(Since this is an article about NFTs, I’ll open it in the NFT style. It means “Good morning, friend.”)
This article is about how to get started trading NFTs and making some money.
It’s about how to mint, buy, sell, and bid NFTs.
(If you don’t know what “mint” means, no worries. We’ll talk about it soon.)
This is what I do in the NFT space.
I trade NFTs. I don’t create or sell them as an artist.
If you’re expecting to learn how to create an NFT and make money from selling your JPEGs, I’m sorry. This article is not for you.
I’ve never done it before, so I can’t explain how to do it.
I only mint, buy, sell, and bid on NFTs to make money. That’s what this article talks about.
Full disclosure: I’m NOT “a pro” in this space yet.
I started trading NFTs in October 2021, and I learn new things in this space every day. I’ve made many mistakes, but also (a few) right moves.
Today, I’ll share how to get started in NFTs and avoid some of the missteps I made.
After you finish reading, you’ll be able to start trading NFTs on your own.
The best way to learn anything, especially NFTs, is to learn by doing.
You need to mint, buy, sell, and bid on NFTs yourself to really understand how it works.
When I explained NFTs to a friend, he asked,
“Where did you learn all this stuff?”
I was a bit surprised. I had no idea how to answer him at first. I hadn’t taken any courses in the subject. I just jumped in and did (many) wrong and (some) right things.
I spent a lot of money on bad projects that are worth ZERO nowadays. But I also invested in good ones that today are worth 2-10x my initial investment.
That’s how I learned about NFTs.
There are many articles and videos about NFTs you can find on the internet.
But when my friend asked me that question, I realized that, to a beginner, the subject is complicated.
There are tons of resources out there, but they’re not well organized. As a result, some people who are eager to learn just don’t know where to start.
That’s why I wrote this article. I’ll arrange the content in a way that will allow you to grasp the basics of NFTs and move on to a point where you can start trading them yourself.
(I won’t say start to finish, because there is no finish point with NFTs.)
Let’s get started.
Table of Contents
- What is an NFT?
- Why do NFTs sell for so much money?
- The Basics of NFT Trading
- Basic Wallet Setup
- Where to Get ETH
- Mint – Buy – Sell – Bid
- 3 Ways to Make Money From NFT
What is an NFT?
NFT stands for non-Fungible Token.
Basically, it’s a digital asset. It can be a picture (which we’ll focus on in this article), music, an item in a game, or a video.
An NFT asset must be unique. If you own a picture of a Monkey (like Bored Ape Yacht Club, or BAYC), it will be unique to you. No one will have the same monkey you have.
What about right-click and save as?
Well, people can save your JPEG, but it will still be unique to you. They won’t be able to trade it.
Think about the Mona Lisa. People can Google and print it, but only its owner (the Louvre art museum in Paris) can sell it.
NFTs are the same, and I think they’re the future of art collecting.
Why do NFTs sell for so much money?
You might wonder why an image of the Monkey in the Bored Ape Yacht Club collection is worth over 100 ETH (or over $300,000).
Last year, it was selling for around $240. Its price has increased by over 1,000x in less than a year.
That’s a crazy return on investment.
But scores of collections are worth ZERO as well. Many of them are worth less than the initial price they were sold for.
Why are some NFTs worth millions while some are not?
It depends on how highly people value the JPEGs.
The Bored Ape Yacht Club is a sort of Ferrari in the NFT space. The project has also provided many benefits to its holders.
The project gives its holders more NFTs (Mutant Ape Yacht Club and Bored Ape Kennel Club), APE Coins, and recently, land (Otherdeed for Otherside).
If you’ve held BAYC from the start, you’ll get NFTs worth millions of dollars (from a $240 investment).
Another new release, Moonbirds, was worth over 30 ETH (or around $90,000) a few days after its release.
People value this collection because the person behind the project, Kevin Rose, is a top internet entrepreneur who co-founded Digg and Revision3.
Community and Utilities
Genesis CyberKongz is also worth over 40 ETH (around $120,000) because of its community and utilities.
People who hold BabyKongz (which is worth 4 ETH) will get access to the Wall Street Kong Channel in Discord.
In this channel, people talk about crypto investments, and many people are profiting from the analysis in this group.
People who hold Genesis CyberKongz also get another utility that generates $BANANA tokens daily. The holders get 10 $BANANAs a day.
A $BANANA is worth around $10 at the time of writing.
$BANANA can be used in the CyberKongz ecosystem or exchanged for real money.
As you can see, there many factors that can cause an NFT project’s value to skyrocket.
That said, MANY projects have a nice roadmap but fail to execute.
This type of project might be highly valued in the first few days because of the hype they get, But it can fail miserably if people discover its team can’t deliver what it promised.
I’ve invested in bad projects like this in the past…
When you invest in an NFT, be sure to check the team behind the project, what they plan to do, and also what people are saying about the project.
The Basics of NFT Trading
Okay, now you understand what NFTs are and why people buy some of them at a very high price.
Next, let’s zoom out and see how to trade NFTs and make money.
Basically, there are four processes involved in acquiring and selling NFTs:
Minting, Buying, Selling, and Bidding.
Minting is when you purchase an NFT at its initial price directly from the owner. The owner sets up a website, and you mint the NFT from the website.
Once you successfully mint an NFT, it will be sent to your wallet.
(I will talk about how to set up the wallet later in this article)
Buying, Selling, and Bidding are activities on the secondary market.
The secondary market is where you trade NFTs.
Some of the most famous marketplaces for buying and selling NFTs are OpenSea, LooksRare, and X2Y2.
These marketplaces mainly use Ethereum, which is one of the top cryptocurrencies used to trade NFTs.
Other NFT marketplaces use other cryptocurrencies. For instance, Magic Eden uses Solana as its cryptocurrency.
In this article, I’ll focus on trading NFTs on the Ethereum chain because this is where I have done most of my trading. It’s also the most popular way to trade NFTs.
Okay, these are all the basic activities you need to know about before you start trading in NFTs.
Basic Wallet Setup
After you understand the basic concepts of NFT trading, it’s time to act.
So, let’s set up your wallet.
Your wallet is where you can keep your NFTs and cryptocurrencies.
There are two kinds of wallets: the Software Wallet and the Hardware Wallet.
You can install a Software Wallet easily on your web browser (Chrome, Firefox, or Brave).
It’s very convenient to use. You carry out all your transactions through the software wallet.
The two most popular wallets used for trading NFTs are MetaMask (for the Ethereum Chain) and Phantom (for the Solana Chain).
You can buy a Hardware Wallet from manufacturers such as Trezor or Ledger. You connect it to your computer and use it to verify transactions.
In this article, I’ll focus on the MetaMask wallet. It’s more convenient. If you’re just getting started, you don’t need to buy a hardware wallet yet.
You can get one later, once you have some valuable NFTs or more cryptocurrencies.
Okay, let’s set up a MetaMask wallet on your computer.
First, install Google Chrome, Firefox, or Brave on your computer.
I recommend that you use a NEW web browser you’ve never used on your computer before.
If you’ve ever browsed through some risky websites (such as porn sites), they might have left a virus or spyware that could access your wallet.
If you regularly use Google Chrome, use Firefox or Brave. And use only that browser for your crypto activities.
Once you select the web browser you’ll use to enter the crypto world, install the MetaMask Wallet. It’ll be an extension of that web browser.
Visit the MetaMask website here – https://metamask.io/
Next, create your wallet. Choose “create a new wallet” and follow the instructions.
Mainly, there are two things you have to do: set the password for your wallet and keep your seed phrases somewhere safe.
You’ll use your password to access your MetaMask wallet.
Seed phrases are 12 random words you can use to import your wallet to a new computer or new browser.
Keep them safe. If people know your seed phrases, they can gain full access to your wallet.
Don’t store them on your computer. Write them down on paper and keep it somewhere secure.
After you finish setting up, click the MetaMask icon next to your browser’s address bar.
It will show your wallet details, including its address (which begins with 0x) and your cryptocurrency balances.
How to Protect Yourself from Scammers
Okay, now you have a wallet where you can store your NFTs and cryptocurrencies.
Next, let’s talk about how to stay safe in the crypto world.
It’s dangerous out there.
Many NFTs are stolen every day. I’ve been in this industry for six months, and I’ve seen several BAYC monkeys get stolen.
To be honest, I almost fell prey to a scammer a few weeks ago.
That day, I saw a notification from a Discord group run by one of the influencers I follow.
His message said: “Free mint for 300 supporters. This is a pass to get access to my private Discord Channel” in his Discord.
The message was fake. But it fooled me.
Still, I felt something wasn’t quite right, so I used my Burner Wallet to mint.
I clicked the “sign” button on MetaMask without reading the fine print. I wanted to be one of the top 300 people who got this special pass.
I didn’t know that the fine print asked for access to one of the NFTs in my wallet.
Luckily, most of the NFTs in this wallet were junk.
I immediately went to Discord and this influencer’s Twitter page.
Turns out the Discord had been hacked and the announcement I read was sent by the scammer.
There were many victims. I revoked all access from my wallet and found a wallet I didn’t know about had access to one of my NFTs in this wallet.
I was safe this time.
I used this wallet address to search the activities on OpenSea and Etherscan.
This guy had transferred a bunch of valuable NFTs from other wallets to his or her own wallet…every minute!
BAYCs, Doodles, Azukis, and many blue-chip NFTs were sent to this wallet. The scammer was selling them at very low prices.
Many people lost valuable NFTs that they can’t get back. It’s a decentralized system and no one protects their assets. It’s pretty sad.
So, now that I’ve shared my cautionary tale, let’s learn those little tricks that will keep you safe in this crazy world.
Burner Wallet and Main Wallets
The first thing to do to keep yourself safe is to create at least two MetaMask wallets.
I call them the Burner Wallet and Main Wallet.
These two wallets must have different seed phrases and should be in different web browsers.
Chrome -> Wallet A (with different seed phrases)
Firefox -> Wallet B (with different seed phrases)
Brave -> Wallet C (with different seed phrases)
and so on…
The Burner Wallet is the one you use to connect to any website. It contains assets you’re willing to lose if you got scammed.
Don’t keep valuable assets inside this wallet. Just add some money to it in case you want to mint or buy something.
My burner wallet kept me safe during that recent scamming incident.
I often use this wallet to connect to tools (such as NFTNerds or Icy Tools) and websites that I need to connect to my wallet in order to mint an NFT.
If this wallet is hacked, I’m okay with it because it contains nothing I can’t live without.
I’ll keep my valuable assets in my Main Wallet.
In fact, I have multiple Main Wallets where I store my NFTs and cryptocurrencies.
When I have to mint an NFT from a website I don’t trust, I’ll use the burner wallet to mint it. If I like the NFT I minted, I’ll transfer it to my main wallet.
In short, the main wallet won’t be connected to websites I don’t trust. I’ll transfer the valuable assets in my burner wallet to the main wallet.
If you fall for a scammer, then revoke their access quickly.
Go to Revoke.cash and check whether someone has permission to access your NFTs.
You can use this site for Crypto Tokens as well.
It will look like this:
(Image from MetaMask Twitter)
Click the revoke button for any address you don’t know.
I used this suite after I unwittingly connected my burner wallet to the scammer’s website. The NFTs in this wallet were safe because of this.
Don’t click on any link you don’t trust.
There are many scammers out there trying to send links to you on Twitter or Discord and asking you to connect your wallet address to their websites.
If you connect a wallet and click on the sign button, they’ll be able to do anything they want with your wallet.
So, it’s better to close direct messages in Discord to protect yourself from scammers.
You can do this by going to Discord’s “User Settings” menu, then to the “Privacy & Safety” menu, then turning off the option “Allow direct messages from server members”.
This will protect you from scammers.
Also, most NFT Project’s Discord channels will have a channel called #official-links. It’s safer to click links from here to do anything related to the project.
Scammers will still try to scam you in other ways. They might hack the Discord and put a scam link there.
So, be sure to check the website and permissions before you sign any message in your MetaMask wallet.
Where to Get ETH
Now your wallet is set up.
The next thing to do is to load some ETH into your wallet. You do that by converting fiat money to ETH.
There are two ways normally buy ETH:
- By depositing it directly into your Metamask wallet using the “Buy” button in MetaMask, or
- By buying it from an exchange (where you get a better rate).
The first method is the easiest:
When you click the “Buy” button, you’ll see a few options you can choose from to buy ETH using your credit card.
Just follow the instructions on the screen. You’ll get your ETH within a few minutes.
This method is simple, but the exchange rate you see won’t be very accurate. I bought ETH this way when I was starting out and lost some ETH because of the lousy rates and fees.
So, I advise you to buy ETH from an exchange.
There are two popular crypto exchanges: CoinBase and Binance.
If you’re based in the US, you have to use CoinBase.
If you’re outside the US (like me), use Binance.
The processes they use are very similar. You simply buy ETH from the exchange and transfer it to your MetaMask wallet.
Let me show you how.
Go to the Binance website, select “Buy Crypto”, and choose “Credit/Debit Card”.
Enter the amount of ETH you want or the amount of USD you’re willing to pay. The system will calculate the amount you have to pay or receive automatically.
Next, follow the on-screen instructions and complete the payment.
A few seconds later, your ETH will be delivered to your Binance account.
Next, go to the Wallet menu and click “Fiat and Spot”.
You’ll see the ETH available in your wallet. Click “Withdraw”.
Enter your wallet address and select the Ethereum (ERC20) network.
You can find the wallet address in MetaMask. Click the MetaMask and copy the wallet address at the top.
Select the Ethereum (ERC20) network.
Then, enter the amount of ETH you want to withdraw to your MetaMask wallet and click the “Withdraw” button.
Binance normally takes a few minutes to send ETH to MetaMask. You can check the status of your withdrawal in the Recent Withdrawals section on the same page.
When your ETH arrives in your MetaMask wallet, you’re ready to buy some NFTs.
Mint – Buy – Sell – Bid
There are four main activities associated with NFTs: minting, buying, selling, and bidding.
Let me show you how to do each activity.
How to Mint an NFT
So, what does “Mint” mean?
Minting is basically a process that allows you to acquire an NFT at its presale price.
Most projects will initially launch and sell NFTs on their own website.
When you mint an NFT from its website, the NFT will be sent to your wallet. You can resell it on a secondary market such as OpenSea.
Each project will have a different way to mint its NFTs. But typically there will be a Connect Wallet button, a quantity box, and a Mint button.
You just have to connect your wallet, enter a quantity for the NFT you want, click the mint button, and approve the transaction in your MetaMask wallet.
Again, when you connect your wallet to any website, make sure you click the correct link from the project owner.
Don’t click on a scam link, and always disconnect the website from your wallet after minting.
Anyway, to mint this way, you need to be on the project’s whitelist. (I’ll explain whitelists and how to get added to them later in this article.)
How to Buy, Sell, and Bid on NFTs on OpenSea
Minting happens on the project owner’s website.
Buying, selling, and bidding happen on the secondary market.
There are three main marketplaces where you can trade NFTs: OpenSea, LooksRare, and X2Y2.
The trading activities are almost the same in all the marketplaces. I’ll use OpenSea as an example because it’s the biggest one at the moment.
First, let’s go to the OpenSea website.
Next, connect your wallet to OpenSea. Click the profile button at the top right and choose MetaMask.
Next, sign and approve OpenSea access to your Wallet.
OpenSea will then pull the NFT in your wallet and show it in your OpenSea account.
Please note that the NFT is still living in your wallet. OpenSea just pulls its data and displays them on the website.
The same thing happens on LooksRare and X2Y2. These websites just use the data in your wallet to display your NFT.
Okay, you’ve connected your wallet to OpenSea.
Now let me show you how to buy NFT.
You can browse the collections in OpenSea by going to the Explore or Stats menus.
I often go to the Stats menu and choose Ranking to see the NFT activity.
On this page, you can see the top-performing collections in a selected period of time, along with their volumes and floor prices.
You can click on any collection to see the NFTs in the project. Let’s check out Bored Ape Yacht Club as an example.
You can see all the NFTs inside this collection and their prices.
If you want to buy any of them, just click on the one you want and you’ll see the “Buy Now” button.
To Buy an NFT, just click this button and sign the approval to spend some of the ETH in your MetaMask wallet.
Noter that you’ll have to pay something called a “gas fee”. It’s basically a fee you pay to process the transaction.
If you’re not in hurry, you can wait until the gas is low and then complete the transaction.
You can check gas prices here: https://etherscan.io/gastracker
When you click the Confirm button, ETH will be sent to the seller and the NFT will be transferred to your wallet.
Okay, that’s how to buy.
To bid on any NFT, just click the “Make an Offer” button next to the Buy Now button.
A bid is basically when you extend an offer to purchase an NFT. If the owner accepts the offer, you’ll get that NFT at your desired price.
To bid, you need to convert your ETH to WETH (Wrapped ETH).
WETH is the currency we use to bid. You can convert ETH to WETH by clicking the Swap button in MetaMask.
Enter the amount of ETH you want to convert to WETH and click the Confirm button.
You’ll need to pay a gas fee and wait for a while for the system to convert ETH to WETH.
Once you have your WETH, you can make an offer on any NFT.
Click the Make an Offer button, enter the amount of WETH you’re willing to pay, set the expiration date of your offer, and click Make Offer.
Then click the Sign button.
Your offer will appear on that NFT’s page.
You just have to wait for the NFT owner to accept your bid. If and when they do, the NFT will be sent to your wallet.
The good thing about bidding is that you can use your WETH to bid on an unlimited number of NFTs.
If you have 1 WETH, you can use it to bid on 1,000 NFTs. You don’t need to have 1,000 WETH in your wallet.
I’ll explain this in more detail in the trading strategy section.
Okay, now let’s talk about how to Sell your NFT.
If you own an NFT, go to the page of the NFT you want to sell.
At the top right of the page, click the “Sell” button.
Then, enter the amount of ETH you want to sell it for and how long you’ll be offering the NFT at this price. Then click “Complete Listing”.
You’ll get a pop-up confirmation in your MetaMask wallet. Click the Confirm button, and your NFT will be listed for sale.
This is basically how to buy, bid, and sell NFT on the NFT market.
You can do this on a daily basis.
There are more details about each activity as well. You can learn more in the OpenSea Help Center.
3 Ways to Make Money From NFT
Now, you understand all the basic concepts and practices about trading NFTs.
Next, let’s see how we can make money from NFTs.
There are many ways to do it. I’ll introduce you to three of them that are easy to understand.
- Minting and Selling (the safest ways)
- Bidding and Selling (tougher, but easy if…)
- Buying and Selling (for pros only).
Minting and Selling
Let’s start with the first one: Minting and Selling.
As you know, minting means acquiring an NFT at the initial price (the lowest price) at its launch.
If the project is doing well, you can sell the NFT at a higher price and make some profit.
This is the idea behind this trading method. It’s very safe because you get the NFT at its mint price.
However, not all NFT projects will generate a profit, even if you get them at the mint price.
Many projects don’t mint out (sell out) because there’s no hype around them or people just aren’t interested in the projects.
These kinds of projects will usually have a floor price below the mint price if too few people mint them.
I scored a big win after minting and flipping the Moody Krow project. That gave me a chance to mint many other projects.
That first win was just beginner’s luck. I didn’t have much experience with NFT. I thought I could always make a good profit if I minted a project.
I max-minted every project I had, without checking anything.
Max minting means you choose the maximum quantity of NFTs allowable and minting them.
Most of the ones I picked were failed projects. I lost lots of ETH as a result.
After that, I learned that not all projects will earn a profit, even if you get them at the mint price.
So, if you have a chance to mint a project, be sure to check whether the project is minted out or not and what the sales volume is.
If the project is not minted out or there is no sales volume, don’t waste your ETH by minting that project.
Also, to get a chance to get it at the launch price, you need to be on the project’s whitelist.
Whitelists and how to get Whitelisted
What’s a whitelist?
A whitelist is basically a list of people who can mint an NFT project on the launch day.
Most projects will allocate spots for people to mint the project’s NFT. The project owners usually give whitelist spots to people who support them.
These are a few ways to get whitelist spots from most projects.
Grind on the Discord. Each project will have its own Discord. You have to enter the Discord and interact with the people there.
The project owners will have their own criteria for selecting people and giving them the whitelist spots. You need to check the conditions on their channels.
Most of the time, you need to chat with people, introduce the project to new people, etc.
It’s actually a bit boring, and there’s no guarantee you’ll be whitelisted if you do it.
If you’re good at drawing, you might enter a fan art contest. Many projects will award whitelist spots to people who create nice fan art.
Enter a Giveaway on Twitter. Most projects do social media giveaways. They’re another way to promote a project.
You just have to Like, Retweet, Comment, and Tag your friends on the tweet where the project owners announce the giveaway.
But you have roughly a 1 in 5,000 chance of getting whitelisted this way. If the project is very hyped, your chances will be like 1 in 10,000.
I won only once using the two methods above. I hired a person from Fiverr to chat in the Discord for me.
And that project guaranteed a whitelist spot to people who engaged in XXX messages. I can’t remember the exact number.
But I remember that I hired this guy on Fiverr to chat 10 hours a day for, like, two weeks.
I did the same thing for some other projects but never made the whitelist.
So, I use the next method to get whitelisted passively.
I bought the NFTs of projects that offered whitelist spots to their owners.
Many new projects collaborate with existing projects to give away whitelist spots. It’s another way to promote a project and get some good holders from other projects.
This is the best way to get a whitelisted.
There are two projects I’ve bought and been whitelisted for regularly.
Nifty Nuggets – A great community of around 500 people. There’s a high chance of being whitelisted. Many well-known projects, such as Azuki, Akuma, and Trait Sniper, give whitelist spots to Nifty Nuggets holders.
Recon Rams – This project has a very low entry price (around 0.04 ETH at the time of writing). This project has its own whitelist marketplace. When people hold Rams NFT, they’ll generate $HORN and can use it to purchase a whitelist spot.
Again, please note that what I’m telling you is not financial advice. I’m just telling you about some of the projects I hold. I’m not recommending that you buy them. Always do your own research if you want to invest in a project.
I get whitelist spots from NeoTokyo, HeadDAO, and Little Lemons as well, but not often. There are so many people in these projects.
I’m also thinking about getting The Habibiz as well. They have their own whitelist marketplace, and I’ve found many good projects in there.
I just bought some $OIL (their token) and a whitelist spot in their marketplace. If I make some profit from this whitelist, I might consider buying Habibiz in the future.
Okay, this is how to make money from minting and selling NFT and how to get on a whitelist to mint a project.
This method is the safest way because you get only NFTs that look promising at the mint price and can sell them at a higher price. You just have to get whitelisted.
Bidding and Selling
The second method is Bid and Sell (tough, but easy if…).
This is another fairly safe method because you try to get NFT at below the floor price.
I got this idea when I checked the sales activity of the CyberKongz project.
On that day, there were a lot of sales of the collection. The floor price was around 5 ETH.
I checked and found that an owner had accepted a bid for CyberKongz at 4.51 ETH, which was below the floor price at the time.
The person who got this CyberKongz listed it for sale at 5.99 ETH. It sold in just a few minutes.
That person made around 1.4 ETH in profit in a few minutes.
Then, I went to check this guy’s profile and found that he/she had made tons of offers to several NFTs. Whenever he got an NFT, he’d sell it almost instantly at the floor price.
I was very impressed and inspired to make money from NFT this way.
For this bid and sell method, you look for a project that has good sale volumes every day, make an offer for an NFT at below the floor price, wait for the NFT’s owner to accept the offer, and then sell it at the floor price or higher.
I’ve done this a few times and found that it’s easy to make money this way.
But it can also be tough because you have to bid on many NFTs. Not many people will accept an offer that’s below the floor price.
But if you have a tool that will send many offers for you, it will be a relatively simple task.
And my team is building it…;)
At the time of writing, I just checked the Woodies Collection and found another person who was using this method.
This guy just made around 0.05 ETH or $100 in profit through bid and sell.
Buying and Selling
Next, let’s talk about Buy and Sell (for pros only).
This method is risky because you have to predict the future price of the NFT.
To be honest, I’m not a pro at this method yet, so I’ll share only a few of the ways I’ve succeeded with this method.
Buy and Sell quickly at the first dip of a hyped project.
A hyped project will be minted out pretty fast and there will be big sale volume the second it’s minted out.
The price will usually skyrocket after mint out if tons of people are interested in the project. People will succumb to FOMO and buy the NFT at a higher price than what they’d pay on the secondary market.
BUT there will always be the first dip – when people started fearing the price might not go higher. This is a signal that sales will slow, and people will start to undercut the price.
If you’re sure the project is solid, you might ape in some NFT from this project and expect to sell it at a higher price in the next few minutes or hours later.
This is quite risky, but it’s another good way to profit from a hyped project.
I saw an example from a guy in Nifty Nuggets. He didn’t win the raffle for the MoonBirds project but managed to get one MoonBird for free. He also made some good profit from this project.
In case you don’t know, Moonbirds did a raffle for 10,000 people to mint its project at 2.5 ETH. People started trading MoonBirds at 10 ETH, and the first dip was at around 6-7 ETH.
This guy bought one MoonBird in the first dip at 6.48 ETH and sold it a few minutes later for 12.9 ETH.
He made 6.42 ETH in profit from his first MoonBird.
Then he spent a few more ETH to purchase another MoonBird at 7.9 ETH.
So, he spent 1.07 ETH for one MoonBird. This was already lower than 2.5 ETH mint price.
But that wasn’t enough. He bought another MoonBird at 7.9 ETH during another dip. Now, he had 2 MoonBirds and had spent 8.97 ETH.
He sold this second MoonBird for 14.45 ETH.
That means he made 5.48 ETH – or around $10,960 in profit – and still had one MoonBird he’d got for free.
(To make it simple, my calculations exclude the gas fees.)
At the time of writing, the floor price of MoonBirds is 25 ETH, so this guy will make around $61k in profit if he sells the one MoonBird he’s holding right now.
And these few flips happened in just a few minutes…
Not all projects will be like this. You need to do your research and check how hyped people are about a project.
If you buy the first dip without doing any research, there might be another dip and the price might not recover. And you’ll lose ETH.
Dip and dip and dip…
So always do your own research.
Well, that’s how to buy and sell projects that have just been launched. You buy at the first dip and sell it in the next few minutes or hours later.
Another way to buy and sell to profit is to buy and hold, and then sell.
This could be risky or low-risk, depending on the projects you choose to hold.
If you choose the right projects to hold (like BAYC, when it was just around 1 ETH), you’ll make over 100x than what you paid for it after holding it for a year.
BAYC All Time Stats
Other projects, like CryptoPunks, Doodles, or CyberKongz, are good projects to hold as well if you’ve had them from the start.
But these cases are rare. If you check past NFT projects, most of them failed.
So, generally, it’s not smart to hold a project for a long time. You need to take your profits when you get the chance.
Okay this is how to make profit from buying and selling NFTs. It’s risky compared to the previous two methods.
But yeah, you could make quick – and a lot more – profit if you know how to do it right.
I’m very happy you made it this far. It means you understand the basics about trading NFTs to make money.
Let’s recap what you have to do to start trading NFTs.
First, you need to set up your MetaMask Wallet. This is where you keep your cryptocurrencies and NFTs.
There will be a few seed phrases you’ll need to keep somewhere safe (physically, not digitally). You can use them to restore your wallet at any time.
Don’t give these phrases to anyone or any websites. They can use these phrases to access your wallet.
The crypto world can be dangerous!
Also, you should have at least two wallets: a Burner and a Main Wallet.
You use the burner when connecting to untrusted websites. The main one is for storing your valuable NFTs and crypto.
Discord and Twitter are two main apps we use to communicate in the crypto world. There will be lots of information you can read, but be sure to NOT click on any scam links.
If you fall prey to scammers, revoke their access to your wallet immediately using revoke.cash. It will save you from the scammers (if you do it faster than the scammers can access your wallet).
When your wallet is ready, you can convert fiat money to ETH to trade NFTs.
You can do that directly from your MetaMask wallet, but the exchange rate there isn’t great.
It’s better to buy ETH from CoinBase (for US residents) and Binance (for non-US residents) and transfer it to your MetaMask wallet.
Once you have some ETH in your wallet, you can start trading NFTs.
You can try to get whitelisted for any project you’re interested in and minting from its website.
Or you can buy and sell NFTs from secondary marketplaces like OpenSea, LooksRare, or X2Y2.
And there you have it – all the basics you need to know to trade NFTs. 🙂
If you have any questions, feel free to leave a comment below or send me an email. I’ll try my best to answer all your questions.
—ifourth | Nifty Nuggets #446
P.S. If you enjoyed this mini-course and think it will be useful to other people, I’d love a share. It would mean the world to me!