Buying and selling NFT only depends on the price? Be aware of the hidden costs behind it!

Taiwan is about to start the NFT boom in 2021. From time to time, you will see in the news media things like " Seven days to earn tens of millions ", " JV buy NFT to increase six times ", " Miss Bitcoin, can't miss it again " 's sensational title, successfully blowing the FOMO mood of Taiwanese (Fear Of Missing Out), everyone is ready to move.

If you also want to buy NFT to turn your hands for profit, or even have a fancy project, please suppress the FOMO mood first, and then start after reading this article.

The composition of fees for buying and selling an NFT

The scenario we assume is to buy NFT directly from the website of the project party (such as FOMO Dog Club), and then sell it in the secondary market (such as OpenSea). The following formula represents the actual project composition, and some project fees are floating , there are some items that you may not spend, and can be divided into four parts (four curly brackets), which will be explained one by one below.

[Minting price + casting fee] + [ Deposit transfer fee ] +

[The first listing fee on the platform + sales commission + creation commission] + [ time cost ]

• Mint Price + Mint Gas Fee

Suppose you like a project, and the public sale price set by the project party is 0.5 ETH (usually everyone will use 0.5e), which means that when the project is open, everyone can use 0.5e to Mint (casting) It, but if you only have just 0.5e in your wallet, you can't buy it! Because each transaction on the blockchain will generate a Gas Fee (gas fee, or handling fee, miner fee), the actual price to be paid will be 0.5e plus Gas Fee. According to different situations, Gas Fee will be There is a difference in the floating level. If you want to know how to save Gas Fee, you can refer to the following article:

" Why is Gas Fee so expensive! What is Gas War? How can I save it? "

For the minting price, most projects now issue "whitelist" qualifications. If you can qualify for the whitelist, in addition to early Mint, it is also possible to get a cheaper price than the public sale.

• Deposit transfer fee

Because Mint NFT directly on the project side's website needs to bind its own encrypted wallet on the website to pay. If this is your first NFT purchase, chances are you have never signed up for an exchange (which is usually the first hurdle most people give up), purchased cryptocurrencies, and registered a crypto wallet. These steps are more complicated, and there are many introductory articles and videos, which will not be discussed in this article. Please refer to them if you need them.

It should be emphasized here that when you transfer cryptocurrencies from the exchange to your own wallet, there will also be a gas fee in this process.

Of course, if you already have a wallet and you have enough currency in your wallet to pay, then you can save this deposit transfer fee.

• Fee for first listing on the platform + sales commission + creator commission

When you buy an NFT and its price rises smoothly, you finally feel that it is time to sell it for profit.

So you go to the secondary market (OpenSea, LooksRare, etc.), connect your wallet, check your NFT, and click Sell. It turns out that the first time you sell NFT in OpenSea, you need to activate an account. The way is to make a 0 Meta transaction, and as mentioned earlier, as long as there is a transaction on the blockchain, there will be Gas Fee generation....

After completing some settings, I finally started selling it, and it really sold! However, it is found that the platform will also take a sales commission. For example, OpenSea takes 2.5% of the transaction amount. The creator can also pre-set a certain number of parties from the transaction, which is usually 5%~15%. That is to say, the selling price is 1e, and you can only get 0.925e at most.

• Time costs

From the previous introductions, many people may have found that it takes a lot of time. In addition to studying how to register with exchanges, wallets, purchases, etc., if you want to be an NFT flipper (make money by quickly resell NFTs) people) actually spend more time on "research".

First of all, it is necessary to study which NFT project will rise. You have to research the distribution team, research the Roadmap (usually referring to the future plans and development plans of this NFT project), research celebrities who have praised, even research contracts, research technologies...etc. NFTs that continue to rise after the public sale.

Furthermore, if you want to have better profits, it is best to obtain a "whitelist" qualification to ensure the qualifications of the purchase and possible preferential prices, which means that you must be deeply involved in the interaction of the community (usually It’s in the social software Discord), and it may be necessary to spend a few hours a day in the social software.

Even if all of the above are done, there is no guarantee that your NFT will rise. NFT projects have sprung up like mushrooms recently, and I've heard too many projects that "break" (below the issue price), even if the issuer is a celebrity influencer.

After reading the above hidden costs, I wonder if everyone will think that I am pouring cold water XD. In fact, my intention is to hope that everyone will invest in the world of NFT, with the mentality of learning and embracing new things, rather than holding a speculative mentality of getting rich overnight, so that you are easier to be happy, and you will feel that this new world is really It's very interesting. It's very interesting.

The above is the content of this article to share with you. I very much hope that you will leave a message to interact with me and teach and learn together. Finally, let me say something I often hear, DYOR (Do Your Own Research), one day in the currency circle, one year in the world, the above only represents the situation when I wrote this article, I suggest you read this article according to your current situation. make judgments.

If you think this article is helpful to you, please don't hesitate to give me a "star" and "heart"~