Investing in Solana NFTs can help you to profit in several ways. Solana is one of the fastest-growing cryptos in recent times.
Many traders and investors are looking for new opportunities in 2022 and Solana might seem like a good one. However, before you invest, you need to know more about the pros and cons of the Solana blockchain.
In all, there are three things that you need to consider before investing in Solana NFTs. I’ll cover all of these in detail in this article.
Investing in Solana NFTs
Investors like Solana for several reasons. You can flip NFTs easily and cheaply on Solana without gas fees.
Solana has also increased in price very quickly. In July 2021, it was trading at around $22. It rose to a high of $259 and then dropped to $160.
The price reduction was caused by news that the Solana blockchain was experiencing congestion. This slowed transactions to 10,000 per second.
Solana was considered to be a revolution in the NFT market. This is because of the number of transactions that it could do per second and because it didn’t have the gas fees which are associated with Ethereum.
On December 11th, Solana suffered another loss. It sustained a DDoS attack. That cause its price to drop further.
Solana was susceptible to this type of attack because it operates on a central network. This system consists of several smaller nodes and servers.
At this point, Solana has dropped at least 16%. This is the highest reduction among the top 10 cryptos by market cap. However, investing in Solana NFTs is still affordable because you don’t have to pay a one-time gas fee of $200 when you sign up.
Investing in Solana NFTs is a Cheaper Option from the Start
Solana is cheaper for beginners. You’ll have to pay a one-time gas fee when you sign up with OpenSea. You’ll also have to pay gas fees whenever you do transactions on OpenSea. That’s because you’ll be using the Ethereum blockchain.
When you’re just starting out with trading NFTs, it’s tough to spend over $200 in gas fees just for signing up. You’ll avoid this initial gas fee completely if you’re investing in Solana NFTs. That means you can use the money you saved to buy more NFTs.
Avoid Gas Fees for Transactions by Investing in Solana NFTs
On the Ethereum blockchain, you’ll have to pay gas fees for all of your transactions. So, if you’re buying an NFT at a fixed price, you’ll have to pay a gas fee. Similarly, if you auction an NFT and you accept an offer, you’ll also have to pay gas fees.
Solana doesn’t have any gas fees. That’s one of the reasons why it became so popular in 2021. Traders realized that they could make bigger profits by investing in Solana NFTs because they didn’t have to pay expensive gas fees.
Solana’s Projects Are Similar to OpenSea
The projects on Solana are similar to those that are on OpenSea. For example, they have SolPunks which are similar to CryptoPunks. However, the price is cheaper. To compare both projects, you need to look at the floor price.
Check the Floor Price
The floor price is the minimum price. That is, the floor price of a collection is the lowest price for an NFT in that collection. The floor price for SolPunks is 4.74×150, which is $750. However, the floor price for CryptoPunks is much higher.
You’re unlikely to get a CryptoPunks NFT for less than $100,000. The cheapest one costs 25×3865, which is $96,625. That’s about $100,000.
The floor price is different for each trading platform. When we look at the trading volume, you will see that they’re also different.
Over the last 7 days, the Degenerate Ape Yacht Club on Solana had $1,420,000. This is pretty good. The Bored Ape Yacht Club on OpenSea had nearly $30,000,000.
The projects on Solana are doing well. They’re only a few months old. However, they’ve increased significantly in price during that time. So, people who started investing in Solana NFTs early made a lot of profits.
Investors have made a lot of money from flipping or holding NFTs on Solana. If you’re wondering if it’s worth it, it’s definitely worth it.
What’s the first step when you’re investing in Solana NFTs?
To start investing in Solana NFTs, you’ll need a wallet to use on Solana. One of the best options for OpenSea, Rarible and other popular platforms is a MetaMask wallet. However, you can’t use a MetaMask wallet on Solana.
You can use a Solflare or Phantom wallet. Both of these can be used to store your Ethereum and Bitcoin offline. That keeps your crypto investments safe from hackers in the long term.
Make sure you get your wallet from the official website. There are fake websites out there. Use Phantom.app, Solflare.com or Solart.io to get your wallet.
That way, you’ll ensure that you’re sending your crypto to the good guys. There are a few steps you’ll need to follow to create your own unique wallet after visiting each official website to get the software.
How to Create your Wallet with Phantom
Phantom works as a browser extension for Chrome. You’ll need to click on Add to Chrome and add the extension. After that, click on Create New Wallet.
You’ll receive a unique 12 digit code that’s your private key. You need to store that code in a safe place. Make sure you’re the only person who has access to it and you can find it easily when you need to.
You’ll also need a password of your choice. Copy and paste your password to store it safely. You’ll also need to go over the terms and conditions. After you’ve agreed to them, you can click Save.
Fund your Account and Select Projects
When you’re ready to deposit some SOL, you’ll need to click on Deposit. You’ll have several ways to fund your wallet with Solana. You can buy SOL with Moonpay, send crypto from FTX or send crypto from another exchange.
If you transfer some SOL from another wallet, you’ll be ready to buy NFTs on Solana. You can choose from hundreds of projects on Solana.
When you’re investing in Solana NFTs, the best thing is to get NFTs before their launch date. Buyers can also invest before they reach the secondary market.
You can find statistics on the collections by visiting the homepage. You will see the top collections and you also see those that are coming soon.
Click on each one of the upcoming collections. After that, you’ll need to follow them on Twitter. By following them on Twitter and clicking the notification bell, you will learn when they’re going to mint NFTs. That way, you can be one of the first to grab one.
On Twitter, you can also learn how many people are in the community. That is, you’ll see how many followers like the art and are likely to trade those NFTs.
For example, Snoop Dogg’s Babolex project has 29.3K followers. That’s a large number of followers. Zoolana has 14,000 followers on Twitter. I’m not recommending either of these projects and you should do your own due diligence.
Final Thoughts on Investing in Solana NFTs
Projects with big communities are usually successful. If you buy the NFTs when they are minted and then sell them on the secondary market, you’ll usually make a profit.
As you know, I’m a huge fan of the Metaverse. I’m considering getting one of these MetaHomes and they’re selling for 4 SOL. I’ll write more about those in the future.
So, investing in Solana NFTs can help you to make a profit. Solana has had a few problems, such as the recent DDoS attack. However, That’s not unusual because most blockchains have had problems at some point in the past. I hope you found these tips helpful and I would like to hear more about your own investment strategies in the comments below.