Are you new to the world of NFTs? Do you have no idea how to buy NFTs and what to look out for? What makes one project better than another? Who should I follow?
If you start reading this article, you have probably already searched for something on Google.
You may have already had a look around the NFT space and its communities.
You probably have a lot of questions right now?
Several images presented as NFT are sold daily for a lot of money.
I’d say sit down and enjoy it. After reading this article you will know exactly how to spot a good NFT set!
What is an NFT?
Before we dive deeper into how to find a good NFT collection, it’s better to start at the beginning. As mentioned, NFT stands for Non-Fungible Token.
Behind the ‘pictures’ hides a unique technique and non-interchangeable data. All this is stored in a digital database.
Such a database is powered by blockchain technology that records proof of ownership.
Like physical works of art, NFTs are collectible digital assets that value “maintain”
As with other forms of investment, thorough research beforehand is very important.
So don’t just rely on claims made by so-called advisers. I am not an expert yet and therefore do not view this article as investment advice!
I already have a year and a half of experience in the NFT Space. This seems short, but for trading NFTs, this is quite a while :-)!
Recent NFT History
If you’ve been on the news a bit, you’ve probably heard that NFTs and Metaverse (Web 3) are moving to the top at breakneck speed.
Facebook has changed the name of the parent company to Meta for a reason.
Sets like CryptoPunks and Bored Ape Yacht Club have opened up a whole new digital sector of crypto collectibles.
And many, many new NFT sets are added to the space every day!
2021 has proven that the NFT market space has been massively embraced by many.
NFTs have moved beyond the point of just collectible digital art. Many sets add utility and value-adding aspects to the NFT and integrate them into the metaverse.
According to the American CoinMarketCap, the most widely cited price comparator in the field of crypto, the NFT space has already sold 19 billion dollars.
Of this, 57% was obtained from 1st-line sales.
The target; get in early and sell for a quick profit.
We know that not all NFT sets will last.
At the moment, we are in a bear market, also known as a bear market.
Unfortunately, success is also not for everyone in the NFT space.
But how can you choose the one that is going to pop from the wide range of NFT sets?
How do you distinguish the successes from the flops? There are no scientifically proven facts for this.
But some useful tips can help you further.
Get in early, get out quickly and with a high profit!
Finding good profitable NFT projects can be difficult.
There are many things that have an influence but fortunately also many places to do research.
The things below may help you on your way.
The NFT space is alive on Twitter.
Twitter is where everyone in the NFT space comes together and the place where you can find a lot of background info about NFT sets.
Here you will find information about upcoming projects, discover the communities and stay informed about various projects.
Searching for projects on Twitter is not difficult and you can also sell your own NFTs there.
By simply using the hashtags #NFT, #nftart, or #nftcommunity you immerse yourself in the NFT space.
The NFT community is very active on Twitter.
It is best to follow the most prominent influencers and NFT experts here.
This gives you access to the projects they follow and are interested in. This is usually a good indication of whether a project is okay.
PRO TIP: Make a list of everyone you follow and check that list in the morning and during the day to keep up with all the news and new NFT projects.
On the Twitter platform, everyone is talking about the most attractive projects, the less attractive ones, and what they buy, hold on to and then sell again.
Make sure to create an account on Twitter!
To help you on your way, here are some accounts you could consult.
- ohhshinny
- cryptobaristas
- j1mmy.eth
- RealmissNFT
- DeezeFi
- farokh
- NFT.NYC
- nounsdao
- BoredApeYC
- Dikasso_
- Max Maher
- The Wall Street Journal
- GaryVee
- NFT Times
- Meet Dave
- HERE you’ll find 35 more.
Discord
Discord is a community-oriented chat app/server designed for text, voice, and (video) images. Usually private and by invitation only.
Discord is ideal for finding NFT projects, but unfortunately not the most user-friendly.
Every self-respecting influencer and NFT project has a Discord server.
It’s this special emphasis on shared-interest communities that sets Discord apart from other platforms.
Just like Twitter’s tight-knit communities, so is Discord.
Discord offers you the opportunity to delve even deeper into projects and exchange ideas with interested parties who are part of them.
Nansen.ai
Everyone knows that knowledge is power, and that also applies to data! Especially in the Crypto and NFT space.
If you know how to read the data well, you are able to find the hidden gems.
Nansen is an analytic platform for the crypto Ethereum.
HERE are 6 more essential free tools.
It combines data with a very strong and constantly growing database containing millions of wallet data.
Be sure to check out Jacob Van’s blog that explains how best to use Nansen.
Learn how to use data to your advantage with simple charts and analysis. You see exactly what the most influential buyers are doing and holding.
You can even set important alerts for you so that you don’t miss anything.
RyzeNFT
RyzeNFT is a Chrome extension that can make your life in the NFT scene a lot easier.
Although a somewhat more expensive addition, you get more than enough value for your money.
That value is mainly in the instruments with which you rarity, a detector for drops, and a tokens finder.
OpenSea
Opensea users can track trading activity, view trends, and track sales. You can also keep an eye on recurring collections.
What are you looking for?
If you want to invest your money, it is wise to invest time in learning.
It will take you some time to familiarize yourself with the NFT space. But this time will more than pay for itself if you are able to select the right projects.
A good metric to measure the upcoming success of new projects is:
- Traction- what are the socials (Twitter), the Discord, and influencers doing
- Team – the people who have invested in the project
- Sales – number of sales and price development in the last days/weeks
Let’s dig a little deeper into some of these elements in search of that unique NFT!
The RoadMap or the White Paper
A roadmap associated with an NFT set is a document that tells about the stated goals and strategies of an NFT project.
With this, the team wants to communicate the value to holders in the longer term.
Roadmaps often include key project milestones, short- and long-term goals, and marketing and growth plans.
You can compare the RoadMap with a business or entrepreneurial plan. You gain confidence when it has a clear vision underpinned by factual data.
It is important to look at how the roadmap is structured and how much effort has gone into putting all the pieces of the puzzle together.
Everything seems quite feasible. If it looks too good to be true, it probably is. Don’t get in!
Some NFT projects also just put something in the roadmap without the intention of ever making one thing come true (a money grab).
Other NFT projects copy the roadmap of an existing project, in the hope that nobody notices this before it project is sold out and they run off with the funds. So be careful!
Founders & Creators
The founders and builders of a project play a major role in its success.
In my opinion, you invest in the people behind the project if you decide to join a set.
Transparency is very important here.
The people behind the project, therefore, need to provide a certain level of transparency in order to build trust with the investors.
Transparency provides clarity about what the project really is and how the goals will be achieved.
Ask yourself if you are willing and able to identify yourself with the project. Is the approach of the NFT team to get a lot of money quickly or are they going for the long term?
Social media presence
You probably don’t have to think twice about this, but still!
A project must be visible to attract investors. That is why presence and visibility on social media are of the utmost importance.
And then it’s not just about the number of followers, but also about the language use and their activity.
Also, look at how many followers the team members have on their social media accounts.
Try to find continuous involvement and activity from the founders and builders of the NFT project.
The community and the engagement of this community
A large part of the NFT market is controlled by the communities.
The good NFT projects have a healthy community that follows the project and supports it through thick and thin.
Those with the greatest involvement are often the most successful.
NFTs are about more than just the best of art. The holders are part of the community where a certain culture has been created, and where culture connects.
The Bored Ape Yacht Club is a good example of this. They have managed to create a real culture of their own where the followers like to wear the merchandise and show it off.
If a project has a great community, she will communicate about the project with passion. You should see this as a good individual action that such a project is going to be successful.
The Scope
An important element to look at is the scope of a project.
Look for the number of followers or members the project has.
If a project has only a handful of followers, that is often not a good sign. Perhaps a signal to stay away from it?!
If there are many followers, this is an indication of a solid project.
Directions to a Good NFT Project
Now that you know where to look for projects and what to find in a project, let’s look at some basic elements that define a good project.
- 10K followers on Twitter and a super design team
- A very involved community
- Multiple sales in recent days/weeks with a rising floor price
- 10K Discord followers
- Strong RoadMap of the project
A very good sign of a potentially successful project is a team that continues to work doxxed and continuously to the NFT project.
Well-known celebrities or influencers who support a project can boost the value.
You have to be careful with this again, sometimes celebs get NFTs for free just to give the set a high profile.
Another good promotion for a project is charity.
Many projects make a part of the proceeds available for charity. This often earns them a lot of respect.
This is noticed not only online but also by the mainstream press.
Daily Habits & Tactics
Turn on your Twitter notifications for every project you follow. You will receive automatic updates and sales activities.
Check the Discord of each individual project to follow the sentiment of the hodlers.
Check the sales pages of OpenSea and the floorprice (use TOOLS for this). Small drops are not a problem but look for movement.
As you can see there are many things to keep track of and study. Many people who are new to the NFT space rely too much on the identity of a project.
The project, or perhaps more the brand, is one of the most important puzzle pieces. The brand and appearance are what draw people in and keep demand high.
My Conclusion
It is clear to me that NFTs are a very good investment opportunity. The more mainstream brands get involved with NFTs, the better.
Finding the right NFT projects that will provide you with a return is not easy and does take some time.
Stick to these 3 rules;
- Find the NFT you like or like,
- Do thorough research into the project.
- Never spend more money than you can afford to lose. No one can give you guarantees, not even in the NFT space.
However, if you do find that special NFT with the best rarity, at an early stage and it goes to the moon….then beautiful things can happen.
