Many CS:GO players become inspired to start investing in CS:GO skins and items, but very few of those players ever end up profiting due to bad choices and investing at the wrong time.
It is easy to say, “I should have invested in this item because I would be rich now!” but how would you have known the future value of that item? Unfortunately, no one has a crystal ball that can predict the future, so you will have to use past data from old items and apply them to new items with similar attributes.
Cheap vs Expensive Skins
Watching an item’s price jump from 20 cents to 40 cents isn’t as cool as going from 200 to 400 dollars, even though both had an increase of 200%. Cheaper items tend to be more volatile than expensive items on the Steam Market, meaning there will be more movement in the price of more inexpensive items.
Volatility is significant for profit in CS:GO skins because the Steam community market takes a fifteen percent cut on all items sold. You need to consider this hefty fee before making any decisions because you should have a specific price to buy at and an idea of where to sell. For example, if you plan to sell at a ten percent increase, this would result in a net loss of nearly five percent on the investment.
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Buying at the Right Time
Buying at the right time will play a significant role in the success or failure of an investment. You should never watch the market closely and think you need to quickly get your buy orders in. Success in CS:GO investing requires patience, and you need to see market bubbles where the price can’t stay there for long.
Many new investors fall for the FOMO, the fear of missing out. When there is a hyped skin investment, people think they need to invest now because the price will be far higher in the future, this is known as FOMO, and you need to spot a FOMO trend. A great example was in the Shattered Web Case in May 2020. The case price kept climbing to almost two dollars after some influencers recommended investing in the case. Unfortunately, this type of growth is never permanent; soon after, the price began to tumble downwards.
In April 2020, I wanted to invest in the Shattered Web Case when the price was $1.20. However, I felt this price was too high and not natural. So I placed buy orders at $0.95 and waited for the price to drop. After two weeks, my buy orders were filled. Had I felt the pressure to buy in at $1.20, I would have missed out on some remarkable gains.
What Are the Best Items for Investing?
Items with the most volatility usually end up becoming the best investments. Stickers and cases below $5 will always be the most volatile, making them the best potential profit. These items will also have the most risk associated with investing since the price doesn’t have to go upwards.
Some may succeed in CS:GO play skin investments, but play skins tend to be more stable in price than stickers and cases. It would be best to be very careful when investing in low-volume items since they are unpredictable and difficult to sell.
There should always be a reason you want to invest in a CS:GO item at a specific price and why that price will be higher in the future. It’s essential to look at CS:GO’s player count since more players will mean a higher demand for knives and nice play skins.
Every investment involves an unpredictable amount of risk. SkinLords writers’ are not financial advisers and do not claim to be financial advisers. Conduct your own research before making any decision.