Posted 3 years ago
·
Author
Before we start, I wanna remind everyone that investing money should only be done with the money you are willing to put in risk. Don’t put money if you could lose everything on a project.
There will be two parts in this topic, the first will explain most of what you need to know about NFT, the second will talk about how people are making money out of NFTs. You can skip the first part, but I wouldn’t avoid getting informed about what I will invest time and money on.
First part: Explicative part
WHAT IS AN NFT?
Non-Fungible Token: It just means the “token” is unique, unlike a Bitcoin you can trade it for some other Bitcoin and it will have the same value. A unique “token” has therefor its own value. Imagine it like some collectable, a set of unique cards. If a card is estimated as “rare”, it has a high value, some other cards have their own value because they are “unique”, and each value is estimated according to the rarity of the card.
HOW DOES NFT WORK?
Here is the part where we will talk about cryptocurrencies. Most NFTs, at a very high level, are part of the Ethereum blockchain. The Ethereum is a cryptocurrency, and its blockchain also supports these NFTs, which store extra information that makes them work differently from any token, like ETH coins.
WHAT ARE THE TOKEN PEOPLE ARE HYPED ABOUT?
These days, it is mainly the digital art. Imagine it like a painting, making it unique give him a value. The NFT store the ownership of the digital art, you could sell it anytime because it is yours. There are dedicated platforms where you can look at, buy and sell your NFT, like OpenSea, Storm or Syscoin.
WILL THIS BECOME LIKE ART COLLECTING?
It has the same characteristics in a digital way, will the digital version really be a thing? People that put money on these collectables hope so, and insane amount of money are putting on NFTs, millions of $.
WHAT ARE THOSE PROJECTS?
NFT projects are like the creation of a unique collection of unique digital art. And this project gives a meaning and a purpose to those digital art, a community is built around them, and each project has its own characteristics. Some of those NFTs are involved in games, other are just a way to “flex” on Twitter.
WHAT ARE THE WAYS OF GETTING MONEY OUT OF NFT?
There are multiple ways, the obvious one is to sell a valuable NFT that you have, but some projects propose to give back to the holders in many ways, like airdrops, exclusive NFTs, some other NFTs will be used in video games. It all depends on the project.
STEP 2: Early Acces Way
Let’s explain one way of making money with NFTs. To do that we need some basic knowledge of Discord, cryptocurrency wallets and brain/observation to actually pick up the right project at the right time.
First, why Discord?
Most NFT projects have Discord communities, where they start building up the project before even the creation of the digital art. They are basically using Discord servers and all the utilities it can give to build a community around their project.
Where to find these Discords?
Most the upcoming NFT projects are listed in the NFT Upcoming Sale tab of CoinMarketCap. There you can find a short description of the project and the mail links of the project. You should also be looking for other Discord servers of other projects, most servers have a chat where you can find those. Twitter is another place NFT projects are invading with lots of ads or just retweets.
How to choose a project?
There are some red flags to avoid while looking for potential NFT projects, not convincing Roadmap, Discord servers that promise some huge prizes for a huge number of invites, or you can just find the digital art ugly or meaningless, project that give few details about what will they invest the money of the project on. For this you need to trust your logical instinct, when the community is growing slow, if they keep delaying the “mint” or first public sale. The price of the Mint is also important, some NFT projects propose cheap Mint fees and therefor cheap original value, this could be a risk to take or not according to the project.
When you see that there is a dedicated community all around the same project and what it means, you can imagine the potential. In the end it’s your decision to take, but let’s take two examples and discuss them:
Investing Apes Club
https://discord.gg/ygB3GCbcUg
Let’s check their project through their Discord server, you can see the main stats on the tabs, number of members (797 at the time I’m checking), mint price (0.04ETH=175$) you can imagine it should be the price of it on the market once it is released, Minted (0/7000) it means they will release 7000 NFTs, Presale Access (18/1000) it means 1000 person will be able to purchase the NFT before its official release date. Now that you have a general idea about the project, you need to read about their roadmap, and actually understand what they aimed to do, each NFT’s roadmap is different and it can completely change the value of the NFT. After you finish the roadmap keep looking at every way they are advertising their NFT to grow the community. This has a invites-contest with big value, could mean a bad community and bad value in the future market. Look for giveaways in every Discord server, with time you can get some NFTs for free and you can just hold the NFT or sell it whenever you want.
Let’s look at another project:
Empower Women Planet
https://discord.gg/53gZghRXSz
This project is in an earlier state than the previous one, it has 3210 members at the time I’m checking, 59/2000 Whitelist, it’s their early access method. This Discord server has already more members than the previous on, before they even announced the mint price and release. You go check their roadmap, check the giveaways, look what’s going on with the community. You can always ask admins in the servers, that means that the project have a good structure of the community already. You should also check the social networks of the projects to get an idea of how they aim to advertise their project.
There will be two parts in this topic, the first will explain most of what you need to know about NFT, the second will talk about how people are making money out of NFTs. You can skip the first part, but I wouldn’t avoid getting informed about what I will invest time and money on.
First part: Explicative part
WHAT IS AN NFT?
Non-Fungible Token: It just means the “token” is unique, unlike a Bitcoin you can trade it for some other Bitcoin and it will have the same value. A unique “token” has therefor its own value. Imagine it like some collectable, a set of unique cards. If a card is estimated as “rare”, it has a high value, some other cards have their own value because they are “unique”, and each value is estimated according to the rarity of the card.
HOW DOES NFT WORK?
Here is the part where we will talk about cryptocurrencies. Most NFTs, at a very high level, are part of the Ethereum blockchain. The Ethereum is a cryptocurrency, and its blockchain also supports these NFTs, which store extra information that makes them work differently from any token, like ETH coins.
WHAT ARE THE TOKEN PEOPLE ARE HYPED ABOUT?
These days, it is mainly the digital art. Imagine it like a painting, making it unique give him a value. The NFT store the ownership of the digital art, you could sell it anytime because it is yours. There are dedicated platforms where you can look at, buy and sell your NFT, like OpenSea, Storm or Syscoin.
WILL THIS BECOME LIKE ART COLLECTING?
It has the same characteristics in a digital way, will the digital version really be a thing? People that put money on these collectables hope so, and insane amount of money are putting on NFTs, millions of $.
WHAT ARE THOSE PROJECTS?
NFT projects are like the creation of a unique collection of unique digital art. And this project gives a meaning and a purpose to those digital art, a community is built around them, and each project has its own characteristics. Some of those NFTs are involved in games, other are just a way to “flex” on Twitter.
WHAT ARE THE WAYS OF GETTING MONEY OUT OF NFT?
There are multiple ways, the obvious one is to sell a valuable NFT that you have, but some projects propose to give back to the holders in many ways, like airdrops, exclusive NFTs, some other NFTs will be used in video games. It all depends on the project.
STEP 2: Early Acces Way
Let’s explain one way of making money with NFTs. To do that we need some basic knowledge of Discord, cryptocurrency wallets and brain/observation to actually pick up the right project at the right time.
First, why Discord?
Most NFT projects have Discord communities, where they start building up the project before even the creation of the digital art. They are basically using Discord servers and all the utilities it can give to build a community around their project.
Where to find these Discords?
Most the upcoming NFT projects are listed in the NFT Upcoming Sale tab of CoinMarketCap. There you can find a short description of the project and the mail links of the project. You should also be looking for other Discord servers of other projects, most servers have a chat where you can find those. Twitter is another place NFT projects are invading with lots of ads or just retweets.
How to choose a project?
There are some red flags to avoid while looking for potential NFT projects, not convincing Roadmap, Discord servers that promise some huge prizes for a huge number of invites, or you can just find the digital art ugly or meaningless, project that give few details about what will they invest the money of the project on. For this you need to trust your logical instinct, when the community is growing slow, if they keep delaying the “mint” or first public sale. The price of the Mint is also important, some NFT projects propose cheap Mint fees and therefor cheap original value, this could be a risk to take or not according to the project.
When you see that there is a dedicated community all around the same project and what it means, you can imagine the potential. In the end it’s your decision to take, but let’s take two examples and discuss them:
Investing Apes Club
https://discord.gg/ygB3GCbcUg
Let’s check their project through their Discord server, you can see the main stats on the tabs, number of members (797 at the time I’m checking), mint price (0.04ETH=175$) you can imagine it should be the price of it on the market once it is released, Minted (0/7000) it means they will release 7000 NFTs, Presale Access (18/1000) it means 1000 person will be able to purchase the NFT before its official release date. Now that you have a general idea about the project, you need to read about their roadmap, and actually understand what they aimed to do, each NFT’s roadmap is different and it can completely change the value of the NFT. After you finish the roadmap keep looking at every way they are advertising their NFT to grow the community. This has a invites-contest with big value, could mean a bad community and bad value in the future market. Look for giveaways in every Discord server, with time you can get some NFTs for free and you can just hold the NFT or sell it whenever you want.
Let’s look at another project:
Empower Women Planet
https://discord.gg/53gZghRXSz
This project is in an earlier state than the previous one, it has 3210 members at the time I’m checking, 59/2000 Whitelist, it’s their early access method. This Discord server has already more members than the previous on, before they even announced the mint price and release. You go check their roadmap, check the giveaways, look what’s going on with the community. You can always ask admins in the servers, that means that the project have a good structure of the community already. You should also check the social networks of the projects to get an idea of how they aim to advertise their project.
