How do you create wealth? Do you go the traditional way and put it into a savings account where you can earn just enough to combat inflation? Or do you go a little risky and invest it into a mutual fund? But you’re on a sneaker website, why would you care about all of this right?
Well, today’s article is all about building wealth through one of the most non-traditional ways – by investing in sneakers. It’s no secret that sneaker reselling is a great way to make some short-term profits. But what if you want to build enough capital to pay off your debt or fund your college? Investing in sneakers is the new way to do that. Keep in mind, that I’m talking about investing and not reselling. The difference is the time period for which you’re holding the asset for. When reselling, you’re hoping to flip the sneaker for a quick buck as soon as possible. But when it comes to investing, you’re goal is to hold the sneaker long enough for it to substantially grow in value.
However, for new entrants, investing in sneakers is much more difficult than reselling. Sneakers that grow in value over time are rare and extremely exclusive. The original Air Jordan 1s are the perfect example that has seen a high return over the years but you’re likely not going to be able to invest in them as there are so few out there and the market value of them is just too high. Is there a way to partially own a sneaker with a bunch of other investors? Or does this sound too unreal? Well, keep reading to find out about how you can purchase “shares” in a sneaker.
Otis – The Stock Market For Culture
Today we’re going to be talking about Otis – The Stock Market For Culture. To explain it simply, it’s essentially a way for you to partially purchase rare collectible items.
Let’s say the Otis features a rare Batman comic on its website but its retail price is $1000 – what Otis will allow you to do is purchase a share in the comic book and you along with many others become a partial owner of that comic. If a year later, the Batman comic appreciates to $1100 (a 10% increase), your share price increases equivalently.
Recently, Otis has started including sneakers in its portfolio. One of the most prominent sneakers that they have currently is the “Shattered” Backboard AJ1 which sold for more than $600,000 at an auction! Most of us do not have the necessary capital to purchase this but with Otis, you can purchase a share of the sneaker for only $10!
How Do I Make Money Through Otis?
So let’s say you’ve purchased shares in the Dior x Air Jordan 1 on Otis (which have seen an 11% return in under a year) and the market value of the Dior sneaker increases, this would subsequently increase the value of your shares as well. Now in order to cash in on your return, all you have to do is trade your shares on the Otis platform and that’s how you reap the profits.
The best thing about Otis is that its secondary trade market is open 24/7, unlike a stock exchange which has opening and closing times. Having a 24/7 open market means that there’s no lag in your trades. As soon as you feel that your share has appreciated in value, you can easily sell it to the best bidder out there.
How Does Trading Work On Otis?
Each order on the Otis exchange is a limit order. For all of you non-finance guys out there, essentially a limit order means that it only gets fulfilled if a certain condition is met. Let’s look at an example.
Say you want to purchase shares of the Air Jordan “Kobe 3/8 PE” Pack but you don’t know how much to bid for them. Obviously, you don’t want to be bid unreasonably high because that would mean you’re paying more than what the shares are actually valued at. Therefore, you look at the past trading data of the shares and set a Bid price. Now, this is where the “certain condition” comes into play. If your bid is higher than or equal to the clearing price, then your order will get executed and you will have bought the shares.
So what’s the clearing price? It changes every day when new bids and offer prices come in. It’s essentially the point at which the buyers and sellers agree to trade. I won’t get into the economics of this all because frankly, you don’t need it. But here’s a graph to help you visualize how a clearing price is determined.
Similarly, if you want to sell shares, the condition will be that your offer price has to be at or below the clearing price for the order to be executed.
If you feel that this is all too much to take in, trust me, it really isn’t. Once you start trading on the Otis exchange, you’ll easily get the hang of it all.
The reason why we’re discussing Otis is that the website primarily dealt with artworks and other artifacts. It only recently started featuring sneakers as a way to gain investors on board. What this means for the future of the sneaker community is the fact that there’s so much room for growth.
While reselling sneakers has been here for a while, investing in sneakers like purchasing shares in a company is a completely novel idea. I’m personally fascinated by the entire ordeal and you should be too. What I recommend to you all is that if you’re in the reselling business, try investing in some sneakers or in shares of sneakers to grow your wealth. Make reselling your primary business but make investing a source for passive income.
2021 can be the year where you all become financially independent and if its through doing something you love, then by all means go for it. The sneaker industry is set to grow to $30 Billion by 2030 and it’s time you took a piece of that pie.
Start Reselling Sneakers Today!
Our Hypemaster Playbook was curated very carefully. Each aspect of the sneaker resale game is talked about in detail within this guide. This guide will teach you the fundamentals of identifying hot drops and then converting them into a sale for a profit.
Moreover, if you want additional help and tips, you can always join our winner’s circle. A place where we share valuable insider information with our most devoted and successful followers.
Lastly, make sure that you follow us on Instagram for all the latest shock drops and resale value guides.
Whilst Nike SNKRS might be the most frustrating raffle platform, it doesn’t mean that you can’t increase your chances of copping a sneaker. Whilst many of you might be simply creating multiple accounts on Nike SNKRS, you might still be doing a couple of things wrong. Therefore, take a look at our tutorial video to see all the “secrets” that the top resellers use to cop on SNKRS. Click here to watch the video.