The massive popularity amassed by the non-fungible token (NFT) sector in 2021 shows no sign of stopping, especially since the announcement of its integration to the Metaverse. This burgeoning market has seen a 29% increase in sales last December, boosting its sales worth to USD 19 billion according to the CoinMarketCap.
While it’s no question that NFTs make a good profit, it’s a challenge to identify which projects would give you the best return on investment (ROI). How then can you pinpoint which NFT collection can survive the increasingly competitive market? Here are the answers.
Where to find good NFTs
Firstly, it’s crucial to recall that an NFT simply indicates ownership of any asset. You must, therefore, decide which type of digital asset you want to buy, sell, or create. From there, you can narrow down the ‘where’ when it comes to NFTs.
Some of today’s most notable places to look for a collection that’s worth investing are as follows:
>Twitter. In the world of NFTs, Twitter is king. It’s the gateway to different communities where buzz for up-and-coming and highly successful projects can be easily accessed through hashtags.
> Discord. Gaming-related platform Discord’s invite-only servers make it easy for people with similar NFT interests to share information and communicate.
> Youtube. Crypto creators on Youtube like Bitboy, Crypto Stache, VoskCoin, and many others are a great source of news and currently hyped NFT projects. If you want to keep up with the latest buzz, these accounts are worthy of a follow.
> Social media. Interacting with communities through social media is a surefire way to gather information about NFTs and become an early bird in projects that are bound to gain significant popularity.
What to consider
Knowing where to look is just a portion of the whole ordeal. Here are the essential points you must consider when delving into NFTs.
NFT Roadmap
An NFT Roadmap refers to every goal and strategy of a project that establishes its long-term value. It is a document that includes key milestones, marketing plans, and growth strategies that help to achieve a collection’s short- and long-term goals.
A well-planned roadmap can be a good indicator of a project’s tendency to succeed, especially when it focuses on utility and community. These documents may contain details of a game or virtual event a creator is planning to launch, demonstrating their earnestness to thrive in the market.
Creators
Investing in NFT means supporting the person behind the project, which means that you must choose a creator who can see through it. Generally, valuable NFTs disclose who the creator is, enabling you to research on them before you get to invest in their work.
While a good roadmap guides you to a collection worth your money and time, knowing that you can trust the creator to sustain the growth of their NFT project is just as crucial.
Community
Once you find the creator reputable, you can go ahead and explore the brand’s community hanging around sites like Twitter, Discord, and other social media platforms. A good NFT project usually earns plenty of positive outlook and feedback from members of its community.
Social media presence
There’s no denying that social media is where the NFT buzz is, which makes sense to be one of the things you must consider when investing in such assets. You can research how often they post on their social media accounts, how they interact, and entertain questions to determine whether they’re intent on launching their project.
Number of followers
A good NFT project will receive solid support from a sizeable number of followers in marketplaces and social media. However, don’t be scammed by accounts that have more dummy followers than the legit ones — you can do quick profile checks to ensure that their following is organic and 100% real.
Top tools to choose NFTs
Fortunately, there are several NFT tools that you can use to discover the best non-fungible assets.
OpenSea
The largest NFTs marketplace, OpenSea, is where you can easily see data and activities related to an asset that sparks your interest. You can track NFTs based on three different chains: Ethereum, Klatyn, and Polygon, in a single platform, making it convenient to use.
Rarity.tools
The user-friendly Rarity.tools help you find lucrative NFT projects that are sorted by average price, volume in ETH, and available collections. Each one has a dedicated page that features a detailed card and is given a rarity score, usually indicating the most-wanted assets by collectors.
CryptoSlam
CryptoSlam is a top tool for analyzing the NFT market, allowing you to discover a collection by trading volume. It has a wide range of ranking parameters that can help you decide on which asset is worth investing.
Nansen
The focus of Nansen as an NFT tool is to identify opportunities for investors by presenting a leaderboard of wallets and their total profits. It’s useful in creating a strategy to manage your NFT assets.
Icy.tools
Even if you are a new investor, you can use Icy.tools without getting stressed about what to do or click. There’s a discover tab that lists top mints and a page where you can discover the wallet addresses of every top buyer and seller.
Identifying the best opportunities
An investment opportunity in the NFT market might not be easy to come by, but knowing where to look and what to find are a great start to thriving in the sector. The storm it creates in the digital space is too good not to delve in, and gaining ownership to an asset, whether it’s in digital art, real estate, games, or the marketplace itself.
Conclusion
As more players throw their hands on the NFT ring, now is a good start to a lucrative journey in non-fungible assets. If you want to find the right project that suits you, you can stick to these three basic rules: find NFTs based on your interests, do research, and don’t invest more money than you can afford to lose.
