How to Sell NFTs in 2023

NFT collectors and observers often discuss the enormous prices certain collections fetch in the secondary market.

Lucky NFT collectors made big profits by selling premier collections at the peak of NFT mania in 2021, many times over their minting price, even though there isn’t a one-size-fits-all method for pricing NFTs.

That said, if you want to learn how to trade NFTs, it’s critical to know which characteristics to look at to appraise the potential value of an NFT collection. 

What to consider when selling an NFT

Here are some pricing tips to sell the NFTs on secondary marketplaces at the best prices. 

Look up the NFT floor price

The floor price refers to the cost of the cheapest piece within a particular NFT collection. Simply put, it’s the minimal price point one can pay to participate in an NFT project.

Floor prices give new members of an NFT project a reasonable entry point to join the community after the collection has been launched. Generally, the higher the floor price, the better the reputation/interest it has within the NFT world. The floor price is typically correlated to demand. If you buy into a collection at the lowest price point possible, and there’s reason to believe that the project will gain traction in the future, you can resell the NFT at a higher floor price.

For instance, consider the renowned Cryptopunks NFT collection. As of this writing, the floor price for a Cryptopunk NFT is 24.43 ETH, representing the clout the collection holds within the community.

Market capitalization

Like crypto tokens, another metric that determines the selling prices of an NFT is its market capitalization. Since NFTs are generally illiquid, your mission is to sell your non-fungible token to a willing buyer. NFT projects with a high estimated market cap indicate greater underlying interest in people buying the NFT at higher prices.

Unique holder count

The number of an NFT project’s unique holders indicates the size of its community. Larger NFT communities indicate greater support and interest, which improves the chances of being able to sell.

Check NFT trading volumes

Another important data point to determine what price to sell an NFT is the collection’s trading volume, which demonstrates the overall demand for a particular NFT collection. NFT volume traded is also an indicator of the market’s liquidity. Low liquidity means little demand and high liquidity indicates high demand.

Understanding NFT cycles

NFT prices are often denominated in crypto, predominantly Ethereum. Other blockchains that support NFTs include Solana (SOL) and Avalanche (AVAX). NFT prices fluctuate by cycles, with demand rising and falling alongside NFT value. Having a pulse of what’s going on in the crypto world as far as cycles and trends will improve your chances of selling your NFTs.

Other factors that impact NFT price

Factors such as hype, marketing, social clout, and market frenzy can play into NFT prices. NFT marketing angles like purported utility, artificial scarcity, or future partnerships can drive up bullishness in an NFT project, raising its value in time for traders to cash in. 

Is it hard to sell NFTs?

As a process, it isn’t. All you have to do is go on an NFT marketplace like OpenSea (or any other you prefer), list your NFT for sale, pay the requisite listing fees, and wait for offers. 

However, timing when to sell your NFTs is slightly trickier. The ability to sell NFTs will hinge on the demand for the NFT and how much people are willing to pay for it. Keep an eye on trends to maximize selling price, but remember that gas fees can force you to sell at a loss if the purchase price isn’t set high enough.

Cashing in on your NFTs is a good idea if you have no better ideas as to how to deploy that capital. Whenever calculating your NFT selling price, always factor in the gas fees, listing fees, and any other miscellaneous costs like royalties. To save on gas fees, avoid high-congestion days on Ethereum. 

The final word 

The NFT industry is still in its early stage, and therefore remains a highly speculative space. Some NFT projects may skyrocket in value, while some investors may lose significant amounts on projects that failed to pan out. 

However, the prices of digital collectibles aren't all that different from those of their physical counterparts. The value of art and collectibles – physical, digital, or phygital – is subjective, and all determined by a variety of the factors listed above. 

Selling NFTs, just as investing in them, is always done within the framework of your overall personal investment strategy, risk tolerance, and investment time horizon in mind. So don’t forget to do your own research before buying or selling NFTs.

If you want to learn more about the world of NFTs, make sure to check out the following articles we wrote: Top 5 NFT Trends in 2023, Dynamic NFTs Explained and How To Create NFT.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.