Nfts are growing in popularity and there are lots of people entering the market now. Of course, a majority of these people are either artists or creators, and that makes sense because in simple terms an nft is digital art. But when it comes to How to flip nfts with a good profit margin. It becomes hectic because it requires a lot of research and hours of sitting in front of the screen. It becomes easy with the experience. So I have written this post for you so I can make your NFTs flipping easy. In this post, I have shared my experience that where and how can you find a hot and valuable NFTs project that can give a good profit. I have also designed a checklist to evaluate any NFTs project’s credibility for flipping.
Understanding the Basics of NFTs
Before diving into the world of flipping NFTs, it’s important to understand the basics of what NFTs are and how they work. In this section, we will explore the fundamental concepts that underpin NFTs.
What are NFTs?
NFTs, or non-fungible tokens, are unique digital assets that are stored on a blockchain. Each NFT is one-of-a-kind and cannot be replicated. This is because NFTs are built on blockchain technology, which provides a secure and transparent way to verify ownership and authenticity.
NFTs can represent a wide range of digital assets, including artwork, music, videos, and even tweets. They are often used by artists, musicians, and other creators as a way to monetize their work and connect with their fans.
How do NFTs work?
NFTs are created using smart contracts, which are self-executing programs that run on the blockchain. These contracts define the rules and conditions of the NFT, including its ownership, transferability, and other attributes.
When you buy an NFT, you are essentially buying a unique digital asset that is verified by the blockchain. This means that you have proof of ownership, and the NFT cannot be duplicated or stolen. You can transfer your NFT to someone else, just like you would transfer ownership of a physical asset.
The Different Types of NFTs
There are many different types of NFTs, each with its own unique characteristics and attributes. Some NFTs are designed to be collectibles, such as CryptoKitties or NBA Top Shot moments. Others are used to represent digital art, music, or other creative works.
It’s important to understand the different types of NFTs and their potential value before diving into the world of flipping. This will help you make informed decisions about which NFTs to buy and sell, and how to market them to potential buyers.
What is The Secondary NFTs Market?
It is the market where NFTs are resold to customers who did not get the chance to buy them when it was first released.
Why NFTs are Resold So Expensive?
It is completely legal and it is Actually the reason why original nfts are sold at such expensive prices in the first place. There’s always been a great demand for exclusive art, and this market makes use of that demand. Now, this is the same as what happens with traditional art. But the biggest advantage with NFTs is that they are minted, bought and sold on the blockchain technology. So the original creator’s name will always be visible, and no one can change that. This saves a lot of legal expenses for artists and the people who want to resell the artwork as of right now.
My research shows me that secondary nft sales fetch higher prices than the primary sales values. This is mainly because the sellers raise the average base price of an nft when they relist it on the selling platforms.
I am going to give you a tutorial on a secondary market and how to make money from it.
What is NFT Flipping?
Even if you don’t create art. The process of buying at lower price an nft and then reselling it at a higher price in a secondary market is called flipping an nft.
However, this does not mean that all types of nfts will be so successful. Leading experts from the nft industry have said that the secondary market will definitely grow, but art pieces, such as Trading card collectibles, and digitally signed photographs will not work out in the long term because they are meant for a large number of customers.
They believe that unique and exclusive art pieces from recognized artists and musicians will have a great resale value. And will dominate the secondary markets in the future. So if you are trying to break into the secondary market of nft reselling, then you should do your research only on Exclusive NFTs or nfts that popular artists make. Now you might think that NFTs are only meant to be bought by rich people, but that is not always the case.
Where to find a good NFT project when it comes “How to Flip NFTs”?
This is the big question, where to find a good project that can give us a good profit margin while flipping it. Here I have listed some of the key places to find hidden gems of NFTs at the right time.
NFT Platforms (Special Sections):
In every online NFT marketplace like OpenSea, Rarible, and Axie Infinity there is a special section for upcoming NFTs projects and events. There you can find hot NFTs, Drops, and Giveaways. In the special section, you can find a good NFTs project and you can research it. Like in the Activity section of OpenSea you can find some great new projects with good potential.
Social Media Platforms:
When it comes to NFTs, How can we forget the important part of social media like Twitter, discord, and telegram? Social media is the medium where NFTs artists and companies announce their upcoming NFTs projects. Follow the NFTs influencers on social media to get updates about hot projects and turn on the notification on your Twitter. Twitter is the space where most of the NFTs influencers do promotions and giveaways NFTs. But nowadays this is very tough to find honest influencers. Most of them are paid, that’s why we emphasize on researching.
Good NFTs blogs:
Nowadays some NFTs blogs are going such a great job and covering news on every upcoming NFTs project and on its potential. Do some research and find some good NFTs news sites. Subscribe to their weekly newsletter to get updated about NFT news.
Follow NFT Calendar:
Crypto and NFTs enthusiasts use the NFTs calendar to follow and track NFTs events. By following the NFTs calendar you can also get to know how many people are following any specific event. If you are an NFTs trader and looking to buy NFTs cheaper and sell them higher. NFTs calendar is the first thing on the checklist. I must say that an NFTs trader who doesn’t check the NFTs calendar is like a blind man without a stick.
How to Find Valuable NFTs to Flip? Checklist to Find a Hot Project:
There are a few factors that must be checked before buying NFT to generate good returns at the time of flipping.
Check project verification:
Before your buy, any NFTs do not forget to check that the project is verified or not. So now we have a question in our mind How do the NFTs projects get verified. Let me answer this, NFTs projects get verified once they cross the sale of 100 Ethereum and they get a blue check mark next to their project name.
Beware nowadays scammers know tricks that how to get blue tick on their project to prevent scams check their contact addresses and direct links to their official websites.
Check the Utility:
All the NFTs are not the only pieces of art, music, or videos. Some of them provide their holders with a utility. Such as you can take the example of Axie Infinity, in this NFTs are axies that provide different utilities while the user playing the game like breeding and fighting.
Some NFTs give the chance to holders to meet special celebrities and some are used for special events like Bored Ape recently provided a benefit to its holders by arranging a special event.
Check rarity:
Rarety is the most common and the first thing to check in every NFT when it comes to flipping NFTs. The Rarity score defines how much an NFT is rare. Rarity score is calculated in different factors such as layers and traits that are used to create the specific NFT. The rarer the nft the most valuable it will be in the future.
To check rarity there are different tools available in the market such as Rarity Sniper and rarity.tools. Using these tools we can easily find the rare NFT. It’s hard to find NFT with desirable traits for other collectors. But with research and skill, you can find such NFTs.
The Volume of the Project:
The volume of NFTs projects shows the frequency of buys and sells of a specific NFTs project. If the volume is high it means the NFTs project has a good demand in the market and to fulfill that demand collectors buy and sell NFT at a good pace. If you find the project’s total volume keeping a good pace it means the project has potential and you can buy and sell NFT of this project. And if you find total volume going downside it means the project is boring for collectors and loses interest in the market. Do not forget to check the volume of the project when finding a good NFT for flipping.
Check the project founders:
In the search for valuable NFTs, while checking the background of the NFTs project, do not forget to check the founding team behind the NFTs project. It is a precaution to avoid NFTs scams. Check the credibility of the founding team and their previous projects. Do not buy NFTs projects by anonymous founders.
Floor Price:
The floor price is the minimum price you pay to own an NFT. While finding a valuable NFT for flipping. It is also important to buy NFT with a cheaper floor price and flip the NFT in the short term with a decent profit margin. There are higher floor prices on the Ethereum blockchain you can also find NFTs with lower floor prices on Solana blockchains.
If the floor price of the NFTs project fluctuates at a high pace it means this project can lead you to a huge profit or a huge loss in short term. But the project with the consistent floor prices can go slightly up with the organic growth and can give a good profit while flipping in long term.
Check project community:
Checking with the NFTs project community is one main searching aspect to calculate the market interest in a particular project. Go to discord, telegram, and Twitter and check what people and collectors are talking about the project. Is it positive or not. Check the post’s reach of projects and check the comments of the audience. It will help you to understand the sentiments of collectors about the project. With the community check, you can find a hot valuable NFTs project that you can buy and flip.
Check Gas fee:
When it comes to buying a good NFT to flip how can we ignore the gas fee. Check the gas fee before buying. Is it in your budget or not? find the NFT with the lower gas fee for flipping NFT.
Check the association:
It is a plus point if a big name is associated with the NFTs project. Like celebrities. We can determine the success of projects by the associations with the projects. Let’s take the example of bored ape NFTs, what makes this project so expensive and exclusive, the answer is associations. Celebrities bought apes and created the hype about the project. So check the associations while finding hot NFTs to flip.
Check the popularity:
Go to the Twitter and discord of the NFT project and check how many people know about the project and are in the community. Do not forget to check the big names of the market (whales) in the community or talk about the project. If the project is not much popular it means we can buy the NFT at a lower price but with this approach, we have a higher risk of losing. It’s a win-win if we found a popular project with a lower price.
Platforms to Flip NFTs:
Flip NFT on OpenSea:
Selling NFTs on OpenSea is very easy. You just need to create an account and connect it with your Ethereum wallet. After that, you can list your NFT for sale by setting the price and duration of the listing. As a beginner, you may find the entry fees of opensea too expensive. But there are other blockchains like the Solana blockchain that offer NFTs with a bit lower price and with low transaction fees.
How to Flip NFTs
Now that you have a basic understanding of NFTs, let’s dive into the process of flipping them. Flipping NFTs involves buying low and selling high, just like any other investment. However, there are some specific strategies and best practices you should follow to maximize your profits.
Research and Analysis
The first step in flipping NFTs is to conduct research and analysis to identify potential opportunities. This involves looking at market trends, analyzing the performance of different types of NFTs, and identifying undervalued assets.
1. Choosing the Right NFT
When looking for NFTs to flip, it’s important to choose assets that have the potential to increase in value. This can involve looking at the historical performance of similar assets, analyzing market trends, and identifying upcoming releases or events that could impact demand.
2. Knowing the Market Trends
Understanding the market trends is crucial for successfully flipping NFTs. This involves staying up-to-date on the latest news and developments in the NFT space, and monitoring the performance of different types of NFTs.
Purchasing NFTs
Once you have identified a potential NFT to flip, the next step is to purchase it. This involves choosing the right marketplace and payment method to ensure a smooth and secure transaction.
1. Choosing the Right Marketplace
There are many different marketplaces where you can buy and sell NFTs, each with its own unique features and characteristics. Some popular marketplaces include OpenSea, Nifty Gateway, and SuperRare. It’s important to choose a marketplace that is reputable and has a large user base to increase the chances of finding buyers for your NFT.
2. Choosing the Right Payment Method
When buying NFTs, it’s important to choose a secure and reliable payment method. Many marketplaces accept cryptocurrencies such as Bitcoin or Ethereum, which provide a fast and secure way to transfer funds.
Marketing and Selling NFTs
The final step in flipping NFTs is to market and sell your assets to potential buyers. This involves creating a listing, promoting your NFT, and negotiating offers.
1. Creating a Listing
When creating a listing for your NFT, it’s important to provide a detailed description and high-quality images or videos of the asset. This will help potential buyers understand the value of the NFT and make an informed decision.
2. Promoting your NFT
Promoting your NFT can involve using social media, email marketing, or other channels to reach potential buyers. It’s important to target the right audience and highlight the unique features and value of your NFT.
3. Negotiating Offers
When receiving offers for your NFT, it’s important to negotiate to get the best price possible. This can involve setting a minimum price or accepting bids from potential buyers.
Best Practices for Flipping NFTs
Flipping NFTs can be a lucrative investment strategy, but it’s important to follow some best practices to minimize risks and maximize profits. In this section, we will explore some of the best practices for flipping NFTs.
Timing is Everything
One of the most important factors in flipping NFTs is timing. It’s important to buy low and sell high, and to be aware of market trends and upcoming events that could impact the value of your NFT. This involves monitoring the performance of different types of NFTs and being prepared to act quickly when opportunities arise.
Diversify Your Portfolio
Diversifying your NFT portfolio is another important best practice for flipping NFTs. This involves investing in a variety of different types of NFTs to spread your risk and increase your chances of success. By diversifying your portfolio, you can also take advantage of different market trends and opportunities.
Don’t Invest More Than You Can Afford to Lose
As with any investment, it’s important to only invest what you can afford to lose when flipping NFTs. While the potential for profits can be high, there is also a risk of losing money. By setting a budget and sticking to it, you can minimize your risks and avoid financial stress.
Be Patient
Flipping NFTs can require patience and a long-term mindset. It’s important to hold onto your NFTs until the market conditions are favorable, and to be prepared to wait for the right buyer to come along. By being patient and taking a long-term approach, you can maximize your profits and minimize your risks.
Stay Informed
Finally, staying informed is crucial for successfully flipping NFTs. This involves keeping up-to-date on the latest news and developments in the NFT space, monitoring market trends, and networking with other investors and collectors. By staying informed, you can identify new opportunities and make informed investment decisions.
Protect Your NFTs
When flipping NFTs, it’s important to protect your assets from theft, loss, and scams. NFTs are valuable digital assets, and losing them can be a significant financial and emotional loss. In this section, we will explore some strategies for protecting your NFTs.
Use a Secure Digital Wallet
One of the most important steps in protecting your NFTs is to use a secure digital wallet. A digital wallet is a software program that allows you to store and manage your NFTs securely. When choosing a digital wallet, it’s important to choose one that is reputable and has a strong security track record. Some popular digital wallets for NFTs include MetaMask, MyEtherWallet, and Coinbase Wallet.
Use Two-Factor Authentication
Two-factor authentication (2FA) is a security feature that requires you to provide two forms of identification to access your digital wallet. This can involve using a password and a one-time code sent to your phone or email. By using 2FA, you can add an extra layer of security to your NFTs and protect them from unauthorized access.
Use Secure Passwords
Using a secure password is another important step in protecting your NFTs. A secure password should be unique, complex, and difficult to guess. It’s also important to avoid using the same password for multiple accounts. You can use a password manager like LastPass or 1Password to generate and store secure passwords.
Be Aware of Scams and Phishing Attempts
NFTs are a popular target for scams and phishing attempts. Scammers may try to trick you into giving away your digital wallet password, private keys, or other sensitive information. It’s important to be aware of these scams and to avoid clicking on suspicious links or downloading files from unknown sources. You can also use anti-virus software and a firewall to protect your computer from malware and other threats.Back Up Your NFTs
Backing up your NFTs is another important step in protecting them from loss. This can involve making a copy of your digital wallet, storing your private keys in a secure location, or using a hardware wallet like Trezor or Ledger. By backing up your NFTs, you can ensure that you can recover them if your digital wallet is lost or stolen.
Build a Network
Building a network of other NFT investors, collectors, and creators can be valuable for flipping NFTs. This can involve joining online communities, attending NFT events, and networking with other investors. In this section, we will explore the benefits of building a network and some strategies for doing so.
Benefits of Building a Network
Building a network can provide many benefits for flipping NFTs. By connecting with other investors, you can learn from their experiences, share ideas, and identify new investment opportunities. A network can also provide emotional support and help you manage the stress and uncertainty of the NFT market.
Join Online Communities
Joining online communities is a great way to connect with other NFT investors and collectors. These communities can be found on social media platforms like Twitter and Discord, as well as dedicated NFT marketplaces like OpenSea and Rarible. By joining these communities, you can participate in discussions, share your work, and learn from other investors.
Attend NFT Events
Attending NFT events is another great way to build your network. These events can include conferences, meetups, and art shows. By attending these events, you can meet other investors and collectors in person, view new and exciting NFT projects, and learn from experts in the field.
Network with Other Investors
Networking with other investors is a crucial part of building your NFT network. This can involve reaching out to other investors on social media, attending investor events, and participating in investor groups. By networking with other investors, you can learn about new investment opportunities, share your experiences, and collaborate on projects.
Build Relationships with Creators
Building relationships with NFT creators is also important for building your network. Creators can provide valuable insights into the NFT market, as well as offer opportunities to invest in new and exciting projects. By building relationships with creators, you can gain early access to new releases, collaborate on projects, and potentially find new investment opportunities.
Rarible:
Rarible is another popular marketplace to flip NFTs. This platform supports two Ethereum and polygon blockchains. And it is very important for rarible to know the artist behind the NFTs. To sell NFTs on rarible is a bit different from the other platforms like opensea. It is required for sellers to show backstage NFTs that they want to sell on their platform.
The fee structure of rarible is also different from the opensea. Like it’s a bit more expensive than opensea because you have to pay a selling fee every time you sell your NFT. That’s why it’s not beginner-friendly. But it’s more user-friendly for flipping NFTs than many other secondary marketplaces.
SuperRare:
One of the most popular platforms for reselling NFTs is SuperRare. It has seen an increase in transactions since March 2021. If it continues to grow at this pace then it will become the most popular space to sell digital art. And that is very exciting for people who are neither artists nor art collectors.
What price do I sell my NFT when it’s time to flip?
You need to cover, all your costs.
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- Minting price
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- Gas fees
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- Listing fees
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- Royalties of creator
Then you have to pay the royalties. Because the creators will always receive a small percentage of royalties every time one of their nfts gets sold.
And only then, add your margin, in other words, your profit. So keep in mind that you don’t sell too cheap either or you will be at a loss. Even though it seems like you’re in profit but you have to cover all the costs that go along.
How to flip NFTs on marketplaces to make a profit?
Here I have listed some simple steps that you can follow to flip your NFT on marketplaces.
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- Make an account on any marketplace according to your choice like OpenSea and connect your wallet with the account.
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- After connecting your wallet with the account now you are eligible to bid on NFTs or buy one. Transfer some Eth to your wallet so you can make purchases.
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- Buy an NFT after completing research. NFT will be transferred to your wallet.
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- Relist the NFT with a new higher price. Do not forget to consider all factors that I have mentioned above while evaluating your NFT resale price. To sell NFT in opensea just click on the “Sell” button and it will lead you to a specific selling page.
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- Do not forget to promote your NFT on social media to grab collectors’ attention.
After that, patience is your new buddy. Just wait for the bidders to come and buy your NFT at your price.
Related: What Is NFT Whitelist and How To Get One? Full Guide
Tips for beginners on How to flip NFTs:
Here are some tips for beginners on how to flip NFTs to make good profit margin.
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- Pick the right NFTs
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- Diversify your portfolio
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- Do your research
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- Be patient and don’t sell too low
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- Don’t forget to add your margin
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- Promote your NFTs
Final thoughts:
If you’re thinking about how to flip NFTs or reselling them then I would say go for it. It can be a very profitable if done with the right strategy and ethic. But as a beginner, you need to be very careful while making your first purchase. Because there are a lot of scammers in this market who are peeking to take advantage of beginners. Only buy from trusted sources by doing complete research.
And one last thing I want to say is that don’t forget to have fun while flipping NFTs.
FAQs:
How to Flip NFTs with Profit?
Yes, it can be very profitable if done correctly.
What are the risks of NFT flipping?
The biggest risk is, buying an overpriced NFT or an NFT that is not in demand.
What are the best platforms for flipping NFTs?
The most popular platforms for flipping NFTs are OpenSea, Rarible, and SuperRare.
What are some tips for beginners on how to flip NFTs?
Some tips for beginners include doing your research, being patient, and promoting your NFTs.
Related: How to Earn Money with NFT Games And Top 5 NFT Games
