99% of NFT projects are trash and will fail. It’s essentially the wild wild west and it’s full of more winners than losers. Hats off to the people who can routinely flip projects for cash flow, however, the vast majority of people lose money with them. It’s due to this sentiment I trashed the whole sector almost 6 months ago. However, I said what the hell and as a small experiment attempted to flip one. I went 1 of 7 (still holding some). Here’s what I did and maybe you can find a method to the madness in my notes.
There are various NFT markets built on different types of blockchains. The most popular blockchains are Solana and Ethereum. I chose to go with Solana due to the low cost of transactions. With Ethereum transactions, you are literally paying $100.oo or more just to transact, whereas with Solana you put fractions of a penny.
You will need a wallet browser to buy Solana NFTs. I use the Phantom wallet as it’s the easiest wallet to set up with Chrome. Once you get the wallet set up, you have to load it with Solana. I used Crypto.com to buy some Sol and simply transferred it to my Phantom wallet. Beware of fees as it takes gas (transaction cost) to move from one wallet to another.
After you load up your wallet you’re going to want to download discord. Discord is a way to track how active a community is behind a project. This isn’t a surefire way to avoid NFT scams (rug pulls) but it helps as it also is a way to doxx (learn the identity) of a project’s founders.
To learn about upcoming projects you can use howrare.is/drops. Howrare.is is for Solana projects. Howrare will give you all the pertinent information you need to understand and due diligence on a project. It will give you the website, Twitter, and discord information in addition to the cost of a mint. Mint is essentially the first opportunity to buy into a project for the public. You have whitelist mints as well that allow you to buy before the public does so. Often the whitelist mints are cheaper than the public mint.
The key to NFT price is supply and demand, same as anything you buy or sell. The project I made money on have a small supply and they had Steve Aoki as an influencer to help drive activity.
Be sure to check out the website to understand the roadmap for each project. The roadmap will give insight as to why the creators made the NFT and to what purpose they are trying to achieve.
Once a mint is completed you can list and buy projects from marketplaces. Marketplaces are centralized websites where the blockchain is verified so as to avoid scams. Solana has a few such as MagicEden and Alpha Art. It’s important to note, you can note sell a project until after a mint.
I happened to mint a project called Monkey Kingdom at 3 am on November 26th. I sold it 3 weeks later for 34 sol which at the time was around $6000. I had to pay a royalty fee of $1000 and the rest was mine to keep.
And that’s how I made money on NFTs. I still will buy into projects and crypto but I see it as play money. I essentially only spent $5 bucks to make $5000 as I never traded with money I didn’t earn from crypto or flipping ICOs.
I know this article was longer than usual but I wanted to share how simply opening your mind can enhance your life (and your pockets). NFT as a technology isn’t going anywhere and through this experience, I’ve gained insights as to merging NFTs and crypto with real-world assets.