Finding the right NFT for you – How do you do it?
Finding an NFT early is incredibly useful and possibly crucial within the NFT space. You are going to be able to grind out a whitelist spot for one of the upcoming NFT collections because you were notified of it earlier than another individual who is potentially learning about the NFT collection a little later than yourself. You can mint that NFT project at its starting price instead of purchasing it on the secondary market. You will have more opportunities to do better research around that NFT collection before making a decision on whether or not you want to purchase it.
Goals of finding NFTs
- Don’t lose money
- Invest where we have the greatest odds of success.
NFT investing is extremely high risk. Not only do you have the volatility risk of crypto, but you also have a secondary risk of an NFT collection becoming less popular, a tertiary risk of no liquidity, and not being able to sell the NFT you hold, if there are no buyers for that NFT.
Best NFT tools
- Upcoming NFT
- Rarity tools
The focus is to find a new project that is very strong that we can buy cheap, and flip for profit.
- Go to the profile of the projects you want to choose, and see if their followers are real. Check the engagement on the posts. This helps to build legitimacy.
- Check out their discord. Most of the projects will be very active on Discord. Look at engagement from the fans of the project, and from the people who are running the projects. This way we can maximize the returns in the end.
- Check their website. Make sure that it is a solid website. Look for a specific number of followers or people.
- Look at the founding team. The founding team must be shown on the website.
- Find how they are different. Find if there’s a unique use case for that NFT and if there’s some kind of utility. See if there’s a community, whether it is attached to a game, metaverse, or unique benefit. This checklist, it’s not going to be perfect. It’s more like a report card. The better it scores, the more likely that the project is to do well. The best method is to go through the project, spend time digging through the projects, and select what you like.
The process of buying and selling NFTs can be called flipping NFTs. There are two major methods of flipping NFTs.
- The first method is minting an NFT and selling it right away. Minting in this context means going to the NFT projects website and actually purchasing the NFT from the website itself to your wallet before it is even on the market. Each NFT project usually has a period of time in which white listed people can mint NFT and the public minting period. The first thing to do is to be early and mint an NFT in its public sale or even a white listed sale. But this process can also be dangerous. Because there are NFT projects that don’t work out so well after you mint them.
- The second way to make money by flipping NFTs, is to mint and hold NFT long-term or buy it from the market after the minting phase is over, a market like OpenSea and hold long-term.
How to analyse NFT projects?
When you look at NFT projects there are two types of projects in terms of founders. The projects are Doxxed and Not Doxxed. The projects that are doxxed have founders that are public. You may know their name and other details about them. Not doxxed founders are actually anonymous. This is where some NFT projects can be really risky to invest in because you don’t know who is responsible for them. When picking NFT projects to invest in, you should always pick the ones that are doxxed. Because you are going to have more information about their founders. Go with a project that is not doxxed, only when you have seen one of the founders or the team members produce results in the past. Just like good companies NFT’s increase in value when they have good creators and smart teams. The founders and their management can dramatically change the way that the NFT projects are going to go. It’s very important to see who the founder is. Open Opensea. If you find a specific NFT that you would like to invest in, go to their website, and start investigating the founders.
