Understanding how much you should spend on an NFT or whether a particular collection is going to take off or not is by far the trickiest part when investing in NFTs. But, as you get some experience and learn about the NFT markets, you will start noticing some patterns and get a good idea of whether an NFT is worth your money and attention. You can apply some basic finance principles on NFT markets as well as they behave like most investment vehicles in many aspects. Let’s take a look at some of the signs that an NFT might be worth it.
It’s Getting a Lot of Buzz in the Community
It’s important that you get a mix of information from reliable sources and social media if you want to get a clear idea of what the community thinks of an NFT collection. It would be wise to start making a list of main crypto and NFT news sites, a few top YouTube channels, and a few subreddits right now so you can gauge the market sentiment fast. This will also allow you to know when hot drops are coming.
You have NFT projects that are released by artists, and just like any piece of art, their reputation and story will make a huge difference. So, if this is an NFT that was released mainly for artistic value, you should try to get the backstory of the artist in question.
One good way to gauge an artist’s popularity is to check their social media and see how many subscribers they have. Also, check on YouTube if there is lots of material on them. If they’ve been featured in multiple interviews and they have been getting a lot of views, then it’s a clear sign that you’re dealing with someone who’s highly regarded in the artistic community.
If you wanted to go for your run-of-the-mill NFT collection, on the other hand, then you need to look at the backstory for the collection and the DEV team behind the project. Check if they’ve worked on projects before and how they were received. Check what people think about them on social media and if the NFT collection has special perks like airdrops or special access that would make it more interesting.
If you notice that the floor price for a specific collection is trending up, then it’s a clear sign that there is growing interest in it. You should then look at the price action for the NFT you wanted to buy and see how rare it is. If the price seems like it still has room to grow and the NFT is pretty rare, then you’re probably looking at a winner.
Choosing an exchange that will allow you to track this information fast and easily will be of great help here. It would also be a good idea to choose a platform like OKX.com that will allow you to compare NFTs from different marketplaces in one place so you can easily find and acquire hot NFTs.
These are all things that will help you tell if an NFT is valuable or not. You will need some time and practice before you can predict the value of NFTs reliably, however, so try with a few mock trades first and only jump in when you’re 100% sure you have the skills.