How to Effectively Price Your NFTs on OpenSea (and Other Markets Too!)

so i hear a lot of people asking questions about how to price the nfts they purchase so i'm going to be showing how to price your nfts effectively on openc and at the very end i'll also talk somewhat briefly about pricing your own artwork if you want to sell it although that's much more personal because ultimately your art and what you sell it at is a very personal choice so a first concept to think about when pricing nfts is that they're an illiquid market so there's liquid markets which if you think about the stock exchange or bitcoin and that basically means that at any point in time you can sell what you have for fair market value assuming that market is open so at any point in time if you want to sell your bitcoin there's going to be a buyer waiting there to buy it at the current fair market price ill-liquid markets are things like artwork or cars or houses are where it takes time and effort to really find a buyer and there's not even a guarantee that a buyer exists for what you're trying to sell so that's why nfts are just inherently different and a much different thing to think about if you're trying to pick one up to eventually sell or you want to sell what you currently have so the first concept that you really want to be mindful of is what's known as the floor price and the floor price is the cheapest current price that something from that collection is being offered at in this case for the vogue collective that floor price is .59 eth and up here on openc it shows you that but i've noticed a lot of the times that number is actually incorrect so there's a better way of understanding the current floor price and that's basically to sort so first you sort by price low to high which is what it already is you can go ahead and select that if it isn't and then in the filter menu which might be on a different part of your screen because openc likes to move this around a little bit but you want to click buy now which means that is currently available for sale at that price and in this case you can see there are two vogue both at .59 eth right now so that is the actual floor price but also when dealing with nft collections there's often very few like 10 000 or fewer of a given collection which might seem like a really big number but it's insanely small compared to almost any other market that is much more liquid so the floor price can rise very very rapidly where the first five ends at point six so very stable there but if you go down just a little bit it goes up to 0.65 and then can rapidly increase over time this is actually pretty stable for floor pricing as far as i've seen if i were to look at something like board apes right now the lowest might be like 33 or 34 eth and then 10 down it's in the 40s so be mindful of how thick or thin the floor is which is essentially how many are priced at that so you can price appropriately if one is priced way under the other ones i wouldn't recommend trying to price that low and when you price at the floor that's essentially you saying i want to sell this as quickly as possible so if i were to price at 0.59 that'd be basically the lowest price you could go a little bit under that if you want to but the lowest price i would personally price at if you want to simply move what you have quickly but that being said keeping in mind this is an ill-liquid market it's not at all uncommon if you price at floor for your nft not to sell for hours or even days sometimes it depends on how the market is doing how many people are actually buying so if you do that don't freak out and don't just drop it twenty thirty percent below that because you might lose a lot of money potentially and another concept that i think is really important to also keep in mind is the volume of trade and how many are actually being sold at what given price so i'm going to turn off buy now by clicking that and then it's at a price low to high i'm going to check out recently sold and recently sold will give you a really good idea of what people are actually paying right now for that particular project so this one went for .465 which because that's a weak offer which is wrapped eth that makes me think it was a bot offer which i'll talk about a little bit more but there's essentially bots or automated systems on openc at least for popular projects that'll automatically make bids for that nft project and it tends to be about 30 percent lower than the actual value and the goal of the bot is to buy low sell low and make that 30 profit as quickly as they can so if you see things being bought in weak for a really small amount that's probably what's going down there but we have this one at 0.59 0.75 0.63 so this gives you a pretty good idea of what reasonable prices are that are selling for those particular vogue and this one sold at 0.75 so let's click this i like to look at this and then go to price history and just check out what day it sold so today is it's about 8 50 a.m on september 5th so yesterday it sold for 0.75 which means a ton of these aren't selling super duper fast because there's only a few past it but they are definitely selling in a reasonable time frame so that is generally a good sign if you see it's been weeks or months or longer it's very possible that the floor price is way above what people are actually willing to pay and for that reason it's probably not going to sell even if you price at floor or below floor there might not be a buyer anywhere near that price and there simply might not be a buyer at all for less popular collections but a question you might have too is if you have an individual nft from a particular collection and you want to know how much that particular nft is worth so what i like to do is open up that nft's page check out properties and then what you want to do is to spend some time looking at these individual properties to understand what your most valuable and rarest trait is i know for this particular vogue the rarest and most valuable trait is v-thc which is a sense emulator for my particular vogue so if i click on that it'll open up an openc page that's automatically filtered by just v thc and now i can sort by low to high again which is automatically selected click buy it now and the floor price for a vogue with that is 0.99 so i consider that the effective floor price if i want to actually get relatively fair value for my vogue i currently have that vogue listed at 2.25 because i don't really care if i sell it or not and if someone buys it at that price i'm happy enough to sell it so that is another way to get more accurate pricing for the actual rarity of your nft and the trap that i see some people fall into is they'll try to combine multiple traits to understand the floor for a combination of rare traits so another rare trait that my vogue has is an apex which is called core so i can also go to the filter here on the left side click on apex and then just type in core to filter and then click that and in this case we see there's only two vogue including mine with the v-thc and the core apex and mine is 2.25 and this one's 19 which might make you think that mine is insanely insanely underpriced but it's not the thing is when you're dealing with really small samples of information there's not many vogue that happen to have these two traits it's just way too rare so don't fall into that trap ultimately you can price things at whatever you want to but don't expect it to sell if you make these weird combinations of traits and be like oh this one's 30 mine's worth 32 but maybe it should be priced at one or two so do keep that in mind even if i turn off buy now just to see the total available supply with those two traits it's only five out of 770 collection of vogue so super duper small and the smaller your sample of information the more volatile that pricing and the more difficult is going to be to understand what a fair price actually is and there's also a really cool tool called rarity tools where if you go to all collections you can usually type in the name of a project and if it's a popular project it's typically in here although not all of them are so my particular vogue if i go in the top bar here usually it'll have a contract address which is a long string of random numbers and then a forward slash and then a smaller number mine is 1804 so i'm going to copy that go back over here to rarity tools and in the vogue collective although i could type in any project so if you have a different collection you're looking at feel free to do so i'm just going to paste in my id of 1804 and click lookup and what it does is it brings up this page and it actually shows you how rare your particular different properties are and then the floor price for that trait so i can see out of all of my trades the v thc is the most expensive at 0.99 and there's 128 total vogu with that particular trade so this is another way of understanding what the floor price for your item might be in terms of getting fair value but i would always recommend you double check on openc because sometimes this data can be delayed so i'd like to go to openc and verify as the most accurate or current information and a couple other things that can happen when you're pricing nfts this is a punk's comic that i own and all the punk's comics are essentially the exact same if i go into details there's different token ids which is essentially the mint number typically that won't matter unless your token id is is like a hundred or fewer and that's much more popular on something like top shot cards or if you have the first token id or like the first 10 token ids which means it was like one of the first minted and some people will value them more and sometimes dramatically more like 10x or more if you do have especially the number one the very first mint but i'm not going to worry about that too much because most of the time it doesn't make any difference so with this all punks comics are essentially the exact same which means pricing it is way more easy so if i click on punk's comic right here i'm going to open that up in a separate window and then i'm also going to make sure we're sorting low to high and then i'm going to click buy now so right here i can just scroll down past these pixel vault founders dial which is a different aspect of this project until i see the cheapest punks comic which is 8.3 eth which makes that the effective floor and where i would personally price my punk's comic if i wanted to sell it in a reasonable time but even just two over this one's 8.75 so that's a significant amount of money and difference and that floor is moving really really fast so always always pay attention to that if you don't want to sell too cheap and when i talked about the bot offers being really low i'll give an example because i know my punk's comic has a bot offer in the offer section there's a 4.2 weave offer from dr bury who is one of the more well-known bots in the nft space he definitely has made some money with his bots so that's 4.2 weak where the actual floor if i go back here to the punk's comic is 8.3 so that offer is almost 50 percent less than the actual current floor value of the comic so you would be taking a substantial hit in value if you wanted that instant liquidity that the bot provides and that's why these are an illiquid asset you can't sell them immediately at least not most of the time unless you're willing to take a huge hit in value much like if you're selling a used car to a car dealer they'll give you a value instantly but that tends to be about 30 percent less than what you could get if you simply sold it to someone as a private sale so those dynamics are the exact same here although i will say bot offers are super healthy for the ecosystem because it prevents people from dumping at even lower prices and it's a sign of a healthy project in my opinion if there are bot offers on those items if you see a project and there's no bot offers you might want to second guess if you're buying to eventually resell because it means that people might not see enough opportunity to buy low and then sell higher with that particular nft and then some nfts also like the mint pass which is also part of the punx comic ecosystem will have a current price listed and that's because what this does is sort of combines all of the listings because in this case these are absolutely identical in every way the mint passes are basically a pass to get a different nft so you can buy now at any point in time by clicking that and what it will do is go into the current listings and then from the listings it will offer you the cheapest one and you can see all of the different listings that exist for this particular item and get also get an understanding of price history looking at this graph so the volume is high there's 137 sales on august 29th average price of 8.1 eath which really lets you know how healthy a particular market is so this is a very very healthy market and you might see some listings that don't actually let you buy because it is either a private listing or a delayed listing so you might even see something listed for free but if you hover over by it'll probably say it's a private sale and it's someone basically giving that nft to someone else or trying to like move it to a different wallet so don't let that freak you out that's not actually at least most the time someone trying to give away their nft for totally free and the last thing i want to cover really quick is if you're selling your own art i'm on foundation.app right now which is a fairly popular art marketplace another trap i've seen people fall into is they see nfts sell for absolutely insane amounts of money and as a result they want to get insane amounts of money for their work too regardless if they're a well-known artist regardless if they've ever sold work at that price before so what i would say is if you actually want to get into nfts and actually sell them do a really reasonable price if you've never sold art before and you're trying to get thousands of dollars i'm not saying it can't happen but it's very unlikely and very unrealistic and there's people that love to support artists in the space because it's so new so if you try to charge something like an eth which is currently right around four thousand dollars and there's someone who is excited to buy it you might just turn them off from ever supporting you again in the future because they feel like you're being greedy or trying to extract way too much money from them for your art so spend some time looking at how other people price their art get an understanding for how long they've been in the nft space and how much art they've sold and at what price they've sold most platforms will make it very easy to understand the sales history for a particular piece of art or for a particular artist and i'd really recommend charging something pretty low for your first few pieces of art think about how much time you spent making it and maybe you sell it or try to sell it at a couple hundred dollars and you see how it goes and then over time you increase that price if you find out that people are willing to pay that and even more to support you because your art is doing so well and what i like about foundation is a lot of these are auctions so they'll show a current bid so 0.55 eth which i actually think is quite a bit of money so that'll let you know what people are actually out there going and bidding and you can also just do an auction set the price at like point zero five or point one and see if anyone is interested enough to attempt to buy it but my main message here is don't be greedy i've heard whales in the space who are people who spend millions and millions of dollars in nfts say they found an artist they loved saw the price was like 10 8 or something they're like i can't support this person and they have the money to do it but it becomes sort of a moral thing where they don't want to basically support someone who's behaving in a very greedy way so be kind of humble with your pricing and really think about how much time do you spend what do you think this is actually worth and then work your way up to higher sales but that's really it for this video about pricing i find the pricing dynamics of nft is super fascinating because the markets are rapidly changing they move insanely fast and things can go from being worth hundreds of thousands to nothing basically overnight so be cautious if you enter this space none of this of course is financial advice but i there's a lot of greed in nfts right now and i think a lot of people are going to find themselves getting hurt if they come in here thinking they can become a millionaire overnight that's a really bad attitude to go into most things in life with i'd say buy things you enjoy and if you happen to be able to sell them for more later on and that's good for you like i'm all for it that's super positive but have realistic expectations and have a healthy attitude as you enter into this space especially if you're newer but like i said that's it for this video i hope you liked it and if you did like it feel free to subscribe if you want to see more content from me in the future about nfts and also hit the like button to let me know you liked the video basically that tells youtube that you enjoyed watching it and it helps promote the video to more people and of course if you have questions or comments feel free to leave those in the comments section down below maybe i can help you or someone else can help you but that's really it for this video thank you so much for taking the time to watch until the next one

Channel: Matt Borchert

Views: 71,278

Keywords: blockchain, crypto, NFT, nifty, digital art, digital collectables, crypto art, blockchain art, atomichub, atomicassets, crypto artwork, digital artwork, Crypto Art, bitcoin, bitcoin art, Opensea, pricing artwork, nft price

Id: OwJFHVptNCw

Length: 16min 9sec (969 seconds)

Published: Sun Sep 05 2021