Investment steps in the NFTs projects

Unique tokens may be used in a variety of fields, such as music, paintings, games, and more, but they all have the same purpose; Proof of digital property rights.

By purchasing NFT you have a digital file in token format. That token shows your ownership and no one else has it. The value of a non-fungible token depends on several factors. It could be a token from a famous artist like Pablo Picasso, it could be a concert ticket to a famous singer, or it could even be a picture of a Bored Ape Yacht Club that has no intrinsic value; Thus, the value of an NFT depends on the artist, the amount of demand, and sometimes the network on which it is built.

You may be asking why we need to invest in an NFT project and have it in our portfolio. Apart from financial incentives and making a profit by buying and selling non-fungible tokens, the issue of accepting them is a fundamental and essential principle. Decades ago, many people did not imagine that the day would come when the Internet would become an integral part of human life. Perhaps this scenario will be repeated for NFT‌, and this asset, which is now more in the form of entertainment, will one day become the main nut in the economic-artistic debate; So it's a good idea to be relatively familiar with the field and master the tips for investing in an NFT project before entering.

Many details must be considered when choosing a project. In general, investing in NFT is always risky due to the high volatility of digital currencies. Also, the limited community and low liquidity in NFT markets can always make it impossible for you to find someone to buy your NFT. According to Chainalysis, 78 percent of sales last year were loss-making, and in some cases, individuals were able to recoup only 50 percent of their initial capital.

Now that we have explained why we pay attention to a number of points before investing in an NFT project, we will introduce each of them.

Check out new NFT projects:

Finding successful projects is not difficult; Because they have performed well and there is a lot of talk about them right now. On the other hand, their reputation and familiarity have made the price of projects and their works very high and in some cases unbelievable. Finding new projects and exploring them will allow you to invest in them before the price rises.

NFT collections have more potential for growth and enhancement than single effects. Following the news may be one way to find out about new projects, But sites like Rarity.tools and UpcomingNFT are announcing projects that will be launched soon. These sites make it easy to search and find new projects.

Investigating the community of projects in social networks:

Another way to help you find new NFTs is to join related forums and social networks. Behind every successful project, there is an active and confident community. In other words, if a project has a lot of fans, it has a better chance of growing as well as reselling NFT.

Twitter and Discord play an important role in the crypto space. Many projects work to build relationships with their users and to inform them about various issues.

Evaluate the number of followers and the community of a project according to the news and talk about the project. Most likely, the project that has just been launched does not have many members. In this case, check the participation of followers and team members. It is important to consider whether team members communicate directly with the audience.

Check out the website, founders and investors of the project:

Another important point about investing in NFT is paying attention to the team and project information. Due to the nature of digital currencies and unique tokens, all projects must have a legal website. Projects active in third-generation web space are not expected to do otherwise. A good project should publish important information such as White Paper, Founder, Contributions, etc. on its site correctly and without mistakes.

The more information there is about a project, the more trust it has in that project. Information about the founders can include their social media pages or descriptions in the "About Us" section. People's performance and background influence the success of a project. If a team is looking to enter the field of music or games, having a background in this field is considered a privilege.

Given the scale of fraud in the world of digital currencies and the emergence of phenomena such as rag money, it is better to invest in projects that provide the necessary and sufficient information to users.

Note the uniqueness of NFT:

Non-fungible tokens, such as MekaVerse or Cryptopunk, are often offered in batches. These collections are usually avatars and do not have many different features. Sometimes being distinctive and having a special feature increases the price of NFT.

If you're looking to value your non-fungible tokens over time, look for examples that are very unique or at least significantly different. To check this out, you can see the features and how much it shares with other works in the Opensea Platform and Properties section.

For example, in the image above, you can see the specifications of one of the works in the MekaVerse collection and how much it shares with other works. This method has another property. Some collections are copies of popular examples and have a lot in common with other works. You have to pay more attention to these types of projects.

Choose the right NFT marketplace

Undoubtedly, one of the most important points for investing in NFT is choosing the right platform. Various factors such as networks and digital currency wallets supported by the platform, existing categories, transaction commission, transaction volume, number of users, and the like should be considered in choosing the platform.

Binance, OpenSea, and SuperRare are three markets to buy and sell unique tokens.

Consider NFT use cases

There are many unique tokens on the market with different uses that are used for specific purposes. Some of them are purely collectible, others are used in blockchain games and Metawares, and so on. One of the important points before investing in NFT is to pay attention to its functionality. Do you want to have a functional token or are you just following your personal interest? The type of non-fungible token classification is definitely related to its price.

Conclusion:

In the midst of the NFT market turmoil and the daily news coverage, choosing the right project to invest in non-fungible tokens may be a little difficult and requires more research. In this article, we tried to introduce the necessary tips for investing in an NFT project.

What do you consider when choosing and investing in an NFT project?