Have you seen The Wolf of Wall Street? Even if not, you definitely saw the memes. DiCaprio played a charismatic broker who made a fortune trading and… breaking the rules. But what if he didn’t cheat on people, but invested in CS skins? Would he have been as successful? CS.MONEY Blog tries to find answers to very important questions: is it profitable to invest in skins and how better to do it.
By the way, you can easily buy any skins on CS.MONEY using cryptocurrency! You don’t have to open Steam, just go here: Buy Skins For Crypto. Every single skin, just find what you want and go for it!
Five Benefits of Investing in Skins
Gold, jewelry, stocks, cryptocurrencies, real estate, skins… This list of good investment options can continue for a long time. But let’s focus on skins, since we know them at least a little better than other previously mentioned assets. So, here’s the Five Benefits of Investing in CS Skins:
- Profitability
- Liquidity
- Enthusiasm and People’s Interest
- Community
- Entry Threshold
Surely, investing in skins has its downsides, too. For example, high volatility, no dividends and inability to diversify your funds. Let’s take a closer look on all the good and the bad sides of CS skins as investments. Here, we will also compare CS skin with stocks and gold.
Profit Potential of CS Skins
We should start with the most obvious benefit. See, most skins increase in value over time. In recent operations, Valve has been adding limited drop collections, and most of the cases are in the Rare Drop pool. Basically, Gabe’s team just limits the number of skins on the market (read: tries to control it, but that’s not bad if it works and it’s their game first of all). Meanwhile, the number of players is growing. And will burst as hell when CS2 comes out. It means, we have the same supply, but more demand, thus, the price gets only higher. Simple.
Take Desert Eagle Emerald Jörmungandr for example. It appeared in CS:GO back in 2019, along with the release of Operation Shattered Web. Are you sitting? In almost four years, its price has increased 30 times. Apple’s stock have grown about four times over the same period. Tesla’s stock did in about eleven times. Gold? Just doubled. So potentially, skins are no less profitable than investing in stocks or gold.
Liquidity
The CS:GO skins market is relatively liquid, meaning it has increased trading activity: there’s a lot of offers for both sales and buys. Online marketplaces and trading platforms such as CS.MONEY Trade is a good example that CS skins market works fine.
At CS.MONEY Trade you can trade skins easily without Steam’s high commissions. There’s a lot of offers for buyers, flexible and friendly system for sellers, numerous handy filters and quick deals. Moreover, its liquidity is about 9000 skins per day.
Enthusiasm and People’s Interest
Investing in CS:GO skins allows you to combine personal gaming interest with potential financial benefits. It’s easy: if you like skins, you buy them, play with them, and they grow in price while you just spend your time in joy! Next step, you can exchange skins more often and flex them in front of other players. It’s skins’ natural cycle in CS:GO. Just having the ability to show your skin to any player, not even a trader, for them to appreciate the looks is amazing. Isn’t that a decent option and a rare case of combining hobbies and possible income?
Community
If you decide to dive into the CS:GO skins market, you will be introduced to the community of enthusiasts, traders and investors. Don’t be too negative about this fact. Finding friends in matchmaking or on FACEIT is a whole another thing, because competitive gaming is considered toxic for a reason.
Here, instead, you can start communicating with those who appreciate both skins and CS. Connecting like-minded and invested people can lead to new valuable ideas, discussions, and even potential trading opportunities. It’s a win-win situation!
Entry Treshold
Investing in CS skins has another important aspect: a relatively low entry threshold. You would need only a couple of hundred dollars to start. That’s a meager price for what you can get. In case you didn’t know, to enter the currency exchange market, you have to start with at least 100k of your currency units. That’s a rule. In simple words, if you want to buy dollars on the foreign exchange market, you immediately need to buy one hundred thousand dollars.
In addition, CS skins market has fewer instruments than in stocks market. This makes it easier to get started and launch your trading career. You still need a lot of knowledge, but it is clearly more accessible than that of a currency trading or, for example, crypto.
Downsides of investing in CS skins
Having dealt with the advantages of investing into skins, we also need to study and learn the disadvantages, or downsides. There’s basically three: high volatility, no dividends, and the inability to diversify your funds.
High volatility, in simple words, means that CS skins market has a fast and sharp change in prices. It’s alive and moving actively: the cost of skins can be unstable, affected by factors such as game updates, changes in popularity, esports, and new releases.
Another obvious downside is the lack of dividends. Dividends are the profits received by the shareholders, to say it simply. That is, by purchasing 10% of the company’s shares, you receive 10% of its profits in dividends. That won’t work with skins. They need to be sold and bought to make a profit. That is, you have to work your spine off to earn.
Finally, there’s no diversification of your funds, which is a risk. Diversification means investing in several types of assets. For example, when you buy Tesla shares, gold and some property/real estate, your “investments are diversified”, because you have different types of stocks. But skins remain skins. Whether it’s a Dragon Lore or a Kato14 sticker, it’s still one type of asset. And again, you have to work around it.
Answering the question from the beginning, DiCaprio’s protagonist could have possibly built a fortune on trading skins, that’s for sure. And you can invest in skins, too. They are not much different from other types of investments. But as with other assets, when investing in CS skins, you should always weigh all the risks and not rely on luck.
By the way, you can easily buy any skins on CS.MONEY using cryptocurrency! You don’t have to open Steam, just go here: Buy Skins For Crypto. Every single skin, just find what you want and go for it!
