Want to know How to Flip NFTs? It’s Easier Than You Think

Are you hoping to earn a quick profit on the NFT you recently purchased?

The way to go forward is to flip NFTs. Learn the intricacies of how to flip NFT, the fundamentals of the procedure, and make sure you understand the repercussions of flipping a NFT.

Investing In NFTs:

Everyone around the world is talking about NFT collections and their returns. But the question still remains for many beginners, is how to acquire an NFT and resell it for a profit. Purchasing any of these one-of-a-kind assets is an acquired skill by itself; the subject of how to invest wisely in NFT, on the other hand, is an entirely different game. 

A non-fungible token is a digital asset represented in many ways, including memes, movies, any type of online artwork, music, in-game products, virtual avatars, and in-game skins, tweets and GIFs.

They are easily replicated and shared. Any of these things are often available in an endless supply on the internet. The goal of NFTs is to increase scarcity and claim ownership of digital output as the “original”. If a person has an NFT of a digital asset, they own the original asset.

What is flipping NFTs?

Flipping is the process of purchasing an object at a cheaper price, retaining it for a period of time, and then selling it for a profit. The time limit can be anything from one minute to one year, which is completely decided at the discretion of the user.

Flipping has been around for a long time. NFTs are currently the newest and most popular items on the market. In the market, such users are called “flippers”. There isn’t much of a distinction between flipping NFTs and houses, vehicles, or other items such as artwork.

In truth, the concept is the same in both cases.

Users acquire these items for the distinctive traits they have or because of the chances that they can afford them—a home to live in or an NFT that generates income passively—with the idea of selling or exchanging them for a price of higher value in future.

How to find NFTs to flip?

Like in any financial stock market, to make a profit, users need to do a thorough analysis and research to make the best decisions. Normally, users choose assets or items with a low value in the present, hoping the value would increase in the future or with time.

In the case of NFTs, users must first establish their niche and do an extensive study into the market segments they intend to invest in. The value of the NFT is determined by its rarity and availability, thereby leaving the pricing of the NFT based on current trends in the market.

  • Every user has to do their own research about the NFT project they are interested in. 
  • At any given point, users must be capable of understanding and explaining the project.
  • Users should be comfortable with the ups and downs of crypto trading after adequate time and independent study. 
  • With time and practice, users will eventually learn how to spot NFT projects early on and how to react to various market movements.
  • Another important practice that users should avoid is to blindly follow the work of another trader. A particular technique that works for one user may or may not work for another. 
  • Figuring out why, what and how a particular strategy is used is vital before applying it. 
  • Such an analysis always comes in handy because that knowledge can be used in the future while trading with NFTs. 

Where to Spot an NFT?

In the process of learning how to flip NFTs, it is essential to know how to spot good NFTs. A good strategy can assist users in expanding and strengthening their portfolios. 

Listed below are a few of the most effective strategies often applied by seasoned NFT flippers. 

Secondary Market: 

NFTs are discovered on a secondary market after being purchased and are currently being resold. 

This raises a crucial question: what precisely is a primary market?

It is a straightforward deduction, the primary market is the market in which the NFT was initially made and sold. All of the flipping takes place on the secondary market. In simple terms, the number of times an NFT gets flipped is exactly proportional to its popularity.

Using Ranking Categories:

Another important or helpful approach is to check the NFT rankings on the secondary market. This is an excellent technique to determine which NFTs are the best and compare their pricing to your budget. Some of them may even be brand new on the market, allowing you to receive a better deal.

Social Media:

Social media is a great tool to spot the latest trending NFTs. It is handy to follow all the famous NFT creators on Instagram or Twitter. A lot of people who are interested in NFTs have an online presence which allows them to market their NFTs on their social media pages. 

A general search does not give enough information; deeper research is required on the social media accounts of the NFT developers to know the kind of work they have been doing and the following they have garnered online. Making sure that the followers are real people and not just fake accounts is mandatory.

Online NFT Calendar:

As a crypto-investor or enthusiast, NFT calendars are one of the best ways to keep track of the upcoming events regarding NFTs. If a user is looking to buy, sell or trade an NFT, these calendars are useful to keep up on when new collections are bound to be released into the market. Also, knowing how many people are tracking events helps a user understand how sought after they are. This information is crucial for flipping NFTs.

NFT Tools: 

It could be a good idea to employ a few tools to assist any user with their NFT search. Some tools provide consumers with a market overview and allow them to dig deeper into NFTs data. There are solutions like bitsCrunch’s Scour that allows users to see the whole history of the NFT and protect them against washtrading. Users who are new to flipping NFTs can utilize bitsCrunch‘s tools to determine the fair value of the NFT they want to flip.

Sorting NFTs before Flipping: 

Making money by flipping NFTs is impossible unless the user has the discretion to know whether or not a certain NFT project will pay off. The NFT market is swamped with a range of initiatives, and there is a risk of investing in operations that appear profitable at first but do not pay off later.

Thus, making it critical to distinguish between great and bad ventures. It is vital to apply a variety of tactics that are tailored to the user’s specific requirements.

Below are certain pointers that users can apply to flip NFTs for profit.

Floor Price:

The cost of the cheapest piece of a project currently accessible on a marketplace is the product’s floor price. Anyone new to learning how to flip NFTs for profit can utilize the floor price to understand how valuable an NFT is as a general rule of thumb. 

  • Users should bear in mind that a purchase spree on  NFT marketplaces easily influences the floor price. 
  • This demonstrates the level of stability of the project to users.
  • If there is a frequent change in the floor price of the product, it is likely that the project might not be the safest to invest in. 
  • Stable and high floor prices, on the other hand, indicate that a project is being held by more investors who trust in its long-term possibilities.

Trading Volume:

As more users start buying, selling, and flipping NFTs in this project, the volume increases. As part of their research, users should see how much cryptocurrency has been moved over time by looking at the volume on a creator’s profile. If the volume is low, it indicates that the NFT’s price has dropped, whereas a large volume indicates liquidity.

NFT Rarity Check:

NFTs are considered rare when they are identified with specific features and a low number of copies. A user will hold onto such particular NFTs unless they are presented with an offer that they can’t refuse. The rarity of an NFT implies that it is hard to get one and even harder to find one.

The Team behind the NFT – Research: 

An NFT can be deemed legitimate by doing proper research on the team that has developed and created it. As mentioned earlier, the chances of users being scammed exist in the Crypto-world; using Scour from bitsCrunch, users can examine the background of the NFT before purchasing it. 

  • Checking the website of the developer team is a good place to start. 
  • The presence of the list of founders and the members of the team who worked on the project is a reliable indicator of how legit the NFT is. 
  • Following the team members on social media can help you steer in the right direction  about the project. 
  • Examining the website for the number of followers, whether or not the number has been inflated.
  • Looking at the past projects of the team and how they have performed in the market is another sign to look out for. 
  • Any successful project in the past is something to keep a note of. 

Knowing the Value before Flipping NFTs:

Users must first understand the value of NFTs before trying to flip them for a profit. The concept is that one NFT may become more popular and spread like wildfire across the community, increasing the token’s value.

To learn how to flip an NFT, you should have a basic understanding of its value.

Rarity: 

The rare the item, the greater its value. A collection with a small number of NFTs may appear occasionally, and this can be a terrific deal since the value of the NFTs may increase as there are only a few of them. 

Utility: 

Many NFTs are now being utilized to tokenize precious items and real estate. Some are found in online games, where they represent in-game territory or an item. 

Interoperability:

In understanding the value of an NFT, looking out if it is interoperable is crucial. This refers to the token’s ability to be used in a variety of applications. Suppose a user has an NFT that represents a weapon. If the user could use the same token in many games, its value rises.

How to Flip NFTs on Marketplaces?

As stated earlier, users would most likely be flipping NFTs on the secondary market. OpenSea is the most popular marketplace for flipping NFTS for a profit right now. The following steps are suited for most marketplaces. Before proceeding, users need to be aware of the fact that scammers are all around the place and following the previous guidelines will keep users clear of any troubles. 

Step1: The first step is to open an account with a marketplace like OpenSea. Post opening an account, users now have access to connect their account with their Ethereum wallet. OpenSea and many other Metaverse platforms run on the Ethereum blockchain, requiring us to have an Ethereum based wallet.  

Step2: Once your profile has been set up, the next step is to have a keen look out for all the trends and latest buzz on NFTs. Users can scour through several categories like art collectibles, sports, in-game collectibles etc. 

Step3: Once the user zeros in on the NFT of their choice, they can start bidding for it initially. Although not all NFTs have the opportunity to be bid on, those that do should be aware that OpenSea requires that each subsequent offer be 5% greater than the preceding one. If users decide to sell their NFTs, OpenSea offers this service also. To sell, simply click on the “Sell” button on the NFT, and users will be redirected to a page where the sale terms would be specified. 
After that, it is a waiting game until a particular buyer expresses interest in your offer, and that’s it users can flip NFTs for profit.That’s about flipping NFTs, folks!For more interesting updates on the latest NFT trends, follow bitsCrunch.

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