Do you ever have the feeling that everything is changing just a little too quickly? You would like to delve into NFTs but do you feel that you are always behind the times and therefore miss opportunities? Countless NFT collections are added every day, but are they a good investment?
In this article, we will discuss 6 NFT tools that can help you to research an NFT collection further. Timing is important, especially when trading NFTs. With these NFT tools, you gain insights that are essential to determine whether or not it is a good time to buy that one specific NFT.
Please note: this blog is for informational purposes only and is not financial advice. Therefore, rely only on your own findings and only invest money that you are willing to lose.
Everyone wants to be an early investor. Only in this way can you maximize your profits and increase your chances on the secondary market. Investing in crypto is often based on fundamental analysis. Investing in NFTs depends on other factors. The trade-in digital art is based on indicators such as roadmap, volume, scarcity, and marketing/hype. But when you’re researching NFTs, it’s important to consider the following points:
Apart from that, it’s perfectly possible to trade NFTs that lack this fundamental foundation. How? By having sufficient insight into what is going on in the market. Fortunately, there are plenty of NFT tools that can help you with this. If you only want to make money with NFTs by flipping them, the NFT tools below are handy!
Mints vs. secondary sales
There are many ways to trade NFTs. The best-known NFT marketplaces are OpenSea and Rarible where anyone can list their NFT. But these NFTs obviously come from somewhere. Investors who get involved early in a collection or an NFT project have the opportunity to mint this NFT through their own website. The minting price is set by the team itself, but is usually between 0.01 ETH and 0.5 ETH, depending on the collection.
It is here that you can invest cheaply in an NFT and then sell it on the secondary market for big profits. By secondary market, we mean here public NFT marketplaces, such as those mentioned above. Another example is the collection of Invisible Friends, which was minted for 0.25 ETH and is now tradable on OpenSea with a floor price of 6.8 ETH.
So everyone wants to buy such an NFT at all costs for this relatively low minting price in the hope of being able to trade it with nice profits. But which collection is worth it now? There are many tools for this, whether or not free, that you can use to gain more insight into this NFT trade. These tools help you find good NFT collections, but also determine when it is wise to buy or sell an NFT on the secondary market.
Nftsignal.io is a free tool to discover trending NFT projects. This tool mainly gives you more insight into what other investors are doing. Which NFTs have they bought in the last 12 hours, 24 hours, 48 hours, or 3 days. From this simple list, you get an overview of which top investors buy which NFTs. The interface is extremely sober, where you can choose from 4 different filters, namely:
- Recently minted
- Recently purchased
- Top projects
- Top collectors
How can you use this? Seeing different investors buying or minting the same NFTs may be a sign for you to investigate further here. Not all NFT collections with major investors are a guarantee of success.
Rarity.tools is perhaps one of the best-known sources for investigating NFTs. This extensive database gives you all the information you need. Think of the top collection, arranged on the basis of volume and price. You can see the latest collections at a glance. When you click through, you will get an overview of this collection.
An important part of a collection is the rarity. How rare is this NFT and what are the chances of selling it for a significant profit? The more unique, the better of course. At the bottom left you can filter on these traits. Each NFT gets a separate Rarity score, based on all unique traits. Here you can see which NFTs are the best in the collection. The higher this Rarity score, the more unique your NFT. Unique almost always means a higher floor price!
In the ‘upcoming’ section you will get an overview of the new collections that will be launched in the coming days. With each collection, you’ll see a link to both their Twitter and Discord. You can immediately see what the price is during the presale and the public sale, including the total number of NFTs in this collection. This number also gives you more information about how rare a collection is, which affects its price. This is therefore an ideal starting point for further researching a particular collection.
Although many investors think that NFTs can only be traded on OpenSea, there are many possibilities and many blockchains. OpenSea is still the largest NFT marketplace at the time of writing, with the majority of this trading happening on Ethereum. Still, the platform also supports Klatyn and Polygon. But did you know that there are many more blockchains on which NFTs are traded?
Cryptoslam.io gives you a global overview of all NFT trading. Not only do you see which NFT collections are traded the most in a given timeframe, but you also see the total volume of NFT sales per blockchain and the number of buyers. This way you get more insights into the entire market sentiment.
In the example below we see that in the last 7 days as many as 54,645 investors have bought an NFT in the Ethereum network. Compared to just 1,059 on the Binance Smart Chain (BSC). Why is this important? If you know where the most trading volume is, then you also know that it might be easier to flip your NFT there.
As the name suggests, nft-stats.com you a whole bunch of stats about the NFT market. Ranging from data, charts, and the latest news. They collect this data from various NFT marketplaces. Here you can see, for example, how many NFTs have been sold in the past 24 hours, but also the completely different trading volume. Check out the top trending collections, but also learn more about the rare traits of an NFT, thanks to the Rarity Explorer. Each NFT in the collection gets a certain score. The higher this score, the rarer this NFT. This is an important factor that can be part of your investment strategy. Do you buy the cheapest NFT in the collection, or are you willing to pay more for a rare NFT?
Nft-stats focuses on the top collections. These are collections where either the floor price rises sharply or where the trading volume increases. For example, you can’t see what the whales are doing here, nor can you discover new NFT projects here.
Nansen.ai is a blockchain platform, which combines both the on-chain data of NFTs with all information from wallets worldwide. It is a popular tool to get ‘inside information‘ into the world of NFTs. Thanks to the use of artificial intelligence (AI), it extracts all information from external sources and bundles them together on this platform. In addition to the volume, you can also see the average price per collection, but also the minting price and max price. This tool is unfortunately not free, but it is certainly worth mentioning. It may be the NFT tool of choice!
Because Nansen.ai also gains insights into the wallets of millions of users, users also know which investors have an impressive portfolio. Through this tool, you can see which NFTs they are buying and at what price. Do many people buy or mint NFTs from one particular collection? Then it is undoubtedly worth investigating further. Nansen.ai also gives you an overview of the volume, the number of transactions, the number of unique buyers, and the price range. They call this smart money. Investors, therefore, look at this metric with suspicion when it comes to new NFT projects. But note: this is not a guarantee. In the past, many NFT projects have been unsuccessful despite a lot of ‘smart money’ going into these projects. Therefore, always do your own research and only invest in your own findings.
Nansen.ai is not just any random tool. It is seen as the most powerful tool to research the NFT market. It is therefore not surprising that big names use Nansen.ai. Think of Polygon, DeFiance Capital, Polychain Capital, and Axie Infinity. The lite version of Nansen.ai is free. For more insights you can take out different subscriptions:
Icy.tools is a tool where you can see statistics of existing NFT projects, such as floor prices, volume, and sales history. In the overview, you immediately get all information about the trending NFT collections. You can rank these on criteria such as sales, volume, and market cap. But the platform is also often used to find new NFT collections. You can discover NFTs and filter them on the same criteria via the ‘discover’ tab.
You can also immediately see how many unique mints there are. Why is that important? If a whale owns a large number of NFTs, he/she can influence the price by, for example, selling all NFTs at once. Of course, you want to prevent this. The more unique mints, the better. You can even set up notifications to notify you when an x number of NFTs have been mined in the past. This can be last minute, 5 minutes, 10 minutes, or 15 minutes. Do you have a specific collection in mind? Follow them through your unique watchlist and track your favorite NFT projects.
There are plenty of free features that you can use at Icy.tools. You can consult statistics on a timeframe of 1 hour, 12 hours, and 24 hours. However, if you want more detailed information on a smaller timeframe, you need Icy Premium.
Trading in digital art is a popular business and can be very lucrative. You hear many people who have earned a whole month’s salary in a week by selling their NFT. With the popular Bored Ape Yacht Club and the launch of their native token $APE, everyone naturally wants to find the new Bored Ape or CryptoPunk. But is that so easy?
Fortunately, there are plenty of NFT tools that can support you in your search and research. I deliberately use the word support here. These NFT tools give you more insight into the current market, but never guarantee the success of an NFT collection. It does not mean that when smart money goes to an NFT collection, it is therefore guaranteed to increase in value. Therefore, do your own research in an NFT collection at all times and only invest money that you are willing to lose.