NFT lesson part one <3

I finally bring you my most requested blog post to date!

In this guide I will cover a decent amount of NFT material, this will help you understand how to purchase, what to look out for and so on. I will be posting a part two and three soon. This post will cover the basics, part two will talk about getting into projects early. Part three will discuss the technicals like the Metaverse, blockchain, and staking.

Quick Disclaimer: This is not financial advice, always do your own research. Some of the links in this post include affiliate links, this won’t cost you any different but I may make a small commission.

NFT

A quick google search will tell you that the definition of a NFT is: Non Fungible Token, theres not much you can take away from that. Here is my take on what an NFT is:

It is a digital asset that can make or loose you a lot of money. You purchase NFTs with crypto then you own that item. To put it into perspective it’s like buying a Pokemon card. You can hold on to it or resell to another buyer. The only different is this Pokemon card is digital and you’re buying/selling in crypto rather than dollars.

Individual Pokemon cards are a part of the Pokemon Collection, and their individual price depends on the rarity of the card. But in order to sell your Pokemon card there needs to be demand in the market. This apply’s over to the NFT space.

One thing to note is that all of your transactions are recorded on the blockchain. In other words you will have to pay taxes on your gains.

Topics Covered

  • Where to start

  • How to purchase your first NFT

  • How To Buy Crypto
  • What is a Crypto Wallet?
  • How to keep your wallet safe

  • NFT Terms

When you are first starting out you don’t know where to look so there’s not many people there to help you.

If you dig a little deeper you will find that the NFT community is very welcoming. They’re willing to help whether you are a beginner or seasoned trader, open to sharing knowledge/experience, and just overall an awesome community. That’s where the term WAGMI comes from which means we’re all gonna make it.

Where to find the right NFT community: Twitter, and most NFT Discord groups.

Where do I start?

This is the most common question I get asked. Where the hell do you start?

Crypto is confusing and overwhelming at first. But you quickly start to catch on after purchasing your first coin or first NFT. It’s a very volatile market; your $500 can go to $20k or $100 real fast. So make sure to only invest what you are willing to loose.

To start you will have to create an account on an exchange and open a crypto wallet (Both are free to create).

A Quick Rundown

This is what the process to buy an NFT generally looks like:

 

1
Find a NFT project
2Research (Team, Roadmap, Community)
3Buy Crypto On Exchange
4Transfer Crypto To Wallet
5Purchase NFT
6Hold or Sell NFT

How To Purchase Your First NFT

1. Find A Project

First you will have to find the NFT you want to purchase. The most popular place to buy NFTs is on opensea.io

There are many projects out there that releases X amount of NFTs per collection. Each project has a team, plan and community. If you go the website you can see their roadmap outlining the current and future plans. It’s not always accurate, the team can change it at anytime.

The example collection I will use is one of my favourite projects World Of Woman. (WOW)

Here is the link to the collection: World Of Women

World Of Women is a NFT Collection. There are 10,000 NFTs in the collection.

The floor price is currently 1.83 ETH which means that is the lowest available asking price. This price constantly changes.

Each WOW NFT has a different rarity rank which can be seen on Rarity Sniper those ranked the highest (#1,#2,#3…) are worth more than the NFT ranked #10,000.

Ways to discover projects:

  • Word of mouth
  • Twitter
  • NFT Blog Sites
  • Discord groups
  • Discord Voice chat

  • Opensea trending/ranking

  • Sites like NFT Calendar

2. Research

It can be temping to buy the first project you see but it’s important to always do your own research.

I will talk more about this is part two but this is a general idea of what I look for.

  • Roadmap (Action plan for the project which can be found on the website.)

  • Team (Are the team members transparent about who they are?) (Are their socials linked?)
  • Discord Community (Join the discord see if the admins are active, and the community members.)

  • Team History (Have they done projects before? Is the artist/company well known?)

  • Social media accounts (Are their followers real, is there engagement?)

  • Has it already launched, if not when is release date?

  • Check twitter see what type of accounts are posting about the project.
  • Analyze hype (is it overhyped, under-hyped?)

  • When is the reveal date? (Floor prices usually spike right before reveal)

You want to avoid projects that have certain red flags because it could be a rug pull. Almost every NFT trader have fell for one at least once.

A rug pull essentially is a project that get’s minted then all of the team members dip out. They’re hard to avoid but some of the red flags include: Team doesn’t want to be doxxed (they want to remain anon), fake followers (not always a red flag but common for rug pulls), unrealistic road map (so lets say they plan to fly every holder down to the states for a meet up -> instead it would be more realistic if they had a raffle and a few holders win a flight). Now you can (possibly) make money off of rug pulls sometimes by minting and paper-handing right away, but the projects go to 0 quick.

Coming back to always do your own research. If you see someone post a project on their IG story: you don’t know if they minted at 0.05, how long they plan to hold, and the biggest one is you won’t know if they change their mind. Sometimes you see a red flag in a project after buying, so you quickly sell off. If you see someone post about a project use it as a guide, join their discord and start studying the project before buying in.

3. Purchase Crypto

In order to buy an NFT you need to purchase crypto. Most of the NFTs are purchased with Ethereum. There are different exchanges out there that you can purchase on but these are the platforms i’ve personally used and like.

How to purchase Ethereum (ETH):

Through an exchange

Option 1:

Coinbase: Coinbase is an exchange where you can buy/sell/trade crypto currencies. On Coinbase you can purchase crypto directly with your credit/debit card.

Sign up here to get $10 bonus in Bitcoin once you trade $120 in crypto.

Option 2:

Shakepay: Shakepay is easier to start out on for buying ETH. You can only purchase two crypto coins with Shakepay ETH & BTC. To fund your account you don’t need to enter your card information. You simply send an E- Transfer, in the app it will tell you the email and security question/answer to put.

Sign up here to get $30 bonus after you purchased $100 of crypto.

3. Create A Wallet

Wallets | How to set up | Wallet safety | How to fund

If you don’t already have a wallet you will need to create minimum one. Wallets are free to create.

These wallets are used to buy and sell NFTs, your NFT will be stored in that virtual wallet.

Personally I have multiple wallets one is a burner wallet to connect to sites that i’m not 100% sure about (I don’t buy/store NFTs in this wallet). I also have a couple more; I buy NFTs in different wallets in order to reduce risk of loosing everything. If one of my wallets get hacked I wont loose all of my NFTs.

Wallets

Here are the two popular wallets to use, I haven’t run into any problems with either.

MetaMask: MM can be used on your phone through the mobile app and desktop as a chrome extension. Read the next section to learn how to create and set up your wallet. MetaMask Mobile App | MetaMask Chrome Extension

Coinbase Wallet: Download the app through the app store (It’s a different app then the Coinbase exchange, it’s called “Coinbase Wallet”).

How To Set Up

Meta Mask

  1. Open the app, or chrome extension.
  2. Get Started
  3. Create New Wallet (if you already have one click import and use your seed phrase)
  4. Create a STRONG password.
  5. Click to reveal your secret words aka your “seed phrase”
  6. Your seed phrase is gold. NEVER share it with anyone and make sure to store your secret words in a safe spot. Don’t loose this phrase or you will not be able to get into your account. If you loose your seed phrase your funds will be lost forever, Meta Mask can not help you recover your wallet. Note: Meta Mask support will never ask for your seed phrase.
  7. It will ask you to confirm you secret seed phrase.
  8. You now have your wallet.

Coinbase Wallet

  1. Open the app.
  2. Create New Wallet (if you already have one import your wallet and enter your secret seed phrase).
  3. Accept terms and conditions.
  4. Choose a username.
  5. Choose privacy, public means people can look up your username to send you crypto.
  6. Set up an app passcode or turn on face ID.
  7. It will tell you to backup your wallet, once you click that Coinbase will show you your Secret recovery seed phrase. Write it down and store it somewhere secure. Do NOT share this with anyone, no company nor Coinbase will ever ask you for your seed phrase. As well don’t loose this or there will be no way to recover your wallet Coinbase won’t be able to help meaning your funds will be gone forever.
  8. You’re set.

How To Transfer Funds To Your Wallet

The next step is to fund your wallet.

As mentioned before you first purchase Ethereum from an exchange like Coinbase, Shake pay, Binance Etc.

Now you will have to transfer your crypto into your wallet. To do so you will need to copy your Public Ethereum Wallet Address. For ETH your address will start with 0x

Meta Mask Wallet

  • Make sure you are on Ethereum Network which will show at the top. By default you will be on it already. If you are on another network click on the network at the top and change it to Ethereum.
  • App: Your ETH public wallet address will be highlighted in blue under account name.
  • Chrome Extension: Your ETH public wallet address will show under account name. Click to copy.

Coinbase Wallet

  • Click on “Receive”
  • Choose “Ethereum” Coin.
  • “Share Address”
  • “Copy”

Once you have your Ethereum wallet address copied go into your exchange.

Steps:

  • “Send”
  • ETH (Ethereum).
  • Enter the amount.
  • Paste your ETH wallet address.
  • Preview Send.
  • Send.

The steps are generally the same on every platform. It might take a bit to send but you can track your transaction on the blockchain.

Wallet Safety

Quick wallet safety lesson:

Seed Phrase: This is like the pin code to your bank card however if you loose it, you will loose your money. Never share your seed phrase including inputing your phrase into websites. The only time you can put your seed phrase in is if you log out of your wallet and want to log back in.

Public Wallet Address: ETH starts with 0x, this address can be shared. You will be asked for it if you get whitelisted for a project.

Check out: Common NFT Scams I go over common scams in the NFT space and how to avoid them. (Post now live!)

5. Purchase NFT

You’re ready to buy your first NFT! You can either purchase aftermarket on a platform like Opensea or mint if you get in early on the project. Minting will be discussed in part two.

To buy off of Opensea, connect your wallet. Make sure the url is Opensea.io before connecting.

If you are using your mobile device to purchase go into the Meta Mask or Coinbase Wallet app -> Then go into the Browser section and search opensea.io

Make sure the opensea collection is real, there are multiple fakes out there. The best way to check is to join the projects discord and go to #officiallinks server, you can also double check on the website and social media pages. Copy and paste the link into your browser (again always make sure the url starts with opensea.io/…).

Price:

Floor Price: Lowest price listed in the collection on the platform, so basically the base price.

Gas Fee: There will be a gas fee on top of your purchase so if the price is 0.05ETH make sure to have more in your wallet. (Min 0.08eth)

If you don’t have enough ETH in your wallet a ridiculous gas price will show up (ex: $5000), so make sure to over fund rather than underfund your wallet beforehand.

The higher the rarity the more value the NFT in the collection has, you can check rarities on rarity sniffer. If you land a legendary NFT those sell for a lot! For example the floor price can be 0.5ETH and a legendary sells for 50ETH.

When you make money, someone is loosing money; you need to learn how to trade without emotions (no fomo trades) and study the market trends. (Check back for part 2)

6. Hold / Resell

Hold onto your NFT until you are ready to sell.

Long Term Projects: Blue chip projects are out there like Crypto Punks or Bored Ape Yacht Club. Those are like the Apple stocks of NFTs, they are established but you can’t always predict the markets future.

If you are holding a NFT for a long time you might want to consider getting a cold wallet to store your NFT in. It’s safer, I use a Ledger. You can store both NFTs and crypto coins on it. You purchase the NFT on your wallet then you can pay a small fee to transfer it to your ledger. Its totally optional to buy one, I didn’t use one for a long time: If you do purchase make sure to buy through the official ledger site and not Amazon or on marketplace because some of them steal the wallet codes so they can hack your wallet later on.

Purchase a Ledger wallet

Quick flip option: You can basically day trade NFTs, when adidas launched you could’ve bought the floor at 0.35ETH and sell it a couple hours later for 1ETH. If you want to do quick flipping the best way to go about it is Whitelist/Mint/Paper-hand, which will be talked about in guide #2.

The market is hot right now. Remember to take your profits along the way!

NFT Terms

Mint – When the art/collectable goes on the blockchain. So basically the initial release, if you are the first person to hold that NFT you minted it. 

Sweep – Buying NFTs off the floor.

Floor Price – Lowest price listed in the collection on the platform, so basically the base price.

WAGMI – We’re all gonna make it”

NGMI – Not Gonna Make It

GM – Good morning

GN – Good Night

Probably Nothing – Probably Something 

FOMO – Fear of missing out

Next Post: Common NFT Scams (Live🔥)