Anybody who hasn’t been living under a rock has heard of NFTs and the massive disruption they’re causing in the digital sphere.
During the second half of this year, average monthly trade volumes increased from $64M in the first half to over $750M. Now that the celebration is still going strong, we can witness random Twitter users selling pieces of art for hundreds of dollars.
Despite the fact that you might not sell for much, the good news is that you can still tune in and make some money. Let’s get digging straight in.
Flipping is a general phrase meaning acquiring goods at a loss and reselling them for a profit. It has always existed—since the days of selling trading cards, toys, and comics for cash—and the NFT market is currently experiencing a tremendous wave.
Only valuable items can be flipped, and NFTs have quickly drawn in a wide range of investors because of their value.
For faster returns, you could prefer to invest in high-volume NFT initiatives rather than holding Bitcoin and alternative cryptocurrencies or producing and collecting tokenized art over the long term.
Flipping NFTs is a potentially dangerous yet reasonably quick strategy to increase your portfolio.
Making a profit in the stock market or any other financial market entails examining measurements and choosing the best course of action. People typically choose assets that are inexpensive right now or whose value they anticipate rising.
You must conduct thorough research and identify your niche when using NFTs. Typical niches include works of art with animal themes, abstract art, collectibles, domain names, or even digital real estate.
How successfully an NFT project performs is largely determined by three important measures, among other things. They are:
- Quantity of Items: Demand is usually increased by scarcity. Limited-quantity NFT initiatives are considerably more likely to be profitable for you.
- Floor Price: The lowest price for an item is called the “floor price.” You want to hunt for products with little supply and cheap floor costs.
- Volume: Profitability in any market hinges heavily on liquidity. Pitch your assets on exchanges with a lot of trading activity. You might easily find collectors willing to purchase your things.
NFT platforms are quite good at directing users toward potentially hot assets. For instance, on AirNFTs, the “Top Artists” and “Exclusive Drops” categories are worthwhile to browse over before making a purchase. On OpenSea, the Rankings and Activity pages also provide some light on some potentially excellent projects.
Social media has made free alpha widely available today. You undoubtedly already know that celebrities and well-known NFT influencers frequently announce new initiatives on their social media profiles on platforms like Twitter, Reddit, Telegram, Discord, and Instagram.
It’s a good idea to monitor their pages. NFT platforms have social media pages as well, where they frequently advertise the initiatives of their members.
Rare and in-demand NFTs are the ones that flip the most profitably. Researching the market and keeping an eye out for trends are the greatest ways to find these NFTs. The most well-liked NFTs to Flip is as follows:
- Ethereum Name Service (ENS) domains
- Decentraland Land Parcels
- Axie Infinity Creatures
- Lucky Block NFTs
You must purchase low and sell high if you want to flip an NFT. The easiest procedure to do this is to conduct market research and trend searches. Let’s imagine, for illustration, that you wish to Flip Cryptokitties.
Finding Cryptokitties that are undervalued and have the potential to appreciate in value is the first step. You can accomplish this by performing market research and trend scanning.
The Cryptokitties must then be purchased for a bargain. To achieve this, look for bargains on internet discussion boards and auction websites.
The Cryptokitties must then be sold for a larger sum. List the Cryptokitties on internet message boards and sale websites to do this.
- Find NFTs that are now discounted but have the potential to rise in value. By investigating the market and keeping an eye out for patterns, you can uncover these NFTs.
- Purchase the NFTs for a discount. To achieve this, look for bargains on internet discussion boards and auction websites.
- Sell the underpriced NFTs for more money. List the NFTs on internet discussion boards and sale websites to do this.
- Flip more NFTs to boost your earnings. You can make more money by flipping more NFTs.
- Your earnings can be reinvested to flip more NFTs. This will enable you to increase your earnings.
It’s important to keep in mind that NFTs are less liquid than their fungible cousins, so you can only profit as long as there are buyers available. You must therefore be careful to only invest money that you can afford to lose.
If you do it well, NFT flipping can be profitable. Buying cheap and selling expensive is the key. Through market research and trend-spotting, you can locate undervalued NFTs. If you discover an NFT that is undervalued, you can flip it by purchasing it at a low price and then selling it at a high price.
Flipping an NFT is a profitable endeavor, but caution is advised. Prices can change quickly on the market, which is unstable. Flipping an NFT when it’s not the right time could result in financial loss. Use only money that you can afford to lose when trading.