Let face it. Investing in NFTs carry significant financial risks. If you don’t to adequate research, you may find yourself investing in projects which do not generate value for its investors, or worse yet, scams its buyers. In this article, we have compiled a list of proven strategies and tips for helping you find the best NFT projects. Hopefully, it will help you find your next successful NFT project.
The rapidly growing and changing pace of digital artwork and collectibles has created a breeding ground for scammers and other people anonymously out for your money.
It is not only sad for new projects trying to build a reputation, but also for the people that lose their money from being scammed.
With several NFT projects in circulation, choosing the one that will boom or flop can be difficult. There is no magic crystal ball you can use, but there are some basic strategies that can help you find decent or even great projects.
White paper or Road map
A good way to check the authenticity of a recently found NFT project is the White paper or Road map.
An NFT White paper is a document that maps out the strategies and goals of the NFT project you’re currently interested in to communicate its long-term worth.
NFT road maps typically include plans for growth and marketing, long and short-term goals, and key project milestones. As with a regular business, it needs a clear mission and vision.
One needs to consider how it is built up, what makes it special from others and how much effort was given to fitting the pieces together. Are their goals feasible or not? Are they overpromising the stars and the moon? If they are, it’s usually a red flag.
Generally, community-driven projects are the most successful. A culture has been created within a community, and culture creates a following.
A good NFT project should have a healthy community following. The most successful projects are typically the ones with the most engagements. Investing in an NFT project means being a part of a community; it is more than just owning an art piece.
It is a good indicator of a project with potential success if a community passionately speaks about it.
Shared values and culture are key for a successful NFT project.
Although this is a no-brainer, it is still something one should pay attention to. Thus far, NFT projects are mainly online, which means that having a social media presence is of utmost importance — not just the follower backing of the project, but also their activity and tone of voice.
An NFT project without social media visibility will have issues with finding owners. Do they have a Discord channel, Twitter account, or even Telegram? Where are they present? Is their Discord a simple version, or does it have a professional structure with developers?
Look for activities and engagement from followers and the founders and the number of followers on their social media accounts.
Be careful of projects that have artificially inflated their social media followers. One way to see this is by monitoring the amount of engagement versus the number of followers. If there is a huge discrepancy between the Twitter followers and Discord members, for example, it could signal a red flag.
Creators and Founders play a huge role in the future success of an NFT project. It is crucial to understand that investing in an NFT means investing in the teams (humans) behind it.
Utter transparency is key!
Project founders need to have some transparency to build trust with potential investors. Several owners hide behind anonymity and run away when problems like a mixup with the transfer of ownership and metadata arise.
Transparency clarifies what the project is and how the founders will achieve it. Some questions to ask are; what kind of people are they? Is this the type of project you want to be associated with? Are they in this for the long haul or a quick flip?
The marketing of a project is of utmost importance. It is best to invest in projects with active marketing activities and a plan to reach out to a wider audience. It is usually not a good sign if only a small group knows about a project. This will drive the value of the project downwards when there are no frequent sales. A good long term project will focus on growing its presence even after the NFT launch has ended.
Here are a couple of successful NFT projects based on the criteria above:
- Flyfish Club
- Crypto Baristas
- Kibatsu Mecha
- Women Rise
- Cryptoon Goonz
- Invisible Friends
- Moon Boyz
Note: We are not affiliated with any of these projects nor do we endorse or imply that investing in these projects will make you rich. Please invest at your own risk.
Investing in an NFT project early is great because it allows you to get in at a lower price, compared to if it were to go up significantly over the next couple of months or years. You might be wondering. “If there are so many NFT projects in circulation, how do I pick one with long term rewards?”.
Here’s how to find the next big NFT earlier than anyone else.
1. Explore Twitter
Twitter is an effective platform and tool for identifying NFT projects early. The NFT community lives on Twitter, and therefore, you can see which projects popular buyers and Influencers are interested in. You gain a lot of information by following reputable NFT influencers like @bobbyquinn and @CozomoMedici.
Discord is another fantastic tool you can use to identify solid NFT projects. Every community, influencer, or project has its Discord server with various engagement levels. It is highly recommended to join the Discord server of every NFT project you are interested in as you will discover more in-depth details about the project inside, while having the opportunity to interact with the community and the founders.
3. The Project’s Roadmap
An important aspect of a successful NFT is its roadmap.
A roadmap with strong long-term goals is something you should be interested in if you’re investing for long.
A roadmap can be typically found on the project’s social media or website and is one of the things an investor should consider before investing.
If you think the roadmap is solid and you believe in the project, you can mint the NFTs before or during the launch and get in early before others.
RyzeNFT is a powerful but expensive tool you can use to identify undervalued NFTs quickly.
It has a Chrome Extension you can use to access various incredibly powerful tools like;
- Mint sniping tools
- Rarity sniffer
- OpenSea sniper
5. Icy Tools
Icy Tools is another great subscription-based Platform that gives a minute-by-minute update on patterns and trends in the NFT world.
Icy Tools aggregates all the data, so you don’t have to use OpenSea to track trends.
Here are some promising upcoming NFT projects set to make waves in the NFT market in 2022
- Guild of guardians
- Meta Triads
- Rich cats Nation
To get into on the hottest upcoming NFT projects, visit our upcoming NFT projects list here.
It is one thing to be able to find good NFT projects, and another thing to be able to identify scam projects. Here are some useful tips for avoiding NFT scams:
- Avoid greed
- Always do your own research (DYOR)
- Transact only with people you trust
- Watch out for pump and dump schemes
- Avoid brand impersonators
- Beware of counterfeit NFTs
- Never give out your secret phrase
- Don’t visit untrustworthy sites
- Avoid stealth launches
- Switch of private DMs in Discord
The NFT market continues to grow and expand, with numerous collectors spending millions on rare collectibles and art. You can follow the tips mentioned in this article to invest safely with NFT projects. Remember, NFT projects always carry significant financial risk, so always do your own research before investing into NFTs.