Introduction

NFT’s. NFT’s. NFT’s

What the fuck is an NFT you may ask?

Most of you reading this likely have never bought an NFT, and have little to
no idea what is going on in this seemingly separate world of Crypto.

Unfortunately for most of you, you don’t have a network of full time Crypto
degens, high net worth individuals, and an army of researchers to bring
you up to speed on the NFT space as it constantly evolves.

Fortunately for you, you know someone who does, ME.

So I’ve made this guide. I’m going to be breaking down my past 2 months
of deep diving into space, and everything I’ve learnt so far.

NFT’s are the next frontier for creating financial freedom from Crypto and
EVERYONE reading this absolutely needs to get involved.

Let’s begin!

The Basics
NFT stands for 'Non-Fungible Token', non fungible meaning that each
token is unique, and cannot be replaced with something else. Buying an
NFT, is essentially buying a 1 of 1 unique piece of artwork, which only you
own, and have total ownership over. (You quite literally in most cases are
the intellectual property owner).

The NFT space inside of Crypto has taken off significantly over the past 12
months, generating more than 3 billion in sales this year alone.

NFT's are mostly an artwork and gaming based industry. These are the 2
major use cases of an NFT.

Art based exemplars:

One of the most popular NFT art based projects is Crypto Punks:

Crypto Punks are 10000 uniquely generated characters. The top selling
punk went for almost 12 million USD. This particular Punk above was sold
to Visa (Yes Visa the huge company) for 49.5 ETH, or $150000USD.

You can read Visa’s tweet explaining why here

Game based exemplars:

The most popular NFT gaming platform currently is Axie Infinity:

Axie is a play and earn collectibles game, which enables users to make up
to 20USD/Day from participating in its game.

The NFT gaming space is super interesting as it is the first space outside
of Decentralised Finance to achieve genuine product market fit.

Axie is played by real users and isn't just a tool for speculation, like 99% of
other Crypto projects out there.

The NFT gaming side hustle is REAL, and is making people who don't have
access to a good wage serious money.

Businesses that never before existed are being born around the Axie game,
for example Axie Scholarship programs, where a business will ‘sponsor’
people from poor countries to use the businesses money, to play the game
and extract profits that both parties can make.

For example: 3rd world Filipino who earns 2USD/hour, can get an Axie
scholarship, work from home, and bring in 2x, 3x, or multiples more
income for playing a video game, while the business owner gets value from
the human capital of having an abundance of workers to use his money.

How do you buy and sell NFT’s?

When an NFT project launches, there are two methods you can buy an
NFT:

1. Mint
When an NFT project launches, they own all the NFT’s, and they disperse
these out to the community by ‘minting’ them, where the community
sends their Crypto token, in exchange for ownership of an NFT.

2. Secondary marketplaces
Once an NFT project has launched, the community are able to buy and sell
their NFT’s on whichever NFT marketplaces the project decides to launch
on.

For NFT’s built on Ethereum, this is mostly done through the marketplace
OpenSea.

For NFT’s built on Solana, this is done through a variety of different

marketplaces as there is no clear winner. These are:

1. Solanart
2. Digitaleyes
3. Magic Eden
4. Solsea

These marketplaces are different from a normal exchange like FTX or

Binance.

These are ART marketplaces. And art marketplaces have much higher fees
for buying and selling.

If you went to buy the Mona Lisa, you would be spending multiple %’s in
fees for the transfer of ownership to take place.

On an exchange, you’ll pay cents.

When you buy an NFT, the fees are similar to the normal art world like
Mona Lisa, where you will pay anywhere between 3-15% per artwork that
you sell.
The amount you pay varies based upon two factors:

1. The price charged by the marketplace

2. The royalties charged by the original creators of the artwork.

For example: You sell XYZ NFT on SolSea, and the marketplace charges 3%,
and the actual art project charges 5%, so you lose 8% when you sell your
NFT.

The floor
The floor is an important concept in the NFT world. You likely have heard
the term used already.

The floor refers to the LOWEST price that any NFT, in the associated
project is available to be bought for.

The less NFT’s available at the ‘floor’ price, the easier it will be for the floor
price to move up once they’ve been bought up.

For example:

49 49 49 49 50 50 50 50 51 51 52

VS

49 50 53 55 60 60 61 62 62 62 62

The first example is a stacked floor with lots of NFT’s, whereas the
second example is a weak floor, with it stacked at higher prices around
the 62 region.
If you’re looking to sell and the floor price is weak like the 2nd one, you
would be better off selling slightly above the floor as it is likely to rise
higher. This is because a weak floor is a sign of a SMALL amount of sellers
at that price.
Sometimes the marketplace data is a bit slow if heaps of buyers were to
suddenly come in, so sometimes a floor might look weak, but give it 5
minutes and it will update with the latest data of what’s actually listed.

How is the typical NFT project structured?

90% of NFT launches have these particular characteristics:

- There is a capped amount of NFT’s that will be launched. For

example, they might choose to ‘mint’ 10000 total unique NFT’s that
can be purchased. Typically, projects mint between 1-10000 unique
NFT’s.
- A project will run a presale where early members of their
community can complete tasks to get discounted NFT’s before the
main launch (Winning invite competitions, meme competitions,
community engagement competitions, random lotteries, etc).
- They will launch on either the Ethereum or Solana blockchain
- They will have a ‘minting’ price per NFT on Solana of around 1-5 SOL,
and on ETH roughly between 0.05-0.2ETH.
- The NFT project after mint will create a new line of NFT’s that they
will airdrop to their current NFT holders
- The NFT project will give a % of the royalties that they would’ve
otherwise received back to the holders of their NFT’s
- The NFT project will create a DAO (Decentralised Autonomous
Organisation) with NFT verification, where only verified NFT holders
can join the community and the various chat rooms, IRL meetups,
vote on the future direction of the project, and much more.
- The NFT project will create between 50-150 unique character
attributes that will be randomly assigned to the total pool of NFT’s
that they mint
- The minting phase will randomly hand out these NFT’s, so their
community won’t know what they own until after they’ve minted.
- There will be a small % of the supply with rare attributes, with a
large majority having common attributes.

How do you know what is a good NFT and a bad NFT?

I have created an NFT rating scoreboard that you can use to personally
evaluate how good or bad certain NFT projects are:

1. The Art
The most important criteria successful NFT projects must meet in terms
of their art is being either CUTE, COOL, or ABSURD.

But one also must consider:

- Is the art innovative?
- How skilled was the artist?
- Can you see any flaws in the art, in terms of incorrect character
features?
- Is this a copycat project or are they trying something totally
new? Has the project already been done on another blockchain?
- Is there enough character attributes to justify the amount of
unique NFT’s that will be made?
- Is the art visually appealing?
 - Is there a target demographic they are targeting with their type
of artwork? Do you think this demographic will like the
artwork?
- Can you imagine yourself owning this piece of artwork and
getting some form of ‘attachment’ to it?
- How does the art compare to the other NFT projects in their
niche, and in the market more broadly?

2. The Essence
Definition: The intrinsic nature or indispensable quality of something,
especially something abstract, which determines its character

- What is the essence of the project?

- Does it even have a legitimate ‘essence’ or is it just a money grab
project?
- When you join the discord, do you feel a vibe, an energy, and a
strong community, or is it just people saying ‘wen mint’ and
dumb shit like that?

3. The Story
The story is both about why they made the NFT’s, and about the story
that is the narrative behind the NFT’s.

- What is the history of the NFT’s that they’ve made up?

- What story will they paint about the future of these NFT’s?
- How interesting is the story conveyed in the different
marketing materials?
- Does the story appeal to you and make you want to buy one?
- Why did they make the project and what is their vision for the
future?
- Are the motivations good or bad? Genuine enthusiasm or just a
cash grab?
- How appealing is the story in comparison to other projects?

4. My Values
Your opinion

- Do you like the project? What does your gut tell you?
- Is it something you would be interested in becoming a
community member in?
- Does the story, essence, purpose and mission align with your
own belief sets?
- Or are you values agnostic and just want to maximise profits?

5. The Founders
The creators of the project.

- Are the founders anonymous or are they DOX’d (you know who
they are)
- How big is the team? What is their previous experience? Have
they launched any other projects in the NFT space? How
successful were these projects if so?
- How do the founders compare to other projects in the space?

6. The Scarcity/Rarity
- How many NFT’s are they minting and at what price point per
NFT?
- How does this total raise amount compare to other projects in
the NFT space?
- Does what they have created justify the total raise they are
doing?
- Are there any burning mechanisms in place where the total
supply of the NFT’s will drop?
- If their rarity sheet is out, what is the current rarity of the
different character features?

Remember, NFT’s like all other markets are about supply and
demand. You need to consider why would someone choose to hold an
NFT after mint? And why would someone choose to sell?
If you find a project, and all you can like the project for is to ‘flip and
sell’, imagine the THOUSANDS of other NFT buyers out there who are
thinking the same thing.

You want to buy projects that others are too in love with their NFT to
ever sell, not the ones where people just wanna make a quick buck.

If EVERYONE bought an NFT to quickly make money, NO ONE would

make money, because everyone would be trying to sell sell sell and
crash the price.

You also need to consider the amount of NFT’s they allow each wallet
to buy.

If a project doesn’t put a cap on the amount of NFTs one can buy, this
is a sign that they aren’t looking for a fair launch, and instead are
trying to maximise their chances of selling out because they’re
running a cash grab.

When everyone is allowed to get 2, 3, 4, 5, 10 NFT’s, everyone is able to

implement risk management and just sell off a few NFT’s to lock in
their profits.

If each person is instead allowed MAX 1 NFT, it is harder for them to

‘take profits’ and thus there is a larger amount of people forced to
HODL which raises the price.

7. The Liquidity
Liquidity refers to how easy it is to buy and sell the NFT

- What marketplaces will the NFT be listed, if any? It is important

that they have already organised to be listed on one of the main
marketplaces BEFORE they mint.
 - How many of the NFT’s are available to purchase on the
different marketplaces? The more supply of NFT’s available =
the harder it will be for the floor to rise.
- What is the total trading volume of the NFT’s on the different
platforms? Is this high or low relative to other projects?
- How does the liquidity, and trading volume compare to other
projects?

8. The Future Utility

The utility refers to the function of owning the NFT

- Is the project going to make an NFT game where the NFT’s will
be used in-game?
- Does holding an NFT entitle you to a % of the royalties of those
buying and selling the NFT’s?
- Do you get access to the community DAO exclusive to NFT
holders?
- Is there going to be merch for NFT holders?
- What other incentives are there for continuing to own this NFT
and participate in the community?
- How does the utility compare to other projects in the space?

9. The Tribe
This one is VERY important. Refers to the actual members who
participate in the community:

- How active are the members in the chats?

- Are people just spamming ‘wen mint’ and ‘how do I get presale’,
or is their genuinely interesting conversation taking place?
- Are there regular and ongoing competitions to allow the
community to further engage?
- Is the community making memes, fan art, meetups and more
around the NFT project?
 10. Can I mint?
- What is the eligibility for me to mint this project?
- Am I around at the time of the mint?
- Is the mint price too high for me to afford?
- Am I better off just aiming to get in the presale, or also do the
public sale?

Risk Management Strategy

Buying 1 NFT at mint is risky, because once the NFT is able to be
bought and sold, the ONLY way for you to make a profit is to sell the
entire thing.

This is frustrating, because NFT’s are so volatile that in order to

manage your risk properly you would need to take out your initial
investment, while letting the rest of the position run.

In trading, you do this by selling 20%, 30%, 40% etc of your position at
a profit and holding the rest.

With 1 NFT, you cannot do this.

How do we fix this problem?

The way to fix this problem is to mint multiple NFT’s of a single
project. Sometimes they will limit the amount you can purchase per
wallet. Ideally we want to mint 2-3 of each project, and maybe more if
you are comfortable with taking more risk.

With 2-3 NFT’s, assuming you’ve made a profit once they are listed on
a marketplace, you can sell 1, or even 2 of the NFT’s, and hold the
other in case the project takes off and becomes popular.

It is very hard to tell before the NFT’s have been minted how the
project will progress, as it isn’t after the founders make their millions,
that you know if they are looking to just run a cash grab, or are
actually building a meaningful community.

Step-By-Step how to get setup for an NFT mint

To mint NFT’s, we will be focusing on 2

main blockchains: Ethereum and
Solana. There are of course other Layer
1 protocols with NFT’s like Cardano,
but for the sake of focusing on where
we have an edge in the market, we will
stick to these 2.

How to get setup on Solana:

Step 1: Create a Phantom Wallet

Step 2: Send SOL from FTX to the

wallet (has to be from this exchange, no
others work) For example, this is my
burner wallet for buying NFT mints.
You need to press the ‘receive’ button
and copy that into your FTX
withdrawal to receive your funds.

Step 3: Be on the
website of the NFT
you want to mint at
the exact time of
their release,
preferably you’re
there ready 10
minutes before
launch.
For example, the picture above shows what one of our recent mints
looked like, where you would press the ‘mint’ button once the exact
minting time begins.

Step 4: Be quick, you need to purchase as fast as possible before they

all get minted. Once you press ‘mint’,
you’ll see a small popup tab come up,
which will say ‘approve’. You’ll need
to press this to confirm the
purchase.

Step 5: If you buy 2 (preferred

method) sell 1 in profit, and hold the
other to see how the project
progresses over the coming weeks

How to get setup on Ethereum:

Step 1: Create a metamask wallet, save the seed phrase somewhere

safe, and complete all the setup steps.

Step 2: Deposit ETH from any exchange into the wallet, with the same
process as the Solana wallet explained above.
Step 3: Find out if the NFT project will be minting from their website,
or directly through the NFT marketplace OpenSea. If they do it from a
website, use the exact same process as with SOL. If they do it through
the open sea marketplace, the process is done very intuitively through
their website in a similar fashion.

My experience with NFT’s

Believe it or not, I actually bought my first NFT in 2018. It was a super
shitty, basic, CryptoPepes based project that was raved about on
twitter.

At the time of purchase, I was staying at a close friend's house in

Israel, and I bailed on our movie night to stay up late for the minting
of these projects.

At the time, ETH gas was $10 to mint, and there was barely any
money in the space. The project was the biggest at the time, and
maybe made only $40000 from minting their full collection of NFT’s.

I didn’t make a profit and was a total waste of time, and I also have no
idea which wallet this NFT would be in.

After this, it was a long few years before my next NFT experience.

In September 2021, I again dove deep down the NFT rabbit hole with
the industry being in a MUCH more sophisticated nature.

Below is a timeline of every project I bought, the money I’ve made so

far, and my success rate:
 1. Parallel Cards

I bought 2 Parallel cards on the ETH network in September, which I

still own and are currently sitting at breakeven. I was tipped off by a
friend of this project, and just picked 2 random ones to get my feet
wet.

2. Star Atlas
Star Atlas was an IEO on FTX, and isn’t technically an NFT minting
launch, but it is a project which will have a metaverse with its own
NFT’s as well as their own in-game tokens, and represents my deep
dive into the NFT industry.

I got an allocation by staking 150FTT on FTX, which allowed me to

buy $750 worth of their 2 in-game tokens called ATLAS and POLIS. I
sold these 2 tokens for a total profit of $30000, which is a 60x on my
money in 2 days. You can see the dets in the screenshots below:
 3. Thugbirdz
I bought a thug bird during their mint sale in September for 2 SOL,
and sold it 1 week later at 8 SOL. Unfortunately these went on to be
worth minimum 110 SOL a few weeks later.

4. Aurory
Aurory was supposed to be a 5 SOL
mint, however they had an error
which made the minting contract 1
SOL per NFT, which I still
unfortunately wasn’t able to grab one!
The floor is currently 45 SOL which
makes this a minimum 45x profit in a
month for those who got one.
 5. Meerkat Millionaires
I told everyone in my different groups
to get involved in this one, the same
as the others above, but I didn’t
manage to snag one again! Reason
being, I just got unlucky as the mint
sold out in 30 seconds.

The Meerkat mint was 1 SOL each,

and has gone on to be worth 35 SOL,
meaning it made those who got one
35x+ minimum in a couple days.

6. Metabaes
Metabaes was a 1 SOL mint, and I managed to get one, and the floor
price is currently 3.3 SOL. This one made a minimum 3.3x but my
Metabae has some rare traits, so at the moment similar ones sell for 5
SOL.
And that’s a wrap so far!

Here are my main insights from my current experience with NFT’s:

1. I quickly pivoted to the SOL NFT’s as the ETH gas fees were
ridiculous, and I could see that SOL would be the beneficiary of
the frustrated NFT buyers who want zero fee mints and instant
transfers.
2. My NFT picks are super solid, with a 100% win rate so far, the
only issue being getting one myself! (I’ve since created a really
solid system to maximise my chances of getting in at mint,
which is what I used on the MetaBaes launch to great success).
3. Hodling the top tier NFT’s projects that you mint is an amazing
strategy as the project goes on to gain more and more adoption
and appreciate in price.
4. Avoid the shitty NFT launches like the plague. 90% of NFT’s are
pure cash grabs and you need to be good at sorting through the
dumpster for the gems like I have done.
How to improve your chances of getting an NFT during a
popular mint on SOL:
Here is a list of EVERY strategy that you could use, but keep in mind, I
don’t use all of these, but you should still consider using all of them
depending on your situation:

1. Connect your computer directly to your ethernet cable to

maximise your internet speeds
2. Be on the website minimum 20 minutes before the mint
3. Familiarise myself with their website and how exactly you will
proceed with minting the next project
4. Open 10-15 extra tabs, with the same website, and the same
wallet connectivity.
5. Set up an external timer on my phone so I don’t need to be in the
discord, where all the scammers are who try and take your
money
6. Get my roommate and girlfriend to create their own wallets,
fund them, and get them to simultaneously participate in a mint
with my funds from a separate wallet.
7. ONLY have in the wallet I wish to mint with a few SOL so if I
happen to get 10 NFTs accepted for minting, I don’t accidentally
spend too much $$.
8. Have fast paced music playing to increase the pace of your
button pressing.

Important websites needed for participating in SOL

NFT’s:

- Find out what NFT’s you have in your wallet here

- A list of upcoming mints here
- Marketplaces/Wallets (listed at the start)
Important to read external resources on NFT’s:
- How to protect yourself from hacks here
- An in-depth thread on NFTing on SOL here
- Another in-depth thread on protecting yourself from scams
here
- Another how-to-solana thread here
- Why you aren’t bullish enough on NFT’s here
- Why NFT’s make sense even though they don’t to you here

Where to from here

I teach NFT’s, investing, trading and everything Crypto inside my free
telegram community here

I post some of my NFT mints I participate in inside, but most of the

NFT’s I personally invest in I reserve for my private Crypto group and
friends and family, as if the thousands who followed me all tried to get
onboard, myself and those close to me wouldn’t be able to get any!

If you’re interested in learning more about my VIP group, you can

message me directly here

You’ll also find me on twitter here, and my Crypto newsletter here

Any questions, feel free to leave them in the discussion room of my

telegram community!

All the best, CryptoDan.