NFTs have become a new hot sensation in the crypto and blockchain ecosystem. There is constant news of NFTs selling for hundreds of thousands if not millions of dollars and this new market has given birth to a new form of investing which is NFT flipping.
“..for the first time we kind of own our digital stuff and that has huge implications for digital game economies, virtual world economies, things like that” - Devin Finzer
There are many different opportunities where investors can purchase NFTs for a low price and then flip them later for a profit. This is not an easy process as NFTs don’t have a fixed value and are only worth as much as someone is willing to pay for them. So how can we flip NFTs?
NFT flipping is when someone purchases the NFT at or below the market price and then sells it for profit. There are many different approaches investors can take when deciding to flip NFTs. Since NFTs are non-fungible tokens and usually each of them is unique or in very limited supply, it is hard to give them a proper valuation. When we decide to flip NFTs, there are a few things we need to take a look at to determine if it is worth flipping that NFT.
The utility is one of the first things we need to consider when purchasing an NFT. Since NFTs are part of a blockchain, some come with utilities that give holders benefits associated with that blockchain. The most famous of those NFTs are play-2-earn game NFTs which reward holders with different crypto tokens for completing different tasks and sometimes gift NFTs to the best players. Giving value to these kinds of NFTs is relatively easy as you can calculate the average income that the NFT generates and base the price on that. There are also NFTs that have real-world value. Projects behind these NFTs organize different events and gatherings and invite holders. So when choosing which NFT to flip, always consider what utility it has as it is one of the best ways to give it value.
Community is another important factor when deciding if a given NFT will be good for flipping. Most NFTs are part of big projects which have big communities supporting the project. When looking at the community which stands behind the NFT you are thinking of purchasing for flipping, it gives you a good understanding of the demand for this NFT. When there is a big and active community that stands behind the project, it is more likely that these community members will be ready to pay big money for your NFT.
When it comes to art it might not be the most important aspect of NFTs as there have been a few questionable NFTs that have sold for hundreds of thousands of dollars, but it is still a good idea to take it into consideration. This aspect of NFTs is most important if NFTs don’t hold any huge utilities yet. Whenever someone owns a regular NFT with no utilities they like to flex it around and display it wherever it is possible. Because of this, it is important to consider how brandable the NFT is since most of these NFTs will be shared on social media.
Another important aspect we need to consider is the trading volume of the NFT project. Each marketplace that sells NFTs will indicate how much trading volume each project has. This is a great metric to determine how desirable the NFT is. There might be a good NFT project with a good community, but the project can be saturated and NFTs don’t exchange hands too often. This will make flipping an NFT comparably hard, and it might take us quite a while to find a buyer who will be willing to pay enough for us to make a profit.
When we set out to find NFTs with the goal of flipping them for a profit, it is important to find a place where we can purchase them for low prices to increase our profits. This is not an easy process since just like us there are thousands of investors looking for these kinds of NFTs. There are many places we can check out and different approaches we can take to find NFTs that are worth considering for flipping.
The best option we have for NFT flipping is to get on the whitelist and mint new NFTs for cheap. A whitelist is a list of users and their crypto wallets who can mint newly released NFTs before the public can. For NFT flipping investors can look for NFT projects that have upcoming NFT mints and try to get on the whitelists of those projects. For example, if an average NFT price for a certain project is $5,000, during mints when new NFTs are released, you can acquire these NFTs for as little as $1,000. Despite being the most profitable approach, it is also one of the hardest strategies. The problem here is that it is extremely difficult to get on a whitelist of a project which has a good community, as there are thousands of others looking for those whitelist sports.
To get on a whitelist, each project has different criteria. Some might simply ask you to be an active member of a community and just make yourself be seen. Some might ask you to complete some easy tasks such as sharing a post on social media or inviting a few friends to a Discord channel. So if you find an interesting project that has an upcoming NFT mint, you should find out the rules on getting on the whitelist because this is one of the most profitable NFT flipping strategies.
If you were not able to get on the whitelist there are secondary marketplaces where you can also find good NFTs that are worth flipping. This is comparably harder to make profits here than through minting since you are buying from someone who is also looking for profits on their NFT. When taking this approach we need to visit NFT marketplaces such as OpenSea and Rarible. What is good about these marketplaces is that you can see the historical data of each NFT, like who owned it, how long they held on to the NFT, how much it was sold for, and other relevant information.
When taking this approach, investors need to visit many different NFT marketplaces as well as more specific music NFT marketplaces and spend hours looking through different catalogs and comparing different NFTs to each other before making a final decision.
These marketplaces are also used for actually selling the NFTs we purchased for cheap.
Since there is a huge selection of NFT projects on the market, it might get hard to decide which is the best option, and ultimately answer to that question comes down to which you like the most combined with some necessary criteria. Here we will present you with some NFT projects that might spark your interest.
Do you remember when we mentioned that the best NFTs for flipping are those acquired from whitelist mints before public access? Battle Infinity is one of those projects which is at the early stages of development and still has not released NFTs.
This is a combination of multiple play-2-earn games. Battle Infinity follows the style of fantasy sports where you create your team and the results will be based on the performance of the players you selected. Even if you are not interested in play-2-earn games, Battle Infinity offers a unique way to interact and explore the metaverse. Just recently they launched a pre-sale where they are selling their native $IBAT tokens at a discounted price. This is a good time to join the project, as this will make it easy to acquire their NFTs which will most likely increase in price in the near future.
This is a funny and interesting NFT collection that consists of thousands of NFTs which depict funny creatures called CryptoDickbutts. This project has been around for over a year and already amassed a good community. This NFT project follows the same concept as CryptoPunks as they don’t hold much utility and their value just comes from art and its rarity.
Coming from its name, it might seem that these NFTs are memes, but that's what makes them so desirable. You won’t be making huge profits from this, but the benefit it has is that because of their funny and brandable nature they are being sold on a constant basis. There are few collections of these NFTs. OG collection has a floor price of 9.5 ETH, while the latest collection called Series 3 has a floor price of 3.65 ETH. So if you decide to flip these NFTs you can expect to make quick purchases and sells. So flipping one of these NFTs will not give you a huge profit, but if you flip a few of them, profits go up. Always take gas fees into the calculation as you might sell the NFT for more than you paid for, but still end up in the negatives when you add gas fees on top of your markup.
This NFT project was launched by famous entrepreneur Gary Vaynerchuk. This NFT project has multiple collections each having different floor prices. Launched in 2021, it has already amassed a big community with many different celebrities acquiring their own VeeFriends NFTs.
What makes this project interesting and worth flipping is that it has real-world utility. Gary Vee is known for his conferences and talk shows, where he discussed the state of different industries, crypto and NFTs included. He is known to give out valuable and interesting tips as to what to expect in the future and has helped many people, celebrities included, to make good investments in the crypto and NFT industries. VeeFriends holders receive invites to special events, be they online or real-world events. Since Gary Vee's popularity has risen and many people want to have close connections with him, his NFT project has become really desirable and because of that flipping, these NFTs can be really profitable.
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Yes, if you approach it with a good strategy and dedication you can make good profits from flipping NFTs. You can either purchase NFTs during release when they are cheap and sell them later for a profit, or you can purchase already released NFTs from the marketplace if you find a good deal and then resell it for profit.
NFTs which are selling the best are art NFTs and NFTs which hold valuable utility. The most famous and expensive NFTs are art pieces that have brandable features and can be used for many different purposes. Also, NFTs which have utilities such as generating passive income and giving you access to different features and events are easier to sell.
If you are looking for NFTs which have not been released yet, the best place to look for those projects is social media platforms such as Twitter. If you are looking for already released NFTs, then marketplaces, such as OpenSea, are the best places to visit.
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