Whether you’ve been aware of NFTs for some time or are only now becoming aware of them, the truth is that they are more popular today than they have ever been. NFT prices and values have almost skyrocketed as a result of their sudden appeal. NFTs are now regularly sold for thousands of dollars, with many headline transactions fetching hundreds of thousands of dollars, if not tens of millions of dollars! With all of the crazy pricing in the headlines, it’s understandable that individuals are looking for ways to determine exactly how much their NFT is worth.
While you may certainly guess, there is a tried and true approach for pricing your NFTs. You can ensure that you sell at a price that is good for both you and your possible buyer by understanding its floor price, rarity, and what the market is prepared to pay for it.
Understanding the Floor Price of Your NFT
If you want to know how much your NFT is worth, you’ll need to first figure out what its base floor price is.
The phrase “Floor Price” for an NFT refers to the lowest price point at which you can purchase an NFT on the secondary market. Whether you’re buying an NFT and want to know if you got a real bargain, or you’re trying to sell one and want to know how much it’s worth, knowing the floor price is a must-have piece of knowledge.
The floor pricing can be divided into two categories. The first is the NFT’s floor pricing, which is determined by its characteristics. The second way involves determining what an NFT’s floor price is in the context of a bigger collection.
Individual Characteristics
The first way to figure out an NFT’s base floor pricing is to look at its characteristics. Examining the distinct qualities provides a far more in-depth understanding of the various attributes that go into determining the eventual floor pricing. While this method can be applied to any NFT, it is especially valuable for uncommon NFTs that may have some extremely rare qualities that would otherwise be overlooked.
Piece of the Collection
The second way for finding an NFT’s appropriate floor price is to consider its relationship to the rest of the collection. The floor price in this context refers to the cheapest price at which you can purchase or sell an NFT from the set. This is the lowest price for ANY NFT item in the group, as determined by the NFT with the lowest sale price in the collection.
Additional Factors Affecting the Price of Your NFT
You’ll want to think about the overall trends for your NFT’s individual qualities in addition to knowing the floor pricing. Moment Ranks is a platform that I’m a big fan of. They utilize a different calculation to figure out how much others are willing to pay for an NFT with your personal features attached. This is frequently more than the floor price, especially if the NFT in question has multiple extremely unique characteristics.
Other Good Practices to Think About
When deciding how much you’re willing to sell your NFT for and how much it’s worth, there are a few more factors to consider.
A Strong Emotional Bond
This applies to both you, the seller, and them, the possible buyer. Consider always leaning towards the higher ends of the pricing range if you have a strong emotional attachment and connection with a specific NFT and aren’t in a rush to sell it.
When Do You Want To Sell?
If, on the other hand, you don’t have a strong emotional attachment to an NFT and just want to sell it as soon as possible, you’ll have to be a little more flexible on the price. Again, because you’ll undoubtedly lose money if you use this strategy, it’s best to avoid it unless you need to sell something quickly.
Keep an Eye on the Floor Price at All Times
One thing to keep in mind regarding the NFT area is that it is extremely volatile right now. This is true on both sides of the coin, so keep an eye on the market and how much something is selling for. Even a few weeks from now, the floor pricing for an NFT could be dramatically different from what it is now.
Best NFT Development Companies
Always Put a Premium on Rare Traits
Finally, keep in mind that NFTs with extremely rare characteristics will always sell for more than those with more common characteristics. Even if the NFT’s predicted floor price is a little lower than expected, if you have something with multiple unique features, don’t be afraid to maintain the price high if you don’t need to sell quickly.
Conclusion
When it comes to determining the value of an NFT, there is no accurate and flawless procedure. Things are continually changing with NFTs because of their inherent volatility, and trends today are meaningless tomorrow.
You can always buy and sell NFTs at the most profitable price for you if you know what your NFT’s floor price is, what unusual and enticing features it now has, and what your personal time limit on its sale is.
