In the 21st century, NFTs are one of the hottest investments that you can make. As this market is still on the rise and usage of cryptocurrency is increasing every day, if you can call the right shots, then your financial life can change in an instant.
That being said, success with the NFT business relies heavily on how well the NFT project is. Unlike any other investments, NFTs don’t have the liquidity that cryptocurrencies like Ethereum have, where you can sell it at any time.
If you make the wrong choice and invest in an NFT that has no demand then you won’t be able to profit from it at all. And good projects always get filled with investors early.
That’s why it is necessary to understand how to find good NFT projects early so that you can maximize the opportunity and invest in NFTs that have value. So, without further ado, let’s dive straight into the details, shall we?
What is NFT?
NFTs or non-fungible tokens are regarded as a unique set of data that is contained on a digital ledger. In general, NFTs can be graphical, musical, or text-based as long as it is unique and is addressed to a public ledger under its owner’s name or digital address.
So, in a simpler term, NFTs are digital artworks that are regarded as one-of-a-kind collectibles that can be traded on a blockchain. The idea of NFT is that it is unique and no one except the owner can use it to showcase for him or herself.
Due to the sudden uprise of the crypto market, this value of NFT is on the rise, and artists and investors are focusing on this more and more.
And because the price of art is only valued through its popularity and rarity, certain NFTs have a value that is in the millions.
How to Find Good NFT Projects Early
Now, if you want your investments to reach million-dollar high standards then understanding how to find good NFT projects early should be your key focus.
There are certain factors that you should keep an eye out for before investment. Here are the attributes that you should look for before investing in an NFT project:
1. Uniqueness in Details & Attributes
Most NFT projects follow a similar concept while adding unique details so that each of the NFTs has different characteristics than others. And this is where you should focus the most when picking up an NFT project to invest in.
For example, you are investing in an NFT project that is generating a thousand pandas and all of the pandas have different characteristics in their design.
Which design seems more interesting, what detail is making one or a few specific panda models stand out from the rest? If this type of attribute comes to light, then you should invest in the project because this is something that the public will want.
So, if you break down the details of an NFT project and find that certain models or artwork will attract the attention of the crowd then you should invest in that NFT project immediately.
Because at the end of the day, NFT’s liquidity is very low. So, if the NFT has no demand in the market, then it is completely worthless.
2. Overall Rarity
Imagine that you are an NFT collector, what type of NFTs should you keep in your collection? Now, there will be varieties depending on your taste and what not but we can guarantee that you would want something rare. So, look out for this quality when you plan on investing in any NFT project.
While it is true that every NFT is different and has characteristics of their own, if you are investing in a large project then you will find that while the characteristic and overall design is different, the base concept and design is almost the same for the entire batch of NFT.
And if this happens then its demand in the market has already gone down even before introduction.
Now, you can do a good trade with this type of NFTs but it requires a lot of luck and community support to do so.
Therefore, we suggest that when picking a project, find out how many of these NFTs are in production and how rare they will be in the market.
3. Community Strength
A strong community means that there is already a good market for these NFTs and you can sell them at a higher price if you pick the right ones from the masses.
For example, if a batch of 6000 NFTs has a community consisting of 50 thousand members then it is already better than 800 NFTs with 2 thousand followers.
That’s because if an NFT project doesn’t have a good supporting community then the NFT won’t be in high demand in the blockchain market and you can’t put a higher price on them.
The best way to understand an NFT project’s community power and the NFT’s demand is to visit the social media platforms.
Especially Twitter and Discord, as these platforms, hosts the largest portion of any NFT community. So, check out the communities of the NFT projects before investing in them.
4. Learn From the Pros
Follow other successful NFT investors and visit their social media profiles to get a better understanding of which projects they are betting their money on. As they have the experience of the market firsthand and won’t make any silly investments.
There you have it; these are the most important attributes that you should look out for when investing in NFT projects.
It is highly recommended that you understand how to find good NFT projects early before you invest in any NFT project. Because there are a lot of things that you need to calculate before actually investing.
Hopefully, this article has shed light on this matter. So, be careful and invest wisely. Best of luck!