How to Flip NFTs for Profit - Next NFT Drop
Next NFT Drop
How to Flip NFTs for Profit

How to Flip NFTs for Profit

NFT_Admin
Feb 02, 2022

Across the bustling crypto space, non-fungible tokens (NFTs) have stood out by offering investors comparably higher returns through flipping the tokens. In 2021 alone, NFT sales volume hit $25 billion, rising from barely $100 million the year before. And there are no signs of slowing down in 2022. These digital collectibles are disrupting the art and music industries while providing users with opportunities to make a quick buck. How, you ask? Let’s get to it.

What is NFTs Flipping?

In finance, flipping refers to buying an item and holding it for a short term before selling it for a quick profit. Similarly, in crypto, flipping art for profit is when crypto traders purchase crypto products like NFTs and sell them for profit after a short holding period. Today’s NFT marketplace provides a thriving environment for investors – known as flippers – to add to their NFT profits through flipping.

You have probably asked yourself ‘How can I make money with NFTs?’. Not everyone can produce digital artwork, music or video content to mint NFTs and sell. But buying already-minted collectibles and selling them for a profit is open for any interested investor. Like any other investment, to flip NFTs is not risk-free, and traders must deploy some fundamental strategies not only to minimize potential losses but also enhance their profit margins.

Why Flip NFTs?

As a trader, you are always on the look out for a profit-making venture and shorter profit return periods make such projects even more lucrative. NFT trading is one such venture – with an expansive marketplace offering numerous collectibles for investors to purchase and resell. Random traders flipping collectibles have raked in thousands of dollars in weeks, even days. Notably, flip trading offers less risks as NFTs do not experience high volatility as cryptocurrencies do. A bearish crypto market provides even possibly higher profit margins as users can buy NFTs at lower prices and wait to sell as crypto prices soar.

How Do I Flip NFTs?

Basically, flipping NFTs involves purchasing the collectibles at a lower price and shortly after, selling them at a higher price to earn a profit. But there’s a catch – not all NFTs will have an appreciating value. So, flippers have to selectively spot hot NFT projects to buy the easiest items to flip for profit.

With blockchain as the underlying technology for minting NFTs, these collectibles are only worth what other users will be willing to pay for them in the NFT marketplaces. As such, flip trading involves a careful assessment of the available NFT projects to identify those with the potential to grow in value over a short period.

First, you need to identify an NFT category, for instance digital abstract artwork, virtual property, ape-inspired pieces, among others. Then, conduct a detailed research on the NFT category to assess the potential of earning a profit through flipping. Here is what to look out for when identifying things to flip:

Rarity: A project issuing fewer collectibles will experience more demand for the available items, hence a higher potential for increase in value.

Minimum Price: An NFT with a very low floor price will more likely increase in value. Coupled with scarcity, purchasing such a token makes for a good NFT flipping trade.

Demand on Secondary Markets: To increase chances for profitability, you will need to resell the collected NFTs on marketplaces with higher trading volumes where more collectors can see and possibly purchase the token.

Intrinsic Utility: Some NFTs can be deployed to gaming and other roles on the metaverse as precious collectibles or for other purposes. Such tokens are highly likely to appreciate in value hence flipping them can be profitable.

NFT Trends: Pick out projects that draw much interest from the crypto community. NFTs from such projects are more likely to appreciate in value as collectors will more readily purchase them. This is drawn from the classical ‘buy the rumor, sell the news’ strategy on traditional stock markets.

Spotting NFT Projects to Flip

You can purchase NFTs by matching the offer set by a seller on the marketplace. Alternatively, if there’s no set price, you can offer your purchase price pending the seller’s acceptance of the offer. But where can you spot NFTs to flip? And, where can you sell your NFTs? Here are a few places to check regularly:

Categories on NFT Marketplaces: Always look out for trending NFT projects on various marketplaces like OpenSea, AirNFTs, and Rarible. These platforms keep an updated segment of the latest and hottest NFT projects including works by top rated artists and exclusive NFT drops. These segments will keep you up-to-date with the NFTs that are creating a frenzy among enthusiasts, making them a good buy for flip trading.

Crypto Segments on Social Media: Various social media platforms have users who mainly talk about the crypto sector. You need to familiarize with these crypto-dominated segments of the social media and learn what NFT projects the influencers on Reddit, Twitter, Telegram, Facebook or even Instagram are promoting.

FAQ

Can you make money selling/flipping NFTs?

Yes. Flipping NFTs requires you to assess NFT projects, identify those with the most potential for appreciating in value, then purchase the NFT(s) to resell later for a profit.

Should I hold or sell my NFT?

It depends. Holding your NFT for much longer is riskier yet presents potentially higher revenues if sold in the future. Selling your NFT early may have comparably lower returns but it’s less risky. So, what is your risk appetite?

How can I trade NFTs for profit?

Identify scarcely-supplied, highly demanded, utilitarian, trendy and low-priced NFTs. Then, purchase them to sell after they appreciate in value.

How do you know if NFTs are valuable?

The value of NFTs is determined by how much collectors are willing to pay for them. You can determine how much an NFT is valuable by assessing its market demand, where it is listed for sale, or even how many of similar NFTs are in supply.

 

U.S. President Joe Biden includes cryptocurrency to his newly signed executive order

U.S. President Joe Biden includes cryptocurrency to his newly signed executive order

James HillNov 03, 2022

Based on the fact sheet, 16% of Americans have invested, traded, and used cryptocurrencies. Hence U.S. President Joe Biden called out and said to investigate the said digital currently.  In...

TOP THREE REASONS WHY NFTs ARE VIABLE LONG TERM ASSETS

TOP THREE REASONS WHY NFTs ARE VIABLE LONG TERM ASSETS

James HillMay 18, 2022

[kc_row use_container=”yes” force=”no” column_align=”middle” video_mute=”no” _id=”325270″][kc_column width=”12/12″ video_mute=”no” _id=”284390″][kc_column_text] Introduction Non-fungible Tokens (NFTs) represent ownership of an object. Money is an example of a fungible asset where units can be...

Celebrities and NFTs: What’s all the hype about?

Celebrities and NFTs: What’s all the hype about?

Sarah MorganMay 18, 2022

More celebrities are joining the NFT world, making the topic of celebrities and NFTs an important one to explore. The main factor is drawing celebrities into NFTs in the quest...