Nonfungible tokens are still booming amid the dull crypto market condition.
NFT critics should be surprised that the NFT bubble hasn’t burst yet, even when they predicted it.
The NFT space is still growing, with thousands of people tripping into NFTs.
Although, some people are into NFTs due to FOMO and not because they have adequate knowledge about it.
This article will discuss NFTs and how to flip them for profit.
What are NFTs?
Nonfungible tokens are digital data minted on blockchain to offer authenticity.
These digital data include images, videos, podcasts, tweets, etc.
When we say something is nonfungible, we mean you can only have one of that particular thing in the whole world.
So, NFTs are very rare by nature.
What is NFT flipping?
The crypto space has some terminologies used by crypto enthusiasts. The NFT space also has some terms, and “flipping” is one of them.
In the NFT space, flipping is a term used to describe ‘BUYING LOW AND SELLING HIGH”.
It is a method of going low on NFTs (at mint or after mint) and selling at a higher price.
For now, everyone sees the NFT space as a profit oriented space, so everything is about profit making now.
Before you understand how to flip NFTs, lets understand how to detect a good NFT project.
What to look out for in NFT projects
Following trends is cool but can be damaging sometimes. It is always good to follow trends because you understand the trend and not because people are into it.
The following points will guide you in choosing a good NFT project.
All NFTs are unique, but not all possess utility. Utility of a project is the usefulness of the project or the values it gives.
You need to understand what the NFT project has to offer, apart from good designs. We have NFT projects that offers extra benefits to NFT owners.
NFT Veefriends gives its NFT holders access to Veecon and a chance to meet popular NFT legend, Gary Vaynerchuk.
This added potential will increase the value and will help in sustainability of project.
Other NFT projects feature gaming, allowing NFT owners earn as they game together.
This is often debated, as some projects with known owners has rug pulled. With this, you should know that all these point work together and non should be disregarded.
You have to know the team in charge of the project and how credible they are.
You also need to check previous projects carried out by the team, as it often determines the success of the current project.
Some NFT project founders are known by the success of their previous project.
The daily rise in NFT scams should awaken your consciousness.
No NFT project can succeed without a good/rich community. This is why NFT projects perform giveaways, minting and other promotional offers.
How many people believe in this project?
How many people are talking about it?
Which category of people are talking about it?
Are NFT giants talking about it?
What is the size of their community?
All these questions will tell if you should proceed or back out.
The partners of an NFT project can be a turn-on or a turn-off.
When NFT founders partner with renowned big names in the space, it should tell you how serious the project is.
When no one is partnering with the project, it should also send a signal to you.
Big names matter a lot in the NFT space, so watch out for them.
Quality of ART
As said earlier, this doesn’t guarantee the success of an NFT project but it can give you a signal.
How unique is the design?
What messages does this design pass?
Remember that all the NFTs of legendary beeple passed a message and that’s why his NFT remains the second costliest NFT in the world.
His NFT, First 5000 Days was sold for $69.3 million.
Also, look out for rare features in the art, as that will make it stand out in the competitive markets.
How to Flip NFTs?
Now we understand what to look out for in an NFT project, let’s understand good flipping methods that works.
You can flip NFTs in two ways;
- Minting stage and
- Secondary market stage.
Fliping an NFT in the minting stage means that you are to buy the NFT before it is listed on secondary markets.
This is because NFTs at the minting stages are always cheaper, and when listed on secondary exchanges, you can sell and make huge gains.
Minting means that you are buying the NFT as it is released before it is listed in big exchanges.
Take this stage as if you are buying a cryptocurrency when it has not been listed in exchanges like Binance. Immediately it is listed in top exchanges like Binance, the price will gain momentum and you can sell at huge prices.
The issue with this stage is that you have to be early, as all NFT projects have a maximum minting supply.
To achieve a minting spot, try to be whitelisted by the project organizers or have a friend who was whitelisted so he/she can purchase for you.
The minting operation is carried out by the project team, so always be active to get the right information and the right minting address.
How to gain whitelist
To be whitelisted for the minting, you have to join the project’s Discord group to understand the requirements for eligibility, and the date and time the NFT collection will be minted.
After minting, you can transfer your NFT to secondary exchanges and sell them.
Secondary market stage
Everybody can’t be whitelisted, and everybody cannot mint at once. So, if you didnt’t mint, you still have a second chance to buy at the listed secondary market price and sell when it goes up.
Secondary markets like OpenSea offers buying and selling of Ethereum minted NFTs.
Some people prefer to buy an NFT on secondary markets because the full potential of an NFT is fully seen at the secondary market stage and not the minting stage.
Nevertheless, the two flipping methods are amazing.
How to avoid NFT scams
Apart from the scam from NFT founders that creates a rug pull prone project, we still have other scam avenues.
- Fake minting address: As everyone is nervous to mint as quick as possible, scammers come with fake minting address and newbies are lured to make payments and get nothing in return. To avoid this scam, be active and never follow any link outside the official project’s platform. Some project founders made things easy by using their websites to drop minting address rather than social media platforms.
- Smart contract issue: NFT market places utilize smart contracts for buying and selling NFTs, this makes it vulnerable to hackers. Recall that opensea has been hacked severally. Currently, all hands are on deck to close smart contract loop holes and to secure users account. To avoid this, avoid blind signing and never consent to a transaction you don’t understand.
NFTs are still booming regardless of the huge number of exploiters waiting for a loop hole. You can flip NFTs and smile to the banks with this information posted here.