Please note that this article is based on my personal experience. I’m not a financial adviser, and this article cannot be considered as financial advice.
Please, ALWAYS do your own research before investing in anything.
“FOMO could lead to mistakes it seems…” – Master Yoda didn’t say it. I said it.
The day after I found Robotos, the floor price went to 1.6eth.
That was over 1.3eth, or around $3,900 in profits I might have reaped if I’d bought it the first time I saw it.
In the print-on-demand market, I have to sell at least 390 coffee mugs to make that kind of profit. In the NFT market, you can get it within a day.
“It’s possible to make lots of money in this market!” I thought.
Actually, after I browsed Twitter for a while to learn more about NFT, I found that most successful people in this space are around 15-25 years old.
These kids are making tons of money trading JPEGs!
At the same time, I was fighting with the changes to the Facebook Ads algorithm, PayPal limitations, dealing with disputes from customers, etc…
Even though I’ve made tons of money from selling print-on-demand products in the past 4-5 years, I still thought something might be wrong.
I started thinking that I should check out this NFT market more seriously.
What are these kids are doing here!?
Anyway, I had to check other NFT projects, because I figured it would be hard to make more profits from Robotos now.
The floor price had increased from 0.3eth to 1.6eth within a day.
I thought it would be difficult for the price increase 2x or 3x more from this point.
So, on Twitter, I started looking for new projects to invest in.
I spent hours on Twitter and Discord channels researching projects that people were talking about.
Back then, I didn’t know who the reliable influencers were. I just read tweets from random people and found many inspiring stories.
One of them was a university student.
He said he’d started trading NFTs with just $1,500.
He started minting one NFT and flipped it to other projects and make some profit.
Flipping is an NFT term I learned. It’s means buying and selling an NFT at a profit (or sometimes a loss). (The same concept is used in real estate.)
The student kept flipping images until he could buy the Cool Cats NFT, which is another top NFT project on OpenSea.
At the time, the floor price of the Cool Cats NFT was around 10eth, or $30,000.
Yes, $30,000 for one Cat image.
This guy said he did that within a few months.
He turned a few thousand dollars to thirty grand within a few months.
Impressive!
After that Tweet, I found another Tweet from Deeze, another influencer in the NFT space.
He shared a list of projects that he thought were undervalued.
One project that caught my eye was “Woodies Generative Characters”.
It’s another PFP (Profile Picture), in which the characters are like half wood and half-human.
I tried to do more research by searching more Tweets about this Woodie project.
Most people had good things to say about this project.
I went to the project’s Discord to check the roadmap and vibes and the people there.
It seemed legit. The project would also use a part of its profits to help plant 1 million trees through charities.
Seemed like a good one.
At the time, the floor price of this project was around 0.75eth. There were many transactions per minute happening.
I later learned that this is normal for a project that’s just sold out after its launch.
Since I’d seen Robotos reach 1.6eth in a day, I decided to buy one Woodie and hope it would reach that number, too.
I checked the rarity of each image by the tool provided in the Woodie’s Discord.
There was one image I liked: the brown-haired Woodie with the beanie. I checked its rarity and found it was in the top 100 of the entire collection.
I was in the car, back from the office. I used my phone to purchase this one.
“Transaction Failed…”
I guess someone got it before me.
“Damn…this project is so hot!” I thought.
Every time I refreshed the page, many Woodies had been purchased.
I tried to find another one to purchase and found a green-haired Woodie, X eyes, and wearing a beanie. This one was 0.8eth at the time.
That was a bit higher than the floor price.
But I didn’t want to miss out again, so I made the purchase immediately.
(I completely forgot the advice from that stranger I found in the Discord yesterday…)
This time, I made it.
That Woodie became the first NFT I bought.
I was very happy with it and changed my profile picture on Twitter to this Woodie immediately.
That’s what NFT people always do when they get a PFP they like.
“Wow,” I thought.
“I just spent 0.8eth, or $2,400, for one JPEG…”
I hoped it would reach 1.6eth, just like Robotos. If it did, I’d flip it and make a profit.
The next day, the floor price of my Woodie increased to 0.86eth.
I didn’t sell. The price might go higher!
Another day. It was up to 1.2eth.
I still didn’t sell. It might reach 1.6eth!
The next day, it flopped to 0.86eth.
I still HELD it. I still thought the price could go higher.
Unfortunately, the price went down to 0.6, 0.4, and 0.2 in the next few weeks.
But I still held it. I didn’t want to sell it at loss.
In the investing world, the acronym HODL stands for “Hold On for Dear Life”.
It will be good if you HODL to a thing that might be worth a lot in the future.
Like, the lucky ones HODL to Bitcoin 10 years ago.
But this Woodie might or might not be the same bonanza.
I just didn’t want to sell at a loss, so I HODL…until now.
My $2,400 investment has been sunk into this lovely JPEG.
This was the first NFT I bought. I learned a lot in the process.
“Don’t act based on FOMO, and always TAKE PROFITS when you can.”
Now that I’ve been in the NFT space for four months, I’ve found that new opportunities pop up in this space almost every day.
If you miss one, you’ll still have plenty of chances to profit from other upcoming projects.
So, Don’t Act on FOMO. Otherwise, you might be a HODLer (unintentionally), just like me.
Also, NFT is very volatile. You can see projects shoot up to a 5eth floor price in a day and then sink to less than 1eth in a day as well.
So, when you see some good profits, TAKE THEM.
It’s not wrong or silly to do that, even if the price might go higher.
Profit is profit.
We’re here to make it, and there are loads of chances to make more profit from other projects.
This advice is sound and is easy to follow.
Anyway, even though I learned many things from the first NFT I bought, I still make the same mistakes, over and over.
This time, it left me holding on for dear life to many useless JPEGs.
—ifourth | Nifty Nuggets #446
P.S. Although the price of my Woodie has been down for many months, the Woodie team is still working on the roadmap they’d planned.
I believe this is a good project. I just bought the first one at an overvalued price.
So, I bought two more Woodies when the floor prices were at 0.6 and 0.2eth. The average cost I bought one Woodie for is now around 0.53eth.
Right now, the price is back at around 0.45-0.5eth and people have started talking and buying this project again.
Hopefully, this HODLer can exit at 1-2eth from each of his Woodies in the next few weeks 🙂
