Finding deals and flipping NFTs take dedication, patience, and smart trading strategies. It can be pretty frustrating to flip your NFT as it takes constant browser refreshing on a secondary marketplace like OpenSea and evaluating various elements of a project to determine whether they can make a profit or not. You need to do diligence before making such purchases, as there are risks associated with flipping NFT projects. From flipping strategy to the right time for NFT flipping, I am going to share three proven methods on how to flip NFTs
When it comes to flipping your NFTs, it is essential to set a clear goal and purpose to make greater profits. Thus, flipping NFT won’t make you rich easily as it needs a lot of skills, talent, and knowing what to consider to be successful at it. However, it does not mean learning how to flip NFTs is impossible.
You have to take the risk of flipping NFTs including minor projects, as it can help you to gain valuable experience. NFTs technology has revolutionized the way how we trade, exchange or buy or sell goods globally. If you want to know about the difference between crypto and NFTs, here is a brief guide for you.
The floor price flipping method needs to find the lowest priced NFT and sell it for more. Finding low-priced NFTs and selling them at a higher price is an art, and you have to be patient and consistent to master it.
Flipping an NFT can be a short-term strategy that mainly focuses on finding flipping opportunities more quickly than others and not forgetting to lock profits when possible. Do not look to get insider information or expect any celebrity or influencer will pump up the project and status. Instead, you need to find someone who is selling cheaper NFTs.
Someone would sell NFTs for a lower price as they do not know the value of their project, or they are in a rush to sell and get their money back.
This NFT flipping method involves finding NFTs with rare traits that are low in price than other NFTs with rare traits. Make sure to analyze the properties to determine the value of those traits. You can also use the RaritySniper or RarityTools to determine the most desirable characteristics of the NFT project.
However, this flipping method needs more time, effort, and skill to understand which traits are most desirable for collectors.
However, it is essential to be aware of trait tools, as they allow other people to snipe traits/rarity revealed on OS. Typically, it has to do with the project contract data and provides people a window of time to snipe.
This is the flipping technique for NFTs to find projects that allow collectors to mint an NFT as they are new and just started. The project hasn’t sold yet, and you can get in early by looking for an NFT project with at least 33% or fewer items left to be minted. Find such projects and put them on OpenSea at the floor price, which will be higher than what it costs to mint the NFT.
It is essential to evaluate projects from a logical and non-emotional perspective to make money through selling NFTs in a short time. That’s why you have to ask yourself a few questions. Take a look at some of the most critical NFT questions you should ask yourself before buying or flipping an NFT project.
A verified NFT project on OpenSea suggests more than 100 ETHs sold on that project. That’s why it receives a blue checkmark next to the name on OpenSea and is highly desirable.
But, you have to be careful while buying from blue check-marked projects as scammers have learned to manipulate it to verity fake schemes.
To avoid such scams, you have to check the contact address and use direct links from the official website.
Is this NFT project within your budget, or have you considered the gas fee? For instance, you have a budget of $75 in gas fees for buying and another $50 when you are going to list it. You may also require another $40 for when the gas price fee needs to be adjusted.
Trading volume refers to the frequency of buying and selling for the NFT project. You can easily determine how frequent are the sales, which allows you to assess the popularity of the project. Fame equals demand, and when NFTs are in high demand, you can sell them for a higher price.
So, you should ask yourself, will the trade volume decrease or increase over time? If you think the NFT project has potential and it will keep the trade volume at a high pace, you should consider it a decent choice for flipping. In case you feel the project volume will slow down and people will lose interest, it is better to avoid it and move on.
The lower price of a listed NFT is known as a floor price, and it is available on a secondary platforms such as Rarible and OpenSea. You can determine the performance of the NFT collection by analyzing the seven days rolling average floor prices. It will also help to determine whether the value of the project will increase or not.
It will also help you to understand whether it is the right time to purchase an NFT or you should maybe wait.
If you have recently bought an NFT at a low price such as .02 and then it increases to .035, it means you have made some profit.
It is better to create a dashboard where you can check the live floor price data for particular NFT projects you want to flip.
Just like purchasing stocks, you should find the right price to get in. For instance, if it is the top or the bottom of the going value, you can assume NFTs cannot sustain low or high levels for a long time. It depends on you to figure out if you want to take the approach of purchasing at the bottom. However, it can be a bit difficult to determine when the bottom is. If you consider the previous local bottoms, and floor prices, it will help to make that decision.
If you set aside a gas fee, it will help to save you from various issues later, especially when you are bidding to get highly desirable NFTs at the floor price. It is recommended to spend $25-$80 on the gas fee. Remember, it depends on the Gwei cost.
Make sure to find the minimum and maximum price of NFTs within the collection and determine their average. When you know these three numbers, you can easily identify whether the NFTs are overpriced or under-priced.
The higher trader’s volume results in the likelihood that they will change the prices to undercut you by selling the project at a lower price. The benefit of such a situation is that you can sell it easily as there is more demand than supply.
You can search in Discord servers, Twitter, or within your crypto community to determine the popularity of the NFT project. Sometimes, when the project is not famous, it is easier to buy it at a low price; however, that boosts the risk linked with the purchase. It is better to look for a well-known NFT project that hasn’t hit its saturation point in the platform.
Usually, a ratio of three items to one means there is a lot of interest in the NFT project. Owners are growing rapidly, and many items are still there to get at a reasonable price.
Here are critical steps to get started and put your flipping project into action.
1. Begin by buying it and make sure to stick to your budget.
2. Relist your purchased NFTs for higher prices.
If you want to flip your NFT on Ethereum, it is essential to pay a gas fee for every transaction. Flipping NFTs is all about making a quick turnaround and a sale. After making a sale with the above-mentioned three NFT flipping techniques, you will have a decent experience of conveniently buying and selling NFT projects.
The ideal way to make money by flipping NFT projects is to buy all of the NFTs available when they have a low price. You can sell them for a higher price to make good money.
There are many popular NFT platforms where you can sell NFTs for free, including Binance NFT, Rarible, Nifty gateway, and Async Art.
You have to pay marketplace free for buying and selling NFTS. NFT platforms like OpenSea charges 2.5% per transaction, whereas Rarible, SuperRare, etc., may charge more than such fee.