How to Flip NFTs – A Step By Step Guide
The first step in flipping NFTs is to find an art that looks profitable after a thorough market survey. Then, buy the digital art at the lowest price and sell it as quickly as possible. The best time to flip the NFT is when the hype is at its highest, or the floor price is high enough to give you profits.
With approximately $17 billion in trading volume (2021), there are plenty of opportunities to make money flipping NFTs. We have put together an all-in-one guide on how to flip NFTs for profit to get you started.
What Does Flipping NFTs Mean?
Flipping NFTs involves buying non-fungible tokens or digital art for a low price and selling them at a higher value. It is a simple process that begins with finding the NFT, adding it to your wallet, and selling it.
The whole process might look difficult, especially if you’ve tried finding profitable NFTs to flip before. But whether you’re just getting started with NFTs or you’re a pro, flipping NFT shouldn’t be difficult.
How Does Flipping NFTs Work
Flipping NFTs is just like every other trading model. You buy a commodity at a lower price and sell it at a higher value. Speed is your greatest ally in this game. You must make the sale as quickly as possible from when you bought the token or collection.
At this point, you may wonder why.
We will discuss when to flip NFTs in more detail. However, to touch briefly on it, artists rely on hype to raise the market value of their NFTs.
The key takeaways are finding the NFT, knowing its value, and selling it later. Of course, not every NFT you find will become a profitable flip. However, understanding when not to FOMO will greatly help your NFT flipping journey.
How to Find and Flip NFTs – The Three-Step Guide
Here is our three-step guide on how to find and flip NFTs:
- Find a promising NFT or collection
- Buy it.
- Sell the NFT.
Find a Promising NFT or Collection You Can Flip
Finding an NFT collection is crucial in the flipping process. You must enter the market to get your first NFT project or collection. The following are the popular places to find NFT projects:
#1. Check for Latest Drops on NFT Calendars
There are a few platforms that focus on listing upcoming NFT projects. They provide pre-launch awareness, especially to those looking for opportunities to make money off NFTs. Some of these sites have special sections for live mint updates. Or you can use a filter to find projects minting live. You can filter NFTs by price, trading volume, and even activity.
Once you find some, do a quick rundown of their social media traction and listing (if that’s already live).
The following are popular platforms for finding NFTs:
You can activate various alerts on most of these calendars to stay ahead of NFT drops if you have a busy schedule. That way, you will receive first-hand information when a creator releases a notification for a new project.
Nevertheless, nothing beats visiting the sites regularly. Repeated visits can reveal if your chosen project is going on a downward spiral or gathering more attention. Then, you can quickly start watching another project if the former is the case.
#2. Twitter
This social media platform is a haven for NFT community. Many founders promote their NFTs on Twitter along with announcements to airdrops. As a result, it is one of the most viable places to find NFT projects.
You can stick to the NFT calendars, but you might miss out on some lofty opportunities. Twitter brings possibilities, the kind that you need after learning how to get started flipping NFTs.
If you want to flip NFTs using Twitter, you must look for alpha groups or join NFT conversations. One way to go about this is through regular NFT spaces on Twitter.
Furthermore, some bot accounts allow you to check for floor price and marketplace activities on NFTs. One account is the SPR3ADSH33T account on Twitter. Another account you can leverage is the Free_Mint_Bot account.
Ultimately, you’re not looking to mint some new collections but find already minted ones you can buy and flip easily.
But you can also find good mints to flip. However, you’ll need to grind on Discord to get whitelist spots. Another way is to win these spots through giveaways, upping your chances in the game. The key to getting information on Twitter is to stay active.
Join groups or threads discussing new collection launches as much as possible. Nevertheless, contribute every now and then to show that you are active in them.
Finding the arts or projects is the basis of how to flip NFTs. There is no two-way about it, as you need something to sell.
Buy the NFT
The next step in our guide to flipping NFTs is to buy the non-fungible token. At this point, you must have found the one that looks promising.
This stage plays a crucial role in deciding if you will make a profit flipping NFTs. Before purchasing an NFT art, note the following:
#1. The Project’s Current Price
NFT project launches usually come with a lot of hype. Of course, artists need all the attention they can get to raise the value of their work. Hence, it is one of the starting points for how to flip NFT art.
You should look at the project’s trading history to know if the current price is at its peak. Naturally, you’ll want to avoid any project that’s already maxed its floor price, as you might find it harder to flip the NFT.
#2. The Floor Price
A price floor should not be a new thing, especially for those who have been in business. It refers to the lowest price for an NFT or a collection.
If you want to skip researching the rarity, buying at the price floor is smart. Buy at the lowest price, and you stand a higher chance of making money flipping NFTs.
#3. Trading Volume
This statistic indicates whether you will profit from selling the collection. A high trading volume means that people are interested in the project. This a positive indicator as it means you can easily purchase at the floor price then re-list to sell for profit.
Sell or Flip the NFT
Still, on how to flip NFTs, we have reached the most crucial stage—sales. Before you talk about selling, you must know how to transfer the NFTs to another wallet. After all, you will send it to the buyer’s address once the purchase goes through.
Finding where to flip NFTs will not pose a challenge if you are familiar with cryptocurrencies. Chances are high that you have used several marketplaces while converting your coins.
That said, numerous NFT marketplaces have the features to satisfy you, including:
Before selling, you must first draw attention to it. One way to do this is through Twitter. Social media is not only a remarkable tool for finding new projects but also very effective in attracting buyers.
The approach you took in scouring threads and groups to find NFTs is what others are doing to find new art. You can create your chat thread to create awareness of the NFT. This way, you have a higher chance of selling it for a higher price when there is demand.
When to Flip NFTs
The final part of our guide on how to flip NFTs is when to flip NFTs. The timing is crucial, as it plays a deciding role in your profits.
Before NFT drops, artists will draw as much attention as possible to the project. This fanfare invariably creates a surge in demand, driving the price up. This is the best time to flip the NFT.
Avoid selling after the hype has died down because it certainly will. An ideal time to sell is when the product launch is still fresh, maybe a few hours later.
While that is not a surefire strategy, it works most of the time. Hypes for an NFT might increase and stay high for a few days after the launch. Study the market fluctuations, but make sales as early as possible.
PRO TIP: This strategy works well if you mint the collection on drop day.
- Mint at least three NFTs from the collection
- Sell one a few hours later to recover the money you spent minting the three.
- Sell the second one for profit when you feel the hype is at its highest.
- Hold the last one till the NFT project moons or busts.
Before we wrap up how to flip NFTs, let us see some tricks for profiting with little money.
Tips and Tricks on How to Flip NFTs With Little Money
The prospect of flipping NFTs for profit is promising. But what if you don’t have the budget to buy mulitple assets? Think no further, as you can apply the following tips as the dos and don’ts to profit with little money:
- Buy at a floor price
- Avoid any pumped scenario as the prices will be higher
- Use the Dutch auction style.
Once you apply these tricks, you will not only know how to make money flipping NFTs. You will also learn how to flip NFTs with little money.
Buy at a Floor Price
The floor price is often the least expensive amount an NFT costs. It usually comes after the initial rush of enthusiasm for the project. Hence, this strategy requires a bit of patience on your end.
Avoid any “Pumped Scenario.”
Pump-and-dump scenarios, though illegal, often come from creators who create fake hype to increase the floor price. Then, buyers will go in for the purchase, believing that the art they are getting is valuable.
Buying in such situations might cost you more money and end in a loss when the hype disappears.
The best way is to check if the floor price exceeds the best offer. If it does, you are better off staying away from the NFT.
You can skip buying NFTs altogether and get them for free. Many artists and creators often do NFT giveaways to promote their new collections on Reddit and other platforms. However, you must actively use these platforms to get first-hand information.
That is because most artists make announcements on these platforms.
Use the Dutch Auction Style
The Dutch auction style can help you buy and flip NFTs with little money. Though you have little control over the price, it can be an effective strategy.
Rather than go for NFTs with fixed prices, you can opt for those with an invitation to bid. The artist will often go with the price with the most bids to get more sales. As a result, you can get the NFT for a lower price if your price range has more prospective buyers.
How to Flip NFTs—Final Thoughts
How do you flip NFTs? This question should no longer bother you, having gone through this guide on how to flip NFTs. Profiting from NFT flipping is possible but requires a lot of patience and commitment.
Results might not come in a day, but you will have a breakthrough. Research thoroughly on any project before purchasing. Use different tools like Tweetdeck to increase your chances of finding profitable NFTs.
Lastly, buy at the floor price and sell when the hype is at its highest.
