Flipping NFTs is a tough business, especially for someone who just started. In case you are not aware of what I am talking about, NFTs stand for non-fungible tokens.
For people looking to make a profit while the crypto market is down, flipping NFTs may be their best bet. So in case, you are looking to make profits by flipping NFTs, you need to read this entire guide carefully so you won’t miss out on anything.
What is flipping NFTs? and How to make a profit from them? To answer these questions, we’re going to expose the process step-by-step. Well, in this article, you will learn everything you need to know about making money by flipping NFTs.
Let’s get started…
What exactly is flipping Nfts?
Flipping NFTs is a process of buying and selling non-fungible tokens (NFTs) for profit. In short, flipping is the art of buying low and selling high which sounds amazing right!
NFTs are unique assets which mean the market price is highly volatile. Following trends, defining the hottest Nft collections, and finding opportunities are some steps of flipping.
Making money by flipping NFTs is growing in popularity and we believe it will get bigger over the next few years. You can use multiple strategies to profit from flipping NFTs.
When you are looking to purchase a non-fungible token, you want to find the one that’s going to scale in popularity and value. If you are early on a new nft collection and buy some pieces at the minting stage, you will make a profit when other people start buying on the secondary market.
Or, you will find a unique nft item in a collection that the current owner is selling low because not aware of how rare the nft is, then you buy and sell it later to another person who is willing to pay what you charged.
How to find undervalued NFTs?
First and foremost, you need to start with a collection. It is not recommended to buy items individually, because even if you find a cool uncommon one, you won’t be able to know its potential value.
The most valuable NFTs are special items from a collection that people are hunting for through the secondary market. So, always keep track of new collections and newly minted NFTs to see if there’s something that catches your attention.
Once you spot something interesting, check the trade and market history on OpenSea to see how the price has been evolving. And also pay attention to what players are saying about a certain nft collection in order to understand why there might be demand for it.
Once you found an item that seems like it could potentially have decent value, later on, it’s time for further analysis. Here are the three most important things to look for;
If you own an NFT (non-fungible token) that can be used to unlock exclusive content or access special features within a game or app, then you might find yourself with a collectible that has more than just monetary value.
It could also have social value since other people will want it simply because they want the same thing as you do: access to that content or those special features. Veefriends, for example, provides NFT holders with entry to Veecon and the opportunity to meet Gary Vaynerchuk.
There are more than 10 million NFTs on the market, and each one of them has a different utility. These benefits pique the interest and demand for NFTs so always DYOR and find the Nfts with good utility.
The Founding Team
The earlier you get into an NFT project, the more profit you’ll make when it gains value. So you need to find an NFT collection that’s still new.
This means that there aren’t many people who discover it yet, so the demand is likely to go up as more people start collecting it. If the demand goes up, then so will the price (at least in theory).
When evaluating an NFT collection, make sure to look at who founded it—and ideally, who is leading its development now. If the founding team has relevant experience in building out products like this one, this will help ensure that your investment continues to be valuable as time goes on!
You know there are many rug pulls and scams out there so, it is critical to do some research about the legitimacy of creators to ensure your success and investment.
As you know, there are no guarantees when it comes to finding a new trading opportunity. Chasing down a profit is similar to fortune-seeking. So to increase your chance to make some profit, you need to do research about the collection’s community.
Make sure the community has a large number of users—that means that there are more people who might be interested in buying or selling your digital assets.
Look at how active the members are on social media. If they have a lot of followers and likes, then that’s a good sign that they have an active audience who might be interested in buying from you.
Pay attention to the quality of their content. If it’s really good, then there’s a chance that people will be willing to pay more for it because of its quality!
Also, an NFT project’s success rate skyrockets when it is associated with a celebrity or a well-known brand. Bored Ape Yacht Club, for example, is quite popular since it has celebrity customers like Stephen Curry, Paris Hilton, and Justin Bieber.
How to make a profit flipping NFTs?
Flipping NFTs is all about buying low and selling high. It’s just like any other kind of investment. You want to find assets that are undervalued so they can be sold later at a higher price.
For example, if you see that there’s a lot of hype around an upcoming movie but its associated NFT hasn’t increased much in value yet, then it might be a good time to buy some before the release date so you can sell at a profit after it comes out!
There are lots of strategies to make money by flipping NFTs. You just need to know the right ones! Here are some best practices:
The first step is to know what you’re buying, so it’s essential to find out what the market value of the NFT or the Nft collection is. To do this, visit analytics tools like icy.tools and look up the price, and daily volume of the nft collection.
Find out what’s trending right now so you know what types of items might be worth investing in later down the line when they become more popular.
If you like the volume and convinced about its starting to be trending nft then the next step is finding unique items in that specific collection by visiting rarity.tools to find higher-ranked nfts.
If you are early to purchase a valuable nft before it skyrockets the value then you are lucky. If you monitor Opensea’s activity tab, it will be easy to determine the trends in real-time.
Ok, let’s as you did your research and decide on the nft collection to purchase, please consider this advice before starting the buy button.
Don’t buy too many items at once; spread out your purchases over time so that you don’t take on too much risk at once.
Always research your item before buying it. Look into its history, popularity, price range, and current market value so that you can determine whether or not an item is worth it.
Minting an Nft
If you are not sure how to buy and sell individual Nfts then you will focus on new drops. There are many nft collections coming out every day and if you join their community early enough, you’ll be selected for the whitelist.
Whitelist is basically is a selected group of crypto wallets that can buy nft before the public mint day and have generally one day to trade on the secondary market before public lounch.
So basically, if there is a high demand for an nft project and if you are luckily selected for the whitelist group, you’ll use this advantage to make some profit.
Many Nft collections are doing daily giveaways for their whitelist spots on Twitter and Instagram accounts. So by following them and interacting with their giveaways, you’ll get a chance to win a whitelist spot even if you are not early to this collection.
Buying and selling on Opensea
If you’re looking to make money by flipping NFTs, be sure to check out Opensea. Opensea is a peer-to-peer marketplace that allows people to buy and sell NFTs directly with each other.
If you missed the mint day of an nft collection, you need to buy it on the secondary market. All you need to do is find a trending collection and pick a rare one. If you don’t know how to do that then you’ll read our how to find trending nfts post.
After deciding and buying the nft you like, start promoting the item on socials. Join the collections Discord server and communicate with other nft holders. If you have a rare nft from the collection, you’ll get bids from others for your nft.
By the way, if you are not into collections but specific Nft artists and their creations, then you can make money by flipping NFTs by buying and selling them in auctions too.
This is one of the most effective ways to make money when flipping NFTs because there are many people who are willing to pay high prices for rare items from talented artists.
Ok last but not least, the final way is to join Alpha Groups. These are groups created by influential people in the NFT space who have a good reputation. To join an Alpha Group, you need mint passes from them (a mint pass is a special virtual item that allows access to certain parts of their group/collection).
Once you’re registered as an Alpha member, the group will share whitelist spots from other collections (where they give away free), valuable information about new trends (what’s popular right now), upcoming releases that nobody knows yet, etc.
Being a member of an Alpha group also helps you meet other successful people from the NFT space which helps grow your network and learn new things every day!
We hope you find value in this post and it gives you some ideas to earn more money from your nft investments. The best thing about the nft market is there are so many opportunities to create value and make profit.
Things change pretty fast and so do these opportunities. It is our role as influencers to provide the latest information and share our experiences with you. .
Nft Giant was developed by industry researchers to assist those new to the field or those who want to learn more about it. You can read our other informative articles or contact us for questions about a subject you are curious about.
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