Everyone is talking about Non-Fungible Tokens these days. While many people have done their homework ahead of time, only a few are currently catching up. If you’re new to the NFT world? Don’t know where to seek one or how to buy one? What distinguishes good projects from bad ones? Who should you be following on social media? Don’t be concerned; we’ve got you covered.
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So what to look for in a good NFT project? Before we answer that let’s roll it back to a bit basic question. What is NFT? if you are comfortable with the basics, feel free to go ahead and read about investing in NFT projects.
What is NFT?
NFT stands for a Non-Fungible Token. This means that these works of art are unique, non-transferable data units recorded on a digital ledger. To provide evidence of ownership, these run on blockchain technology. NFTs, like traditional works of art, are collectible digital assets with real monetary worth.
Now that the basics are covered, we will guide you on what to look for in a good NFT Project before investing. But as advised, be sure to conduct your research and not solely depend on this article. This is just for guiding purposes.
Investing in NFT Projects:
The year 2023 proved to be a defining moment for the NFT market. NFTs are becoming more than just collectible art pieces; many are gaining functionality and are beginning to merge with Metaverse. The idea is to buy in early and then sell them for a profit later. We already know that not all NFTs will make it. Right now, we’re in hyperdrive, and unfortunately, not every NFT will make its way to the end.
But, with so many NFT initiatives to pick from, how can one know which one would succeed? How can you tell which ones will be successful and which will fail? Here are a few simple ideas on what to look for in a good project.
Twitter is one of the greatest platforms to discover upcoming initiatives, meet new people, and keep track of ongoing projects. It’s really easy to find projects on Twitter, and it’s also a great location to sell your own NFTs and collectibles. Using the hashtags #NFT, #nftart, or #NFTCommunity on Twitter will lead you down the NFT Twitter rabbit hole, where the NFT community is very active.
Using influencers and other Non-Fungible Token thought leaders to determine which initiatives they are watching and interested in can be quite helpful in determining which projects are good. This is the place where everyone can chat about their favorite and least favorite projects. As well as what they’re purchasing, holding, and selling.
Finding NFT projects on Discord is straightforward. A Discord server will be available for every NFT project, community, and influencer. Discord is a text/voice/video chat tool geared toward communities, with servers that are mostly private and invite-only. They stand out from other platforms because of their focus on communities with common interests. This platform will enable you to delve deeper into projects and communicate with other members of the server.
Using data to locate the next best Non-Fungible Token Project can be a terrific way. Nansen is an Ethereum analytics tool that integrates on-chain data with a vast, ever-growing database of millions of wallet labels. With easy-to-understand graphs and analytics, you’ll learn how to leverage data to your benefit. You’ll be able to observe what the most powerful purchasers in the market are purchasing and holding, create alerts, and much more.
These are among the best strategies to look into before investing in NFT projects. there are still many different ways in which you can conclude investing. Research is the key.