Thread by @BitmanTW

[How to invest in NFT with high EV?]

What makes the NFT market interesting is that there are always wealthy people who are willing to offer high prices for rare or popular NFTs. As long as you are capable of getting WL on popular projects, flipping NFTs for profits is possible.

Assumed that the average mint price is 0.1 ETH, so if you have 1 ETH you could mint ten times. How exactly could you do it? I’ll explain in the thread.

1/ Information sources

Most of the first-hand sources of NFT information come from Twitter instead of Discord. By following some OGs, KOLs, famous devs, artists, and collectors, you will get the picture of the current market trend of NFTs and the popular projects at the moment.

2/ Observation

From my experience, profiting through long-term observation of the market is way easier than profiting from short-term selling. You are more likely to earn high profits with patience. For example, I came across @SlimHoods last year on November 24th and found that

found that it belongs to @RNDMCHARACTERS which also owns the project @InvsbleFriends. I thought maybe the SH holders are more likely to get IF WL since they belong to the same company. I bought 4 SH at 0.08 ETH each and sold them when the price pump to 2 ETH due to IF WL news.

3/ Project evaluation

There are several things to look for in a good project:
- Team: Try to see whether the team has launched any successful projects before, or whether they have a strong dev team like @0xstudio or @WestCoastNFT

- Community: Stay in #general and look at the engagement and comments of the community. @CBCreepz has the strongest community I’ve seen so far.
- Popularity: Look whether there are some OGs or KOLs that support the project on Twitter.

4/ Primary market

If the project seems promising, the next thing is to get yourself on the WL. Getting whitelisted doesn’t mean that you have to mint. You can decide whether you want to mint it based on:
-How fast the minting process is
-Floor price and the volume during presale

-You are optimistic about the project in the long run.
Sometimes you decide not to mint during pre-sale and the price goes up high afterwards, e.g. @DourDarcelsNFT. Don’t get annoyed. After all, you can only make decisions based on the information you have at the moment.

5/ Secondary market

In general, I won’t recommend buying NFTs on the secondary market. Especially when the market isn’t steady, and you get loss.

I would only consider buying NFTs on the secondary market when:
- I can’t get WL of a very popular project that I’m interested in.

- I check @icy_tools and see the volume in the secondary market rising.
- The number is marked in green on the “24 Listings” column in @flipsfinance. It means the delisting number increases within the last 24 hours. It is an index for rising prices.

6/ Try to buy TWO

I came up with the principle by myself. I would purchase two NFTs at different prices from the same project that I consider to be good. Sell one NFT when there is FOMO in the market, hold the other one to play long-term.

TAOS is a collection created by @DirtyRobotWorks that went 10x recently. I bought 2 rare ones at the price of 1 ETH and sold one of them for 5e. I keep holding the other one to wait for @RENGA_inc pfp launch.

You may refer to this tweet about it:

https://twitter.com/BitmanTW/status/1519715503324889089

7/ Target price

How do you know when to sell NFTs? I would say target price is the key. The ability to measure the value of NFTs depends on your experience and how many projects you have observed. I measured the price of @arcadedotinc based on my experience of @Worldwide_WEB3

cuz they both have four different types of lands. I sold all my Arcade Lands at the target price range. e.g. I bought Mega at 9.5 ETH and sold for 18 ETH.

It turned out that I could have sold them at a higher price, but I still made a pretty good profit.

https://twitter.com/BitmanTW/status/1510164327721943048

8/ Take Profit

Remember that “Take Profit is always right”. With good price measurement, you can sell the NFT when it reaches the target price range. Many people would cancel the listing when the floor price is rising, and set up a higher price.

What happens most of the time is that the price falls back and it becomes difficult to sell. Don’t get annoyed if you sell it and the price keeps going up, because no one is capable of predicting the highest price. Just reflect on your price assessment and make it up next time.

9/ FOMO & FUD

I like to sell when the market is FOMO, buy when the FUD begins, but remember this strategy only works when the project you are buying or selling is good. E.g. @get_turned the project from Taiwan. However, there was a FUD during the AMA

because of some contract issue and caused the floor price to fall. I bought my second Zombie at 2.5 ETH at that time. The price went even higher in the post-reveal. I sold the rare NFT at the price of 16.8 ETH when there was FOMO.

https://twitter.com/BitmanTW/status/1509083051191508997

10/ Market trend

Observe the market trends and @opensea volume all the time. In terms of the current market, NFT market will not improve when the price of ETH is unstable. It is very important to maintain liquidity now and avoid buying the projects with small capitalization.

11/ The future of NFT

I’m optimistic about the future of NFTs in the long run. The market size is expanding as big IPs such as @adidasoriginals and @Nike jump in. Centralized Exchange like @Coinbase_NFT also contribute to the growth of the NFT market.

Also, the technology of NFT is becoming more common in our daily life. NFT can be used to represent film tickets, membership cards, and real estate rights. There will be even more practical uses that we are yet to imagine.

12/ NFT trends

- Besides being optimistic about the prospects of NFT, I also keep my eyes on the next popular NFT type after pfp and P2E. I reckon NFT artwork projects are of great potential. More and more talented artists from @tezos are moving to @ethereum.

They start by launching 1/1 NFT artworks, also airdrop an exclusive utility token to the holders. The holders with the token are eligible to receive rewards that are airdropped to their wallets. Plz check the tweet if you are interested in the artists.

https://twitter.com/BitmanTW/status/1514977423808348163

NFT artworks take time to accumulate value and popularity. The artists will create as many artworks, build up good reputation and attract more loyal collectors. Therefore, more and more artists like @XCOPYART @fewocious @DrifterShoots @GuidoDisalle are building popularity

and marketing their artworks by launching open editions. By doing this, the NFT is open to be minted without limits and more people are able to become holders of their works.

13/ TD;LR

In conclusion, you can always choose to invest in the NFTs without risking too much. Only buy when the market looks promising. You decide to buy or sell based on the information you have at the moment. No need to regret your decisions.

Reflect on the strategies and whether the information is correct. Keep on trying. You will develop a good strategy for your NFT investment.

WAGMI.