I wanted to share my thoughts with you on the mistakes that I’ve made and things I wish I knew when I started with NFTS. Some of these tips may not seem crazy, but I assure you that these are things you’ll want to approach with a look-before-you-leap mentality.
Tip No.1 :
In other words, chill out your DJM behavior for just a second and listen to what I’m saying because it could end up saving you a lot of money. The first tip you may have heard before. Gary Vee has preached it more than once, and that is that 98 % of projects are going to zero at some point.
That means two out of every 100 projects that you look at are probably going to die in the near future. And given how fast the NFT space moves, it’s likely that many of those 100 will die within the first year or maybe even sooner.
To illustrate this point, let’s look at some products that I bought into when I first started, which was about eight months ago. trading NFTs
Crypto Gem Alliance :
The first one is crypto Gem Alliance & whose price is currently 0.001 ETH. Which is literally worth ten dollars. And some of these are even selling for zero. Yes, actually zero.
The numbers are zero, People are trading them for zero. Not to mention that there are only six sales in the entire last month. So it’s worthless and it’s also mostly a liquid, meaning that nobody is buying it.
And if they are buying it, then they are paying no more than ten dollars for one of these gems. For some context here, they were minted for about three hundred dollars each. I actually bought one of these and sold it for $1500 about one month after I paid for it.
So I got the better end of that bargain by selling early. But if you held till now, you basically just wasted $300. trading NFTs
Second project here I want to look at is called Omnimorphs, and this one has been pretty good buzz when I bought it. At the moment, there are about two to 10 sales per day priced at about one hundred dollars each.
I bought two of these four thousand dollars each and sold both of them at about a 90 % loss. And as you can see, this project is all but dead now as well.
Universe in a Cube :
The third project here is called Universe in a Cube. And over the last month, there have been four sales for zero dollars each, literally zero.
super fuzz the bad batch :
for sales in the last month all selling for about one hundred dollars or so. I bought mine for two thousand dollars and again, sold it at a 90 % loss right before this project pretty much died fully. trading NFTs
Pug frens :
Floor price, 0.008 Thirty dollars. Dogs unchained floor price, 0.008 30 dollars. The list goes on and but you get the point. A lot of the products that I invested in died. Now notice how all these collections are actually verified open sea collections.
Some of the bigger products coming out today aren’t even verified. And this goes to show you that the decently sized projects from the last six to eight months have all peaked and gone to zero in basically half of a year.
This is going to continue to happen to the majority of projects no matter how much hype or promise they have. It’s important to choose your project investments wisely.
Tip No.2 :
Access to information is critical to success in NFTs. How do you know which projects are worth looking into and have a better chance to avoid the fate of going to zero?
Well, the two biggest sources of early valuable information are, one, alpha groups and two NFT tools. Alpha groups are simply groups of NFT investors that band together to share critical information, resources and relationships to help the whole group have advantages in the NFT space. trading NFTs
My Alpha group, for example, does this and we also offer whitelist spots so that members can get presale access to top new NFT projects. But at the core, Alpha groups really just provide access to information.
Knowing about hot new projects before the majority of the space does is key to success in getting in early. And getting in early allows you to secure things like presale access through a whitelist spot, which makes it easier to buy at prices that are lower or prices that are cheaper before projects pump.
Now, the Second Avenue here is having some toolkits, which is also pretty critical tools like NFT HUD, NFT nerds, IC tools, Nanson.Ai.
All of these give you detailed insight into analytics and features that other users simply don’t have by using just open sea, Twitter and discord. For example, I can use the NFT HUD trending dashboard to see which products are hot right now, which direction they’re trending, real-time sales listings, price walls and all different things to help me make short-term flips on almost any collection that i want to.
The abundance of information that is organized and laid out here is seriously paramount to day trading or short-term flips for NFTs.
With all that being said, though, timing your entry into a project and deciding which projects to mint with your precious capital is just one half of the equation. You also have to know when to sell those NFTs to maximize your profit.
Like I said earlier, I’ve lost 90 % of my investment on some of these earlier projects that I thought could do well. And in fact, I would have lost all 100 % of my investment if I didn’t come to terms been realized to get out before they fully went to zero.
Since making all of those mistakes that I highlighted, I have yet to lose any considerable amount of money on an NFT that I’ve minted or bought on secondary.
And that’s just because I’ve gotten better at how to navigate the space but I’m not perfect by any means. And I’ve realized that there is a negative stigma around people selling their NFTs. So here’s what I have to say about that. trading NFTs
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Tip No.3 :
Nobody ever went broke by taking profits think about it. Even if you bought a board ape at Mint for minimal like $100 and you sold it at 10 ETH because you were up almost 100 X on that investment, no matter what.
If you sell, you’ve made a ton of money. Now, in hindsight, you may regret it because apes are currently sitting over a 100 ETH floor, which would be pretty much guaranteed life-changing money for almost anyone.
But remember, profit is profit. If you go for a moonshot on every single NFT you buy, you will likely lose money on most of those investments, right 98% are going to zero at some point. So if you buy and hold one hundred NFTs, there’s usually going to be a pretty strong chance that most of your holds will lose most of their value over time.
For example, if I buy Azuki and they’re currently around a 25 ETH floor and it goes to 100 ETH floor. how nft work
That’s amazing. And I made a bunch of money. But now I have to decide if I want to hold it or sell it, and at that point, if Azuki goes back down to five ETH and I need the money, I just sold at a massive loss or even worse, if it goes to zero, I just lost my entire investment. trading NFTs
But what if I bought two Azuki’s at my 25 ETH entry price and they go to one hundred ETH well, now I can easily sell one of them with confidence because my sale will cover the cost of both my purchases and net me about 50 Ethereum in profit.
Then I can comfortably hold my other Azuki as long as I want. If it goes to the moon, I win. If it goes to zero, I still already won because I’ve made a ton of profit by selling my first Azuki.
That right there is the benefit of buying multiple collections that you really believe in. Overall, the lesson here is don’t be afraid to take profits. You cannot lose over time if you consistently cash in your profits while you are up. Greed is nasty.
So if you want those moonshots, I highly recommend buying two NFTs or even more to take your moonshots with that way you can cover your cost basis potentially make some profit and hold onto those other NFTS, and Hope for that absoluTe grand slam moonshot. nft tutorial for beginners
And I know what you’re thinking you may say mat Matt How can I buy two Suzuki when I can’t even afford one in the first place? Well, I had the same question because I personally cannot afford Azuki either,And this leads me right to my next tip.
TIP No.4 :
If you want to make a lot of money, the truth is, you have to start with a lot of money. You aren’t going to invest one hundred dollars into NFTs and make millions in the first few months unless you somehow identify the next board Ape and time everything with absolute perfection. trading NFTs
It’s just not going to happen. I would say start off with $1000 and navigate the space with precision and a bit of good luck, you’ll have a pretty decent shot to make some serious money in the first six months of your NFT journey.
But more likely than not, you’ll hit some losers early and it will be much harder to exponentially grow your starting capital. For me personally, I’ve made about 13 Ethereum totals so far in my eight months in NFTs. And that’s pretty good.
Profit or loss comes and goes but the thing is you have to learn every time from your mistake as well as from other mistakes.
Tell me in the comment box, how much you lost/gained in your first attempt