NFT markets offer great opportunities to users who prefer to get additional profits without too much effort. One such great option to generate profit is NFT flipping. Keep reading to learn more about the process and how a proxy can help.
NFT flipping is purchasing and re-selling NFTs (non-fungible tokens) to generate profit. It's like speculating on the price: buying something for a lower price and re-selling for a higher price. However, users do it on blockchain networks or exchanges that support NFT. Moreover, they often must seek better ways to find platforms to re-sell NFT art for a higher price.;
Non-fungible tokens are unique digital assets representing ownership of anything from art to prominent tickets to virtual real estate! NFTs are created and supported through blockchain technology.
NFT flipping involves purchasing an NFT at a lower price and re-selling it at a higher price, typically within a short period. The profit is generated from the difference between the buying and selling prices. Thus, this is your first cue of why people may use proxies for smoother NFT flipping processes, but more on that further in the article.
NFT flippers utilize numerous convenient tactics to locate NFTs likely to gain value quickly. The simplest and most common strategy is to seek artists who are starting to gain popularity. For example, the artist gets more praise on social media, and their art is getting sold faster than before, the art's value increases gradually, etc. Some NFT flippers employ automated tools and algorithms to assist them in locating discounted NFTs and tracking market movements.
While NFT flipping might be a successful solution, it is not without obvious risks. NFT is similar to cryptocurrency in many ways, and one is price volatility. Investing in NFT is tricky, and you should always monitor the market since you'd need time to re-sell art. However, in this case, NFTs are even more dangerous than cryptocurrencies.
Many well-known or promising cryptocurrencies have higher liquidity. It's when cryptocurrency can be easily sold through several exchanges. NFTs represent non-fungibility, so we can't talk about liquidity in this case.
How does a proxy work? It masks your real IP address and sends a false signal to the server you want to access. This false signal tells the server you're using a different IP address. Thus, the first obvious reason to use a proxy for NFT flipping is accessing restricted NFT marketplaces. However, many other worthy reasons exist to use a proxy for NFT flipping. These are as follows:
The only disadvantage one could think of is paying for a proxy server. Still, choosing a service provider that asks for payment is recommended. Free or public proxies are not ideal for obvious reasons: data risks. You can opt for OnlineProxy since it's an affordable option with a free trial.
Several types of proxies can be used for NFT flipping, depending on the specific needs and goals of the NFT flipper. Here are some of the most common types of proxies used for NFT flipping:
Even though proxies mask your IP address, the marketplace can still spot you and block an account. It's critical to be careful and use only reliable and safe service providers like OnlineProxy.
Residential proxies got this name because they mask your IP address as if you're a regular user who simply wants to buy or sell an NFT. They are less expensive and are of better quality. Thus, many flippers prefer to use them to gain profit. However, there are many more benefits to using residential proxies, and these are as follows:
To sum up, a residential proxy masks your activity to resemble regular user activity, giving you better chances of going under the radar of NFT marketplaces.
Today, many people are more interested in online security and use various tools to protect themselves. One such tool is a proxy. As you know, proxies offer even more benefits to people, including NFT flippers.