Right now NFTs are revolutionizing the digital world, but which NFTs should you buy? There is a never ending list of designers, artists and NFT enthusiasts that want to make their name in the NFT world. But like altcoins/tokens, not any NFT will do!
In this article, we aim to help our readers in determining which NFTs should be purchased and which NFTs should be avoided. Over the last few years, NFTs have come a long way because of blockchain technology. With many of the established brands selling for astronomical prices such as bored ape and crypto punks.
Choosing The Right NFT
When it comes to finding profitable NFTs you need to find the right ones for yourself. First off we would advise you to choose a digital property NFT brand that you like.
You should not take advice from social media or listen to the next big brand on Reddit. Always (Do Your Own Research) and make sure you incorporate this NFT guide into your final decision.
Branding Or Business Model?
Does the NFT have a good brand? By this, we mean a business structure. Such as a website, social media account and are they active. This is the most important part of discovering profitable NFTs. If you are just purchasing random NFTs and hoping for them to become mainstream then they would need a brand to be successful.
The Amount In Circulation
When NFT designers mint their new designs they can mint as many as they see fit. But buying an NFT that has another 499 for sale then you will be disappointed in the long term. It’s the same when purchasing crypto the more in circulation the less each token/altcoin will be worth. Purchasing lower volumes will always leave more room for the price to rise considerably.
NFT Use Cases
Another positive point to look out for is a use case, does the NFT you are researching have a use. For example is it a gaming reward, virtual land ownership, finance, music related or a real world asset? This would make the NFT much more valuable especially in the long term.
NFTs & Social Media
Does the NFT brand you are researching have a social media profile? Having a large active and engaging social media community will improve the success of the NFT. But, be sure to look over the social media account thoroughly and look out for spam, quality of posts and community engagement. We have seen many NFT collections have thouands of followers but no interactions which would suggest the followers are bought and paid for!
Does The NFT Brand Have A Website?
Having a (stand-alone) hosted website would mean the creators of the NFT brand would have purchased or built a website. This would mean they are active and prepared to go above and beyond for their NFT brand.
Do they feature their NFT collection and is the website set up, updated and designed well? Be sure to be wary if the website is just a free Blogspot platform with a few words and pictures, then this would be a red flag. But if the website is designed correctly and effort has been made then that NFT brand seems more desirable!
- Branding and business model
- How many minted NFTs are available?
- Does the NFT have a use or reason to exist?
- Is there social media engagement and a community?
- Which blockchain has the NFT been minted on?
The NFT Design
Having a good clear and crisp design is another sign that the NFT could be a good buy. If the NFT looks like it was made in the paint application then you should avoid this NFT. With the huge volume of NFTs being created many newbies will just create an NFT on Canva/paint and mint it on the Polygon blockchain because it’s free. So be sure to analyze the image before you buy!
Always Check The Price History
All NFT platforms will have the history listed for each NFT. If you find that the NFT has many highs and lows then be sure to wait for a lower price, especially if the price has risen recently. Remember there is no rush, many fall victim to FOMO and always say they wish they waited. Although this does not work for new releases or well-known established NFTs it does help when looking for potential investments.
Every NFT resides on a blockchain, it could be Ethereum, Binance, Polygon and many others. With Ethereum being the biggest NFT creator then it would make sense to buy NFTs from the Ethereum blockchain.
Although the gas fees are high it does separate the lower quality NFTs from the more dedicated creators willing to pay the cost to mint their NFTs. With Polygon being free/minimal to mint and transfer it’s filled with so many low-quality doodle designs.
Conclusion – Finding The Best NFTs
NFTs are on the rise and will become even more common as we all move into the digital world. Now would be the time to start buying NFTs with a reason to exist and good branding, plus design. These are the NFTs that will give you the best returns. If you are new to NFTs then be sure to check out Opensea or other platforms that specialize in the sale and distribution of NFTs.
Need Some NFT Advice?
Here at Crypto Enabler, we are always happy to answer your NFT questions and point you in the right direction. That is what we do here, so if you have any thoughts, ideas or questions feel free to use the comment section below and we will help if we can!