How to Find Good NFTs to Invest in
If you're new to NFTs, then it's normal to struggle to find good projects.
02:25 20 January 2023
If you're new to NFTs, then it's normal to struggle to find good projects. There are so many of them being released every day, and while some of these projects have actual potential, some of them are little more than scams. You also have projects that may look good at first glance but are severely overhyped. This is why you need to take the time to learn about NFTs first and know what to look for when searching for projects. Here are a few tips for finding good NFTs to invest in.
Listen to News
The very first thing you have to do is assemble a list of news outlets where you can get news on possible releases and NFTs in general. This will let you know of the latest, hottest projects and help you learn about the NFT world in general.
Solana is one of the top blockchains for NFTs at the moment, so it would be wise to look for a website that covers Solana related NFT News specifically. You can also look for general NFT news sites and channels. YouTube is a great place to look for NFT news, and you should also make a list of some of the top crypto news sites as they will usually cover NFTs and have a very large audience.
Subscribe to a Few Subreddits
You also need to get an idea of what the community thinks about the project, and you're not going to get things from big outlets. You need to look at what's going on in places like Reddit and find reputable subreddits on the subject.
Discord is another great place to look for upcoming projects. If you want to use the platform to find NFTs, you'll need to set up an account, find a server related to NFTs, unlock permissions, and choose a way of communication. Once this is done, you'll be able to exchange with other investors and search for projects that have high engagement.
Do Research on the Dev Team
You cannot consider an NFT unless you know the team behind the project. You have to know who they are and if they’re credible. The best way to know this is to look at other projects they worked on and how they were received by the community. If the team has a few star players who are known by everyone in the industry, then it’s a definite green flag and a sign that the project can be trusted.
Know how to Evaluate an NFT
An NFT might seem worthwhile because it is part of a well-known collection, but just because a collection is well-known and has a few pieces that were sold for millions doesn't mean that all of them are valuable.
You have to evaluate first if a project is hot and trending and look at the production numbers. The rarer an NFT is, the more it will go for, but you also have to make sure that it's not overvalued at the time you purchase it. Checking the floor price for a collection and the NFT's price history can help here.
It also helps if the NFT has an actual utility or offers benefits to owners. Some NFTs will give exclusive access to content, for instance. Or some will offer airdrops or special rights. Also, check the roadmap for an NFT and see if major partnerships and collaborations are coming. Look at how big the community for the project is, check if any respected figures are attached to it, and look at the trade volume for any collection to gauge interest.
These tips should help you find NFTs worth investing in reasonably fast. The more research you do and the more you know about NFTs, the greater your chances of succeeding, so spend as much time learning about the scene and the technology behind NFTs as possible before you start spending your money.