Troy Warren for CNT #NFT
What do rapper Soulja boy and Billionaire Mark Cuban have in common? They both sold NFTs and have made thousands of USD in ETH within one week. One user bought a Mark Cuban NFT for 0.7 ETH and sold it for 5.5 ETH.
That’s 4.8 ETH profit ($8,000+) in a few days.
Mark Cuban and Soulja Boy
Souljaboy put a video and artwork up on the Zilliqa blockchain at 10 copies and has sold them for $1,000 USD each.
Mark Cuban made 5 NFTs for his basketball team the Mavericks — a promo video of an upcoming game — and sold them for $750 each.
Both of them sold out — and now those NFTs are being resold for 5x+ their original price.
Within the week one user bought Mark Cuban’s NFT for 0.7 ETH and sold it for 5.5 ETH. That’s 4.8 ETH profit ($8,000+) in a few days. Let’s talk about how you can do this.
How to spot opportunity & make money in NFTs
There are 2 ways to make money with NFTs. Minting and trading. Let’s discuss each one in-depth.
NFTs are touted as being the basis for the emerging “digital collectible” market and come in a few different flavors. Suffice it to say, each NFT is unique, or “non-fungible”. It can’t necessarily be exchanged 1:1 with another unit. It’s a little like a baseball card, though there may be multiple copies of one card or of an NFT.
Minting means to create an NFT or another way to say it is “you mint a new item”. Minting is a great way to earn crypto with NFTs because there is little to no upfront cost at all when using the gasless minting on Mintified.
When you mint an NFT, you’re taking some artwork or content that you have and turning it into an item on the blockchain. If you have followers, fans, or a community hopefully someone will buy it.
It’s quite simple to get started, but it takes a bit of experience to get good at selling. Most artists don’t sell their first NFT right away because:
- There are emerging creators in the market
- Lack of resources to get their works seen
- They price it too high
The key to success here is doing the opposite of these 3 things.
In order for your NFT to sell after you’ve made it, you need to:
- Make sure you get seen
- Market it on every avenue – social media, youtube, any other community you have access to
- Price it accordingly.
Soulja Boy made a video NFT and unique artwork priced at a mere $1,000. Mark Cuban released a Mavs collectible, it was only $750. Don’t be like the rookie who makes a gif and lists it for $30,000.
Trading is the quickest way and most risky to make money with NFTs.
When you trade an NFT you’re expecting the price to be higher at a later date, or to be able to find someone you can sell the NFT to for a higher price.
Let’s look at the Mark Cuban’s NFT again.
- When the NFT came out, there was only 5 (scarcity — check).
- The creator has a big following and could market this to millions (potential fans — check).
- They just came out (new — check).
This seems like a great buy. So when the first 5 people bought all the NFTs Mark created, it made sense. You can see above just 3 reasons why there is probably a good chance these can be resold for a profit.
And they were resold for a profit — this is trading NFTs 101, look for a set of qualities in your collectible, and then start marketing it once you start selling it again.
Why do people buy NFTs?
Every person has a reason for wanting to own a digital item. Whether they are a fan of the creator, the item has some use and purpose, or they are investing in the item and will resell it later for a profit. In other words, there are 3 main reasons for buyers to invest in your NFT – Collecting, investing, and utility.
The easiest of the three to understand is collecting. Basically — if you’re a fan of the creator and you want to support them, why not buy a digital collectible instead of donating via Patreon? Maybe you’re a baseball fan and want to collect a baseball type NFT, or you’re a fan of Soulja boy and want his new collectible. If you are a creator and have a community of fans or followers, you will probably have a buyer that falls into this category.
This is for traders. Traders see the upside to buying this NFT now and expect it to sell at a later date for more than what they paid. All they need to do is find a buyer who will pay more than what they paid.
The NFT has a purpose, such as a ticket, a backstage pass, access on a website, voting in a DAO (Like on Mintable). These are reasons people might buy an NFT not to resell it, and not to collect it, but instead to use it.
How to spot what’s hot
There are many NFTs out there. People are finding their own ways to make money, whether it’s buying art, buying game items, buying utility NFTs like $MINT, or flipping items.
When looking at what is a potential buy — I run through this checklist:
- Does the creator have a following?
- Is the NFT high quality?
- Is the NFT scarce or very common?
- Does this NFT have a purpose?
- Does this creator know how to build hype and market themselves?
- Is there a base of people for this creator/NFT I can market it to?
- Is this innovative (first to do something never before done)?
- Do I like this (is it art)?
There is no set number is required, but this is a good starting point for what you need to consider when thinking about buying an NFT. If some of those are a “yes” then it might be worth buying/bidding on. And if some of them are “no” that’s okay — it still might be worth the risk.
Investing/trading NFTs is like investing in startups as a Venture Capital. Out of 100 times, many investments lose money, but that 1 out of 100 will do it. So cast your net wide and build a base for the collectibles that you own.
Strategy — Buy in Bulk & Sell Individually
Some buyers have offered flat prices on entire Ethereum Wallets — basically saying — “I like every NFT you own, I’ll buy them all from you!” — while this isn’t common at all, it shows what a good collection can do for you.
Buy in bulk
If you have 1 ETH to spend, instead of buying 1 NFT that is 1 ETH — try to buy 20 NFTs that are 0.05 each, or 10 NFTs that are 0.1 ETH.
If you can cut a deal with a seller to buy even more for a discount, try to do that. Mintified has a DM feature so you can talk directly to the seller or buyer and discuss the trade. This could easily make you thousands by getting a discount on bulk orders.
List them all for sale
List them all for sale and keep them up for sale — then promote your portfolio of items for sale on social media. People can browse your store/collection and you don’t have to do anything, over time you’ll wake up one day and have ETH in your wallet from sales happening overnight.
How to get started
Minting and listing items for sale
Start minting using our gasless minting so you don’t need to worry about gas fees or transaction costs.
Go to our browse page and start sorting things by your categories or price filters. Pick how much you want the NFT to be priced under, and the category and start looking around for items to pick up.
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