Top 10 things to Remember when Flipping NFTs
Buying an item and selling it fast for a profit is referred to as “flipping,” a phrase that has just lately been used. It’s not limited to NFTs only, you can flip any valuable asset including trading cards, cars, real estate, or antiques. When it comes to NFTs, to flip just means to buy low and sell high. It's a short-term trade that carries so many risks. Although it’s not a guaranteed method of making money, if you go with caution, you can succeed. Here are 10 things to ask yourself when flipping NFTs.
1. Is this NFT project verified?
A verified NFT project on OpenSea suggests more than 100 ETHs sold on that project
It is highly sought-after as a result, receiving a blue checkmark next to the name on OpenSea
You must exercise caution when purchasing from projects with a blue check because scammers have figured out how to use it to validate fake schemes
You must verify the contact information and use direct links from the official website in order to avoid such scams
2. Is the project affordable?
Are you able to afford this NFT project, and have you thought about the gas cost?
You have to think about the additional costs when considering the money you're gonna put into the project
3. What is the trading volume?
The frequency of buying and selling for the NFT project is referred to as the trading volume
You can quickly ascertain how frequently sales occur, allowing you to gauge the project’s popularity
Fame equals demand, and you may charge more for NFTs when there is a big need for them
Therefore, you should consider if the trading volume will stay the same or grow over time
If you believe the NFT project has potential and will maintain a high trade volume, you should think about flipping it
4. What is the Floor price of the NFT project?
A listed NFT’s lower price is its floor price, and it can be found on secondary platforms like OpenSea
By examining the rolling average floor pricing over the previous seven days, you may assess the performance of the NFT collection
It will also assist in determining whether or not the project’s value will rise and it will enable you to decide whether now is the ideal moment to buy an NFT or if you ought to hold off
It is preferable to create a dashboard where you can view the real-time floor price information for certain NFT projects that you wish to sell
5. Will you purchase at the Ceiling price or the floor price?
Similar to buying stocks, you should wait for the best opportunity to enter
Determining if you want to use the strategy of buying at the bottom is up to you
However, pinpointing the bottom can be a little challenging
It will be easier to decide if you take prior local bottoms and floor prices into account
6. How much gas-free are you willing to pay?
Setting aside a gas charge will help you avoid a number of problems in the future, particularly if you are competing to purchase highly desirable NFTs at the floor price
It is advised to budget between $25 and $80 for gas
7. Is this NFT considered Overpriced or Underpriced?
Make sure to identify the NFTs’ average price as well as their minimum and maximum prices inside the collection
Knowing these three figures makes it simple to determine if the NFTs are expensive or underpriced
8. How many sellers want to own this NFT project?
The possibility of the trader changing the pricing to undercut you by selling the project at a lower price is increased by the higher trader volume
The benefit of such a situation is that you can sell it easily as there is more demand than supply
9. Is this NFT project popular?
To find out how popular the NFT project is, search on Twitter, Discord servers, or among your local crypto community
Sometimes it is simpler to purchase a project at a low price when it is not well-known
However, this increases the risk associated with the acquisition
It is preferable to look for a well-known NFT project that hasn’t reached platform saturation
10. Items/Owners ratio
A ratio of three items to one typically indicates that there is substantial interest in the NFT project
Although owners are expanding quickly, many products can still be purchased for a fair price
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DISCLOSURE:
None of these articles constitutes financial advice. Articles are highly summarised to make it easy for the reader and save your time, so please DYOR further before putting your hard-earned money into any product mentioned.
Please note that the tech industry evolves rapidly and the info in this article is correct at the time of publishing. As Heraclitus said, “Change is the only constant,” so if anything sounds old or off, please holler on the socials or comment here so everyone stays peeled.
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