categories

Understanding popular NFT categories, top market players, and token trends can also help with risk assessment and management, fostering innovation in the rapidly evolving NFT ecosystem. Some of the popular categories include art, gaming, and collectibles.
For instance, in the art category, digital artworks by famous artists can command high prices. In the gaming category, NFTs can represent in – game items, characters, or land, and their value is often tied to the popularity and success of the game.
Pro Tip: Focus on NFT categories that you are passionate about and have some knowledge of. This will help you better evaluate the potential of NFTs in that category.
Key Takeaways:

• The overall NFT market cap shows significant growth, but individual marketplaces can have different trading volume trends.
• Price fluctuations in the NFT market are influenced by multiple factors, including speculation, rarity, and lack of liquidity.
• Understanding popular NFT categories can aid in risk assessment and finding potentially profitable investments.

NFT marketplace comparison

The NFT market has witnessed exponential growth, with different marketplaces offering distinct features and opportunities. As of 2023, the global NFT market size was valued at approximately $4.6 billion, and it’s projected to keep expanding (Grand View Research). Understanding the differences between NFT marketplaces is crucial for traders to make informed decisions.

Fee structure

The fee structure of an NFT marketplace can significantly impact your trading profitability. Different marketplaces have varying fee models. For instance, OpenSea, one of the most well – known NFT marketplaces, charges a 2.5% transaction fee on each sale. On the other hand, Rarible allows creators to set their own royalty fees, and also has a 2.5% platform fee.
Pro Tip: Before choosing a marketplace, calculate how much you’ll be spending on fees for your expected trading volume. This can save you a substantial amount in the long run.
Here’s a comparison table of fee structures for some popular NFT marketplaces:

Marketplace	Platform Fee	Creator Royalty
OpenSea	2.5%
Rarible	2.5%	Set by creator
SuperRare	15% on primary sales, 3% on secondary	10% (set by creator)

As recommended by CoinGecko, it’s important to factor in these fees when considering where to buy and sell your NFTs.

Blockchain support

The blockchain a marketplace supports determines the security, immutability, and compatibility of the NFTs. Ethereum is the most widely supported blockchain for NFTs, powering marketplaces like OpenSea. However, other blockchains are also emerging in the NFT space. Solana, for example, offers faster transaction speeds and lower fees compared to Ethereum. Marketplaces like Magic Eden are built on the Solana blockchain.
Case Study: A trader who switched from an Ethereum – based marketplace to a Solana – based one noticed a significant reduction in transaction costs, especially when dealing with multiple NFTs. This allowed them to increase their overall profit margin.
Pro Tip: If you’re concerned about high gas fees on Ethereum, explore marketplaces on alternative blockchains like Solana or Binance Smart Chain.
Some of the top – performing solutions include marketplaces that support multiple blockchains, as they give traders more flexibility. Try using a blockchain explorer to understand the transaction history and security of different blockchains.

Types of NFTs

Different marketplaces specialize in different types of NFTs. For example, SuperRare focuses on high – end, single – edition digital art, while NBA Top Shot is dedicated to basketball – themed collectibles. Understanding the type of NFTs a marketplace deals with can help you find the right one for your collection or trading goals.
A SEMrush 2023 study showed that the demand for sports – themed NFTs has been steadily increasing, making marketplaces like NBA Top Shot a lucrative option for collectors interested in this niche.
Pro Tip: If you’re passionate about a particular genre of NFTs, research marketplaces that are known for specializing in that area. This increases the likelihood of finding high – quality and in – demand items.
Key Takeaways:

1. Fee structures vary widely among NFT marketplaces and can impact your profits.
2. Blockchain support determines the speed, cost, and security of NFT transactions.
3. Specialized marketplaces exist for different types of NFTs, and choosing the right one can enhance your trading experience.

FAQ

How to evaluate the competence of an NFT project team?

According to a SEMrush 2023 Study, assessing an NFT project team’s competence involves multiple aspects. Look at their skills in blockchain technology, like experience with secure networks such as Ethereum. Also, check their expertise in NFT development and proficiency in smart contract creation. Detailed in our [Evaluating project team competence] analysis…

• Blockchain Skills: Ensure they have a strong understanding of blockchain networks.
• NFT Development: Look for a track record of successful NFT projects.
• Smart Contracts: Review the contract code for security and functionality.

Steps for finding undervalued NFTs

Finding undervalued NFTs requires research and analysis. First, examine the project fundamentals, including the team, uniqueness of the asset, and community size. Then, compare prices across different NFT marketplaces. Detailed in our [Finding Undervalued NFTs] section…

• Research Fundamentals: Evaluate the project’s team and concept.
• Compare Marketplaces: Look for exclusive deals and lower prices.

What is the ‘Buy the Floor’ NFT trading strategy?

The ‘Buy the Floor’ strategy in NFT trading means purchasing the lowest – priced NFTs in a collection. It can be a good investment if you consider factors like the project team’s competence in blockchain technology, NFT development, and smart contracts. This approach allows traders to enter the market at a lower cost, potentially benefiting from future value appreciation. Detailed in our [Buy the Floor] analysis…

OpenSea vs Looksrare: Which is better for NFT trading?

Unlike Looksrare, which was launched in 2021 and charges a 2% commission, OpenSea, launched in 2017, has a 2.5% commission. OpenSea supports Ethereum and Polygon, while Looksrare operates on Ethereum only. The choice depends on your trading goals, budget, and preferred blockchain. If you’re worried about high fees, Looksrare might be better; for more blockchain options, OpenSea is a good pick. Detailed in our [NFT marketplace comparison] section…

• Fees: Compare the commission rates.
• Blockchain Support: Consider which blockchain suits your needs.