If you are planning on short-term flipping or investing in NFTs, then you’ll need to start thinking about how to trade these items. This NFT trading guide covers a variety of different strategies that you can use to improve your trading skills as a beginner or an experienced investor. So, let’s answer your question “How to Flip NFTs for Profit”.
What is the “Flip” and why is it such a good idea?
Flipping is a loose term for buying items at low prices and selling quickly for a profit. The method is an old one; it’s been around forever and can be traced back to when kids traded trading cards, toys, and comics for profit. Now, we’re seeing a huge wave in the NFT space.
The NFT market has lots of room for growth. There isn’t much competition yet, so you have lots of opportunities to make large profits. Keep an ear to the ground and learn what is going on in this new market.
Many people have been able to get started early in NFTs and are making big profits by flipping them. They have increased their net worth because of their reinvested profits.
Read also about: What qualifies as NFT?
How to find the projects that are going to make the biggest move?
Some people like to say there are “no guarantees” when it comes to investing in cryptocurrencies, but that’s not true. There are plenty of people making a lot of money trading them, and NFTs are one of the easiest ways to do that. Flipping is a quick and relatively simple way to make some cash. You can spot potential projects in special sections on NFT platforms or social media. Below are three main focus factors if you want to flip NFTs for profit:
- Quantity: quantity is a key factor to consider when deciding how much to invest in NFTs. NFT projects with a limited quantity of items are much more likely to provide you with profits than those without a limited number of items.
- Floor Price: floor price means the lowest price you can get an item. You want to look for items with low floor prices and minimal supply. As demand for a project increases, the floor price for investible categories is often quicker to rise than moderately priced NFTs.
- Volume: making profits in any market is firmly hinged on liquidity. You want to pitch your investments with projects with high trading volumes. Chances are you will quickly see collectors willing to buy your items.
Short-term NFT flipping works best when looking for deals that are cheaper compared to past sales. This strategy does not depend on an upward market trend, and can work when demand is relatively flat. To find such deals, it’s important to look for NFTs listed for lower than other sellers, not just NFTs that are listed for less than past sales.
How to flip NFTs on OpenSea
Watch this video below from Franklin Hatchett, where he explains very well “How to Flip NFTs on OpenSea”
Read also: Can you print NFT art?
Get inspired, stay motivated and keep going
Even if you have no experience with blockchain projects, it’s important to be involved in the community. Talking to other participants helps you understand how the project will grow and what drives demand for its NFTs. Additionally, you’ll find new opportunities to invest or participate in the project. If you contribute value, not only does that benefit the value of your NFTs, but you help drive growth for the NFT space as a whole.
We hope we answered your question “How to Flip NFTs for Profit”, now it is up to you. Learn and get involved.
How sellers behave depends a lot on the market trend. To get a better idea of how sellers behave, you should compare them across categories and try to get an idea of how many sellers there are for the NFT. This strategy is most useful when trying to predict how many sellers a given NFT will have.
You should understand the concepts presented in this post and you may want to trade some NFTs. However, you need to be careful when trading, don’t get too excited and you might experience some FOMO (fear of missing out) and FUD(fear, uncertainty, and doubt). Do not make any decisions based on them. Try to buy low and sell high, use only a small portion of your capital, and don’t be afraid to sell for a small loss or, for a small win.