Minting can refer to the process of integrating an item or collection into the blockchain or purchasing an item for the first time from an NFT project. NFTs have become a new buzz for investors looking to buy low and sell high, a strategy known as “flipping.” 

When it comes to NFTs, businesses are done on platforms known as “markets.” Although NFTs are not as liquid as cryptocurrencies that can be easily traded on exchanges, they can be minted, bought, and sold on a variety of marketplaces.

NFT Primary Market

An NFT primary market is a platform that allows an investor to mint NFTs directly from the creator or collection. It is a transaction that usually entails that use of the project website. Primary markets are mostly used to conduct NFT presales before they hit the secondary market.

NFT Presale

Prior to the official launch of any NFT project in which items are sold to the general public, specific entities or investors are granted exclusive minting rights. The primary market presale is typically held at a date just before the public mint and involves team members, early investors, and investors with OG and whitelist roles. 

Team members: These are the individuals responsible for the project’s existence, continuity, and success. From the project leader to the developers, designers, and marketers, as well as the social moderators and community leaders. During the presale, team members have the opportunity to mint at zero to very little cost. 

Early investors: These are individuals who have contributed capital to the project in its early stages but do not play an active role in its operation. They are compensated with tickets to the NFT presale because the funds they provided is an important input that set the ball rolling. 

OG and whitelist roles: OGs are degens who were among the first to join the community. They receive their VIP status and presale privileges solely for joining the project community before anyone else. Investors on the whitelist, on the other hand, are people who can participate in the presale due to factors determined by the project team. Community involvement (chatting, retweeting), giveaways, tasks, fan art, invites, or collaborations are factors that may be considered for inclusion on the whitelist.

Benefits of Presale Minting on Primary Markets

There are a lot of scams in the NFT market that you should be aware of. Scam projects can trick you into visiting their websites under the guise of minting and drain your wallets when you connect them to their platforms. However, minting from the primary markets of genuine projects can have several advantages, some of which include:

Guaranteed Mint

Presales are an excellent way to secure ownership of a project’s NFT, particularly for popular or hyped projects. Those who can mint from the collection early enough do not have to worry about FOMO due to a lack of supply or a high demand for NFTs from the collection when they are released. 

Avoid The Gas Wars

The infamous gas wars are a popular term used to describe a sudden and explosive increase in gas fees, as well as slower processing fees when attempting to complete transactions such as minting. This is especially true for investors looking to mint NFTs from popular new projects on the Ethereum blockchain, as a result of a congested network. Mining on the primary market is the best way for you to avoid this predicament and save gas fees.

Mint For A Cheaper Price

Investors who mint at presale on the primary market have the added benefit of minting NFTs at a much lower cost, or even at no cost at all. Purchasing items at the lowest possible price is the safer investment option, putting you in the best position to profit when you decide to list and resell on the secondary market.

NFT Secondary Market

These marketplaces serve as intermediaries and facilitate NFT trade between projects and collectors, as well as buyers and sellers, for NFT projects looking to launch their collections into the space. You can buy newly released NFTs here, as well as list and resell previously minted NFTs on the primary market. A secondary market is also where an NFT project’s initial public launch takes place.

NFT Public Sale

An NFT project finally decides to launch its collection into the open market after months of careful planning, designing, blockchain development, smart contract formulation, funding, community building, and hype. The sale of a project’s collection to public investors via secondary markets is what an NFT public sale is all about. The process signals the option of openly trading the assets by public investors, as well as the project’s own full entry into the NFT market.

Benefits of Public Sale Minting on Secondary Markets

Secondary markets have grown in popularity as a viable option for both NFT projects and investors. Despite missing out on lower NFT rates available on the primary market, secondary markets have their own merits:

Security

Secondary markets may not completely eliminate scams, but they can help you distinguish between genuine and fraudulent projects through verification processes.  These markets offer more secure ways to connect your wallet and trade NFTs than the primary market.

Access to Project Information

Most secondary market platforms provide various vital information about the projects they have listed. You can view a collection’s overall trading history since its inception, as well as floor prices, sales history, trading volumes, and so on.

Ease of Trade

Secondary market interfaces are simpler, making it easier to navigate and complete transactions. During mints and trades, the platforms are less susceptible to technical difficulties and smart contract exploitation. They are also less likely to lag or crash because they are designed to handle much more transaction traffic than traditional sites used by primary markets.

Bottom Line

While profiting from NFT projects is the more documented and proven path to massive profits, the majority of projects will inevitably fail, leaving investors worse off. To either flip NFTs for profit or hold profitable long-term positions for projects that have the potential to remain relevant in the long run, you have to be able to conduct careful research, be risk tolerant, have smart investment strategies, and have a keen understanding of the NFT markets.