How Nigerians Can Make Money Flipping NFTs
The hype of NFTs became a bandwagon in 2021 that everyone wants to get along with. A lot of people joined the bandwagon and made fortune flipping NFTs.
According to Nonfungible.com, primary and secondary sales on the Ethereum blockchain reached over $15 billion in 2021, up from $67 million in the previous
When the news that Nigerian Youth corper, Adisa Olashile sold an old man’s picture as an NFT named “De Drummer boy”, they both made a huge amount of money.
The NFTs were sold for N2,042,440.72 ($2,098.32) in OpenSea, and 50% was paid to the drummer(the old man). This made everyone wonder about NFTs.
If you want to get a clue of what these NFTs are all about and how you can make money, flipping NFTs in Nigeria, this article entails such information.
What Are NFTs?
An NFT can be characterized as a cryptographic token that specifically defines an asset. It can represent real-world assets like a house, car, or song in addition to digital assets like music or an image. Since assets can be defined uniquely, you can also demonstrate ownership of such assets as well as their authenticity.
Users might be wondering why non-fungible tokens are necessary for asset tracking purposes. Regular tokens produced by the ERC-20 standard have the drawback of being interchangeable and divisible.
This property is not what we want for tracking special assets. This would imply that you might issue different tokens made from your physical car or digital image.
If all of them pointed to the same asset, that would be contrary to the whole premise of non-fungible tokens. Furthermore, it becomes hard to define tokens uniquely if we can duplicate them.
Take a look at an example of fungibility to aid your understanding. For digital currencies like Bitcoin, the fungibility attribute is very important. Because it doesn’t matter which Bitcoin you hold, this enables individuals to easily swap them with one another.
But if digital assets are considered fungible, users might freely exchange them with other assets, making it impossible to establish who owns an asset. If we wish to uniquely identify assets, that is a challenge. This is the problem Non-fungible tokens were developed to solve. Enroll into Waptutors NFT trading course to learn more.
Qualities Of NFTs
Since we now know what NFTs are, let’s take a clue about their qualities. Some of the qualities of an NFTs include; Rarity, Uniqueness, and Indivisibility.
One factor that contributes to the popularity of NFTs is a rarity, also known as scarcity. The boundaries of a typical ERC20 token are completely up to the creators. What if you requested a supply of one million tokens? Yes, that is feasible.
Do you seek to create more tokens as a creator? Simply raise the overall supply in your smart contract.
It is not possible to endlessly produce new assets with NFTs. Because each item can only be defined once on the blockchain due to rarity, NFTs are treasured by collectors.
Assets are uncommon since only one person can register them at a time. In other words, NFTs have value as long as people are willing to pay for them because of their rarity. In a game, you can own a piece of land and trade it exactly like a real piece of land, an example is “Decentraland“.
NFTs enable you to define an asset in a specific way by supplying metadata that describes the asset and distinguishes it from other assets.
For instance, a startup like Decentraland sells digital land parcels. The metadata for each piece of land includes virtual measurements and details about the land itself, such as how much of it is covered by trees and bushes or whether it contains any constructions or facilities.
NFTs cannot be separated. You could, for instance, own a complete bitcoin. However, you can divide a bitcoin into smaller denominations and purchase 1/10 of a bitcoin if you don’t have enough cash to acquire a whole bitcoin. Bitcoin’s currency units are called satoshis.
You don’t want to permit consumers to purchase 10% of a rail ticket, to continue with the example. In other words, you could only purchase a whole bitcoin if Bitcoin possessed non-fungible properties.
What Is NFTs Flipping?
NFTs are inherently scarce and in high demand, there are several opportunities to sell them for a profit on marketplaces like OpenSea. Buying NFTs low and selling them high is referred to as “NFTs flipping“.
For instance, NFT CryptoPunk #8348 sold for $456 in October 2017. The NFT value increased and was exactly $171 million.
There are a lot of opportunities for making a profit flipping NFTs, but you must first determine which NFT project is worth your investment before you start flipping NFTs. Learn how to flipping NFTs by enrolling in Waptutors NFT flipping course.
How Do NFTs Work?
Blockchain, a distributed public ledger that stores transactions, is where NFTs are stored. Most likely, you are most familiar with blockchain as the mechanism underpinning cryptocurrencies.
NFTs are specifically stored on the Ethereum blockchain. Though, other Blockchain store NFTs.
Digital things that represent both tangible and intangible objects are “minted” into an NFT, which includes; Art, GIFs, Videos and sports highlights, Collectibles, Virtual avatars, video game skins, and Designer sneakers, Music, and even tweets.
Jack Dorsey, the former co-founder of Twitter, sold his first tweet as an NFT for over $2.9 million.
NFTs are essentially digital versions of actual collectibles. So the purchaser receives a digital file rather than an actual oil painting to display on the wall.
Additionally, they receive sole ownership rights. NFTs can only have one owner at a time. Due to the distinctive data of NFTs, it is simple to confirm ownership and transfer tokens between owners.
The author or owner may choose to store particular data inside them. As an illustration, artists can sign their work by putting their signature in the metadata of an NFT.
How To Make Money Flipping NFTs
Before thinking of flipping an NFTs, you must have found a promising project you feel can give a good profit. There are two ways to purchase an NFT project once you have found one that seems promising;
- When it “drops,” mint an NFT
- Purchase an NFT from a secondary market
Minting refers to purchasing the NFT at launch before it reaches the secondary market.
This is fantastic because the majority of NFT projects offer their collections for extremely low costs, and occasionally even for free, giving you the greatest profit margin possible.
However, because of the high demand and little supply, it is quite difficult to find quality NFT projects. To give early backers assured access to minting when the collection is live, the majority of NFT projects offer whitelists.
Join the project’s Discord group to learn about the eligibility requirements, the launch date, and the time for the NFT collection to be whitelisted. (A project’s Twitter page frequently contains links to its Discord groups.)
After the NFT has been created, it is simple to transfer it to secondary markets like OpenSea and list it for a greater price by following the website’s instructions.
Purchasing On Secondary Markets
Let’s say you arrive late to the performance and miss your opportunity to mint. You can still purchase the NFT of your choosing from a secondary market, so don’t worry. Take OpenSea as an illustration. When you are on the website, follow these instructions;
- Step 1
Browse the top NFTs under the Trending tab or, if you already know the collection you want, start typing.
- Step 2
After arriving at the project page, click Items, choose Buy Now, and change Price: Low to High.
This will display every NFT that is offered for sale.
- Step 3
Look out for NFTs that you believe will gain value in the future or that you believe are now undervalued.
For instance, you might know that one of them might be cheap if the first NFT you see after completing step 2 is priced at 0.03 ETH, and the ones right after that are priced at 0.05 ETH. Now is your chance to purchase at $0.03 and possibly sell it for a greater price.
- Step 4
Choose the particular NFT that you want to flip and click Properties. You can see the characteristics of your NFT and their rarity here. Your NFT will be worth more if it is uncommon.
- Step 5
Verify if the project has enough liquidity before getting overly enthused. To examine how many individuals are listing products and how many are purchasing them, pick Listing and Sales under the Activity tab. Every few minutes, transactions should ideally occur.
You’ll have an easier time finding a buyer for your NFT if there is a significant trading volume.
Before diving into flipping NFTs, make sure you are well grounded in the Fundamentals aspects of NFTs, and well knowledgeable on the NFTs market because it is very volatile.
As a beginner, you need to get yourself trained very well before venturing into NFTs flipping. Waptutors Academy has made that easy by launching a NFT trading course where you will be trained professionally to flip NFTs.
This article shouldn’t be considered as investment advice for it is only for educational purposes. Therefore, before taking any action, you should always conduct your research.