The most common way to make money in NFTs is to simply flip them, and it is also the most manageable. This method is obviously much more effective during a booming bull market, however it is still very much possible to make gains even at times of extreme fear. Finding success with flipping involves a few important factors:
1. Invest with low risk. This can mean different things: either you make your original investment as small as possible, only buy NFTs when you are minting from a whitelist and can see profits are readily available, or buy into “blue chip” projects with the intention of a quick flip for short term gains. Whichever option you choose, it should be done with the intention of preserving or increasing your investment balance in cash (or crypto). Don’t be afraid to bail on a trade quickly if it’s not going to plan – don’t get stuck holding the bag.
2. Check trade volume before and during the flip. The biggest driver of floor price is trade volume. If there is a spike in volume for a project, chances are that the floor price will start to climb. This presents a great opportunity to get in and out for a quick gain. The best ways to do this are: check OpenSea to see how many sales are happening; check individual NFTs on the floor to see if they’re being bought rapidly – if you see an NFT listed, click on it and if the “buy now” option is gone, the floor is probably being gobbled up; find tools that alert you of spikes in project volume – there are plenty of these available online or at the recommendation of fellow NFT community members.
3. Don’t be greedy. Unless you’re planning to hold an NFT long-term, always take profits when they’re on the table. Never try to time the top, or hold out for bigger profits. I’ve made this mistake many times – often the floor price will never rebound once it dips, and you’ll lose not only the gains, but your original investment as well. Set a target price, and sell when it’s at or near that price. If the price dips, get out while there are still profits to be taken. Don’t marry yourself to any NFT set – they are high-risk assets that are currently bearish. Set aside your emotions when you are attempting to flip NFTs.
A good strategy for making quick flips with a higher chance of profit is to make low ball collection offers on blue-chip or strong community projects. To find these projects, ask around in various communities or do some quick google searching to figure out what collections have held a strong floor even in times of bearishness. Then, submit some low-ball collection offers well below the floor price and hope that someone accepts one of them. If by some stroke of luck your purchase goes through, you will immediately be able to profit by listing at the floor. It’s not always a guarantee, but it can be a safe and effective way of making some quick bucks!
For more tips on how to trade NFTs, read our exclusive interview with one of the most successful NFT traders in history.
Join an Alpha Group
Alpha groups have been popping up left and right since the beginning of hype in the NFT space. These can be extremely useful for two things:
1. Flipping NFTs. Like we just talked about, flipping NFTs is the # 1 way that regular people can make money in the space with minimal effort. Alpha groups often provide useful advice to make this process of spotting potential flips even easier. Most groups have “alpha callers” that have experience making quick flips. This allows them to spot hidden gems and give calls to their followers on potential entries, the risk of the plays, and when to exit.
2. Getting whitelist access. This is the most underrated perk of joining an alpha group. Many groups have team members that will dedicate themselves to bringing valuable whitelist spots to their community. In the current metas, whitelist spots to hyped projects are the all-important factor in making profitable flips. With whitelist, you have guaranteed access to a project that others may have to buy on secondary, making them your exit liquidity. This is especially helpful when the mints are free, as you will have no reason not to mint early and can list for any price that delivers profits.
To join an alpha group, you’ll either have to buy into a reputable project that does alpha calling & giveaways, or try to connect with the mods or admins of a private alpha group.
As far as gaining entry to a private alpha group, you’ll have to prove yourself worthy by doing some networking. Ask around in different NFT communities and you might just get lucky enough to get an invite.
This option is both the highest risk and highest reward, as well as the largest long-term commitment. It’s also not for everyone – if you want to be a builder, be prepared to commit a massive amount of time, energy, and money to the project. Here’s what you’ll need to be prepared to do:
1. Build a community. The absolute greatest factor in a successful project is the community around it. The top projects in the NFT space have vibrant and committed communities who understand the value of banding together. Many project founders attempt to rapidly inflate their communities with social engagement farming via whitelist giveaways. This is great for growing social media pages, but useless for developing strength in a community. That takes months of engaging your loyal supporters to bring value in your connection to them. It is the most difficult step, but the most important.
2. Build a team. The next step in building a project is assembling a capable team around you. These must be people that you can rely on to get things done with little resistance. They need the ability to execute tasks without much guidance, and support you when it comes time to meet deliverables. This part is a large key to building a successful project – the founder can’t be responsible for every little aspect of management.
3. Develop something unique or useful. While this last part is somewhat subjective, it is still important for building out a successful project. We have seen many times in the NFT space founders trying to exactly replicate something that was previously successful. Unfortunately, the driving force behind success is originality, so copying what you’ve seen work will still likely lead to failure. Instead, come up with something that has never been done before, and make sure that it provides obvious value to those that support it.
These steps are a vast oversimplification of what it actually takes to be a builder. It is certainly not a skillset that every NFT investor possesses. However, if you have a knack for growing communities, putting together teams, and creating unique utility, building can pay off huge for years to come.
Become an Influencer
Okay, I know what you’re thinking: “Become an influencer?? LOL, easier said than done…” And you’d be right. Of course this is not the easiest way to make money, and most likely not the quickest. However, it is not much more far-fetched than launching your own NFT project, and in the long term it could be even more profitable.
Luckily, this may be easier than it sounds. The NFT space is still extremely young, which is opening the doors for a flood of new content. NFT-centric social media accounts have flourished in the last year, with people building audiences by simply joking about Web3 or tweeting out their successes. At the height of the bull-run, every BAYC holder was racking up thousands of followers on Twitter just for being part of that exclusive club. Many others grew their followings by tweeting memes, making sketches, or posting their successful flips on the internet.
If you have been in NFTs since the bull run, chances are you understand the ins and outs of the space. This knowledge can be extremely useful in converting fellow Web3 enthusiasts into an audience. To do so, you will need to give them something worthwhile in the form of easily digestible content. Here are some ideas for content creation that could land you a loyal following:
1. Teaching about NFTs. One of the easiest ways to provide value is to simply talk about your experiences. If you have been around for a year or more, you likely have some invaluable lessons that you’ve picked up along the way. For example: wallet security, NFT flipping strategies, tricks for obtaining whitelist spots, recommended alpha groups, etc. Showcase your successes, and highlight your failures as learning experiences. Remember, just because something now seems easy to you doesn’t mean that it is easy for everyone. You’d be surprised how many people are attempting to enter into NFTs but can’t figure out the basics of getting started. Be their gateway into the space, and they’ll return your favor by supporting your social media endeavors.
2. Observational comedy. Many people that I’ve met in Web3 have vibrant personalities, and some of them have translated that into social followings. One of the most effective niches for doing this is comedy. Of course, not everyone has the wherewithal to produce consistently funny content, but simply poking fun at certain aspects of the NFT space can drive huge engagement. A few little jokes could turn into some viral tweets that pull in thousands of new followers. Thanks to Twitter’s algorithm, the key is to just be relevant and relatable. The easiest way to do this is see what everyone is talking about, and join in on the fun. Give it a try sometime!
3. Project analysis. The average NFT investor doesn’t have time to research every project that comes across their Twitter feed. In many cases, people simply use social engagements and Discord activity as their only metric of project strength. Subsequently, the average trader persistently makes costly mistakes when deciding when to buy or sell. This is where influencers can *sometimes* come in handy. Many creators have made a name for themselves by researching new projects and breaking down the potential pros and cons of investing in them, thus simplifying the process for their audience. This is a valuable concept that almost anyone can replicate, and if done properly, it can gain them some loyal supporters.
Create a Giveaway Account
This is probably one of the most unique and clever methods for making money in the NFT space, as many people have likely never even considered it. Have you ever seen one of those giveaway accounts that sends you to some random project’s Twitter page, tells you to like and retweet their pinned tweet, and in exchange, you are entered to win $100? This is one of the most common ways that new NFT projects inflate their social media following and engagement.
While it’s not exactly the most reputable cause to get behind, it at least presents an opportunity to make some extra cash. Building one of these giveaway accounts could really be as simple as creating a Twitter account, building a following (either via tweeting valuable info about Web3 to gain a social presence, or by simply buying traffic), and then finding clients to promote with giveaways.
In the typical exchange, a project will contact these giveaway accounts for promo, pay them a certain amount of money to post it, and the account will use a portion of the funds as prize money. For example:
- NFT project pays $100 for promo of their pinned tweet
- Giveaway account posts a tweet saying “follow @(NFT project), like & RT their pinned tweet for a chance to win $50”
- People enter the giveaway by providing engagement to the NFT project’s Twitter account
- Giveaway account manager selects 1 winner of $50 and keeps the other $50.
As you can see, there is plenty of potential for making money with this business model. The number of NFT projects entering the space each week is seemingly endless, and many of them will need a boost to their social following before they can be taken seriously. Why not provide that service for them?
Despite the current downtrends in the NFT space, it seems unlikely that it will ever go away. The keys to making money in a bear market rely heavily on your willingness to try new things. Whether it be perfecting your flipping skills, strengthening your networking abilities, or building something unique, there is always a way to create value out of seemingly nothing. If none of these specific ideas work for you, then your best bet is to just internalize the lessons you’ve learned from Web3 so far. At the very least, make sure to stick around for the next bull run, where you can put your past experiences to good use and hopefully make some life-changing gains.