Whether if you’ve been living under a rock, you’ve definitely heard of this thing called NFT’s. When you first saw the term “NFT”, you may have been like “Oh, another Crazy Crypto Currency Theory”, and on paper it does sound really complicated. But NFT is actually a really simple idea and crazy part is that you can make money out of NFT’s, if you just work a little bit harder and do your due diligence.
What are NFT’s? – NFT’s is nothing but as simple as tokenizing Digital Assets (i.e converting Digital Assets like Art, Videos, Music…etc into actual Crypto Tokens), and in return the Digital Assets get a Certificate of Ownership that can be verified on the Blockchain network.
This means NFT is essentially a Crypto Token that is in the form of a Digital Asset like Art, Paintings, Videos or Music or any Digital Collectibles. They can be sold and bought on different NFT platforms like Rarible, OpenSea and Nifty Gateway.
NFT has been hugely popular in 2020 and 2021, this video of LeBron James scoring a Dunk was sold on NFT platform NBA TopShot for over $200,000 dollars USD.
While, there is also Beeple who sold his Artwork Collection called “Everyday’s: The First 5000 Days” for a whooping $69 Million dollars.
This is the say that there is lots of potential in making money with NFT’s and especially if you are an artist, you can get a head start in the NFT game. You can create your own artworks and sell it on NFT platforms.
However, not everyone can become Beeple or not everyone can sell their artwork for a Whopping $69 Million dollars. If you are an Artist, then congrats, you actually have the potential to make a lot of money from NFT’s and I also wish I had the talent of art to create my own NFT’s but unfortunately, we all are different and I don’t have the talent for art.
This is where I started finding different ways to make money from NFT’s. I started studying the market, analyzing how NFT works and how does the market move. The business structures of NFT’s and why are there other people who make hundreds of thousands of dollars from NFT, while there are some who just don’t get any sales.
I came to a conclusion that the NFT market is divided into THREE categories.
- Creator
- Collector
- Buyer
In the NFT market, there are essentially three people that are hugely involved in many transactions.
One is the Creator who’s sole purpose is to create Digital Assets like NFT Artworks, Paintings, Digital Collectibles, Videos and much much more. They are creative individuals who are also talented and have worked for years and years in sharpening their craft and skill. Due to this, they are able to create amazing artworks that can now be sold as an NFT. The creators can either set a price or send their NFT for Bidding where different Buyers Bid on their Artwork and who so ever gets the highest price wins the auction.
The second is the Buyer who’s sole purpose is to just browse though the collection of different artist and buy art and different NFT if they like. They are not really interested in making money. Unless if they grab a hot deal but they don’t have the knowledge of the art industry and they are usually just casual shoppers.
The Third is the Collector who’s sole purpose is of course collecting and buying Art but they are the ones who actually buy different NFT’s for the purpose of creating profit. The collectors usually have lots of knowledge of the NFT marketplace and also the art industry and they know what kind of NFT’s are hot and what kind of NFT’s sell well. They can buy a NFT in hopes for selling it for a high price in the future. Believe it or not, there are actual legit companies built for the sole purpose of collecting art in the NFT space.
The question is where are you positioned in the marketplace and if you guessed it right, you are positioned in the Collector’s Category. Sure, if you are an artist itself, then it is a different story and you might as well be creating art as well as selling them and buying other Art.
When it comes to flipping NFT’s, it’s very important to know where you are positioned in the marketplace and what is your main goal. Because if you are out there blindly spectating different artworks and buying them, chances are, you’ll spend a lot of money and waste a lot of money.
This comes down to the first step in making money with NFT’s by Flipping NFT’s.
1. Analyzing the Marketplace
This is probably one of the most important steps in making money with NFT’s. You will need to know what you are buying and why you are buying.
Therefore, the first step is to analyze the marketplace and get yourself involved into familiarizing with different kinds of artworks, NFT platforms and marketplace.
The top 5 marketplaces in the NFT sphere is OpenSea, Rarible, Nifty Gateway, Christies and Super Rare. Your job as a collector is to find out three things from the marketplace.
Money making Quote: “Always remember, the more popular the artist is, higher the chances of selling their artwork for higher price”
- Trending artists – Find out which artists are currently trending and keep track of those artists. This is very important as you will need to know what kind of artist they are and what kind of art they create. This will help you gain a insight on what they create and what kind of art is trending.
- Trending Artworks – Find out which artworks are currently trending in the NFT marketplaces. As you keep searching, you’ll start noticing a pattern where certain type of artworks do really well in the NFT sphere.
- Art and NFT that’s likely to Appreciate in Value – There are certain NFT’s that are likely to appreciate in Value in the Future. For Example, CryptoPunks, just 6 Months ago, an average CryptoPunk would cost you $10,000, today it’s over $250,000 Dollars!. You can spot such kind of NFT projects and Artworks by actively looking though the NFT marketplaces, NFT Blogs and Blockchain News Websites.
- Projects That Have huge Technology Potential – Another great way to spot Good NFT investments is by looking out for NFT or Crypto Projects that have huge Technological Potential. Take for example, Decentraland which is a Crypto Game where you can buy and sell land. Just 2 years ago, you could buy land for just $5 but today, it will cost you over $30,000 to $200,000 Dollars.
Just like Decentraland and CryptoPunks, there is Crypto Kitties and several other projects out there where people are making thousands and thousands of Dollars every Month!.
What you really want to get out of these NFT Marketplaces?
Now you got a gist of what really happens in the NFT world, the core thing to remember here is what exactly do you want to find out in these NFT marketplaces.
Essentially there are 4 kinds of NFT marketplaces:
1. The Garage Sale Sites: Rarible/ OpenSea
2. Collectibles: Decentraland, CryptoKitties, CyrptoPunks and NBA TopShot.
3. Creative Art: SuperRare and Nifty Gateway
4. Exclusive Art: Christie’s and SuperRare.
You really want to dive deep into the NFT marketplaces and figure of what is actually reaching into the minds of the people. What kind of NFT you are looking towards buying?.
Because on Rarible and Opensea, the barrier of entry is really low, but the market is pretty saturated with thousands of artists out there. You will be overwhelmed by seeing so much art and NFT’s out there.
As you move to Collectibles, Decentraland, CryptoKitties, CryptoPunks and NBA Topshot are great investments. They are not only popular but worth the money because people are crazy for these collectibles and some are willing to pay huge premium just to grab one of them. The Collectibles marketplace is a total different world where your investments will actually be worth it. But the downsize is that, it’s hard right now because the value of these NFT’s are increasing day after day at a very fast pace. If you had bought a CryptoPunk 6 months ago, it would only cost you between $10,000 – $35,000 which is still a lot of money. Today, the lowest possible price of CryptoPunk character is over $200,000. So, you can imagine how fast the NFT industry is moving.
If you are exclusively collecting art and if you have the knowledge and experience of the art industry, SuperRare and Nifty Gateway are great choices. These are also NFT marketplaces which purely focuses on art and creativity. If you have the experience in the art and creative field, it will be easy for you to spot those NFT artworks that can possibly be worthy as an investment.
Moving to Exclusive Art, this is where Christie’s and Super Rare comes in. Both of the platforms are expensive even for artists and creators. They charge upto 15% fee to artists just for Gallery Expenses and Listing. But the cool thing about these marketplaces is that you’ll only find the best of the best creators showcasing and selling their work. This means, yes the art and NFT is going to be expensive, but well worth it. Even the worlds most expensive NFT Artwork – “Everydays: The First 5000 Days” By Beeple was sold on this platofrm that is Christie’s.
Therefore, figuring out what kind of NFT you really want to flip is really important. Because there is just so much stuff out there and just randomly buying NFT’s will not make you money. Buying NFT’s with a solid strong reason will do!. That brings us to the second point!.
2. Finding NFT Projects Early! = Cheaper Cost, Better Future Profits.
Sometimes you can earn over 10,000% and it’s real!.
Just on July 2021, the average price of an NFT Project called CryptoPunks was just $35,000 Dollars. Today, an average CryptoPunk will cost you no less than $200,000 Dollars. Similarly, one of the earliest NFT Project called “Bored Ape Yacht Club“, it would cost only 0.8 ETH to mint one of their NFT’s. Today, an average NFT from BAYC will cost you over $13,000 Dollars.
Therefore the key to making money with NFT’s is to find such potentially valuable Projects Early. Now the problem is it takes lots of time, research and energy to find these projects. You’d really have to take your time to read about everything that’s going on in the NFT sphere. So, today, i will show exactly how you can find such projects early and grab those NFT’s before anyone even knows about it.
How to Find NFT Projects Early?
The first step really is to learn about NFT’s, what they are and who are the big players in this game.
Let’s talk about CryptoKitties, an NFT Project that was started by Vancouver and San Francisco-based design studio AxiomZen. It’s one of the most talked about projects in the NFT sphere that got started in 2017. CryptoKitties is all about collecting and breeding different kinds of Cats that comes in different types, characteristics and qualities. As they call “Cattributes”. At one point of time, 15% of the Ethereum Network Traffic was taken by Crypto Kitties which makes it one of the most popular NFT projects of all time.
Just like Crypto Kitties, we have CryptoPunks which is also an NFT project started by Larva Labs as an experiment, when the founders where playing around with a random pixel character generator. They released 10,000 punk characters of different styles, types and personality and to their surprise, the moment, Mashable wrote a story about their project, within hours, the entire collection of CryptoPunks were gone!.
And there is Decentraland, which is all about Virtual Real Estate in the NFT sphere. There is also Axie Infinity, a Pokemon like breeding game similar to CryptoKitties and there are just tons of NFT Projects.
So What’s Really going on here!.
If you take all these NFT projects, from CryptoPunks, CryptoKitties to Axie Infinity and Decentraland. The one thing that these NFT projects have in common is they are all Communities.
Just like Religion, in the Crypto Space, there’s going to be more and more communities popping up. Because we as humans want to be a part of a big community and that’s natural for a human. Just like that, the NFT space will have many communities.
Now the projects that have the potential to be able to turn into a community and the ones that can possibly become profitable in the future. These are the kinds of projects that you should be actively looking out for.
As such projects come with three things that eventually make them a really worthy investment
- 1. Mission
- 2. Purpose & Goals
- 3. Reason
This means you are able to trust these projects, support them and also benefit from them. Take for example, Decentraland, they are only focused on one thing and that is building a world where players can interact with each other and buy/sell virtual real estate.
Spotting these NFT projects is actually easy but may require your time and effort. Take it this way, its same as gathering news and being well informed about what’s happening in and around the world. How do you think this is possible?
And the answer is – Media and Social Media.
Today is the information age and you can find information almost everywhere. Site likes TechCrunch, The Verge, Mashable are some of the big Media and Publishing sites which you can follow to actively look out for NFT projects. Additionally, follow NFT blogs like ours and NFT Culture Magazine and also the Official NFT Blog.
Media and Publishing Sites:
- The Verge
- Mashable
- Vox Media
- TechCrunch
- NFT Culture Magazine
- NFTS STREET
- Official NFT Blog
- Coin Telegraph
- Crypto Currency Websites
These are sites where you will find the top latest news about NFT and whats happening in and around the NFT world. I’d say you can read these blogs, once or twice daily and gather information about NFT Projects. What are these sites talking about and I am sure, you’ll find atleast one NFT Project that could potentially help you invest early and leave with a ton load of cash.
Similarly, Social Media is at the top right now and most of the time, the NFT articles are shared in Social Media sites. However, the NFT community is crazily active in Twitter.
If you go check out Twitter right now, you’ll find thousands of NFT artists, collectors and companies actively interacting with each other on Twitter. I’d say, you can check it out now, go and do a quick search for #NFT or #NFTart and you’ll find tons and tons of projects out there.
Bottom line is before you buy or invest in an NFT project, you need to answer this question – Why do you want to invest in this particular NFT project or NFT Art? – Does it have a community? – Are people talking about it? – Are they covered in News and Top Media Publication sites? – Whats the Barrier of Entry like in terms of Finances?
If the answers to all these questions are good, then go for it.
3. Remember NFT is a Risky Investment! But Extremely Profitable
So as I told you earlier, getting in early is the best bet you can do in order to make money from NFT’s. And you wanna get in early so that, you can grow along with the NFT Project.
However, there’s a big mistake that people make when Buying NFT’s.
They Buy NFT’s from the aftermarket which GaryVee calls it the “Thrash Art Revolution”. The Aftermarket is where you’ll find random NFT artworks, collectibles from Random Artists. This After Market can be on any NFT Platform, whether it is Rarible, OpenSea or Nifty Gateway.
You’ll see tons of art, pixel art and collectibles but investing in these is almost close to just throwing away your money.
No matter how good the art is, you can never profit from them. The main reason is because unlike Crypto Currencies, you cannot just sell an NFT at your will.
Someone has to buy your NFT, then you make an profit. Otherwise, it’s hard to sell your NFT, if it has no value what so ever.
Therefore, how to know if your NFT investment is legit and a good investment!
How to determine the value of an NFT artwork?
In order to determine the value of an NFT, we need to look at NFT and the industry in a different way. There are two things happening,
- Artists are Creating NFT’s like anything and dropping whatever they wish like. Trying sell DESPERATELY!
- Crypto Companies and Exclusive Artists are trying to create an impact, a story and build a community for NFT Enthusiasts. These are those kind of cool, attractive projects that you hear about. It’s talked about everywhere and when you look at their work, you feel like it’s worth it.
You want to look out for such kind of artists and Crypto Companies. Because their NFT will sell out quickly and that’s what you want. Here remember, you should not be worried about whether, the NFT art that you bought is a masterpiece. You should be worried about how fast you can sell that NFT for a profit that you just bought and more importantly, will you be able to sell that NFT of yours in the Future.
You see, are you getting my point here.
It’s not about what NFT Artwork you are investing in and trying to Flip to make money. It’s about What Company or Brand or Community you are investing in?.
This is where things get interesting.
When you look at a NFT project, Ask these four questions to yourself and then make the decision to purchase.
- What is the story of the NFT and it’s project and does it make an impact?
- Does the Creator or Company have any future plans for the Crypto Community?
- Are people following the project? If yes, what are they talking about?
- Is the NFT project or Artist likely to be featured in the Media and News?.
If you get no for all these questions, just ignore the project and move to the next one.
I’ll give you an example of how I find such projects and how to make a good NFT investment.
- Go to Twitter.com as I am going there right now
- Search posts from Hashtags such as #NFTProjects, #NFTCommunity, #NFTArtists, #NFTArt
Boom!, I already found a potentially good NFT investment already. But I am not going to invest until I find out if the project is actually worth investing in. But here’s the Project.
Now find out what they are doing, who are they connected with and whether or not, do they have any media or press mentions and features.
Study their project and figure out if their NFT project is worth investing in or not. This is how you can find potential flipping opportunities.
In my opinion, this is a great project, however, I would rate it a 7/10 as I am not sure if I’ll be able to profit from them. But the fact that it’s has a legit goals and missions just means that their NFT project is going to be huge.
Lastly, check the price of their NFT’s. How much are they selling for and whether or not if you can buy NFT’s in bulk.
Because eventually, you want to invest in a lot of NFT’s if their project is worth it!.
Just like Super World, you’ll find tons of NFT Projects lurking around Twitter. Mostly bombarded with NFT Artists who will just Drop whatever they like.
4. Don’t Just Randomly Buy Any NFT – Reverse Engineer, Take Action with Patience
The next step is all about noting down all the Potential NFT projects that could possibly become big in the future.
You can do this by making an Excel or Word file and listing all the NFT Projects on the Sheet.
Now you need to write down all the possible details of the NFT Project, What’s it about?, What kind of NFT they create and sell and How much they are selling for.
One big question you need to ask yourself before you invest your money in is – Will the NFT Project Rise in Value in the Future?.
I hope and assume, you guys know how to use Excel and Word but the core thing I want to Address is that, don’t just buy any NFT’s out there.
I know, it’s going to be overwhelming and exhausting but believe me that you’ll make money only if you invest in the right NFT and the right Project.
- Don’t Invest if the art is just art
- Don’t Invest if the NFT Project or Art has no future plans
- Don’t Invest if the NFT project or Art has no purpose or goal.
- Never Invest if the NFT Project or Art has no Story.
Unique story, persona and personality is everything in the NFT sphere and in the first seconds, if you don’t really understand what the Artist/Creator, or NFT Project is all about, don’t buy it.
You’ll never be able to sell it nor will you be able to make any money, unless if you are lucky.
So, the logical thing to do is to Check mark all the points from the NFT project that makes it a good investment.
You want to make sure that, the NFT that you just bought will certainly and 110% rise in value in the next 6 months. And that can only happen if you research and take your time to study about the NFT projects and compare it with different projects.
Now I think, the article is getting too long and yes, if you have been in the NFT sphere, bought NFT’s and know about Non-fungible tokens, I am pretty sure, you will understand whats being discussed here.
CREATE YOUR OWN NFT ART
Lastly, if you really don’t want to flip NFT’s, its all fine. It takes lots of money and investments to actually make money from NFT’s and yes ofcourse, time is a valuable asset so expect a year long hold for your NFT’s to grow and make you some cash.
However, there are thousands of Artists out there who are consistently making between $500 – $10,000 dollars USD from there NFT’s. Yes this is real and I am not bluffing. You can check the NFT marketplaces right now and see for yourself, how much an average NFT art is selling for. You’ll find that, most of the NFT’s sell for an average 0.01 ETH – 0.1 ETH. Now thats around $38 to $387 dollars per NFT.
Most of the Artists out there upload anywhere between 10 to 100 NFT’s. So, that’s around $3800 – $38,000 Dollars USD. So, there is lots of potential in making money from NFT’s.
You can easily start creating and uploading NFT’s from scratch. If you don’t know how, read my full guide on How to Create and Sell NFT’s on OpenSea and Rarible?. Check it out and you’ll have a brief understanding of how to create an NFT.
- The problem is most people out there aren’t artists or painters right and I get that. If you are, then you are on good side, you can easily create art. But if you are not, I’d suggest you to learn how to create art and especially Digital Art. You can easily start creating NFT’s from Pixel Art like CryptoPunks or something simpler. You never know what’s going to work right. I’d say take a beginner course and understand how to create art. From here you can get a headstart with NFT’s.
Here are some Digital Art Courses that you might be interested in:
- Complete Beginner’s Guide to Digital Art
- The Beginner’s Guide to Digital Art with Procreate on iPad!
- Complete Beginners Guide to Pixel Game Art
- Digital Art for Beginners – Unleash Your Creativity
- Digital Art for Beginners – Unleash Your Creativity
- Create 2D Game Art in Illustrator: A Beginner’s Design Guide
- The Digital Painting w/ Procreate Guide Grayscale method
Else if you are like me and you are not an artist, it’s still ok. You still have millions of options there to create NFT’s. What I normally do is I actually hire talented artists and illustrators to create Art for me. That art, which I receive from them, I turn them into NFT’s and sell them on NFT Marketplaces.
You too can do the same thing. Websites like Fiverr.com allow us to hire Talented artists and creators who can help us create amazing art.
You can go to Fiverr.com right now and find lots of artists and design services there.
Website link – Fiverr.com
Bottom Line
In my opinion, its more than ever easy right now to spot potentially profitable NFT projects. Right now is actually the best time to invest in NFT’s and if you do it right, who knows you could be the next NFT or Non-Fungible Tokens Millionaire.
I’d say be patient, take your time and don’t rush. Be strict with your decisions and don’t just invest in art.
Invest in the Company/Creator and it’s goals and future plans. That should really help you find your next big NFT Project!
Till then, Take care, Stay Safe!.
