Making Money With Polygon NFTs

Making Money With Polygon NFTs

A low-risk strategy

NFTs are still incredibly hot, but Ethereum is also overcrowded at the moment and scales poorly. This means that for mere mortals, like you and me, most Ethereum NFTs are quite an investment with gas prices of up to multiple hundred dollars, even for a failed mint. Given the fact that not all projects take off, this leads to risk beyond good and evil, especially if you don’t have the financial resources to survive a few losses.

Gladly, the Polygon NFT ecosystem is on the rise, and if you don’t know what Polygon is yet, you can look at an article I wrote some time ago that explains Polygon from a user’s perspective.

However, if you are currently looking to get into the NFT space, Polygon NFTs on OpenSea might be a great place to start. The projects are usually way cheaper than those on Ethereum, and they don’t come with that insane gas cost associated with them. You will also not see the insane ROI that you can get with Ethereum, though.

The strategy

Let me present my current strategy to you, so you can decide whether this is something for you. Bear in mind that this is, as usual, no financial advice. It is only a representation of what I currently do to make some bucks on the side without being too serious about it.

My strategy is a four-stage process and consists of the following steps:

  1. Find projects that are going to launch on Polygon and OpenSea
  2. Research those projects and try to see what the sentiment for them is
  3. Buy in on launch day (with multiple NFTs)
  4. Relist NFTs

Let’s go over them more in-depth so you understand this strategy a little better.

Find projects that are going to launch on Polygon and OpenSea

This is the easiest part of this strategy. A few sites like NFTCalendar can help you find upcoming projects, and Twitter is also a great place to research upcoming ones. A few accounts on Twitter focus solely on showcasing projects, so find a few of those and definitely follow them.

I usually create a Notion page for every project I identify and track them all in a table. This way, I can later add more information to help me decide which project is worth it for me.

I expect a project to at least tick the following boxes to be considered at all:

  1. A Twitter account
  2. A website
  3. A more or less detailed roadmap

Research those projects and try to see what the sentiment for them is

Research is where most work of this strategy is located. You want to make a good decision and not regret it later, so it’s crucial to use as much time as possible to get this step right.

This is where you begin to take a deeper look. You want to find out a few things about those projects, like:

  1. When does the project launch?
  2. How much is the mint price?
  3. How many Twitter followers do they already have?
  4. How many people talk about the project regularly?
  5. Does their website transparently state what the project tries to achieve?
  6. Is the roadmap detailed enough and does it make sense at all?
  7. Who are the people behind the project? Are they known in the space? Do they have a good track record? Have they pulled the plug already?

Write all this down and structure it in an easily accessible way. A detailed table per project in your Notion is often already enough. Based on all this data, you can decide, which is either a BUY or DON’T signal. Make sure that your budget allows for three of those NFTs. Fewer are riskier, but we will talk about this soon.

Buy in on launch day (with multiple NFTs)

This is the easiest part of this strategy. On launch day, be there and ready to mint. You want to get your hands on at least three NFTs. You only want to get them into your wallet account, and you are done. There is nothing else to do at this stage.

Relist NFTs

This is where the magic begins. You want to relist one of your NFTs above the mint price as soon as the initial mint is over. Depending on how cheap or expensive the mint was, you should try to go for double the mint price. This means that if you manage to sell that first NFT at double its initial price, you already have 2/3 of your investment back.

After your first sale, monitor the floor price of the project closely and list the second NFT a few days later. Your goal should be to sell it for even more than double the mint price. But in case the project doesn’t take off, you can still try to get rid of it at the mint price. This gives you your initial investment back and puts you into break-even.

Depending on how well your first two sales went, your third NFT is now either your break-even chance or profit-driver. If you need your third NFT to break even, look for an opportunity to get rid of it. Perhaps you manage to make at least some profit with it. If you are already break-even, you can take your time and hope for prices to rise further. Any sale at this point puts you into the profit zone, no matter how large or small that is.

That’s it, that’s the strategy

I personally had some good success using this strategy, but your experience might differ. However, I like this strategy for its high chances to at least break even and not lose money overall, which makes it worthwhile to use with a smaller budget and when you are risk-averse. Perhaps you want to try it out now. In this case, good luck to you!

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