馃攳
How to Buy and Sell NFTs For Profit (Complete Guide) - YouTube
Channel: Max Maher
[0]
NFTs are so hot right now.
[2]
But they can be a little bit confusing,
[4]
So I want to do my part here
[5]
and show step by step,
[7]
me buying an NFT, and listing my very own NFTs
[11]
for sale online.
[13]
So, by the end of this video,
[14]
you should feel like an NFT x-pert (expert).
[18]
So we're going to start with the basics
[20]
of what an NFT is,
[21]
what they do and why people are buying them.
[24]
And then we'll dive into the step by steps right after that.
[26]
And hey, you know, some NFTs are selling for
[29]
tens of thousands of dollars.
[31]
So maybe you'll watch this, you'll understand what's going on
[33]
and you'll be the next big NFT millionaire.
[36]
That'd be pretty cool.
[37]
First off, what is an NFT?
[39]
This stands for Non Fungible Token.
[41]
But what exactly does that mean?
[42]
Fungible means the ability of a good
[44]
or an asset to be interchangeable
[46]
with another individual good
[48]
or asset of the same type.
[50]
So an asset that is fungible
[52]
is the best kind of asset to use in commerce.
[54]
The prime example of a fungible asset is cash.
[58]
If someone gave you a $100 bill
[60]
and you gave them back five $20s,
[62]
no one loses, no one gains anything
[64]
because cash is fungible.
[66]
The same thing would be true if you
[68]
gave me an ounce of gold and I gave you back
[70]
a different ounce of gold,
[71]
they're both worth the same.
[72]
They are interchangeable for one another.
[74]
Now, a Non Fungible asset is one that
[77]
cannot be substituted identically
[79]
for another asset.
[81]
So if me and you were to trade cars,
[83]
even if the car was the same model and year,
[85]
it would not be fungible because
[87]
one of us could have a manufacturer defect,
[90]
or maybe yours rides a little bit better.
[92]
But the gas in your car,
[94]
that would be fungible because it's interchangeable.
[96]
Other, more traditional non-fungible assets
[99]
include real estate, artwork,
[101]
now encrypted digital tokens, aka NFTs.
[105]
Now, the word token, in the case of nonfundable tokens,
[108]
refers to a digital certificate
[110]
stored on a blockchain in the exact same way that your
[113]
favorite cryptocurrency is stored on a public ledger.
[116]
So an NFT is a digital asset
[118]
that can't be substituted for
[120]
any other digital asset, and it's publicly verifiable.
[124]
Now you might be thinking, why would I pay
[126]
$100 or $1 million for something that
[129]
I could literally just screenshot and have for free in my phone?
[132]
And that's a great question.
[134]
It really comes down to the verifiable ownership,
[136]
collections and social status.
[139]
So just like most expensive things,
[141]
they're generally purchased
[142]
in some way as a status symbol.
[144]
And then as everything is turning more and more
[146]
to the online world,
[148]
it's just a natural extension for people
[150]
to want status in this world
[152]
that they "live in", the digital world
[154]
where we spend most of our time, frankly.
[156]
So this is why we're seeing expensive NFTs
[159]
being used as profile pictures on social media
[162]
because it's just status.
[163]
It's social status in the online world.
[165]
The second extension here is collectibles,
[168]
not unlike Pokemon cards or stamps.
[170]
NFTs can be collected and certain collections
[173]
gain a following and a community and then demand increases.
[176]
Some people love the communities and want to
[179]
buy in because it's a community that they love,
[181]
where others may want to make a quick buck
[182]
and they buy into a collection in attempt
[184]
to flip it for a higher price.
[186]
Now this is a very very new industry
[189]
and most projects will become worthless,
[192]
but a small percentage will be around
[194]
for the long haul, whether you like this concept,
[196]
whether you agree with it or not.
[198]
And either way, it's important to understand
[200]
how NFTs are purchased and how they're sold.
[203]
So I'm going to show you how to do both of those
[205]
step by step, including listing some of my
[207]
very own drawings on an NFT marketplace
[209]
as a fun experiment here.
[211]
Also, as a side note, I spent a lot of money on this
[213]
video in Ethereum gas fees, so if you wouldn't mind
[215]
hitting the like button and the subscribe button in here,
[217]
I would be forever grateful because
[220]
- I am never gonna financially recover from this.
[223]
Now that we know all the basics, let's do some
[224]
buying and selling of NFTs.
[226]
And in order to do that, we are going to go over to opensea.io
[229]
This is the largest marketplace to buy and sell NFTs,
[233]
and we're just going to click Create up top.
[235]
Now this says you need an Ethereum wallet to use OpenSea.
[238]
It says Get MetaMask, you can use one of these other wallets here
[241]
but frankly, MetaMask is the easiest.
[242]
You need to first set up MetaMask,
[244]
fund that wallet and then you can do your buying and selling.
[248]
So we need to first get MetaMask.
[251]
So you install this to Chrome.
[254]
Add to Chrome
[256]
Add extension.
[258]
Alright, now we click Get started,
[261]
and we're going to create a wallet.
[265]
We're gonna click "I Agree".
[267]
And you need a good password here.
[270]
All right, agree to the terms of use.
[272]
Here's a video telling us about the recovery phrase,
[275]
and this is the recovery phrase.
[278]
Now you need to note this down
[280]
or you can just click "Remind me later"
[282]
and they'll tell you about it later.
[284]
But when you do take a look at it, make sure you
[286]
keep that somewhere secure, preferably offline
[288]
and somewhere super safe that you're not going to lose it
[291]
and someone else isn't going to find it.
[292]
You need that.
[293]
Just jot that down.
[295]
Keep it somewhere very very safe.
[296]
Now we need to get money into our MetaMask wallet,
[299]
and in order to do that, we're going to copy our address up top here.
[302]
And then I'm going to go over to my exchange that is
[304]
holding my Ethereum.
[306]
We have to use Ethereum in this case,
[308]
and then we're gonna transfer that Ethereum over.
[310]
Now I use KuCoin.
[312]
If you are looking for an exchange
[314]
or you want one that offers tons of cool features like
[316]
lending and staking, all sorts of stuff,
[317]
go ahead and check out KuCoin, that'll be linked down below.
[319]
If you use that link, you'll save some money on trading fees.
[322]
But if you're using something like Coinbase or Binance,
[324]
it's going to be very similar.
[325]
You're just going to have to withdraw the money
[327]
from your account onto your MetaMask wallet.
[331]
So we're going to do it on KuCoin here.
[333]
So we're going to go over to our Ethereum.
[338]
Paste in our wallet address.
[342]
Choose the network,
[344]
the amount that we want to withdraw.
[347]
I'm going to withdraw about $400 worth.
[351]
Remark:
[352]
We're just going to say,
[353]
"Buying art"
[354]
and click confirm.
[356]
And there we go.
[356]
So this will take anywhere from a couple of minutes
[358]
all the way up to potentially 30 minutes to go through.
[361]
It does vary a little bit, but
[362]
just keep an eye on your MetaMask wallet, and it'll pop up there.
[365]
So for me, it only took a couple of seconds,
[367]
and it's in our MetaMask wallet here.
[369]
Now it's time to buy some art.
[371]
Now we're back over to OpenSea, we're gonna click Sign In.
[374]
We're signing into MetaMask.
[376]
Here, we have our account,
[377]
and here we are. This is my account.
[379]
Currently it's unnamed, here's no collection.
[381]
We'll change that later.
[381]
But first we're going to buy an NFT.
[383]
So on here, you can browse collections.
[385]
If you have a specific strategy that you're going for
[388]
in order to buy NFTs and flip,
[390]
you can go ahead and do that.
[391]
There's tons of cool art on here, I will say
[394]
this is high risk,
[395]
especially if you're buying aftermarket NFTs,
[398]
it's kind of a double risk here.
[399]
Because not only is there the risk of the volatility
[402]
of Ethereum as a token, but also
[405]
the risk of purchasing an NFT,
[407]
that may never be purchased for that price again.
[410]
And the risk is different with an NFT because
[412]
you don't have the same liquidity.
[413]
You can't just place that Ethereum
[416]
on an open marketplace and it gets
[417]
executed like that.
[418]
With an NFT, you need to have an individual buyer.
[421]
It makes things a little bit more tricky,
[423]
so be extremely safe.
[424]
This is not the kind of thing that you wanna
[425]
throw your life savings into.
[427]
Just be extremely careful, this is very speculative.
[430]
So I did some browsing and I came across this collection
[432]
that really stood out to me is the Lucha Libre Knockout.
[435]
I don't know, they got bold colors, cool characters, but mostly
[438]
it stood out to me because I came across this character,
[440]
which I'm coining,
[442]
[Laughs] I'm calling this guy High Max on Halloween
[445]
because it looks like me, if I was like-
[446]
I don't know, I'm imagining me like baked,
[448]
wearing every single Halloween costume possible.
[452]
[Laughs] This one is $109.
[454]
So in order to buy this, click Buy now.
[456]
Check this box.
[458]
Connects you to the MetaMax wallet.
[460]
Now, the unfortunate part here is gas fees.
[462]
This is basically the transaction fees in order to
[464]
facilitate trades.
[465]
It's the biggest friction point, and it's very unfortunate
[468]
how expensive this can be.
[470]
It's $52 right now, we can
[472]
possibly get his a little low, it's already on the lowest amount.
[474]
So this is the speed at which the transaction goes through.
[477]
It just bumped up as I was talking.
[479]
So this should completely be mitigated far lower
[482]
once Ethereum 2.0 comes out, and it's a proof-of-stake system.
[485]
Unfortunately, Ethereum is the primary method
[487]
in order to purchase these.
[488]
If it was ADA, it would be cheaper.
[490]
But this is, kind of, all we have.
[492]
So I'm going to go ahead and make this purchase here.
[494]
The gas fees are $57.
[496]
The total purchase is $167.
[498]
We'll click Confirm here.
[501]
It's processing,
[502]
And there we go, it's complete.
[503]
I am now the proud owner of Lucha Libre Knockout number 1687,
[508]
coined it the name High Max.
[510]
And now let's cover how to create an NFT,
[513]
and sell it on this marketplace.
[515]
So we're going to go to the Create tab up top here.
[519]
And this is where you can actually upload
[521]
any kind of file type you want.
[522]
JPEG, PNG, this could be a video, this could be an audio file,
[526]
whatever you're trying to mint as an NFT
[528]
and then sell on the marketplace.
[530]
So in my case, I have all sorts of drawings
[533]
that I've made for previous videos
[534]
that I'm a fan of.
[536]
So I thought, you know what, I'll just throw them on
[538]
OpenSea as NFTs and we'll just see what happens.
[541]
At least it's kind of a fun experiment.
[544]
So the first one that we're going to upload is Smart Contract
[548]
little drawing I made of a Smart Contract.
[555]
All right, so we filled out the descriptions for the Smart Contract NFT.
[559]
We're going to click Create.
[561]
You just created Very Smart Contract.
[563]
Now we're going to click Sell up top here.
[565]
So with this, I decided to go with the auction-style bidding,
[568]
and then I did a very low minimum bid because
[570]
I just think it'd be cool for this to sell.
[572]
And then I did the reserve price, I just bumped that up
[574]
because, hey, if people want to bid this thing up,
[577]
that's totally fine with me.
[579]
And one note here,
[580]
2.5% always goes to OpenSea,
[583]
and of course, there's always gas fees.
[585]
Now, there's just fee after fee when you're first
[587]
starting out and you're first listing NFTs,
[589]
I guess, the classic you have to "spend money to make money".
[592]
So there's a couple of fees when you list your
[594]
very first NFT that are fairly expensive.
[597]
And then, after your first one,
[599]
it's pretty cheap.
[599]
So here are the fees that you pay
[602]
for your first listing.
[603]
So if it's your first time selling an NFT, you need to complete
[606]
two one-time transactions.
[608]
First one to initialize your account for making orders,
[610]
which only needs to be done once for your account,
[612]
and second to allow OpenSea
[614]
access to your item,
[616]
basically within your wallet.
[618]
So we'll see here, when I click Post your listing,
[621]
there's going to be another fee.
[623]
We can see here the gas fees are quite high again,
[626]
but I'm just going to bite the bullet and do this.
[628]
Do it for the content, so make sure you hit that like button.
[631]
We'll click confirm here.
[633]
Oh it just went down a couple-
[634]
we're just gonna ahead and confirm.
[637]
It initializes the wallet.
[639]
And again, you only have to do this big transaction
[641]
on the first time.
[642]
It's unfortunately their way, the lowest I've ever seen is
[644]
like $65 for that first transaction,
[646]
the highest I ever heard of is like $450.
[649]
Usually if you just wait a little bit, you can at least
[651]
get it slightly lower, but you know, depending on the day
[654]
and what's going on in the network,
[655]
it can be pretty expensive.
[656]
So we just got this notification.
[657]
I'm going to go ahead and click confirm here.
[659]
The item is now listed for sale.
[661]
I'll have this link down the description, if you want to take a look at it.
[664]
Let's go ahead and add some more listings here.
[666]
This is my CoinPlace drawing.
[668]
It's like my illustrative version of a centralized exchange.
[672]
Here we go on the second one, as you can see,
[673]
there was no fee here.
[675]
[Laughs] We love to see that.
[676]
Here's my terrible self portrait, I call him Thumb Max.
[679]
Here's my favorite piece of art of them all.
[681]
This is the signature Max Bux.
[683]
I'm gonna have to list this one for higher.
[685]
So here we have it, the full collection.
[686]
We got the hand holding cash,
[688]
the Blockchain Wallet, Bitcorn,
[690]
the Ethereum coin, Max Bux,
[692]
Thumb Max, you name it,
[693]
it's here on this collection, folk.
[695]
Go ahead and click the link for this and
[697]
click around on it a little bit.
[698]
But yeah, this was a fun experiment,
[701]
I mean, I already had these drawings.
[703]
This is like, I might as well just throw them up and
[705]
and list them as an NFT.
[707]
So this is gonna do it for today.
[708]
I'd like to thank you so much for watching
[709]
and I hope you have a profitable day.
Most Recent Videos:
You can go back to the homepage right here: Homepage