How to Get Rich with NFTs
- June 13, 2022
Many NFT sellers have gotten rich almost overnight through selling NFTs. Digital artists, content creators, and NFT enthusiasts come up with new NFT projects every day in hopes of gaining wealth by selling them.
What are NFTs?
NFTs have grown in popularity thanks to their unique trait of being an indivisible digital asset, which cannot be replicated and safely exists in the tamper-free blockchain.
The best places to buy NFTs or sell them are through NFT marketplaces. NFT marketplaces work just like Amazon, but for NFTs.
Can You Get Rich with NFTs?
Long story short, yes! Many NFT creators and investors have earned millions from NFTs.
Mike Winkelmann, better known as Beeple, is one such example, as is Claire Silver. She was an early owner of CryptoPunks who made headlines after the CryptoPunks price rise. She catapulted her career as an NFT artist who became rich by holding on to her CryptoPunk for years.
If we take a look at both of their cases, we can come up with two possible strategies for getting rich with NFTs: creating your own NFTs and selling them, or investing in noteworthy NFT projects that’ll appreciate later.
Invest in NFT Projects
To spot an NFT project that’ll increase in value, you need to research the NFT team’s background. The following questions are imperative:
- Is the team active on Discord, and do they have an active community of followers?
- Has the developing team worked on previous NFT projects before?
- Are the developers active on social media? (Twitter, Instagram, Twitch, etc)
- Do the NFTs in the collection offer utility other than the NFT itself?
- Does the team have a clear roadmap and a track record of on-time deliveries?
All these questions are the basic roundup of information on an NFT project’s potential to skyrocket in price. Experts recommend at least twenty hours of research on an NFT project before making an informed purchase, though mileage may vary on how much is necessary to start investing in NFTs.
After purchasing NFTs at the floor price, the best strategy is to hold them until they increase in value. Many NFT millionaires didn’t expect their CryptoPunk or their Bored Ape to suddenly rise in price, yet both of them did after months or even years.
Using basic investment principles, it’s best to buy NFTs when they are at their lowest price possible. If you can obtain your potential NFTs at the floor price, and hold them until they skyrocket in value, you’ll have a winning formula for profit even if it doesn’t reach millions in crypto. The floor price is the minimum selling price for an NFT.
Once they do so, flip the NFTs by selling them at a higher price than purchased, and search for more NFTs to buy to rinse and repeat.
Creating Your Own NFTs
If you’re going the “create your own NFT and flipping” route, planning your NFT project and collaborating with other developers might be the best course of action. Instead of attempting to get rich by selling just one NFT, try to create a sizable NFT collection, similar to Bored Ape Yacht Club or CryptoPunks.
The best way to obtain attention for your NFT project is by promoting it on social media and creating a community on Discord. You can promote your NFT using airdrops on Twitter, and giveaways on the r/NFT subreddit.
Are NFTs a Good Investment?
NFTs are considered a risky investment mainly because their price is speculative and heavily reliant on the value of crypto, a financial asset considered volatile.
Take extra care with NFTs, and don’t invest in something you know nothing about. Always perform your research before investing, and remember to invest with money you’re willing to lose.