NFTs are the new craze of the decade. They are digital collectibles that have been around for quite some time, but they were never really worth anything until recently, when their value skyrocketed due to demand from crypto-traders who saw them as an easy way to trade Bitcoin and other cryptocurrencies.
However, if you’re reading this article, then it means you probably want more information about NFTs than what is currently available online.
About NFTs
NFTs, or non-fungible tokens, are created using a similar kind of programming used for cryptocurrencies such as Bitcoin. They are, however, very different to Bitcoin and similar creations.
The term ‘fungible’ refers to physical money or cryptocurrencies that can be exchanged or traded. NFTs are digital assets that represent real-world things, such as music and art.
They are not interchangeable like fungible currencies or commodities. Instead, each one is unique and has its own attributes and characteristics. This makes them much harder to counterfeit and traceable.
How Do You Buy NFTs?
There are two main ways in which people buy NFTs: either individually or through a third party service provider. If you’re planning on buying your own NFTs, we highly recommend doing so directly via the marketplace websites.
Many musicians are now using NFTs, so that could be an interesting place to start if you are considering finding out more about them.
You always need to be careful of scams, however, since NFTs are digital, it can be easy to fall victim to others.
Before getting ahead of yourself, it’s always best to do some research. Find out everything you can about NFTs, and find out what you can from the people or companies you are getting them from.
Flipping NFTs
What It Means
Flipping NFTs is a loose term that is used to describe the buying of items at a low price, and selling it very quickly for a good profit. It isn’t a new term, but it’s become more popular than ever with the rise of NFTs.
Flipping NFTs is something that anyone can do, and it can have an amazing payoff when it’s done right.
It only makes sense to flip things that are valuable, and NFTs have the potential to be exactly that.
How To Do It
You can flip NFTs and make hundreds, or even thousands. First, you will need to find out what niche you want to go into and do a lot of research.
Keep in mind, you will have to be able to analyze the metrics in order to actually make a profit, so it isn’t as easy as you might think.
Typically, you should go with some kind of assets that are either undervalued right now, or assets that are expected to increase in value very soon. You don’t want to be stuck with something that no one wants.
A Few Popular NFT Niches Include:
- Virtual land pieces
- Collectibles
- Domain Names
- Animal art
- Abstract art
- Music
- Other audio
If you can find a gap in the NFT space, or even if you want to compete with other people directly, you have a chance of doing very well.
However, there are three key metrics that will determine how well any kind of NFT project will do.
How To Tell If An NFT Project Will Be Successful
There are three things that you can look at to determine the potential success of your NFT project. These will be outlined below.
Number Of Items Available
No one wants to waste their money on something that anyone can get their hands on. When it comes to NFTs, the rarer the NFT is, the better.
Any NFT project that has a limited number of items is more likely to do very well compared to those that have thousands or millions.
If you’re going to undertake an NFT project, make sure that the item you’re selling isn’t going to be available for a million other people to have.
You want the buyers to feel like they have something unique, something that can’t be found with every second person they meet.
Volume
Liquidity is an incredibly important aspect of making profits. In fact, any kind of profit hinges on liquidity.
For those of you who don’t know, liquidity refers to the ease with which something can be converted into cash. The higher the volume of a particular asset, the easier it is to convert it into cash.
Any NFT projects should be pitched with platforms that have high trading volumes. Doing this will increase the chances of your NFTs being seen by collectors. This means that they will quickly be bought.
Floor Price
This refers to the minimum amount of money you can get for an item. The lower the floor price, the less money they’re asking for it. You should be on the lookout for items with both a minimal supply and a low floor price.
How To Find NFT Projects
Finding NFT projects can be a pain, but it can also be really easy if you know where to look. We’ll go through two of the best places you can find NFT projects to take on. Once you find the right one, the real work begins.
Social Media
Social media is everywhere, and sometimes it has its uses. So many artists, influencers, and everything in between, use social media. Thankfully, these are the people who are hot on the trail of NFTs.
There are even NFT influencers who frequently announce projects on various social media pages.
Checking out social media such as Reddit, Discord, Instagram, and Twitter can be pivotal in finding NFTs. Using these social media pages, NFTs will often get promoted.
NFT Platforms
The obvious place to start looking for NFT projects is NFT platforms. There are special sections on platforms that do a lot of work in helping users be successful. They guide users towards assets that could be highly profitable.
A lot of the time, these assets are often on AirNFTs sections such as “Exclusive Drops” or “Top Artists”.
Alternatively, places like OpenSea can also be super helpful in finding NFT projects. Just check out the Activity pages and Rankings to get some insight into what you could look out for.
How To Flip NFTs
It’s a pretty simple process. We’ll go through everything below so that you know exactly what you will need to do.
1. You will definitely need a wallet that is Web3 compatible, such as Trust Wallet or Metamask. When you can fund your account, you can then begin to access different NFT platforms by using the in-app browser.
2. Get on something like AirNFTs. It’s the ideal place to begin your search and start your journey to flipping NFTs.
Here, you can find and buy NFTs for super cheap, then sell them for a lot of money. Thanks to everyone in the community, this is even possible, so it’s always important to be respectful to anyone you come across.
3. Once you’ve found and bought your NFTs, you can get started selling. You will need to know exactly when you should sell a flipped NFT, but that’s all on you, unfortunately.
Every NFT will be different, and it’s up to you to monitor the popularity of the project and how much volume it gets.
4. Remember to only invest what you can actually afford to lose. NFTs stand for NON-fungible tokens, which means that they are not liquid like their counterparts that ARE fungible.
You will only be able to make a profit when buyers are actually willing to buy. It’s a gambling game, unfortunately, it doesn’t always pay off.
Never invest an amount that you cannot afford to lose, because nothing is written in stone with these.
You might want to separate your NFTs into different sections when you decide to embark on this journey. You don’t have to, but it’s a great way to keep track of what you should or shouldn’t be working on.
There are three groups that you might want to consider grouping NFTs into:
- Short Term Flips – short term flips are NFTs that you should aim to flip and sell within the next three months. It doesn’t have to take that long, but there should be some kind of limit imposed on them. If you’re lucky, you could get the right price for them within hours!
- Long Term Flips – these NFTs could have potential in the long-term. This means that their value is likely to increase in three or more months, and it is best to wait until the price is right instead of trying to sell them right away. These can pay off and fetch some good prices, but the decision is always up to you.
- Never Flips – you might decide that you get some NFTs that you don’t want to flip. Maybe you love an NFT so much, or they’re invaluable to you. You can decide to protect these NFTs and keep them for yourself, whatever the reason might be.
Final Thoughts
When it comes to NFTs, the world is your oyster. There is a lot of potential, but you also need to be careful. Chances are, there are a lot of people out there who are smarter than you and have a lot more experience.
It’s always a good idea to listen to people with experience, as long as you don’t think they’re trying to hoodwink you in some way.
Self-control is important in this. Also, you need to make sure that you have the ability to restrain yourself. You need to make logical decisions, because your money is at stake one way or another.
Be logical about things, and don’t give in to the whole concept of FOMO. While the fear of missing out is definitely real, you have to reel yourself in and take a breath.
Be smart, and make good decisions. Never gamble with more money than you could afford to lose.
If you enjoyed this article, you might enjoy our post on ‘How To Build A Crypto Mining Rig‘.
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