Hello everyone,
I hope you all are having a nice day, welcome to CryptoGod-1's blog on all things Crypto. In this post I will be doing a quick rundown based on some tips and tricks for finding the NFT project worth investing in when it comes to NFTs. By now we are all aware of how saturated the NFT marketplace currently is, and getting in early on the right project can be life changing for people. While I don't claim to be an expert, below are some ideas in terms of strategies in finding and securing the right project for you.
Solid Project with Volume
When people first get into NFTs it can be a bit daunting and difficult to know which project to invest their money into. Some focus on tried and tested projects, assuming they can afford it, while other either unknowingly or knowingly invest their money into derivative projects. While these can sometimes work out, there is as much chance of losing it all if the derivative doesn't take off. The best price of advice is to find a solid project which has good volume, seeing as most of us would not be in a position to afford a Bored Ape or Mutant Ape. While derivates are good and interesting, the market is flooded with them and the chances of landing on one that will increase tenfold in value is slim. Finding a good project with a solid footing and good trading volume is important to getting into a project which can gain returns down the line. A simple 2x or 3x return is a much more realistic target than finding the moon-shot which will go 100x, although they do exist, its about finding a project which will maintain its good and consistent volume.
Trait / Rarity
This is probably one of the most fundamental and key aspects of NFTs, and something many people disregard or do not have enough in-depth knowledge about. Every project has different traits/rarity stats and classifications so to fully get a grasp of a project it can take hours of time to fully understand them. Your time will be well invested as this is the key to value in NFTs. The best tools for doing this are rarity.tools and the listing page on Opensea. The listings page allows all users to view the real time sales and listings of NFTs as they happen on the site. This is accessed on OPENSEA via the stats tab, which brings you the activity option. Ensure sale and listings are switched on and you will see the real time info of the projects in the marketplace. Through continued study of this page, along with the traits/rarity of a collection, a would be investor can gain an understand of what will constitute as a deal. Whether it is through continued study of one project or a couple, the key is being so familiar with the NFTs in the collection that you understand which traits the NFTs being bought have, helping to build your knowledge of which are the most popular. Easier said than done, but practice makes perfect.
NFT Calendar
This is a great resource for learning about upcoming projects into the marketplace. This will give you info on existing and upcoming projects, along with access to multiple different blockchains. Each project promoted will generally explain what the key details of the project are, along with a link to its website and other services such as social media, discord, etc. If you are really serious about being an investor it can be very useful to plan ahead and have your research done in advance before the mint date. Knowing what the community likes, and dislikes, about a project's traits/rarity can also help you avoid purchasing a NFT from the collection which is unlikely to gain a resale value. This will also help you to build up relationships, reputation, and gain trust within the community. Down the line if you decide to pursue private sales instead of via a marketplace (to save on fees) its important that other users have trust in you. Using the discord marketplaces is a great way to get into the private sales market, while nfttrader.io is a private escrow service for facilitating these trades with cheaper fees than the traditional marketplaces, especially when trading NFTs with large value.
Go for It
Once you are confident in the NFT(s) you're pursuing, make an offer. Don't always assume you need to bid at the floor or asking price, lowballing is perfectly acceptable here. You may not always get your offer accepted, but the key is to ensure you've made it. You cant win if you're not in as they say. Don't be afraid to be aggressive with your bidding, placing multiple bids on the project(s) until you have one accepted. Its important to then go for a sale as soon as possible assuming you are looking for gains. A method to follow is to ask yourself is there a chance of resale on the same day for profit? If so, is it a 50% chance, 75% chance, etc? Finally, how many x do you believe you could gain from a resale? As long as you feel there is a strong possibility of resale thanks to the trading volume and your own research, and that you're happy with the profit margin you believe can be obtained, then pursuing that NFT will generally be a good option. Users can also place multiple bids on Opensea even if it exceeds their wallet total, as Opensea will cancel other offers once your funds have been spent/are no longer available.
Build Up Your Liquidity
This sounds easier said than done, but if you maintain a good and solid strategy along with understand of the project, there is no reason why the initial NFT you purchased and resold cannot then become 2 NFTs, etc. These things take time and will not always work out, but spotting the opportunity and going for it is important. Not all sellers will accept your bids so these things take time. Not all NFTs will resell for the amount you hoped, but if the project is trading well then chances are you can make a reasonable profit. Through building up more in your collection, it also affords you the opportunity to be greedier with your sales as much as your purchases. When you have NFTs and liquidity to play around with, you can afford to place a higher price on your resale and wait that bit longer to sell, gaining even further profits. Its all about maintaining a balance between the price of your sales and having ETH available to pursue your next NFT venture. When you sell, make sure to ask yourself do you want it sold fast, or sold for market value?
Profile Pictures Are KING!!!
As we all know some of the biggest projects out there are of course based around the use of Profile Pictures (PFP). With Twitter integrating the service of an official linked PFP from your opensea account, they are the go to NFTs in the space. BAYC, Crypto Punks, etc, all fall into this category and generally the projects which will make it biggest in terms of their traits/rarity, are the PFP ones. Finding the next big project in this category is difficult because it is so overly flooded with projects, but by applying the rules or strategy provided above, you can potentially land a gem early on, flip it, and double or triple down. Imagine if you have gotten in early on BAYC and ended up with 4 or 5 of them through lowballing and reselling to build your collection.
Conclusion
NFTs are a tricky landscape with so many options available on the market. They can be daunting to newcomers, and even existing users, of the space. Finding the right project to invest in can take time, but can also be very worth it. Don't be afraid to play tough when making offers, you would be surprised how persistence pays off. Get involved in the community space and build up your reputation and trust with other traders. Make sure you are confident in the project before you make your bid, and feel you can make a profit in the same day. 100x is great, but building up by 2x or 3x and owning multiple PFP NFTs is a much more profitable and valuable strategy in the long term.
*All images are referenced below*
Thanks very much for reading and I hope you enjoyed the article. Happy hunting and I hope you find the next big thing.
Have a great day.
CryptoGod-1.
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