Collection Offers vs CTO

Good to know: CTO stands for Collection Trait Offers

Collection Offers

Sends the same bid to the whole collection. Every single NFT on the collection receives the offer.

CTO

Deep Dive: The above screenshot is the collection offer page of Opensea. The top part where it says "Choose an attribute" is for selecting a particular trait which stands CTO. If you don't pick any attribute (trait) and send a collection offer the offer will be made to the every single NFT in the collection.

Wen is Collection Bidding Useful?

If you want to buy NFTs from a collection and flip them back on the floor, collection bidding comes useful. Compared to CTOs, the profit margin on collection bidding is much smaller. However, it is a lot more likely to get bids accepted and the holding time is usually greatly shorter.

Crypto investors quickly retrofit HODL as an acronym for “hold on for dear life,”. It is often used for holding an NFT, or encouraging others for not selling it.

Below you see an example of a flip from collection offers, as you see NFT is resold in a couple hours:

The profit margin is quite small, however, the ratio of getting bids accepted is higher.

The protability is often a lot smaller compared to Collection Trait Offers, however, the hodl time is shorter and conversion rate is a lot higher (the likelyhood that your bids will be accepted)

Wen is CTOs Useful?

If you are targeting for a specific trait than CTOs are the right method. The protability with CTOs are a lot higher, however, it is harder to get your bids accepted and the hold time is usually a lot longer.

Below you a flip from CTOs as you see it took 12 days to resell (flip) the NFT:

With CTOs the hodle time is usually longer and the bid acceptance ratio is lower, however, profit margins are bigger.

Even though it took a while to flip the NFT the profit margin was high:

This profit calculator is from the website version, whereas the above one is from the Chrome Extension. They both come quite handy to understand your accounting.