Unless you have been living under a rock, you will have heard of NFTs and the colossal disruption they’re bringing into the digital space. Average monthly trading volumes went from $64M in the first half of this year to more than $750M in the second half. Now, the party is still very much on, and we are seeing random Twitter users flipping artworks for thousands of dollars. Although you may not sell for that much, the good news is that you can also tune in and earn some money. Let’s delve right into it.
What is Flipping?
Flipping is a loose term for buying items at low prices and selling quickly for a profit. It’s existed forever— from the days of flipping trading cards, toys, and comics for profit, and we’re now seeing an enormous wave in the NFT space.
Why Flip NFTs?
You can only flip valuable stuff, and NFTs have proven to be valuable, rapidly attracting all sorts of investors. Besides holding Bitcoin and Alts or creating and collecting tokenized art for the long term, you might want to get in on high-volume NFT projects for quicker returns. Although risky, flipping NFTs is a relatively fast way to boost your portfolio.
How to Spot Hot NFT Projects
As with any financial market, making profits requires analyzing metrics to make the best possible decision. Generally, people always go for assets that are currently undervalued or they expect to increase in value.
With NFTs, you need to find your niche and do quality research. Common niches include animal-themed art, abstract paintings, collectibles, domain names, or even virtual pieces of land.
Among other factors, three key metrics primarily determine how well an NFT project will do. These are:
- Number of Items: scarcity always drives demand up. NFT projects with a limited quantity of items are much likely to give you profit
- Floor Price: floor price means the least price you can get an item. You want to look for items with low floor prices and minimal supply.
- Volume: making profits in any market is firmly hinged on liquidity. You want to pitch your investments with platforms with high trading volumes. Chances are you will quickly see collectors willing to buy your items.
Where to Spot NFT Projects
1. Special sections on NFT platforms
NFT platforms are doing an excellent job guiding users into potentially hot assets. For example, the “Top Artists” and “Exclusive Drops” sections on AirNFTs are good places to look at when considering buying. The Rankings and Activity pages on OpenSea also provide some insight into potentially great projects.
2. Social media
Free alpha is now everywhere, thanks to social media. You probably already know that artists and known NFT influencers often announce new projects on their social media pages— Twitter, Reddit, Telegram, Discord, and Instagram. Keeping tabs on their pages is a good idea. Also, NFT platforms have social media accounts where they often promote their users’ projects.
Flipping NFTs follows a simple process. You need a Web3 compatible wallet like Metamask or Trust Wallet. After funding your account, you can access various NFT platforms using the in-app browser. AirNFTs is the perfect place to start your flipping journey. You can buy NFTs with ridiculously cheap gas fees and make a significant fortune from them, thanks to our ever-growing and active community.
On selling, it’s essential to know when to sell as a flipper. While that decision solely lies on you, it is crucial to monitor the volume and recognition the project is getting while taking care to move on to other projects.
Note: You must remember that NFTs are not as liquid as their fungible counterparts, meaning you can only make a profit as long as you see buyers willing to buy. Hence, you must take care to invest what you can afford to lose.