How to Have an Edge in the NFT Space So You’ll Be Able to Identify Good Projects
NFT projects and collections are coming from everywhere. It is a matter of days anybody can launch an NFT project and to be honest, it is cool! However, the question is how to identify good and even great projects to spend money on.
When choosing the best NFT to buy for yourself and hold long term, it is crucial that you follow these three simple rules:
- Always invest in NFTs that you believe in. …
- Do your own research. …
- The team …
- The community engagement. …
- The project (brand) …
- Don’t invest more money than you can afford to lose.
First and foremost, you should always invest in NFTs that spark your interest. I mean, what’s the point of purchasing something that you don’t actually enjoy? Don’t just look for the “next best” NFT, search for the next best NFT that suits your interests.
Not everyone has the same interests, and not everyone will be able to make the same knowledgeable choice about anyone NFT project because we all have different levels of understanding of the category we are choosing to invest in.
For example, if you really enjoy soccer and you know a lot about the players and the teams, it’s safe to say that a soccer NFT project would be a good category to start doing your research on. Or, if you really appreciate modern art, then you should be digging deeper into modern artists and their NFTs.
This first step is the foundation of your decision for choosing the best NFT project for you and your investment portfolio.
Who doesn’t love a little research? After you have found an NFT you are interested in, it’s time to get your hands dirty and learn everything you can about that specific NFT.
Researching NFTs isn’t as easy as going to the “reviews” section and reading everything that other consumers have posted, but it’s close.
I think it’s important to understand that when you invest in a non-fungible token, you are actually investing in the human behind the project. Similarly to when you are betting on your favorite sport’s team, you are betting on the player’s ability to execute, not just a random team of people.
There are a few things that I personally look for when examining the creator behind a project; their past performance and ability to execute, their social status, and their ability to build brand awareness.
If you find a project where the creator has a good track record, a positive social status, and a team that seems to understand how to build a brand, then you are likely on the right path to finding the best long-term NFT for your collection.
Don’t forget about the community! A good NFT project will have a healthy community following them. Signs of a healthy community include an overall positive vibe, helpful people, and a whole lot of communication from the project manager. This communication should include project updates, alerts, and assistance with any problems that community members may face.
Okay, so now you’re probably wondering where you are able to find out more about a project’s community; the answer is simple: everywhere. Allow me to elaborate.
Wherever an NFT project has a presence, you should be there observing, listening, and asking any questions you may have about the project. Some common places where you are able to observe a project’s community is on various social media platforms, Discord, and other media outlets such as blog posts and videos.
Spending a majority of your day simply observing a community is not a waste of your time at all. In fact, I would argue that it is an excellent use of your time that can help you decide if an NFT is right for you or not.
Finally, the main piece of the puzzle: the project itself. The project — or as I like to think of it, the brand — is arguably one of the most important pieces to the NFT puzzle. The brand is what draws people in and keeps the demand for their assets high.
Branding is generally what draws you into a project, and it is what will continue to command your attention as more and more projects enter the space. When you do your research on a brand, make sure you like the brand and support what they stand for. Also, you should ensure that you thoroughly enjoy the products and services that the brand offers to its consumers, such as yourself. Once you have determined these three important aspects of research check-out, you are one step closer to discovering the best NFT for you and your long-term investment goals. Remember, ALWAYS do your own research.
When thinking about investing in non-fungible tokens to add to your long-term investment portfolio, you may be contemplating the longevity of NFTs in the macro — rightfully so. This brings us to one of the most commonly asked questions regarding these tokens: are NFTs here to stay for the long term?
NFTs are digital assets that are minted on the blockchain, where they remain indefinitely. These digital assets are exploding in growth and utility across various industries. Social media platforms, influencers, and even big-name brands such as Budweiser, are all beginning to incorporate NFTs into their business.
In my opinion, the fact that these reputable brands are utilizing non-fungible tokens to their advantage is a huge sign pointing towards the continuance of use across all the different industries. Moreover, I believe that the market has already proven that NFTs will remain valuable for the long haul.
The number of people who are aware of NFTs and their potential value is still very minimal. I bet if you were to ask anyone within your inner circle about NFTs, they would look at you like you are crazy. That’s not to take away from the fact that NFTs are here to stay.
NFT’s have taken the world by storm. Those graphical art images, memes and collectibles, where people are buying them for some crazy amounts of money.
Just look at the topmost expensive NFT ever sold in history which is Beeple’s “Everyday The First 5000 Days”. This particular artwork sold for a whopping $69 Million Dollars, breaking all the records and setting a new standard for NFT’s.
Today an average CryptoPunk character will cost you no less than $200,000 USD. While getting the rare ones will cost you millions of dollars. This is to say that the NFT market has sky rocketed to a really high level.
Because of this, there are tons of opportunities out there in this NFT sphere and even you can easily make lots of money buying and selling NFT’s. The problem is you have to invest in the right NFT’s and you cannot just buy any random NFT and expect to make lots of money. This is called the “Aftermarket NFT Works” or so-called the “Thrash Art Movement”.
This is also the reason why most of the people out there lose money on NFTs and that is because they don’t invest in the right NFTs.
What most people do is that they invest in random NFT’s and most probably they will lose their money because the NFT market is the least liquid market, compared to the highly liquid crypto market. This means it will be hard for them to sell their NFT’s.
What most people do is that they invest in random NFT’s and most probably they will lose their money because the NFT market is the least liquid market, compared to the highly liquid crypto market. This means it will be hard for them to sell their NFT’s.
Raging Rhinos is a collection of 5000 unique NFT’s, which are randomly generated, each having its own unique appearance, style and personality.
Now if you go to the OpenSea website and search for Raging Rhinos, you’ll find that the “Pricing Floor” of Raging Rhinos is about 14.2 ETH. This is that the average or the lowest possible price to own any one of these Rhinos is 14.2 ETH.
Now if you open and click on any one of the Rhinos, you’ll notice that these Rhinos come with certain properties, such as background color, body-color, clothes, eyewear, head …..etc.
These are attributes or properties of the Raging Rhino NFT.
Now some of the properties are rare and it is these properties that define the rarity level of the Raging Rhinos NFT.
Similarly, most of the NFT projects like CryptoPunks and CryptoKitties also have certain properties or attributes.
Now what you can do is you can use tools such as Rarity Tools to check the rarity of any NFT collectible.
Websites like Rarity tools allow us to check the rarity score or level of any NFT. This rarity level depends upon a number of factors, including properties, type, editions, and much much more. Additionally, you can also use Rarity tools to find new upcoming NFT projects that are going to be released very soon.
In the upcoming section, you’ll find lots of NFT projects but the problem is, How do you determine, what NFT project is a Good Investment.
The way I found out how to determine whether an NFT project is good or not is by finding out whether the NFT project has a community or not.
Things like:
Do they have a community?
How many pieces are there?
How much are they selling for?
Because remember that NFT’s are extremely risky investments and the reason they are risky is that they are not liquid investments unlike Cryptocurrencies like Bitcoin, which can be sold instantly.
NFT’s once they are bought has no guarantee whatsoever that it will get sold.
This is the exact reason why NFT Projects that have a community would be a very good investment choice even if their art isn’t that great. The NFT Project, simply requires a good story, a good persona, and branding, and that as long as people are following the Project, you can bet on it.
Because by having a community, you lower the risk of liquidity which means, it will be easier for you to sell your NFT. Think about it, even if you buy an NFT for $400 Dollars in January, and after 8 months, you are able to sell it for say $500 dollars in December. The project may not be a good investment in terms of profitability, but in terms of Liquidity, it saves your from Losing the entire $400 dollars!. That’s the power of having a community in NFT’s.
Now if you open the upcoming section of Rarity tools, you’ll find tons of NFT Projects there. When you scroll through the NFT Projects, you want to find out how big their community is.
Take for instance, this NFT Project called Neo’s Bizarre Adventure. It has 6093 amount of Followers on Twitter and 10,000 amount of NFT’s in total.
You want to check three things while determining how big the NFT community of the project is.
Number of Twitter Followers
Social Media Following
Future Goals and Plans of the NFT Project.
NFT Projects with lots of Twitter followers and social media following is more likely to have a big community and valuable NFT’s.
This indicates that there are people who are willing to actually invest in their projects and buy their NFT’s. While the value and price of these NFT’s are also likely to rise in the Future.
Due to this, not only will you be able to sell your NFT’s quickly if you wanted to, but you’ll able be able to make huge profits in the future.
So, when you are browsing through the NFT projects, in the upcoming section of the Rarity Tools, you’ll come across “Sale Date and Time”.
This is when the NFT Project will get released. You can easily figure out whether if the NFT Project is Worth your investment or not by checking the number of NFT’s that is going to be released and how many people are following the NFT project.
Now as long as the community of the NFT project is big that is when the NFT project has lots of followers on Twitter and other Social Media accounts, you’ll be on the safe side if you invest in that project.
Because remember, you’re not worried about whether if the Artwork is at the best standards in terms of art and creativity. That matters but even more than that, community matter a lot.
Your main goal is to see whether or not, you’ll be able to sell your NFT quickly in the future.
And the fact that you’re getting in early means you have a good chance to profit in the future. However, you also need to find out why and what kind of NFT’s in that project is rare and valuable. Try to look out for rare attributes and properties and see if you can get those for a cheap price.
This is how you can invest in NFT’s in a very safe way. Because what most people do is they go after art and creativity which is not a bad thing. But, the problem is they buy random artworks and to be honest, 90% of the NFT’s in the market looks amazing in terms of art and creativity.
Remember that NFT sites that have a big community around them are good NFT investments.
And most of the time, what happens is that NFT Projects that get featured in these big Media Sites quickly grow in size and value. The best example I can give you of is Crypto Punks.
Who’d ever want to bet on an Artwork that’s just 24×24 pixelated Punk characters right. They look like any 5 year old can make and draw those Punk characters and sell them as an NFT.
But CryptoPunks when they first got released, there were only 20 to 30 users who claimed some of their punk characters. However, when Mashable featured a story of Cryptopunks as this cool new NFT Project, within a few hours, the entire collection of 10,000 Punk Characters was sold out.
Of course, this doesn’t mean that Crypto Punks totally relied on that Featured Story for it being Viral, and yes, to be honest, Crypto Punk had a very unique story and vision. But that Press Media Feature did help Cryptopunks a lot.
This is to say that these Media Sites are indeed powerful and hunting for NFT Projects on these sites can land you with amazing profitable NFT projects.
What I normally do is I just go to the search section of their and search for the Keyword “NFT”. Normally, you’ll get a bunch of news articles on NFT’s, but I am pretty sure, you’ll find some unique projects out there.
