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A Simple Guide On How To Get Rich With NFT'S? (Part 1)
🕑 Added 2023-10-03 14:31:26 +0000 UTCMost of you reading this likely have never bought an NFT.
I don't blame you.
It is because you don't have the right people around you.
You don’t have a network of:
- Full-time Crypto degens,
- Venture Capitals or Hedge funds
- High net-worth individuals,
- Army of researchers
- Crypto/NFT project founders
Fortunately for you, you know someone who does,
ME.
I receive CRUCIAL information from these people which allows me to make money during a bull run.
How?
Because I have built GENUINE relationships with these people and have helped them make a significant amount of money - so whenever they see an opportunity to make money they share it with me.
And this cycle I will return the favor and share it with you all here first.
Let's get into it.
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I have already covered the basics in the previous video.
So I am not even going to waste your time explaining again.
All you need to know is:
NFTs are mostly an ARTWORK and GAMING-based industry.
These are the 2 MAJOR use cases of an NFT.
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Art-based example:
One of the major uses of NFTs is related to art.
Artists create unique digital artworks, which can include paintings, illustrations, animations, or any form of digital creativity.
Instead of traditional physical art, these pieces are stored digitally and associated with an NFT.
Game-based examples:
Another significant use of NFTs is within the realm of gaming
NFTs have introduced unique features and opportunities in the gaming industry:
This is what I will be FOCUSING on this next cycle.
I believe the last cycle was the cycle of artwork but this time money and capital will flow into gaming.
The NFT gaming space is super interesting as it is the first space outside of Decentralised Finance to achieve genuine product market fit.
For example, Axie is played by real users and isn't just a tool for speculation, like 99% of other Crypto projects out there.
The NFT gaming side hustle is REAL and is making people who don't have access to a good wage serious money.
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This is what you need to understand.
When an NFT project launches, there are TWO methods you can buy an NFT:
You can either MINT an NFT project or buy it on a SECONDARY marketplace.
Let me tell you the difference:
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1. Mint
When an NFT project launches, they own all the NFTs, and they SELL these out to the community by ‘minting’ them.
This is where the community sends their Crypto token, in exchange for ownership of an NFT.
This is basically retail - which is like directly buying from the store.
How are NFT projects set up?
Here's a breakdown of how most of them work:
- NFT projects create a set number of unique digital items, like 10,000 of them.
- They will have a presale for their early community members who complete tasks like invite competitions to get these NFTs at a discount.
- These NFTs are launched on blockchains like Ethereum or Solana.
- You can buy them during the minting phase at a cost of around 1-5 SOL on Solana or 0.05-0.2 ETH on Ethereum.
- After the initial sale, they might give current NFT holders new NFTs or share a percentage of their earnings with NFT holders.
- They create a community through a DAO where verified NFT holders can participate, vote, and engage in various activities.
- Each NFT can have unique characteristics, usually between 50-150 of them, randomly assigned during minting.
- The minting phase assigns NFTs randomly, so you won't know which one you get until after you buy.
- Some NFTs have rare attributes, while most have common ones.
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2. Secondary marketplaces
Once an NFT project has launched, the community is able to buy and sell their NFT which they MINTED on whichever NFT marketplaces the project decides to launch on.
For NFT’s built on Ethereum, this is mostly done through the marketplace OpenSea.
For NFT’s built on Solana, this is done through a variety of different marketplaces as there is no clear winner.
These are:
- Solanart
- Digitaleyes
- Magic Eden
- Solsea
This is where you will look to sell your NFT on the secondary marketplaces to make money as they will sell for much higher than the MINT.
Now I hope this is simple, stay with me.
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THE FLOOR:
The floor is an important concept in the NFT world.
You likely have heard the term used already - "What is the floor price?"
The floor price in NFTs is the LOWEST price at which you can buy a particular type of NFT within a specific collection.
It's like the "starting price" for NFTs in that category.
If you want to purchase an NFT from that collection, you can't buy it for LESS than the floor price.
It's often used as a reference point for assessing the value of NFTs within that collection or market
The LESS NFT’s available at the ‘floor’ price, the easier it will be for the floor price to move UP once they’ve been bought up.
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Imagine you have two groups of people selling NFTs.
In the first group, they are all selling their NFTs for almost the same price, like $49, $50, or $51.
This is called a "STACKED FLOOR."
There are MANY NFTs available at these prices.
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In the second group, people are selling their NFTs at different higher prices, like $53, $57, or $62.
This is called a "WEAK FLOOR."
There are only a FEW NFTs available at these prices.
If you want to sell your NFTs and the floor price is weak like in the second group, it's better to sell them a bit higher than the lowest price.
Why?
Because in a weak floor, there are not many NFTs available at that price, so you can sell yours for MORE.
It's a sign that not many sellers are offering NFTs at that specific price.
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You want to sell into WEAK Floors to make money.
Let me tell you why:
- Weak Floor:
When there's a weak floor you can INCREASE the price because there are FEWER sellers, and you have more control over pricing.
You might gradually raise your asking price as demand grows.
HOWEVER, be careful as weak floors could also mean there's NO demand.
In this case, you would want to sell into a STRONG floor.
Why?
- Strong Floor:
A strong floor typically means there's MORE demand and liquidity.
Because everyone will be paying the SAME price.
So it would be EASIER to sell at or slightly above the existing strong floor price.
This is often the case when you want a QUICKER sale.
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Now when it comes to selling your NFT - It is not as EASY as selling crypto.
Let me explain
In trading, when selling your investment you can sell a portion (like 20%, 30%, or 40%) when the price goes up and keep the rest.
But with only one NFT, you can't do this.
This is why people don't like NFT.
As well as the fact that it is not easy to sell as the market is not LIQUID - you can not sell instantly.
Some people would even say NFTs are risky compared to altcoins - why?
Buying just one NFT during its initial release can be risky because, once it's available for buying and selling, the only way to profit from it is by selling the whole thing.
This WILL be frustrating because NFT prices can be very unpredictable.
And to manage your risk wisely, you'd want to take back your initial investment while KEEPING the rest for potential gains.
You can't do this with an NFT.
You either sell or keep.
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So, how are you going to solve this issue?
The STRATEGY is to buy multiple NFTs from the SAME project.
Ideally, you'd want to get 2-3 NFTs from each project, and even more, if you're okay with taking more risk.
With 2-3 NFTs, if the price goes UP after they're available for trading, you can sell one or even two of them.
This way you can KEEP the others in case the project becomes REALLY popular.
Before NFTs are initially released, it's hard to predict how successful the project will be, especially since it's usually after the project's creators have made their profits.
So, having a few NFTs from the start gives you more FLEXIBILTY to manage your investment as the project unfolds.
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Now in part 2,
I will go deeper into how you know what is a good NFT and a bad NFT.
The next post here will be on the details of the private discord and Ai futures bot for those who are NOT in it.
I will see you then.
@ionicXBT
Comments
Thank you for the post! The most dangerous part I find is the illiquidity part of the NFT trading. Burned myself a couple of times of having to lower my prices to get rid of my nft. But now we have the time to learn and prepare!
great post. not into nft's myself so ur clear explaining style works
