Is Winning In The NFT Game All Luck? (Guest Article By WDWP #17)

Oct 24, 2022 | Guest Articles

This is part two of a series covering everything and anything NFT by Wolf Den Wolf Pup (WDWP) #17, Malek. I will leave a link to his first article in the reference section.

NOTE: This document is shared for educational and entertainment purposes only. It should not be looked at as financial advice. If you need a financial advice find a financial consultant

Table of Contents

    You’re Just Lucky You Say

    You know that WINNING in the NFT game has little to do with “LUCK” and everything to do with strategy and patience, right?

    There are multiple of areas you can watch for to really hit a home run, but in most cases you can double or triple your profit easy (especially if you catch a wave at an early stage).

    That being said, lets dig in 

    I have used these methods to find great communities at early stages and made enough profit that helped me fund my entire trip to Arizona this coming up month. You are a lot more likely to achieve what you want when you have a reason to do it. I wanted to attend this event and thats how i funded it. So what are your reasons?

    (I will be attending Gray Wolf Summit – will leave a link for you to check it out if interested at the end of the document).

    Community is the Utility

    Making profit in NFTs has nothing to do with what the NFT offers as a utility, especially on ETH. No one wants to pay a ton of fees so they can stake for crumbs. They would rather make a few flips and earn as much as a staking pool would give in months. 

    The first thing you need to find out about the project is its community. Solid community = Solid results. 

    But keep in mind that by the time you see a lot of engagement, then it’s most likely too late. The last thing you want to do is buy the “hype”. You need to recognize the hype at an early stage and you can do that if you are looking for:

    • The right variables.
    • At the right time.
    • With the right people.

    How Do You Find A Community With Potential At An Early Stage

    Try to follow these steps & in this order:

    Step 1: Head over to gem.xyz (this is an NFT tool used by some of the best flippers in the NFT community. This is the secret a lot don’t want you to know about.

    Step 2: Once you are on the platform, click on the “mints” tab. This will prompt all the new MINT that is happening on the website (I usually go for 1 hour timeframe. It helps me see the overall picture of the performance without having to give a small time frame because sometimes those can be deceiving).

    Step 3: First thing first, I personally avoid minting on websites. There is a massive security risk. You are basically giving the website permission to go into your wallet and take whatever it wants. So if you really need to mint on the website, I would use a burner wallet (not your main wallet and only have enough ETH to mint with)

    Step 4: Now let’s look at the numbers and break it down. Check the top wallets. With time you’ll be able to recognize all the great flippers. If you see wallets that are known to have good flips (you can check their wallet activity on Opensea) then that’s your alpha. Good flippers don’t waste their time with “maybe” projects. If they’re minting, then they are onto something.

    The second thing I look at is how many mints happened over the last half an hour. The higher the number, the higher the buyer’s intent. That’s a good thing.

    Price is another important thing to look at. Smaller price, higher profit. 

    Unique minters number should be high. This means more wallets are minting which distributes the selling pressure more evenly.

    Step 5: One you have checked all these, you want to identify the ones with the most potential, and find their socials ASAP.

    Personally, as I said I don’t like to rush my profit. My timeframe is anywhere between 2-4 weeks. This gives me an opportunity to study the community and see if it has potential.

    Which brings us to the next most important step

    Community Secret Raid Channels

    Step 6: After the main mint, people want to make a profit. You will see a lot of activity right after the mint. Don’t let this suck you into the hype. Be sure that minters will dump on Opensea the minute they have a chance to. At this point you want to observe more than take action.

    Find out if the community has a twitter private chat (that’s a chat that holds up to 74 people in the twitter DM). This is important because the leaders of the community will make sure they only have active members inside to “raid” the comments and chats and bring more attention to the project. Being in there can give you a head start since you will be observing the community and how active it is behind the scenes.

    Those hundreds of comments you see under some post are organically created from these groups.

    AGAIN BE PATIENT, DON’T GET SUCKED INTO THE HYPE!!

    You are still observing. 

    Over the next week this is where you really find out how solid the community is. In the meantime the trend line will drop. Cheaper price does not mean the project is dead. The whales will drop the price so they can scoop more. But it’s important to have an active community. 

    If the price drops, and the community is no longer active, that’s your sign to walk away.

    If the price drops, and the community stays active, that’s your sign to look deeper into the project. 

    Connect with members and see why they like being part of the community. Over the next week or so I would keep observing the data of activity. If the community is very active, more people will join and this will create a bigger trend. Once I am confident that the community is active and will stay active, then I’m ready to make a move on the NFT and pick some up.

    What NFT To Pick Up

    You have multiple choices depending on your conviction.

    If you want a quick in and out, then best to stay at the bottom. Pick some items off the floor. You have a quicker chance to flip the NFT that way. 

    Example: the floor price is 0.004 ETH when you decide to grab some of those NFTs. You picked up a few of them, and then the price over the next week went to 0.01 ETH. You doubled your profit over a week. It is very possible to create this trend if you have a solid and an active community. Now you see why I wait to observe? Rushing gets you rekt.

    The second choice is picking up rares. This is a game on its own. But you probably will hold them for longer as their price increases slowly and differently than the ones on the floor. Sometimes you get lucky to find rares close to the floor. That’s a great opportunity but don’t bet on it… people will scoop it quickly so you need to stay vigilant. 

    How To Find Rare Items And What To Look For

    There are multiple ways to have a rare item. The first is the rarity of the cards based on the entire collection. This is easy to figure out. You can use gem.xyz and it will show you its rank on its page. Just visit the collection page and you will see the rarity number right on the NFT. Check below the example. Those numbers are the rarity of each one of those items. 

    But the rarity of the card from the entire collection isn’t always favourable by collectors and flippers. They want to maximise their profits so they “snipe” (buy quickly) the trait groups. The more control they have over the trait groups, the more control they have over its listing price. 

    How Do You Find The Best Trait Groups

    This is where it gets a little harder. But if you pay attention you will find the best traits early. 

    In every collection there are multiple traits and trait families. The less items that belong in a trait group, the more valuable these items are.

    For example: the collection below has 5 different trait groups. Each group has a specific amount of traits. If you look you will see a number beside the trait count. This means there are this many items in the entire collection that have this trait count. 

    In this example, the rarest trait count group is the one that has only 1 trait (there are only 3 in the entire 5555 collection) The least rare is the one that has 6 traits (there are 3056 items in the entire collection) 

    The lesser the trait count is always the more rare (this is called a “clean” NFT”). So you won’t find many items in the entire collection that have this count. If you got lucky and found the “clean” NFTs at a good price and picked them up, there’s a good chance you’ll make great profit if the community stays active and grows. If it is not active, then even though they are rare, you probably won’t find anyone to buy them.

    Low trait counts get sniped quickly, but it’s not the only good trait you can find. Even in the 6 traits, you can find rare items that can also be worth a lot.

    Let’s break that down.

    Once you understand which trait count group is most valuable, you can go into the next category to identify the rare properties within the trait counts. 

    As you probably already know, each NFT collection has different properties that are unique to that NFT. Each property expands into more properties within. 

    If we take clothes for example, you will see that some traits are a lot rarer than others. In this specific case, the most rare trait is 

    M2 Black Suit (there are only 5 in the entire 5555 collection, which represents 0.09% of the entire collection) 

    The least rare is M1 Striped tee (there are 152 items in the entire collection, which represents 2.75% of the 5555 collection)

    Ideally you want the one with LEAST ITEMS IN THE COLLECTION and not the one with MORE ITEM

    You can repeat this with every property and find rare items within each property. 

    Let’s explore another property for the sake of clarity.

    The example we will use now is the eyes property.

    As you can see, there are many different items with different traits within this property

    Again the MOST RARE trait within this property is M2 Cyborg (There are only 4 in the entire 5555 collection which represents 0.07%)

    The LEAST RARE trait within this property is M1 Bored (There are 728 in the entire 5555 collection which represents 13.11%)

    You can do this with every single property and identify all the rare traits. Once you have identified them, then you can make a decision which ones you want to “flip” and which you want to “hold”.

    Rare items 👉 higher profit (in the short term), Less rare items 👉 less profit (in the short term) (respectfully)

    Hope you found this helpful.

    References

    Part 1 Of the NFT Series, How To NFT“- https://guardianacademy.io/how-to-nft/

    Gray Wolf Summit: https://graywolfsummit.com/

    MaleksWorlds Twitter: MaleksWorlds

    Build Your Own Community Telegram Channel: https://t.me/web3heroes

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    DISCLAIMER: These articles are for educational purposes only. Nothing in this article should be construed as financial advice or a recommendation to buy or sell any sort of security or investment. Consult with a professional financial adviser before making any financial decisions. Investing in general and options trading especially is risky and has the potential for one to lose most or all of their initial investment.