How to Flip NFTs

Important disclaimer: This is risky. Risky, even by crypto standards. There are gains to be made, but do not invest money you aren’t prepared to lose. Also, since we are in a bear market, although it might be a good time to sweep up NFTs for cheap prices, it might be a while before you see some returns

Most of the wisdom in this post comes from this 30-minute video by Alex Becker, who is the founder of Neo Tokyo and has made a lot of money flipping NFTs. I’d recommend watching the whole thing, but I have outlined the key takeaways below, if you want to absorb the main points of the video quickly.

Rule 1: Always try to mint your way into projects. Prices are rarely going to go lower than the mint price.

When an NFT project first launches, instead of buying an NFT from someone else, you can mint one. Minting is where you publish a token (your NFT) on the blockchain so it is now resell-able and purchasable to other people. This sounds complicated, but once you have a crypto wallet set up, it’s usually just a case of going to the website of the NFT project you are interested in, and exchanging some tokens to mint the NFT.

This strategy allows you to make gains if the projects takes off. But even if the project just goes sideways, you can usually still exit at the mint price. That protects you from downside risk. DO NOT buy the NFTs when they are pumping. If the project stops pumping people stop buying, so the floor goes down really quickly

Rule 2: Always buy the FLOOR in existing projects if you are going for quick flips

The floor is the lowest priced NFT in the collection, usually the ones with the most common traits. The reason these are good to buy is because these are the easiest to sell if the project starts doing well. If you are looking to flip NFTs, the hardest ones to sell are going to be the ones in the middle

Rule 3: Don't buy into projects that mint for more than $300

When you are looking to flip NFTs, you have to look for projects that are started in a healthy way. Influencers and celebrities often launch NFT project and charge incredibly high prices right out of the gate. The problem is, when the price is so high to begin with, there are fewer people to resell to. Once buyers and traders see that the price of the NFT project is not increasing, they lose interest and the price starts falling.

If it seems like the creator is trying to make as much money as possible at the expense of the community, this is not a good sign for the future of the project. Do not trust projects based on influencers that are pushed by hype

Rule 4: Look for projects with a good roadmap, responsive developers, or a project that is the first of its kind (this is hard to find)

You want to look for something in the roadmap that will increase the price of the original NFTs. For example, some NFTs generate passive income by generating tokens in your wallet. Other NFT projects allow you access to exclusive events. If the NFT project you are investing in is just digital art with no other utility, that probably isn’t enough in today’s environment for it to stand out.

Rule 5: To find projects, follow known NFT people on Twitter

Examples:

• @allnick

• @AussieNftGuy

• @JRNYcrypto

• @Luna__Legend

• @SolanaLegend

• @SolanaNFTGuy

• @SOLBigBrain

• @SOLbuckets

• @thejpeglord

• @ZssBecker

Rule 6: if you understand rarity, buying middle to top can be lucrative in new projects (but also risky)

Especially if the project is fairly new. If the project has been around for a few weeks or more, the prices for the rarer NFTs in the collection are often inflated. There are many tools to establish the rarity of different NFTs in a collections such as rarity.tools.

Rule 7: If you are looking to invest long-term, only invest in projects that are very established

There are so many NFT projects launching every day that it’s very hard to spot what will do well long-term right out of the gate. So if you are looking to hold something long-term, make sure you have seen some track record of success.

Rule 8: Only be in a few NFT projects at a time

If you focus on a few niches, you will have a better understanding of rarity and be more up to date about what’s going on in that space. If you spread yourself too thin, you may find yourself trying to ape into projects you don’t know much about.