A few short years ago, almost nobody understood what a “non-fungible token” was. Today, hordes of users are snapping up and flipping these artworks for thousands of dollars. But what exactly is flipping an NFT, and how can you make the biggest possible profits for yourself?
While there isn’t one specific strategy for locking down a high-value piece of art and flipping it, there are plenty of opportunities if you know where to look. Keep reading to learn more about flipping NFTs for profits and finding the right one out of hundreds of thousands on the market.
What Does Flipping NFTs Mean?
An NFT, or non-fungible token, is like a one-of-a-kind trading card but in crypto-asset form. That means only one person can truly own it at one time, making it a high-value digital asset in today’s market.
The word “flipping” is a loose term for buying NFTs at the lowest price and selling them off when they’re worth a little (or a lot) more. Some of the biggest profits can come from flipping NFTs within a few months, but even holding a digital file for a few days can sometimes net you considerable gains.
Why Do People Flip NFTs?
The thing about flipping any asset – be it a 3D collection of NFTs, a physical property, or even a painting – is that it has to be worth something in current market values. That means you can’t flip something that isn’t valuable to buyers.
Luckily, NFTs have already proven their value to thousands of people, with many coming out with life-changing sums of money. This near-unmatched potential for profit is the main driving force behind flipping NFTs, and more folks are scrambling to join the fray of the crypto-rich.
Choosing An NFT To Flip For Healthy Profits
As we mentioned before, more and more entities (from corporations to actual artists) are making and flipping NFTs. While it’s always nice to see more people getting involved with crypto, there is one main drawback for NFT flippers.
As more people see the value in NFTs aka non-fungible tokens, the market becomes more saturated with potentially low-value pieces. Because there’s such a wide range of NFTs in circulation, it can be challenging to find quality NFTs to flip. Luckily, there are a few ways to identify pieces worth your time and money.
Most flippers enter the market for NFTs for one reason only: profit. As a result, they don’t stop and look at the perks of owning one. However, while perks aren’t particularly valuable to flippers, these can determine how much it’ll resell for on secondary markets.
Things like exclusive access to a convention, restaurant, or even an unreleased album can all be driving factors for fans and collectors to buy a flipped NFT. If you’re looking to make a 10-30% profit on your investment, be sure to note these perks.
Because NFT values are assigned by the development team, the reputation of the said team matters. If you’re purchasing an NFT from a well-known name in the crypto arena, then it’s highly likely that you can flip it for a healthy profit.
However, this doesn’t necessarily mean you should ignore all art pieces from relatively unknown artists. Instead, we recommend using your best judgment (and eye for art) and following your gut.
As an NFT flipper, you need to understand that hype is everything. If you can pick up a piece as soon as it’s minted and wait until everything has been purchased before flipping, you could be looking at some big profits. This is especially true if the item is part of a limited collection from a well-known NFT creator.
Keep your ear to the ground and check out Reddit, Telegram, Discord, and Twitter for any buzz about an upcoming collection.
NFTs have become incredibly mainstream, with Hollywood celebrities and well-known musicians jumping on the hype train. As a result, some stars might endorse an upcoming NFT project or even launch one themselves. Because these people have existing audiences, their launches will likely be more prominent than others and hype should build naturally over time.
While hype, star power, and development teams can impact a collection’s popularity, flippers should also keep an eye out for what looks good. After all, NFTs are still pieces of art – they’re meant to appeal to buyers visually.
However, looks aren’t everything in the crypto sphere. Some NFTs can be a little hard on the eyes but are still incredibly popular or highly valued.
Final Thoughts On Flipping NFTs
Flipping NFTs has the potential for big profits, which attracts new and experienced investors alike. However, the world of crypto is volatile and increasingly saturated, which makes identifying a high-value project difficult.
With enough time and effort, even totally inexperienced traders can make significant gains by flipping NFTs – you just need to know what to look for.