An investment strategy where you buy something with the goal of reselling for a profit later, usually in a short period of time.
Flipping is an investment strategy (mostly popularized by real estate investing) where you buy something to resell for a profit later, usually in a short period of time. In the context of ICOs, flipping refers to investing in tokens before they are listed on exchanges, then quickly reselling them for a profit when they start trading on exchanges in the secondary market.
Flipping can occur with any cryptocurrency or asset, but “Bitcoin flipping” is a common phrase in the industry. It happens when a market participant purchases a certain quantity of Bitcoin at a price with the hope of shortly selling it later for a higher price. The strategy of Bitcoin flipping can be particularly useful during times of high volatility and price spikes. It also makes it much easier to capitalize on the frenzy that has engulfed cryptocurrency markets.
Listing a cryptocurrency on an exchange can often boost confidence in the coin’s or token’s community as well as the price. This is because those crypto prices often rise after an ICO compared with their pre-ICO price.
Crypto markets are highly volatile and unpredictable, so there is always a risk of losing money when flipping crypto. The lack of regulation can make it difficult to protect your capital from fraud and malicious actors. Additionally, as with any investment, there is always a risk of market manipulation and insider trading. Finally, there is the risk of being unable to cash out when you want, as there may be liquidity issues in certain markets.
