In a world that can’t live without NFTs, they’re causing a colossal shift in the digital space. In the second half of this year, average monthly trading volumes increased to more than $750M. Currently, random users trade thousands of dollars in the artwork on Twitter. What now? You can get in on the action too. Let’s get started.
Flipping: What is it?
The process of buying inexpensively and selling them swiftly for a profit. It is not a new concept. The practice dates back to flipping toys and trading cards for a profit, which is now reflected in the rapid growth of NFTs.
What’s the reason for flipping NFTs?
In the NFT world, value isn’t hard to come by. That’s why NFTs have attracted investors and enthusiasts alike. It is estimated that over $27 billion was spent on smart contracts (ERC-721 and 1155), indicating numerous opportunities.
For faster flipping, you’ll want to consider investing in high-volume, high-frequency trading projects other than bitcoin and altcoins. Flipping NFTs can be a relatively quick way to add value to your portfolio despite the risks.
What should you look for in a project for NFT flipping?
Establish the credibility and trustworthiness of the project team. Research the team’s background before taking on projects from anonymous people.
Because of the prevalence of NFT scams, your success and investment depend on verifying the legitimacy of creators. For instance, The Supreme Kong collection is the work of Hossein Diba. He’s incredibly trustworthy since he worked on various video game projects for Activision Blizzard, like Tomb Raider.
Can buyers benefit from the project? Veefriends, for instance, allows its members to attend Veecon and connect with Gary Vaynerchuk. As a result, NFTs are in high demand and generate buzz.
Projects associated with reputed names can give you an edge. A company or celebrity’s association with an NFT project significantly increases its success rate. The fact that Bored Ape Yacht Club gained popularity with buyers like Jimmy Fallon, Stephen Curry, and Logan Paul.
Has the project generated a lot of social media buzz? Does a large number of people support the project? You can gauge its popularity by following your project of interest on Clubhouse, Twitter, Telegram, Reddit, and Discord. You can also look at how engaged the community is and not just how many followers they have.
The demand and supply.
Demand increases in times of scarcity. It’s much more likely to profit from an NFT project with a limited number of artwork available.
Interestingly, brand-ability is more important than the art quality in making a project successful. Is the artwork standing out, and could it become distinctive from the pool of other similar projects?
CryptoPunks, a relatively simple piece of artwork, paved the way for subsequent projects such as Weird Whales, thanks to its memeability and unique pixelated style. Uniqueness adds value to a project in the long run.
Profit-making depends on liquidity in all markets. Look for platforms that provide high trading volumes for your investments. Most likely, you will receive offers from collectors quickly.
In this context, floor price refers to the lowest price an item can be purchased. This means that you should seek out products with a low floor price and a small supply.
Tips aside, how do you proceed further?
Don’t worry! Here’s how to get started.
NFTs can be flipped by following a simple process.
- The key to being a successful flipper is understanding what and when you should sell.
- It is necessary to have a Web3 wallet like Trust Wallet or Meta mask. With the in-app browser, you can access different NFT platforms.
- With the community’s continued growth, you can buy NFTs with low gas fees and make money.
- However, it requires some research about which Blockchain platforms make it possible with other viable alternatives.
- A project should also be monitored to see how much recognition and volume it receives.
- That said, keep an eye on other great projects.
So, that’s about flipping NFTs. NFTs aren’t as liquid, unlike their fungible counterparts, so you can only profit if buyers are willing to purchase them. Hence, it is imperative to invest only what you can afford to lose.