How to make money trading NFTs (beginners guide)

You must have heard of NFTs and how they’ve helped some individuals make money. NFTs are the most recent cryptocurrency craze to hit the mainstream. It does make sense for you to master the ropes of making money using NFTs if you’re an entrepreneur or small firm that develops digital content.

The very first step to make money with NFTs is to acknowledge them. We’ll provide a short explanation of NFTs and guide you on how to make money with NFTs by selling them. Let’s start with an explanation of what NFTs are.

What exactly are NFTs?

The term “non-fungible token” (NFT) refers to a not-fungible token. When something is fungible, such as a dollar bill, it has the same value as any other dollar note and can be swapped for it. A non-fungible token, on the other side, is a unique digital asset that cannot be traded for another. Every NFT is hence a unique item. NFTs are transmitted from one owner to the next through blockchain technology, which generates a virtual trail that verifies the transaction from seller to purchaser. This represents the buyer’s one-of-a-kind ownership rights (new owner).

Starting Capital

Start-up funds usually begin with 1.5 $ETH, and then you have to work your way up to the whitelist. In the NFT world, a whitelist is a group of persons who are given early and assured access to the mint at a specified date and time.

Build up your financial resources. The liquid is worth its weight in gold. (As I have stated, the liquid will return to blue-chip programs). A blue-chip company is one that is well-established, stable, and well-known. Blue-chip companies are thought to be safer investments since they have a track record of success and consistent development. My greatest suggestion is to work your way up to a blue-chip stock. This is the finest option if you’re in it for the long haul.

Sliding and Monitoring

Take a few Ls and notice how the charts and activity volume change when you sideline/monitor for projects. It will give you benefit in the long run. Though not being able to accomplish a project can be depressing at times, there will always be another opportunity. If you stay in the scene long enough, you’ll eventually find your big W. It doesn’t matter if you’re minting a rare coin or a project like Azuki. (I know how it feels to be poured on after blindly plunging into the FOMO; it can ruin your day, especially if you don’t have enough drink.) For example, suppose I invested 0.15 $Eth in a DAO project only to see it drop to 0.015 $Eth. It is an expensive lesson, but we would not learn if the lesson was not difficult enough.

Market sentiments

The entire attitude of investors toward given security or financial market is referred to as market sentiments. It’s more of a commercial atmosphere or tone. When you are just a newbie in NFT trading, you lack a sense of Market Sentiments. And you have to look up to someone who can influence you.

Influencers

Advisors are available on Twitter with their Twitter accounts and with a large following. They have an extraordinary experience in this game of NFTs, So they are actually great influencers. They are individuals who have spent enough time in the industry to understand how the market works and what makes a strong idea. They don’t have to promote it on Twitter; all they have to do is join the Discord and be assigned an advisor role, which will help to calm some of the members down.

Hype for the project

Hype for a project also matters a lot when you are new to the market. You can create this hype by making a Twitter and Discord account. It’s a positive sign when a project has over 50k Twitter followers and 60k  Discord followers. However, some projects with over 100k Twitter followers are not even selling out due to the current bad market. There are projects with less than 20,000 followers that are selling out. Bots and phony followers would be the explanation for this. To sell out a project with a 10k maximum supply, just 5k unique holders are required; nevertheless, in order for the project to increase in value, paper hands and those who are not hopeful about the project’s future must be screened out.

Alphas on the Twitter

We know that the alphas are hidden on Twitter. But it is difficult for beginners to choose the right one as their influencer. Because there are a lot of people with fake accounts on Twitter. Making the right choice matters a lot and also the rate at which you receive it. Most beginners tend to choose giveaway accounts, but some of us mistakenly choose the fake ones. Only follow accounts who have a history of contributing NFTs or $Eths or are on the whitelist.

Follow those accounts that will add value to your life. The accounts provide you with knowledge rather than money. As there is a famous saying: “Give a Man a Fish, and You Feed Him for a Day. Teach a Man to Fish, and You Feed Him for a Lifetime.”

Build instead of Follow

Instead of following someone, you should build your own account on Twitter or on Discord. There are so many opportunities in the scene that instead of investing in rug initiatives over and over, start building and learning from prior mistakes. Make sure you don’t make the same error they did and take advantage of opportunities they couldn’t get. You may begin by expanding your Twitter following and sharing what you know with people who already follow you. Though you may believe that part of your efforts will go to waste and that others would be unable to perceive what you have created, when you reach a point where they can no longer ignore you, they will begin to notice what you are doing. This way, you can grow a lot better than just following someone.

Increasing your overall NFT IQ

If you have no idea what you are doing and are just blindly purchasing into projects, or if your due diligence was not done properly, you will get used without your knowledge. You will only be provided as exit liquidity to those that know what they are doing in the NFT industry. It is better To raise your overall IQ about NFTs by searching about what you are diving into. It will make clear where you should invest and why. If you don’t want to get tricked by someone, you should always ask questions. When a project pumps, inquire as to why. When a project fails, find out why. Simply keep asking the right people and looking for a correlation between this initiative and the next one you decide to invest in. You’ll be able to find some similarities.

If you are sure about your project, make sure the project has enough liquidity before getting too pleased. To examine how many people are listing products against how many people are actually buying, go to the Activity page and pick Listing and Sales. In an ideal world, transactions should occur every few minutes.

You’ll have an easier time looking for a buyer for your NFT if the a large trade volume.

What seller do you want to be decide on?

Choose the type of trader you wish to be. You might be able to make some tiny gains quickly, but the inverse/flipside has the same potential. If you merely observed some projects ranking first on the tools you used and decided to jump in without doing any investigation, you might be a little late. (Unless you’re absolutely certain you know what you’re doing, I strongly advise against it.) FOMO (fear of missing out) is actually a killer. Making a solid short-term flip and seeing it dip the next day is one of the most rewarding experiences you’ll ever have, but can you do it all of the time? (This only applies to secondary sales; mints are ok.) An investor with a long-term perspective: Hold on for a longer period of time if you have faith in the team to deliver. Long-term holdings account for the majority of my gains.

Conclusion

It’s important to keep in mind that, while selling NFTs may appear to be easy, it’s not always the case. When you mint your content and trade it with others, you’ll suffer marketplace and Ethereum expenses, which can be rather important depending on when you sell it. Because of the volatility of this immature industry, trading NFTs might be risky. Remember, this is not a financial recommendation. Before proceeding, you should always conduct your own research.