How to Choose the Right NFT Collections?
NFTs are non-fungible tokens. It indicates that they are one of a kind and cannot be replaced. In the same way as fungible things in the real world can have multiple duplicates, but only one can claim to be the original, only one copy of the Mona Lisa can claim to have a certificate of authenticity.
NFTs can be anything, although typically we refer to digital goods. NFTs can be purchased and sold on sites known as NFT markets. Opensea, for instance, is one of the most prominent online markets. If you are well-versed in cryptocurrencies, investing in NFTs should not be difficult, as they are comparable. Now that the NFT has been introduced, let's discuss how to choose the right NFT Collections.
Whether you're an artist, a collector, or just interested in NFTs in general, this guide will help you locate NFT collections with potential.
1. The Art - These are the primary considerations before selecting an NFT. For instance, if you find a piece of art appealing, you must enjoy it, right? And there is a likelihood that hundreds, if not millions, of other individuals, adore the same work if you do. Consider the size of the possible market as well. We desire a collection with a substantial market share. Do you believe that having an attractive artwork and a prospective market for it is sufficient motivation to invest? What should we do next?
2. Artist/Team Commitment - How dedicated is the artist? What about the team? Is the team small? These are the questions you must answer to determine whether NFTs have promise. To respond to these questions, you must complete your homework. Peruse blogs and YouTube videos. Many of these questions have already been addressed, so simply locate them! The more the team's "investment," the greater the likelihood of success.
3. The Community - The following step is to look into the community on social media. I'm going to spend more time on this topic because the community is where you acquire the goods. You must examine their social media to determine if they have a strong online presence. It may be on Twitter or another platform. They should also have a substantial social media presence. Examine the comments and the likes. Check the engagement. Be mindful that a huge 'following' does not always indicate a strong online presence; avoid accounts with bot followers (you can usually detect this if an account has, for example, 50 000 followers but the posts have only 5 likes and 3 comments).
You must also determine whether the community is genuine and active. Any NFT initiative with promise will have a channel for training its followers and reporting its progress or updates. You may, for instance, join a project's Discord channel to gain a deeper understanding of its operations, which could help you determine whether it's worth investing in.
However, as stated previously, they are only the fundamentals. Additionally, there are several additional aspects to consider. These elements can help you make a more objective and well-informed choice on your NFT.
4. Team Disclosure - This is to determine if they use a pseudonym or expose their genuine identity. The success of a project is determined by the project's crew. It is essential to realize that when you invest in an NFT, you are indirectly investing in the project's crew. Therefore, it is preferable to know the true identities of the project's creators. Not every pseudonym team is fraudulent. The Humanoids, for instance, is a legitimate endeavor (and yes, I have some). In contrast, some excellent ventures, such as Meta Angels, provided a completely doxed crew.
5. Roadmap attractiveness - The objectives and expected progress of an NFT project are laid forth in a roadmap. Imagine it as a business strategy. Both immediate and distant targets should be highlighted in a company strategy. An NFT roadmap serves this purpose precisely. Is it possible to achieve these aims? If this sounds good to you, feel free to tag along; if not, it's probably not going to make sense anyhow.
6. Metaverse Utility - This provides the answer to the question, "How pertinent is this NFT in the Metaverse?" As stated previously, NFTs and the Metaverse are complementary. For instance, in the Metaverse, NFTs may be used to purchase virtual land. A non-fungible token that provides at least one utility in the Metaverse is a viable investment.
7. Art Diversification - You want to determine if the various NFTs in the project have distinct appearances. Here, we are evaluating their "similarity." For instance, Mekaverse is an NFT project in which investors initially invested but later sold their shares since the NFTs resembled one another so closely once they were released. In other words, each was comparable to the others.
8. Engagement with Key Opinion Leaders - Here, we're interested in finding out if the project is offering financial incentives to Key Opinion Leaders like YouTubers and social media influencers in exchange for positive coverage of the venture. Those strategies have no place in a successful NFT collection. You need genuine perspectives from individuals who have researched the market thoroughly, who have no financial stake in their comments, and who are thus unbiased in their assessment.
Additionally, if a well-known person backs an NFT, it may be a promising option. They draw a larger than average audience because of their fame. Many famous people, including Stephen Curry, DJ Khalid, Post Malone, Jimmy Fallon, Snoop Dogg, Eminem, Jay-Z, and Future, have purchased and used Bored Apes. How many people do you think would buy the NFT if their favorite celebrity recommended it? But tread carefully, as the project's apparent success might be due in part to the gifting of NFTs to well-known individuals.
There is no denying that NFTs are here to stay. There are a lot of major players entering the NFT market at the moment. Everyone will eventually come to the conclusion that it's a good idea to imitate it. When it comes to digital art, NFTs are the genuine democratizer.
Always do your homework before investing in the crypto market because of its volatility and uncertainty. A sensible amount to put in is the sum you would be willing to lose if things went badly. By now, I'm sure you've figured out which collections will pay off for you down the road.
SO, WHAT'S NEXT?
Hi, I'm Pao. If you enjoyed reading this article you might like to read also:
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