How to Choose the Best NFT ?
The NFT market attracted mainstream interest in March 2021 when a digital artist named Beeple sold one of his artworks “EVERYDAYS: THE FIRST 5000 DAYS” for US$69 million (US$ 69,346,250 to be precise) at Christie’s auction. As the popularity of non-fungible tokens exploded, the NFT sales volume (which includes everything from cartoon apes to video clips) reached a staggering US$24.9 billion in 2021. In comparison to 2020, the NFT sales increased around 25-folds in 2021.
Top 10 Most Expensive NFTs Sold in 2021
Some of the most expensive NFTs sold till now are:
- The Merge: US$91.8 million
- Everydays: The First 5000 Days: US$69.3 million
- Human One: $29.98 million
- Larva Labs, CryptoPunk #7523: US$11.75 million
- Larva Labs, CryptoPunk #3100 : US$7.58 million
- Xcopy: Right-Click and Save As Guy: US$7.09 million
- Art Blocks, Ringers #109: US$6.93 million
- Crossroad: US$6.6 million
- This Changed Everything: US$5.4 million
- Save Thousands of Lives: US$4.5 million
A Few Basic Facts to Know and Decide before Buying NFTs
You can see that NFTs can fetch insanely high prices. But the problem is to choose the right NFT that can make you rich. In this article, I will walk you through the steps that will help you choose the best non fungible token.
Before we get started, you should do these things first:
- Get a basic understanding of nonfungible tokens
- Set up your MetaMask wallet
- Buy Ethereum (ETH)
Once you are done with these three things, you have to decide why you’re buying NFTs. People buy them for various reasons. It may be to make profit, for the sake of the art, or for the community. While deciding to purchase this digital asset, you should also take into account your budget.
Choose and Buy the Best NFT: Top 5 Essential Steps
There are many factors that you should take into account before purchasing nonfungible tokens. Here are few steps to consider while choosing and buying an NFT:
- Do you Like the NFT?
If you are going to purchase an NFT, the first criteria of choosing it is to like it. It is a fact that nonfungible tokens are fun. However, they become more worthwhile and fun if they resonate with your style, personality, and most importantly you.
To like an NFT, you have to find it first. You can do that by opening an account on OpenSea and then explore different nonfingible tokens with the Explore tab. You can see MomentRanks to check the Project Rankings of trending NFTs in the last 24-hours, 7-days, 30-days, and all-time. Now, start exploring the collection. You’ll find the Project Rankings page extremely helpful because it gives you an idea about the NFT types that people are already purchasing.
Once you can liked a few collections, you can check MomentRanks for the following:
- Quick information on the collection
- Official links to socials
- Market cap
- Mints in the collection
- Floor price
This information will help you get the first impression and value of the NFT. If you check the Doodles, you’ll see that the floor price is 3.5 ETH, which will cost you US$10,500 at current Ethereum price. It’ll be highly expensive as your first NFT purchase. So, start with something you like from the collection that is around 0.6 ETH.
You can also view the project’s historical sales. You can do that by navigating to “sales” and then navigating to a collection’s price action history. On the “Charts” page, you can check any particular characteristic feature within a collection.
2. Reputation of the Artist or Team
One of the most important aspects of buying an NFT is the belief you have in the works of a developer, band, or artist. If you like the work of an artist, it’ll be great to buy his/her work.
3. Community Activity
NFT communities live on Twitter and Discord. So, the best place to research about an NFT is in these communities. It may seem overwhelming for beginners on Discord but it provides one of the best real-time communications and interactions in an NFT community. Another advantage of Discord is that it is heavily used by gamers in the NFT space. When you have chosen a few NFT collections, the first thing you have to do is to follow their Twitter and join their Discord.
The questions you should ask an NFT community are:
- Ask them about the recent happenings of the announcements channel.
- The reactions and excitements regarding the announcements.
- The trend about postings made by people.
- Do the founders or moderators of the project reply to queries?
- Resonance of the community with you.
4. Edition Sizes
NFT collectors are fond of uniqueness. However, not all collections are unique. While some photography collections are unique (1-of-1s), others sell 500 of the same nonfungible token. It is the extent of rarity that tends to push the value of an NFT. So, check the edition size before selecting an NFT.
A celebrity like Eminem can spend millions of US Dollars to buy an NFT for his collection. But can you do that? No. That’s why you should buy a nonfungible token that is within the price point that you are comfortable to pay. Only when you are comfortable in buying an NFT, you should go ahead with it to add to your NFT collection.
Follow these 5 essential steps for choosing and buying the best NFT within your budget.
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