In 2021, the number of people selling NFTs increased by 21,000%. The retail market for NFTs was once a promising new frontier for blockchains. Now there is widespread pessimism among NFT investors who want their money back.

The bear market is bad news for anyone who has invested in digital assets over the last two years. The NFT marketplace has fallen in every sector. However, this post can show you how to recover losses if you sell.

Read on to learn why people sell their NFTs and determine whether you should do the same.

Why Are People Selling Their NFTs?

Many people entered the NFT market when these digital assets were worth millions of dollars. With the collapse of NFTs, investors are now looking for a way to get out of the market with as much money as possible.

It disappointed investors when their assets appreciated less than they had hoped. They sold those NFTs so they could look elsewhere for better opportunities.

Before You Sell Your NFT Investments

Before you sell your NFT investments, check their price. If the NFT is trading at a lower price than when you first invested, consider holding onto it. If the NFT is trading at a similar price as when you first purchased it, then sell it.

You should also look at the NFT's trading volume. This is an indicator of how popular the NFT is.

If trading volumes are low or stagnant compared to other similar assets, consider selling as soon as possible. Low trading volumes could mean bad news for the asset's price in the future.

Don't forget to check the NFT's supply as well. If only a small number of assets are in circulation, the demand may rise.

Should You Sell Your NFT Investments?

The answer to whether or not you should sell your NFT investments is a resounding maybe.

If you feel the trend is no longer relevant, it might be best to sell since there's nothing else driving your investment. Another NFT investor will appreciate the value of the asset.

If you haven't made money from your NFT investments, sell them and use those funds for something else. The same is true for people who've made lots of money.

For people who still have hope for the trend, hold on to your NFT investments. The movement could still be relevant in the future. If you sell now, you'll miss out on any potential gains.

NFT Price

The price of an NFT is determined by supply and demand. The more copies of a particular NFT there are, the lower its price will be. That's because the more people have access to that asset, the less valuable it becomes for you to own.

Tips for Selling NFTs

The best time to sell NFTs is when their price is high. The value of your NFT can be challenging to determine if you're unfamiliar with the market or have little experience investing in digital assets. Here are some things you can do to increase your chances of making a profit on your NFT investments.

Sell to Someone Who Appreciates Your Work

If you've created a unique NFT, people will be looking for it on the blockchain. Find these people and sell them your asset at its total price.

This is what influencers and celebrities do. They create a small supply of high-quality NFTs and sell them to their fans at a premium. You can do the same thing if you have a niche NFT.

Niche NFTs are NFT art, music, and sports. Create an NFT for every record you break if you're a sports player. If you're an artist, sell a limited edition of your work for top dollar on the blockchain.

Use Social Media

Use social media to promote your NFTs. You can use Twitter, Reddit, Facebook, and Instagram to spread the word about your product. The more people know about it, the more likely they will get a sale.

Highlight what makes the NFT unique. If you have a limited edition NFT, make sure people know how determined it is. You can use the blockchain to show how many NFTs are left.

Tell the Story Behind the NFT

The story behind your creation will help potential buyers connect with its appeal. They'll understand why they should buy from you instead of someone else.

Share why you created the NFT. If you have a background in art or design, explain what went into making it. You can also share tips on how others could get value from your NFT.

Discuss the NFT's Utility

The primary purpose of a digital asset is to provide utility. It should have a use that makes it valuable to others. If your NFT doesn't have any utility, create one.

Game NFTs are an example of NFTs with utility. They allow players to access games or earn rewards while playing. For example, CryptoKitties is a game that lets users buy, collect and breed virtual cats on the blockchain.

Join the Profitable NFT Investors

For NFT investors who are no longer passionate about the trend, selling the asset may be worth considering. One way to do this is by promoting your holdings on social media and discussing how other people can use those assets. NFTs with a utility attached have proven to be the most profitable.

NFTs may or may not be profitable investments. Our finance articles can help you find new ways to earn money. Read a few for advice on how to get started.