How To Make Money With NFTs
How To Make Money With NFTs, letās talk about the best nfts that money can buy today letās print some attendees because at the beginning of this year in January the market was exchanging roughly 17 million dollars a month worth of NFTs but fast forward to today and the market has grown to be worth 27 billion dollars.
Where weāre exchanging roughly 2 billion a month this has become a huge new asset class as a result of the crypto boom that we saw in 2021 in fact even celebrities have started buying into it people like Paris Hilton for example jimmy Fallon Steve Aoki tony hawk snoop Dogg Eminem and the list just goes on and on but finding the best of these is like finding a needle in a haystack.
Because I believe 99 of NFTs today are gonna end up becoming worthless in just a few years that other one per cent thought is gonna make people a lot of money so in todayās video I wanna explore what some of the ones in that top one per cent could look like by giving you my top three nfts.
So the question we have to ask ourselves is what are the best ones to buy but first, before we get into it a quick disclaimer about the video I was not paid to promote any of the nfts inside this video is for fun and educational purposes only i donāt want you to buy any nfts unless youāre already a diversified investor.
Who has a Roth ira a 401k may be a has you own some stocks and you own some real estate if one of those words didnāt make sense this video is not for you but now that you are here let me tell you all about this crazy world of nfts so letās get right into it hope youāre doing well come for the finance and stay for the best nfts that money can buy today according to a random guy.
So first the budget is between six dollars all the way to the moon iāll give you some of the pros and cons about each one i know that there are probably other ones out there thatāll make you a lot more money my list is based on a combination of safety and a chance for profitability based on ones that are already established.
Because I think those are the safest ones but before I share with you my list of my favourite three please watch this next part very carefully because this industry has a lot of downsides and risks that people are not talking about all right bad magic analogy time so one possible downside to nfts that people donāt know about is that it could technically just disappear like that.
Yeah thatās not bad youāre right thatās pretty bad hereās a better analogy even though nfts can just appear out of nowhere they can also disappear Iām really proud of that when I made that one up but hereās what I mean even though we have full control of the digital asset itself because it lives on the blockchain.
Donāt just buy any NFT ā reverse engineer, take action with patience
The actual picture like the art part about the nft is usually hosted on a website somewhere which means if that website were ever to disappear for whatever reason whether the owner stopped paying for it or he just took it down or maybe the server goes down then technically.
The picture part would also disappear and all weād be left with is a string of numbers and letters and an error page and thatās something that a lot of people are not taking into consideration about how risky nfts can be the second downside of nfts is that they donāt exist in a fair market.
The question is how do we know how valuable something truly is especially in the world of art like how do we know how valuable this card trick is if we donāt know maybe itās enough for you to smash the like button but not much else the way that we can guess what the price might be is based on people buying and selling it.
A history of its sales price but hereās whatās really interesting anyone can just come along and create an nft that they used a computer program to automatically generate one for zero dollars they can then use it to list it in the marketplace for letās say a thousand dollars or 0.25 each now of course at that point no oneās going to bid on it.
Because no one knows what it is but as the creator, I could create a separate wallet and then fund that wallet a thousand dollars 0.25 each and I can buy my own nft that establishes a sales history now that once might not be enough to convince someone else to buy it at that point but whatās interesting is I could repeat this process an infinite amount of times.
Risks of making money with NFTs
I could create as many wallets as I want and continuously buyback from myself and all Iām really doing is just shuffling my own money around but in reality, Iām not doing anything except for paying a bit of fee right thatās gonna be a little expensive but for the most part, Iām just shuffling my own money.
This creates a precedent of sales it tells people wait a minute people are buying and selling this thing theyāre making money i want to do the same thing that person becomes gullible and buys that nft thinking that theyāre buying something valuable.
When in reality theyāre worth nothing so please stay safe use some common sense which i know is really hard to do especially what weāve learned this year but try our best so with all that out of the way letās begin with the first crowd favourite nft.
Which of course are the bases the b-a-y-c which are the habits of NFTs name that reference timeās up you are the weakest link goodbye flavour of love Iām getting old so the first one is the board ape yacht club this is arguably one of the most talked-about nfts in the entire world.
People like post-Malone Steph curry DJ Khaled the mark Cuban Timbaland Shaq logan paul future I mean the list goes on and on of some of the celebrities that own one and just recently jimmy Fallon bought one and posted about it on Twitter.
A bored ape actually appeared on the cover of the rolling stone magazine and the team that created them partnered up with Adidas to make even more nfts but hereās where it gets really interesting because in 2011 a movie by the name of rising of the planet of the apes came out and the filmmakers at that time had no idea on the impact.
They would have on investors nine years later because the main character of that story an ape by the name of caesar said something profound one line that would become the foundation of meme investing and hereās what he said he said apes together strong.
Also Read:
Why Warehouses Are Taking Over The U.S.: 5 The Good, the Bad
5 Common Misconceptions About Can You Make Money From NFTs?
Analyzing the Marketplace
About 10 years later two guys by the name of Gargamel and goner saw that the world of NFTs was missing something deeper it was missing a deeper meaning so to bring everyone together they created these board apes as a homage to the meme investing community which saw investors ape into stocks like GameStop and AMC thatās the story of the board apes.
But it goes way deeper now there are 10,000 board apes in existence there will never be more and theyāre based on the ethereum blockchain which of course was created by vitalik buterin as opposed to italic buterin huh were my font nerds at back me up on this get this though the cheapest board ape you can buy today have a floor price of about 52 eths.
This is worth roughly 200 000 depending on what ethereumās doing that day but it can get as expensive as millions of dollars like this board ape number 8817 which sold for 819 ethereum worth roughly 3.4 million dollars the question is how are they that expensive before I answer that question remember I said you should probably have some adulting investments first.
The apes the reason I chose board apes is one of my top three is not because the price is crazy or because itās really impressive but because of what it means to own one this is the blueprint to the success of other projects that we should pay attention to but also because itās something we can do to boost the value of our own investments.
And hereās a perfect example people that own an ape will come together in places like California the UK hong kong new york where there was an actual party with a real yacht not like an nft yacht but like an actual yacht with appearances from people like Chris rock Aziz Ansari quest love.
This is crazy because the feeling of wanting to belong to a special exclusive social club is real even if it seems silly human beings always want to belong to something especially if that something is bigger than ourselves itās also the reason why stocks like GameStop have done.
So well this year so never underestimate the power of story and community so here are just some other interesting parts about board apes each ape has different characteristics that give them a unique look and rarity and no two are the same one of the properties for example is stuff like the background colour the clothes.
They might have on the eyes they have which might have laser beams shooting out of their freaking heads name that reference Austin powers ah thank you other things include things like the fur they have the hat they might have on the mouth different kinds of properties one of the things that are extremely sought after for example is the gold fur.
This represents less than one per cent of the ten thousand apes which is like 46 of them and it looks really cool so people pay a lot of money for it another property that people want a lot are laser beams shooting out of the eyes which again is sub 1 and anything less than 1 is very desirable.
So if you combine different rare properties together you get apes that can sell for millions of dollars now personally I donāt have an ape I canāt afford one but if I did I would have this one gold fur plus a soviet union hat perfectly represents me because I was born in Russia during the soviet union time.
Because Iām old so naturally the question is if these originally sold for 200 and now theyāre reselling for millions how are we ever gonna be able to afford one and the answer is maybe we never will unless they introduce fractionalized nfts which are starting to become a thing.
NFT Flipping (Buying Low/ Selling High)
Where someone could take their nft they can divide it and split it up into hundreds if not thousands of pixels for people to invest into at a much lower price kind of like fractionalized shares in the stock market but the downside is that you probably wonāt get access to any of the social perks.
I talked about it in the same way that you donāt get voting rights for owning a fractionalized share of a company so I hope that makes sense mostly the biggest risk is fighting against artificial inflation of people bidding up their own nft which I think happens all the time everywhere I just donāt know how often it happens.
But also the opposite could happen and someone could sell you their board ape for three thousand dollars instead of three hundred thousand dollars like someone just recently did because they had a late night and they forgot to add a few zeros so that could also happen but anyway letās talk about my second favourite nft project which is a lot more affordable.
My second favourite nft project, of course, is something Iām very biased about because I have 79 nfts here and that, of course, is the vv platform now Iāve spent about 30 thousand dollars here which I know sounds crazy like why would anyone spend 30 000 on pictures but two of the collectables I bought on this platform could now pay for everything Iāve spent.
And then some so picture the physical collectables we used to collect as kids but turned into digital nfts what a Comeyās done is theyāve bought licenses from brands like Disney marvel Pixar cartoon network James bond so many other things that we used to collect and turn them into premium digital collectables now the retail price for them is 6.99.
Which is a price I can get behind theyāre also in the process of migrating toward immutable x which means weāll finally be able to view our nfts on the blockchain itself which also means hopefully weāll be able to sell them on platforms like open c the more interoperability the more volume the higher the price could go.
Important things to know about NFTs
This is honestly one of my favourites nft projects just because of how easy it is to use and how significant these characters are for example my spider-man right here which retailed for four hundred dollars I bought it for twelve thousand dollars which sounds insane but fast forward to today and the floor price is sitting at roughly 26 and a half thousand dollars.
This is pretty significant and I think by next year sometime early next year this will be an easy fifty thousand dollars of course it is risky just like anything else and I canāt just give you the good without giving you some of the bad and some of the downsides like for example we donāt own the IP, in other words, itās the companies that are licensing.
The license is that own the rights to these NFTs which means technically if they decided to pull out of the project all weād be left holding is a string of letters and numbers which arenāt very valuable right because we donāt have the actual images behind the code now the second downside is that we canāt really get in at a retail price.
How can I determine the value of an NFT artwork?
Now letās talk about my third favourite NFt project and the third project is arguably what inspired the whole nft movement and what started all of it at the beginning which of course are the crypto punks.
Now technically it is not the first nft project that people worked on but it is the first to become so popular and crypto punks were originally inspired by the 1970s punk scene in london.
This depicts these guys as rugged misfits and troublemakers and rebels the punks 24 pixels wide by 24 pixels tall itās essentially a blocky image of a character of which there are only 10 000 of and there will never be more now get this when these guys were created they were given out for free.
How have NFTs revolutionized the Art Industry?
I didnāt actually get one and even if you had told me about the way back then I still probably wouldnāt have got one because Iām no visionary and I probably wouldnāt have understood the concept but whatās interesting is that in 2017 someone bought this crypto punk number 3100 this little alien for eight ethereum worth two thousand dollars.
Which at the time was insane why would anyone spend literally thousands of dollars on a picture on their computer didnāt make any sense fast forward to March 2021 and that same crypto punk number 3100 resold for 4 200 ethereum worth 7.58 million dollars the cheapest one that you can buy right now is about 62 ethereum or about a quarter of a million dollars.
Earn royalties from your NFTs
Thatās it I got that Iāll take three now hereās a really interesting story about the power of influence because back in early 2020 Gary the successful entrepreneur got together a bunch of people on a call about 30 billionaires and social media influencers and he told them to buy crypto punks.
They listened to him and they bought in people like Mr beast, for example, ended up with at least eight crypto punks some of which he said he was able to flip for 20 to 30 times his initial investment and that makes me sad because I wasnāt invited to that call but the point is that market influence can happen across all nfts at any given time so thatās something to take into consideration.
