Do you hear the news of people buying NFTs and selling them for 10x, 20x, or 100x profits?
Are you curious to know how people are getting so much profit out of these assets?
We have got you because we will be providing all fundamental knowledge from which you can step into this NFT world.
What is an NFT?
NFT stands for Non Fungible token. NFT is a digital asset just like crypto coins but every NFT is unique from others.NFT are non-replaceable which means that they can’t be exchanged for another NFT like crypto coins.
Terms to know before entering NFT space
1)Minting an NFT: Minting is a word that is used for buying an NFT through your wallets that contains Ethereum or Solana (crypto coin).
2)Flipping an NFT: Flipping is the process of buying NFTs for a cheaper price and selling them for high gains.
Many companies, organizations, and Individuals have started building and launching their projects that contain number of unique NFTs.
3)Understanding whitelist: Before NFT projects are launched, the NFT group starts a discord usually some months before its NFT launch. Their people start connecting with each other. The majority of big NFTprojects provide a whitelist on their discord group and the people who lift up to their set priorities get a whitelist.
Whitelist is in simple terms means permission granted to selected people by projects to mint and access their NFTs 1–2 day before the launch.The people who mint get random NFTs and they can sell them on public NFT market for higher price.
Very less amount of people gets whitelist spots, which means, that when these people will reach the online market to sell their NFTs, there will be more people to buy than to sell which will eventually cause a shortage of that rare NFT and this will increase its value.
4)Understanding the roadmap In NFT space
“Roadmap’’ is a very common word used in the world of NFTs(for projects). The roadmap describes how these digital assets will be beneficial for the people who mint their NFTs. A roadmap is present on the website of the NFT project’s company or organization. There can be many digital and physical benefits that these projects may be giving to their buyers.
Digitally, they can provide access to events for NFT holders where many people that are holding their NFTs can interact.
- Physical-world benefits of holding these NFTs can be merchandise or some events that u can physically access by showing your NFT.
- Digitally, they can provide access to events for NFT holders where many people that are holding their NFTs can interact.
What Platforms to use for Flipping NFTs?
There are many public market platforms that are used by sellers and buyers both to sell and buy NFTs.
Below,there is a link of a website that provides the list of top 10 NFT marketplaces that are used to buy and sell NFTs,
https://www.fool.com/the-ascent/cryptocurrency/nft-marketplaces
Why do many people, especially youngsters, choose to invest in NFTs?
People are now investing in NFTs for many reasons:
1)A person having wonderful knowledge of investing in NFTs can flip them and earn lots of profit.
2)NFTs are a secure and safe investment because it will be a boom in near future.
3)NFTs are showing their power, for e.g, an artist Beeple sold his NFT for $69 million.
4)Many NFT projects are providing benefits for people according to their roadmap, as discussed above in the whitelist section.
5)Many influencers have started to invest in them like garyvee, logan paul launched their NFT projects and others like, Stephen curry and Neymar have spent huge amounts of money on NFTs.It’s also a reason why young people are entering this space with large numbers in their pockets.
We have covered the fundamental’s NFT space, now, let’s see how to be a profitable investor in it.
How to search for an excellent NFT project containing the potential to go higher?
For searching for an excellent project,
- You must follow enthusiasts in this NFT industry on Twitter and YouTube. These people are always telling about new NFTs projects.
- You should also search for NFT projects by yourself. For this, you can use https://rarity.tools/ .You can also use Twitter to search for upcoming NFT projects as Twitter and Discord are the hubs of the NFT projects because all the updates regarding projects are posted here.
Now, to see if your chosen NFT project will pump in price and is worth investing in,
- You must see if large amount of people are interested in this project.If there are more than 5–6 messages showing per minute in discord chat and project’s team is engaged with its audience on Twitter and discord, then it’s a good sign.
- You must see the project’s roadmap, which is present on the website of the NFT project, and see if it provides value and benefits to its buyers.
- Check the past history of the project developers. See their past project records and their influence in the NFT space.
- For high chances of profit in the future, always try to get a whitelist spot for the NFT you are waiting for. Whitelist spot depends on the criteria set by the project on their discord. Whitelist provides less price of an NFT than on the public minting day and it prevents you from giving a high gas fee to mint it.
Tips for buying NFT from the public through NFT flipping platforms:
- Now for buying an NFT directly from online marketplace, always check the rarity of that particular NFT by using https://rarity.tools/.Higher rarity means a higher price in the future.
- Always try to buy and sell NFTs when the gas fee is low. At the time of public minting, gas fees are very high because there are more people to mint than the amount of NFTs launched.
- Always check the situation of the market for that launched NFT you will be jumping in. Check if the NFTs are losing or gaining value.
- Try to find a rare NFT which is available on the floor price(cheapest price).
These are tips that will be beneficial for you in your NFT journey.
Hope this information helps you.Thank you for reading.
For business queries and feedback you can send me a mail at yahyafaraz4@gmail.com.
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