If you want to make a quick buck trading NFTs in the market, then this article is definitely for you; in this quick guide, we will look at the pros and cons of launching non-fungal tokens. If you want to successfully flip your NFT, it’s important to know all the basics of the process before you start. You should also be aware of what happens after flipping your NFT.
How to Flip NFT: at a glance
Starting NFT is much easier than it looks. The market is very active right now, with many new entrants coming in due to the growing hype. You can start investing in NFT for quick profits too. Let’s look at some of the steps involved in flipping your NFT.
You need to know your breaking point: the price at which you are willing to sell your tokens.
The next step to take is to create an account on an NFT market such as OpenSea or Rarible. These are websites where NFT users buy and sell digital items. You must create an account to secure transactions on these sites.
Next, you will need to be patient for someone who is willing to buy your token at a fair market value (FMV) so that you can make a profit. This can be difficult because not everyone is interested in buying NFT, especially if they have no idea how it works!
You then have two options when it comes to selling your tokens: offering them in large lots or offering them individually. If someone prefers to buy one by one, they can get the maximum return on their investment, as some tokens are worth more than others.
Here are a few things every beginner should know about NFT flipping.
What are Non-Fungible Tokens?
NFTs (non-fungible tokens) are sometimes referred to as “crypto-collectibles”. These are unique virtual assets that cannot be traded or exchanged for another token. Anything that falls under the multimedia category can be technically transformed into NFT.
NFTs are unique digital assets that are secured by a “smart contract” on a particular blockchain. Once a resource has been converted to NFT, it can never be edited or deleted. Hence, this makes NFT highly secured.
What is Flipping?
Flipping is essentially buying an item for a lower price, holding it for a while, and selling it for a profit. The turnaround has always existed. From action figures to furniture, from a limited edition toy collection to athletic shoes, you’re only limited by your imagination. NFTs are the newest and most popular item to flip right now. Due to the current interest in Flipping NFTs.
Step one: Identify a hot NFT project
Flipping NFT is no different from any other form of investing. You need to carefully analyze various values, observe them, and make an informed investment.
Here are some key things to consider before embarking on flipping an NFT project,
Step two: Artist Context
We will use the NFT art example for this article. But regardless of the form of NFT, video game, or visual art, you need to carefully consider the creators of a project.
- An NFT project typically consists of artists, designers, marketers, and influencers.
- Any comments received before starting the NFT project.
- Check each of their stories.
- Even if you are new to the creative space, keep an eye out for anything that makes their case more believable.
- How consistent they were.
This is the minimum cost to purchase a piece from a collection. It is advisable to look for items with a relatively low minimum price
- Analyze the minimum price for a period to understand the market trend.
- If the minimum price is too volatile, there may be market manipulation.
- Look for low volatility, steady growth projects.
Collectors may decide to have duplicate and rare items in a collection.
- It is obvious that scarcity creates demand.
- Find out how rare the NFT you are interested in is.
- Even in the duplicate scenario, find out how much. And how you own them.
Liquidity is the most significant factor in any investment.
- Look for the creators with the most deals.
- You must be able to quickly liquidate your investment when you want to make a change.
Step three: Commit to a “non-fungible” purchase.
First of all, you need to buy an NFT. You can find them on sites like OpenSea. As mentioned above, the cost of an NFT will depend on its scarcity and demand.
If you are shopping in a secondary market, make sure you have the funds in your account before you buy. It is crucial to pay attention to the price history when it comes to buying. This will help you determine if a particular NFT is a good buy.
Step Four: Pay attention to social media
Almost all social media platforms have tens of thousands of forums and topics related to NFT. Be active in these communities.
As mentioned above, be very careful with market manipulation. You will receive tons of DM from various accounts that offer various NFT related services.
Stop making unnecessary noise and keep looking for the project you have invested in or interest you.
Reminder: there is no safe bet when it comes to flipping! And if you are considering investing in an NFT, make sure that the potential return outweighs the cost of the investment.
Step Five: Prepare to sell your tokens.
The first thing you need to do to flip your NFTs is to set a price. The price of your items is always a balance between what you want and what the market will support. You want to enjoy things big enough to make a profit, but not enough that people aren’t willing to buy them.
NFTs are a unique asset in that they have a limited number of copies which means there is a limited supply. This means that if the demand for the item is high enough, people will be willing to pay more because they know it is less.
If you don’t set your prices accurately, you risk not making sales or, worse yet, selling your product for too low a price and not making a profit. So be sure to do some research before setting your prices!
Flipping non-fungal tokens can be a great way to make money, but it’s important to research and buy wisely.
In conclusion, these are the steps you need to take to successfully Flip your non-fungible tokens.
- Understand what a non-fungible token is
- Research the market for this type of token
- Buy a non-fungible token
- Commit to the community.
- Sell your tokens
- Repeat this process
Haley Hayward is an experienced writer at gblogo.com, where she’s credited with more than 200 articles covering everything from entrepreneurial stories to mental health at work.
She also oversees the Comment&Questions, which poses important admission questions to experts in the field, and regularly hosts webinars on various aspects of the business school experience.
Prior to joining gblogo.com, Haley honed her skills as a freelance writer, tackling a wide array of topics from petcare to car maintenance.
Haley holds a Master’s degree in English Literature from the University of Edinburgh, Scotland.