Making a Profit on NFTs: The Do's and Don'ts

Chainalysis has released a new report revealing the techniques used by successful NFT traders.

The blockchain intelligence firm says certain tactics can dramatically boost a collector's chances of making money.

Ethan McMahon, an economist at Chainalysis, explained that collectors who are on a whitelist are much more likely to generate a profit. He told Connor:

"It really pays to be informed … If you're an early adopter, an early promoter of these projects, you end up being put on the whitelist. When it comes time to mint an NFT, you're able to mint at a vastly lower price, and so that ends up making the whole difference when it's time to sell."

Ethan also explained how some traders find success by "flipping" non-fungible tokens on secondary markets.

"It really pays to be informed … If you're an early adopter, an early promoter of these projects, you end up being put on the whitelist. When it comes time to mint an NFT, you're able to mint at a vastly lower price, and so that ends up making the whole difference when it's time to sell." 

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