NFT FLIPPING
What is a Blockchain?
A Blockchain is a decentralized digital ledger for storing digital data on blocks. Picture the building blocks used by kids and how the preceding block is linked to the next one? Blocks on the blockchain are linked in a similar way through cryptographic signatures, and NFTs exist on blockchains.
What are NFTS?
We will begin by identifying what NFTs are;
Simply put Non-fungible tokens (NFTs for short) are digital assets that represent real-world objects like art, music, in-game items and videos according to Forbes.
NFTs are Non-fungible in the sense that NFT A cannot be exchanged for NFT B because their value varies compared to fungible fiat and cryptocurrencies where $1 has the same value with another $1 bill and 1BTC is the same with another 1BTC.
NFTs exist on the Blockchain and are bought and sold using cryptocurrencies via NFT marketplaces, the currency used depends on what the NFT provider accepts.
They require gas fees(similar to maintenance fees) for transactions.
What are NFT Marketplaces?
An NFT Marketplace is just like an e-commerce store, NFTs are displayed and traded on these platforms.
Opensea is the biggest NFT marketplace, where NFT creators can list their assets for trading, other marketplaces include SuperRare, MagicEden, MarkersPlace amongst others.
Users of these platforms must have:
- An Account.
- Cryptocurrencies (mostly ETH/SOL).
- A crypto wallet.
What is Flipping?
NFT flipping is similar to crypto trading, users buy NFTs at lower prices to sell off for quick gains once the prices go up.
How to know NFTs Worth Buying?
NFTs are relatively more expensive to purchase at once unlike some other crypto tokens that can be bought at smaller amounts as such extra care must be taken before buying an NFT, adequate research should be carried out such as;
- Checking the projects road map
- Check project review pages
- Ask KOLs in the field of NFTs what they think of a given project/check for their reviews if any.
- Check if project owners are doxxed
- Check what the GP is talking about to discover what their preferences are for those looking to flip NFTs.
