Recently the NFT space has been receiving a ton of publicity with a massive boom in popularity that is spreading like an unavoidable wildfire. This newly founded niche within the crypto space just may well be the next innovation to the way that people live their lives; but that’s not what this article is about. This guide will give you the tools that you need to learn about NFT Flipping and how to actually flip these NFTs for profit.
NFTs are now a billion dollar industry, with a predicted boom that will disrupt many industries in 2022. While the boomers as a whole are resistant and uneducated about NFTs much like they were about the internet when they thought it was a fad, the good news is, NFTs are here to stay. This is their loss and for those tech savvy enough or in the younger generations, this is our time to make a bag of cash and run off in a matter of minutes. If that sounds good to you, let’s get right into the secrets for flipping NFTs and how to make money with NFTs as a beginner.
Is Flipping NFTs Profitable?
Short answer to save you time, yes. Let me share a flip made last night as a perfect example for you.
Let me introduce you to the Shredded Apes Gym Club. This is a brand new NFT on the SOL (Solana) blockchain. If you don’t know what a blockchain is, see this article first and come back to finish this one. Having launched, this NFT sold out in about 24 hours since functional launch. I saw the potential for flipping NFTs in this project and told everyone in my NFT Flipping and Educational discord.
I was able to mint one when there were less than 100 left in the collection. When I knew for a fact that people were excited about the project and it was going to mint out, I pulled the trigger on my buy order. What makes this purchase on the Solana blockchain so exciting was that I didn’t have to pay any gas whatsoever. Just transaction fees from the Magic Eden NFT marketplace. Typically this sort of thing is a good sign.
The mint price in this particular instance was 1 SOL or about $177 at the time of writing. In a matter of minutes I listed my ape back up for sale for a solid price of 2 SOL, doubling my money. In about 45 minutes it sold; taking the fat stack of cash and walking away. Now the floor on these went a little higher than the 2 SOL it sold it for, but if you’re making profit, you shouldn’t really care about maximizing it if it’s going to be a good chunk. Because if you wait too long, it will dip when the project hype dies down, which 98% of the time it does.
Just like this particular NFT which was just flipped, you can see that the floor price, or lowest NFT for sale is for 0.82 SOL which is lower than the mint price of 1 SOL, meaning whoever is selling them got caught holding the bag and are trying to reclaim some of their lost funds. This is in a matter of two days. The NFT market moves fast and you need to be incredibly vigilant with the projects you’re invested in so you don’t miss out.
What Makes An NFT Valuable?
To understand if flipping a particular NFT is profitable you’ll need to understand the factors that make the project valuable. So what are the factors that make an NFT a potential candidate for flipping?
As with any glorified gamble, us apes need to understand that making profits from flipping NFTs will require inherent risk and understanding the signs and signals behind the industry. NFTs just like anything else have niches whether it’s profile picture art that you see all over Twitter or video games. By researching the niches you’re interested in you will know the hot projects, trends, and performance of past projects within the niche. It’s suggested that making an excel spreadsheet and keeping track of all the projects you’re interested in is key.
So how do we know how well an NFT project will do?
- Number of items in the collection: you see, supply and demand heavily influences the NFT industry. If there is less supply than demand, that drives up the price of an NFT. If there is more supply than demand, the opposite happens. That’s why keeping track of how many items are in a collection and how many have been minted is really important. Pay attention to the amount of people actively interested in a collection because they are the people that you want to keep an eye on.
- Floor price: as mentioned earlier, the floor price of an NFT is the lowest priced NFT in that particular collection available for sale. With that said, you want to keep an eye on floor prices and buy up items with high volume, low floor prices, lots of owners, and limited supply.
- Volume: to make money with anything that requires buying and selling you need to be familiar with the concept of liquidity. Use the highest trading volume platforms for buying and selling NFTs such as OpenSea for the ETH blockchain and Magic Eden for the SOL blockchain. By looking at the activity on OpenSea for instance, you can see the volume and make a good leverage bet on if you can flip an NFT.
- Community: in the world of NFTs community is everything. With that said, the NFT community as a whole lives on Twitter and on Discord. For specific projects, it’s highly suggested you join the projects Discord server as you can see the positivity behind a project and how much the community believes in it. If the server is really active and not filled with bots, that’s a great sign for you as the NFT flipper.
How To Find NFTs To Flip
Finding NFTs to flip is probably the trickiest part, but once you have a good grasp on which ones are likely to succeed or find some that are of interest to you then you can write them in a spreadsheet to keep track of their progress and when you need to actively be watching them. A simple template like this should work:
Nothing too fancy, just something you can add and subtract from as you go along your journey.
It was mentioned earlier in this article that the NFT space lives on Discord and Twitter, which is the first place you should start. In addition to that, you should be watching and following YouTubers involved in the NFT space like Jake Tilk if you want to get secret golden nuggets of information along with joining their Discord servers for call outs and to interact and learn from individuals who are also invested in the same hustle as you.
Besides getting personally involved in the space and absorbing content, there are also ways for the more analytical of you out there such as paying attention to websites like Rarity Tools which break down and give analytics regarding specific projects.
How To Make Money With NFTs As A Beginner
With all that said, you should be well on your way to the moon in the world of flipping NFTs for profit. The entire purpose of this free course on flipping nfts is to help someone out there make a difference in their life and make money online. If you’d like to learn more about how to set up your wallet, how to buy NFTs, or the vocabulary you’ll see in the space check out the hyperlinks.