The NFT industry is booming and many users are making a lot of money with NFT. Read on to learn what NFT flipping is and how it works.
What is NFT flipping?
Flipping describes buying low and selling high.
For example, in October 2017, NFT CryptoPunk #8348 was sold for $456. Currently, the same NFT is valued at $171 million. Flipping itself existed long before NFTs – but it’s now getting a fresh boost in the crypto world.
→ A wallet filled with cryptocurrency (for example, Metamask) to pay for NFTs
→ An account at a marketplace such as OpenSea
→ A cheaply acquired NFT and a willing buyer to “flip”.
Here’s how you can spot potential NFTs to flip.
Successful flipping can be pure luck and it’s always risky, but keep an eye out for the following metrics to narrow down your search:
- Number of items: Scarcity always drives up demand. For NFT projects with a limited number of items, there’s a good chance you’ll make a profit.
- Minimum price: The minimum price is the lowest price you can get for an item. Look for items with low minimum prices and minimal supply.
- Volume: Profits on any market depend heavily on liquidity. Make your investments on platforms with high trading volume. Chances are you’ll quickly find collectors willing to buy your NFTs.
Where to find NFTs
You usually buy NFTs in marketplaces, one of the most popular is OpenSea. Look at the rankings to locate potential items.
Also, be sure to familiarize yourself with media such as Twitter, Discord, Reddit, Telegram, and Instagram, and follow well-known platforms, influencers, to always learn about new projects.
All investments, including NFT flipping, involve risks that may result in loss of asset value, financial losses or legal consequences. In this article, we only want to inform you, not give financial advice. Seek the advice of a licensed professional before making any legal or financial commitments.