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.
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.
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.
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.
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Frequently Asked Questions
NFTs are Non-Fungible Tokens, and in layman terms, representing digital art or collection, video clips of best moments in the sports and entertainment field, gaming skins and collectibles, stored in a distributed ledger powered by blockchain technology. These are unique items and are not interchangeable with another NFT.
Generally, things are valuable when they are scarce. There is only one Mona Lisa. There are only 59 Le Bron James dunking NBA Top Shots (one of which sold for $US387,000).
The primary difference between the two is that unlike cryptocurrency and digital currency, NFTs cannot be traded for each other as they are unique. representations of real-world assets. Cryptocurrencies and digital currencies can be traded for each other as there will be no loss to their value.
An NFT is a unique digital signature that you can attach to an asset. Whether that’s a song, or an image, or a piece of footage, a unique digital signature is like a fingerprint that contains information like who created the asset, when, and any conditions on its future sale (for example, whether or not the creator gets a percentage of when it is on-sold).
BCUT is the native digital utility token, it provides access to bitsCrunch services and the bitsCrunch network.
BCUT is the native digital utility token, it provides access to bitsCrunch services and the bitsCrunch network. It is designed to play a vital role in the functioning of the bitsCrunch ecosystem and is intended to be solely used as the primary utility token on the network.
We are a Cross-functional team with more than 25+ years of experience in Data Analytics & Artificial Intelligence and Blockchain. We already have all the NFT data since its inception. We blend our AI expertise with the Blockchain to bolster the NFT ecosystem.
We have built a model to identify the impersonation of artworks, thereby preventing the Provenance of the artist and the artwork. We are offering our services in a SaaS manner, wherein the customers can stake a certain amount of our native tokens to avail our services.
We haven't launched our BCUT Token yet, but we will send out a confirmation on the launch of the token on our official website and official Telegram channel.