What is the first thing that comes to your mind when someone says’ NFTs’? Do you consider them a sort of’ game’ or a profound way to make money?
Well, if you ask me, both answers are reliable. Trading NFTs brings a lot of fun; it boosts my adrenaline and brings me profit too.
Since this is the ultimate time to learn how to make money with NFTs, I’ll reveal my ‘secret tips’ to help you make smart trading moves.
How it all started?
When I decided to find out everything about NFTs, I knew that they’ll become the next’ big thing.’
Since I missed the opportunity to make massive money when bitcoins were at their peak, I knew I couldn’t fail this time.
Buying NFTs today is like buying Amazon stock in the 90s. For almost a year, I had no life.
I searched for every detail, every info, and I wanted to find the best method to help me make only wise moves.
After so many failures, I learned the lesson. In this case, before I started to profit, I made dozens of decisions that turned out to be dumb.
However, I can’t complain. After all the game and pain, those decisions turned out to be the best lessons I couldn’t find anywhere else. So, this is my story.
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How I started to make a profit with NFTs?
One of the first questions I would like to ask everyone who wants to join the NFT world is’ Are you ready to lose the money you want to invest?’
Sounds crazy, right? Even though this is not a kind of gambling, everyone should be aware of the risk when they want to try something new and unknown.
To join the NFT world, you don’t have to be rich. You can make your first step by investing $200 or $300.
That’s how I started. Of course, I already had my own successful business, but my desire to try something that I believed it’s going to be big.
To make money with NFTs, you have to understand the ways that can bring you chances of profitability. So when choosing the collection you want to buy, the following tips should become your Bible.
DYOR
This term is widely known to all experienced NFT traders. Meaning’ Do Your Own Research,‘ this should become the no. 1 rule when choosing the collection you want to buy. DYOR will help you find out whether the project is worth investing.
- Doxxed team
In other words, the team behind the collection must be reliable (doxxed). A doxxed team is a type of insurance that the project won’t fail. In addition, when the team members’ identities are known, they already done a few NFT projects, there will be fewer chances of failure.
Although even the term’ being doxxed’ carries a negative connotation, when referring to NFTs, being doxxed is something positive.
When the team members discover their identity, they want to build trust with their community. I also have to note that this fact may not always be true either.
There are dozens of projects that reached great popularity and we still don’t know the real identities of founders standing behind them. Some of them are BAYC, Goblins, and many more.
- Check the project’s Twitter and Discord
Checking the project’s Twitter and Discord is a must. People often get fooled by the number of followers on the project’s Twitter account. They think the more followers; the better project will be.
However, the number of followers doesn’t have to mean anything. Scam projects often buy followers just to trick inexperienced traders and cause the so-called’ hype’ around the project.
GOATS Playable Sanbox Avatar
WAGMI
#sandbox #voxelart #voxel #metaverse #goatsofnft pic.twitter.com/m30CemjHr8
— Goats Of NFT (@goatsofnft) August 29, 2022
So I recommend always checking whether the collection’s Twitter account has bots in its followers. Bots are usually not active, have a small number of followers, and hold their personal photos for profile pictures.
It might sound silly, but this is important to check when choosing a project you want to buy.
Experienced NFT traders don’t use their personal Twitter accounts for tweeting about NFTs. Instead, they use so-called Crypto Twitter accounts for tweeting about NFTs.
- Check who holds NFTs from the collection you want to buy
There are many projects from the so-called’ bear market’ held by’ whales’. One of the most famous NFT whales is Cosomo de Medici (Snoop Dog).
It’s time to say gn
Less than one year ago, I said my first gm here
And since this will be my last post for awhile, I thought it meaningful to commemorate it by adding @grantyun2‘s ‘gn’ to The Medici Collection (1/8) pic.twitter.com/a64esT9SBk
— Cozomo de’ Medici (@CozomoMedici) August 7, 2022
When whales buy NFTs from new collections, there is a high possibility that such collections will gain huge success.
Try to get on the Whitelist
By getting the Whitelist spot, you’ll save a lot of money. In addition, it brings you the benefit of getting a minting priority.
Besides, some projects allow you to enjoy other benefits, such as reduced transaction fees and exclusive content.
To get Whitelisted, you can be active in a project’s discord chat, create a type of fanart, or participate in any other community event. No prescribed rule applies to obtaining a Whitelist.
Play to earn NFT games
If you’re a gamer and have a lot of free time to spend in front of your laptop, then play-to-earn games could be one of the best solutions to earn NFTs and enjoy other utilities.
Axie Infinity is one of the most popular ones because users can ‘battle’ other users and earn rewards.
The most important in-game items are structured as NFTs, so the digital currency earned as rewards can be ‘reinvested’ into other items.
Find’ blue chip’ projects
Blue chip projects provide the lowest risk of investment. There is always a doxxed team behind them, so there are very low chances that such projects will fail.
You can find dozens of blue-chip collections on OpenSea marketplace that currently have low floor prices.
Aim for Utility projects
If an NFT collection has no utility, there are higher chances that the project will fail.
Therefore, before buying an NFT, I recommend you ensure it provides different benefits to its holders. For example, some benefits could be physical items, tickets for various concerts, conferences, and sports games.
On the other hand, blue chip projects often give their holders so-called tokens, such as ape tokens.
Flip on Mint
Flip on mint is one of the strategies to make money quickly. In other words, when you buy an NFT at the mint price, you must resell it a few minutes after minting.
In that way, you can make an easy and quick profit. Set your listing price and wait for somebody to buy it.
Flipping a project should be done especially when you’re unsure whether it’s worth holding.
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NFT Staking
By staking your NFTs, you’re locking up their digital asset on a DeFi platform and receive rewards in return.
PoS blockchain is one of the most common places where owners receive the network’s native token.
Don’t sell in panic
Once you buy an NFT, following the collection’s price movement is essential. However, you don’t have to sell your NFT just because its price went down.
Price changes in the nft market are very common. Even popular projects such as Bored Apes and Crypto Punks show price oscillations, and it doesn’t mean they’re going to drop tremendously and lose value forever.
Selling your NFT in panic just because you think you will have a bigger loss than profit is not wise. Remember that you’ll lose only when your NFT is sold.
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To learn when is the right time to sell your NFT, you must follow the market, news, and the project’s Twitter and Discord.
Some of the NFTs I hold had huge price oscillations, however, I still think they will not fail. The Doxxed team, utility, and selling volume give me clear signs I shouldn’t sell them yet.