In this guide, I will take you through an easy-to-follow process of flipping NFTs on Opensea for profit. I will be going over the steps required to complete the process and show you how to profit from this new emerging market.
We’ll discuss tried-and-tested strategies for flipping non-fungible tokens for a profit and explain everything you need to know about flipping non-fungible tokens in layperson’s terms.
Table of Contents
How to Flip NFTs on Opensea in 4 Easy Steps
Follow these 4 simple steps to find a proven and undervalued NFT project to flip it for profits on the Opensea NFT marketplace.
Step 1: Find a Proven NFT Project on Opensea to flip
We have thousands of projects listed on the Opensea NFT marketplace. I chose Opensea because it is the world’s first and largest NFT marketplace. The leading Ethereum-based marketplace for buying, selling, and trading NFTs including music, collectibles, art, and gaming items.
The first step is likely the most crucial to finding the right project. An interesting and visually appealing project is what you should choose when choosing a project.
A project should also have a floor price that is reasonable for you. The NFT market, such as OpenSea, is well known for its high costs due to high ETH gas fees on the Ethereum blockchain. I recommend considering other blockchain-based NFTs, such as Avalanche and Fantom, to avoid paying high gas fees if the floor price is too high and you are just getting started.
Your ideal project is one that’s already launched, has already gone through its post-launch dip, has a high sales volume (also known as trading volume), has a vibrant secondary market, and has a founding team with prior experience in NFT.
The good news is that there are several online tools available to assist you in narrowing down your promising non-fungible token project that meets these criteria.
Total Number of NFTs Created
Here, it’s important to consider the fundamentals of supply and demand. Limited supply projects typically have a greater value and are more likely to bring in a profit.
Go to a specific NFT project page on Opensea you are interested in and check the key stats, such as the number of total NFTs created.
You want the total NFTs in circulation to be low to ensure a good demand for the NFTs created by the project.
Analyze the Floor Price of the NFT Collection
The floor price is the lowest selling price of any NFT in a given collection that you can buy from the market. The floor price can be used as a general guideline by anyone learning how to flip NFTs for profit to determine how valuable an NFT is.
Users should be aware that frequent buying on NFT markets can quickly change the floor price of NFT projects. Users buying flipping NFTs can see how stable the project is thanks to the floor price of an NFT collection.
The project may not be the safest to invest in if the floor price changes frequently.
On the other hand, stable and high floor prices show that a collection is held by many investors who believe in its long-term potential.
Check the Trading Volume
The trading volume of an NFT collection indicates the buying/selling activity. As part of the research process, you should check and analyze the daily and monthly trading volume of the NFT project you are planning to buy and then sell for a profit in the market.
The trading volume increases as more people start buying, selling, and flipping NFTs, which is a good sign and indicates good liquidity and healthy buy-and-sell activity from the users.
The low trading volume indicates less users’ interest in the project and should be avoided for NFT flipping for profit.
Understand NFT Utility for the Buyers
Does a project provide its buyers with any unique benefits that are exclusive to them, such as membership benefits, access to premium content, exclusive event entry passes, etc.? These bonuses increase the value of projects and contribute to the project’s legitimacy.
Higher NFT project utility for the buyers is good for the NFT project’s success, growth, and longevity, as well as for the NFT project worth in the long term.
Do the NFT Rarity Check
The value of the NFT can increase proportionally with the rarity of the attribute it possesses. At this point, you will be searching for an NFT with unique features and a selling price near its floor price.
There are many tools available to assist you in determining the relative rarity of any given NFT within the context of the collection.
Rarity Tools, Looks Rare, and Rarity Sniffer are the 3 tools I use the most, and I recommend everyone to check before deciding to buy an NFT.
Team Behind the NFT Project
Do your research on the founders of the NFT project. NFT projects with anonymous teams are best avoided. The credibility of a project is increased if a professional and trustworthy team backs it.
Anonymously-run projects are much more likely to lose money or involved in scams than those run by people you know and have a history of launching successful NFT projects.
Quality of NFT Art
It is important to note that every non-fungible token represents a work of art. As the quality and uniqueness of the art increase, its value also increases.
Check who is the creator of the NFT art for the project, look at the past work he has done, and what his credibility is. If a well-known artist is behind the creation of NFT art, it improves the project’s success chances and value over time.
Community Behind the NFT Collection
A passionate community behind the project is critical for the long-term success of an NFT project. Join the project’s community channels like Discord, Telegram, Twitter, Reddit, etc., and check the engagement and discussions.
A large community base that believes in the project and the team and happily shares it with others is the recipe for a project’s growth and success in the coming time.
Step 2: Buy Rare or Undervalued NFTs to Flip
Based on the shortlisted NFT projects, it is time to decide which NFT to purchase from the collection. Your crypto wallet, like MetaMask, must be connected to the NFT marketplace for you to purchase the NFT.
To make a purchase, you must have cryptocurrency compatible with the NFT marketplace. OpenSea, for example, works primarily with ETH (Ethereum).
However, deciding which one to flip can be challenging. Here are a few strategies to help you find rare and undervalued NFTs to buy and flip for profit.
Sort NFTs by Rarity Traits
To find the best NFTs, you should first sort them based on rarity. It would be best to research the hot or bestselling projects using Rarity Tools or Rarity Sniper.
NFTs can also be sorted by their rare traits. The most valuable NFTs are those with the rarest traits. So, when exploring the marketplace, keep an eye out for NFTs with traits under 100 in the rarity traits category.
Analyze the NFT Project listing pages
As soon as you shortlist just one project, it’s time to become an expert in that collection. It involves knowing the rarity traits of the collection, how rare they are, and their value based on rarity.
The goal is to find an NFT near the floor price with the traits of a rare NFT within the project.
Step 3: Decide how to buy the NFT
The next step is to buy the NFT you’ve been looking for and then sell it at a higher price. As a first step, I buy the NFT on a secondary market like OpenSea, but I found good results by buying it directly on the Discord server of the project.
There is usually a discord server marketplace within all NFT collections, where you can directly contact the sellers and buy the NFT at a lower price.
Step 4: Set a Selling Price & Flip
Buying the right NFT is only half the battle won. Your next step is to determine a realistic price at which you can flip the NFT for a profit. Make sure your digital asset is priced lower than the competition while still making a profit if you want to sell it quickly.
You should also consider the marketplace’s buying and selling fees while deciding on the selling price of the NFT.
Apply the best pricing strategies while setting up the price to increase your chances of selling. For example, if you wish to sell the NFT at 1 ETH, you should price it at 0.99 ETH. It is almost the same price as 1.0 ETH, but the 0.01 margin helps your NFT to appear before the 1.0 ETH on the Opensea NFT marketplace when the price is set from Low to High.
Frequently Asked Questions (FAQs)
-
What are the best NFT marketplaces for flipping?
Opensea, Rarible, and SuperRare are the top 3 NFT marketplaces with thousands of listed NFT projects and high trading volume recommended for flipping.
-
Is Flipping NFTs on Opensea Expensive?
Opensea is primarily an Ethereum blockchain-based NFT marketplace, and the transaction cost is expensive due to the Ethereum gas fee. You can try other NFT marketplaces based on blockchains like Polygon, Fantom, and Avax, where the transaction cost is much lower.
-
What type of NFTs sells the most?
There is a strong market for NFTs with high utility, a credible team behind them, and high-quality art. There is always a high demand for projects with a limited supply, and they can easily earn you a profit.
Conclusion
Many factors play a role in identifying a promising NFT project. There are different strategies for flipping NFTs for profit compared to investing in long-term projects.
Making money from flipping NFTs has many similarities to investing in crypto. You should always keep an open mind, study the charts, buy low, sell high, and make a profit at the right time.