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The NFT market generated over $23 billion in sales volume last year and already is on pace to soon surpass last year's numbers - and we aren't even halfway through the year.
NFTs are one of the fastest growing sectors within the blockchain space and I would be amiss if I didn't delve into this area of the market.
In today's article, I want to share with you a simple strategy for flipping NFTs for profit.
This strategy is called Platform Arbitrage and takes advantage of different floor prices of the same collection on different NFT marketplaces within the Solana Chain.
The strategy is simple, purchasing Solana NFTs at the floor price on the native Solana marketplace, Magic Eden, and then immediately reselling them on the largest and most popular NFT marketplace OpenSea - which typically has a floor price of anywhere between 10%-40% or more.
If you have been considering getting into NFTs and didn't know where to start or how to begin, this is a simple and effective strategy to help you get started.
Platform Arbitrage - For Quick NFT Flips
The platform arbitrage method only works for Solana NFTs. This is because with Solana there are no gas fees and the transaction fees for SOL are almost nonexistent (the same can't be said for ETH).
OpenSea is the world's largest NFT marketplace and typically has a floor price much higher than Magic Eden.
The strategy is simple, purchase a Solana NFT at floor price on Magic Eden and then immediately relist it for sale on OpenSea. The process takes less than a minute to perform and can be repeated throughout the day.
For example, if you look at one of the trending and more popular collections currently on Magic Eden, the Smoke Heads floor price is 16 SOL.
The same collection on OpenSea has a floor price of 18.99 SOL
That is a difference of about $150 (or 17%).
With high-volume collections, it's possible to flip in less than a day and sometimes even within just 20 minutes. When the collection has a high volume and there are sales taking place every few minutes and if you list your NFT at the floor price, it will likely be one of the first ones to be repurchased.
By picking a collection that has a high demand and consequently an increasing floor price and then relisting it on a marketplace that has a higher floor price, you have a very high chance of flipping the NFT in a very short period of time (then rinse and repeat).
If you would like to learn more about this strategy and how to find and flip NFT collections using this method, check out our Guide to Flipping NFTs for Profit.
Guide to Flipping NFTs for Profit
If you would like to get started using Platform Arbitrage, I'd highly recommend checking out our Guide to Flipping NFTs for Profit, available to members. In this guide, we cover how to find and identify quality projects and the steps to purchasing and selling your newly acquired NFTs.
While this isn't intended to be financial advice, the NFT market is still hot and if this is something you have been thinking about getting into, I'd recommend checking out our guide to help you get started within this space.
Until the next report,