Flipping NFTs: Guide On How To Flip NFTs For Profit
Flipping is the term that is often used in economics and now is used in the NFTs field as Flipping NFTs. The concept refers to the act of buying and holding assets for a short period of time for the purpose of selling them quickly for a profit. It is a common occurrence in real estate-related discussions and IPO transaction-related talks.
Although these are the most notable use cases in finance, flipping can broadly characterize the purchase of an object with the intention of selling it for a profit in the near future. It usually entails buying and selling vehicles, cryptocurrency, concert tickets, etc.
What is NFT Flipping?
NFT Flipping in the Blockchain business is nothing but the process of purchasing NFTs at a low/cheap price and selling them at a high price to gain profits.
The concept has been utilized in finance for decades, dating back to the early days of toys, trading cards, and the resale of comic books. Thus, this is not something new for traders and investors. However, the exposure to NFTs has created new opportunities for investors to earn more money.
The investors who engage in flipping are known as flippers and they usually find non-fungible tokens profitable and appealing. This is due to the speedy returns that one can gain while trading NFTs.
Flipping non-fungible tokens is a riskier investment, but it is a faster approach to improving your wealth. However, it must be noted that only valuable assets and items can be flipped in the NFT market.
Note: The speedy returns provided by NFTs largely depend on the size of the NFT project.
How to flip NFTs?
As discussed above, flipping NFTs involves buying NFTs at a cheap price and selling them immediately at a higher price to gain profit. Although the process looks simple, one must remember that not all NFTs perform well and appreciate value.
Thus, flippers must lookout for hot NFT projects and undervalued NFTs to buy them at the lowest possible price and flip it for high returns.
Like any other financial market, making money in the NFT market necessitates studying some vital metrics to choose the best feasible option. In general, people prefer undervalued NFT assets or the ones they believe will improve in value in the future.
And when it comes to NFTs, the flipper must conduct thorough research and stick to a niche they are comfortable with. Some common niches are animal-themed art, domain names, collectibles, and metaverse lands.
Three crucial metrics primarily determine how well an NFT project will do. They are:
- Volume – Always look for those platforms with high trading volumes to pitch your investments.
- The number of items – NFT projects that are limited in the number of items are much more likely to give profit.
- Floor price – The term “floor price” refers to the lowest possible price for an item. Look for things with low floor prices and limited supply.
So, to summarize,
- Find the right project – Flippers must choose an NFT project and NFT collection they are interested in. Furthermore, they must pick a project at a reasonable floor price.
- Research on listing pages – The flippers must study the selected NFT collection. In other words, they must look for rare characteristics in an NFT to make the purchase.
- Buy and sell immediately – Once the first two steps are completed, the flipper can buy the NFTs of their choice and sell them on secondary markets.
How to pick profitable NFTs to make money?
Although flipping NFTs sounds simple, understanding how to flip NFTs to make a profit takes a lot of dedication and patience. The flipper must invest time and energy to comprehend the trading strategies to succeed. Your guide to knowing how to invest in NFTs
There are usually multiple elements involved to determine if a chosen NFT will make a profitable flip. However, to make it easier for beginners, here are some factors to consider:
- Community: The community support received by the NFT collection or project can help gauge its popularity across people. Are people discussing the NFT? Are they interested in buying it? These are some questions that might help flippers to decide if they pursue a particular NFT or not. Furthermore, they can follow the project of interest on social media channels like Twitter, Telegram, Reddit, etc., to check the engagement and popularity it receives from the audience.
- Celebrity support: An NFT that has garnered the support of a well-known company or celebrity is usually known to perform well in sales. Endorsements from celebrities like Elon Musk can make an NFT really popular.
Bored Ape Yacht Club is one excellent example, as it has got celebrity buyers like Logan Paul, Stephen Curry, etc. Thus, choosing a project with good community support can make the NFT stand out from the crowd.
- Uniqueness: Similar to being rare, an NFT that is unique or has iconic characteristics can have great value than regular art or videos.
For example, despite its simplicity, the CryptoPunks artwork was the first of its sort to have a distinct pixelated design that gave a unique look to them. Furthermore, it inspired more popular initiatives such as Weird Whales. Thus, we can conclude that the more distinct the project’s aesthetic is, the more valuable it will be in the long run.
- Utility: This is one of the crucial factors to look for in an NFT. While some people take pride in owning unique NFTs, others look for utility (usefulness) and perks. Most people look for added benefits that come with purchasing an NFT. Thus, look for NFTs such as Veefriends, which provides its buyers with access to Veecon and a golden chance to meet Gary Vaynerchuk.
Another example of utility comes from an American band called Kings of Leon’s, who auctioned off their album as an NFT, along with golden tickets. These tickets gave special privileges to their buyers by offering them four front-row seats on every King of Leon tour for life.
Thus, we can conclude that benefits such as these create a good buzz and generate demand among people.
- Credibility: With NFT frauds on the rise, verifying the trustworthiness of creators is critical for your success and investment. Always double-check to ensure that the NFT project team is trustworthy and credible. Avoid projects led by nameless individuals, and conduct your homework on the team’s history.
Flipping NFTs is quite simple. You’ll need a Web3 wallet, such as Metamask, and a good NFT marketplace to get started. Once you find your desired collection, you need to buy and sell them to make good profits. Check our collections in our NFTs Platform.
One must keep a watch on NFT projects and understand the nuances of selling the NFTs at the right time to make intended profits. However, one must also be prepared to face risks and losses since the NFT market is subjected to volatility and uncertainties, just like any other market.
Nevertheless, one can always follow the tips given in this article to minimize the risks and move forward to build their assets.
Whether you wish to learn about NFT, Blockchain, Web3.0, Metaverse, or other emerging technologies, we have the vital resources that will enlighten and help you make an informed decision.
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