Buying NFTs is easy if you have enough funds to splurge on the most popular collections. However, finding affordable NFT projects with the potential to appreciate significantly is where the real profits lie. This approach may involve multiple attempts and could result in some investments that do not yield returns. In this article, we explore a set of strategies that increase the likelihood of turning affordable NFTs into profitable investments.
KEY TAKEAWAYS
➤ Finding affordable NFTs with potential requires early research, community engagement, and using NFT discovery tools.
➤ New NFT projects are best discovered through platforms like rarity.tools and by analyzing social media activity.
➤A strong community and a professional project website are essential indicators of a promising NFT collection.
How to find NFTs before they blow up
If you want to invest in affordable NFTs, it is crucial to identify projects early. Below are the steps to follow to enhance your chances of finding NFTs with growth potential.
Disclaimer: While these steps have been effective for some, they do not guarantee finding NFTs that will increase in value. Predicting future value is inherently uncertain, and outcomes may vary. Use these strategies as guidance, but exercise caution and do your own research.
Step 1. Find new NFT projects before they get released
NFTs are usually affordable when they are newly released and minted on the blockchain. That’s why it is important to find them before they go live, and learn everything there is to know about them.
Finding affordable NFTs will take some time, and we recommend that you use some of the NFT tools that most successful NFT investors use, including NFTCALENDAR and UpcomingNFT. You can also find new projects on social media, but it will probably take more time.
When looking at all of these, remember that your goal is to buy low and sell high. And considering the recent most successful NFTs, entire collections tend to be more successful than single releases.
What to keep an eye on when looking for new NFT projects? Try to answer these questions and focus on the projects that have the highest chances of being flipped for 10x or more.
- Is the project unique?
- Does the project have social media links?
- Do they have a website?
- What is the floor price of one item from the NFT collection?
- How many items are in the collection?
Step 2. Check social media
Community is everything in the crypto and NFT world. You want to ensure that the project you’re about to invest in has an active social media following and an eager community. Even affordable NFTs should have an active social media account.
Most projects have Twitter and Discord, and those are great places to start your research. A project with only a few followers might not be promising enough to invest in because this means it will be harder to find a buyer for their NFTs.
➤ Be aware of scammers who are buying social media followers, as this happens all the time. You want to make sure those numbers represent real people, and you will have to manually check some of their posts and profiles to verify if that’s the case. It might take some time, but it will be worth it if you find that affordable NFT project that’s about to blow up.
You should also check their Discord server. Join in and check out the general chat and ensure there is an active community on there.
They should have announcements, reactions to their announcements, a big community (the total number of people on Discord), and moderators or even founders on the chat. An active community that surpasses the number of items in the collections translates to a higher demand for that NFT collection.
Step 3. Check the project’s website
Every crypto project should have a legitimate website free from obvious red flags (for example, grammatical errors, over-the-top claims, etc.). A bad website should be easy to spot and a clear sign to stay away.
A website for a good NFT project should contain all of the necessary information that any new investors should know, including a roadmap, their whitepaper, founding team members, partnerships, links to social media channels, and everything else about their project. Some projects even develop their own crypto. If that’s the case, you should also find that on the website.
Although crypto is all about privacy, the majority of reputable projects have established team members that potential investors can reach out to. Make sure the founders are legitimate people — better if they have been involved in similar projects before.
➤ Be extremely cautious while investing in projects that refuse to publicly reveal the identities of their team. While not all anonymous projects are scams, they carry a comparatively higher risk due to the lack of transparency and accountability. It’s crucial to thoroughly research and evaluate these projects before making any investment decisions.
You can often find more information about the founders on the project’s social channels. They will probably use their personal accounts to post about the project, and if you find them, you can find out more about the individuals behind the project.
Step 4. Make sure you actually like the NFT
If you don’t like the project you’re about to invest in, there’s a chance that there aren’t a lot of buyers. That means that you may end up stuck with that piece of the collection.
Another point is the artwork: Is it good? This is subjective, but you need to determine if the artwork is original and good.
You have to bear in mind that your first attempt to find affordable NFTs might not be successful. That’s why you want to make sure you get stuck with an NFT that you at least like, and you are not buying it with the bare hope of making a profit from secondary sales.
In the end, you want to ensure that the art is high quality and that it has a unique element that makes it stand out from others.
Are you too late to the NFT boom?
Although it might seem like you’ve missed the NFT boom, you’re not too late. You could turn your attention to cheap NFT projects that have the potential to explode if you missed out initially.
Even after the NFT market’s peak in 2021, several NFT investments have continued to outperform major cryptocurrencies like Bitcoin and Ethereum. For instance, celebrities such as Jay-Z, Jimmy Fallon, and Eminem have purchased NFTs and posted them on Twitter, increasing demand for tokenized art in limited editions.
But how much are people willing to pay to get digital ownership signatures over art on a blockchain? And how do you find the affordable and cheap NFTs that will bring you the profits that others are bragging about?
There are ways, and you need to carefully research your future investors. You’ll probably need to familiarize yourself with NFT tools that most NFT traders use and to understand how the market works. For instance, it might be a good idea to take a look at DappRadar’s NFT data and observe how many traders work with each popular NFT collection.
You’ll soon notice that the market isn’t as liquid as the crypto market, and your profits depend on first finding the affordable NFT project. You can also join the market as an NFT artist, as the most popular NFT marketplaces offer creators the option to create NFTs for free. Creators can upload their digital artwork as free listings and there is no upfront payment.
Do your due diligence
You have to bear in mind that a cheap NFT doesn’t necessarily mean that you will make money by flipping it. Without meeting all the criteria, the NFT serves as nothing more than just another pretty digital artwork. Most NFT collections are integrated into virtual worlds, games, or metaverses. These digital assets can function as in-game items or offer other utilities. To determine the value of such NFTs, assess how active these games are and the size of the community. Celebrity endorsements may also indicate a project’s potential, though they are not a foolproof indicator of value.
Finding a promising low-cost NFT project requires extensive research into the community, the project’s background, and its long-term vision. The most successful projects typically have vibrant communities and a clear purpose behind them.
Frequently asked questions
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What should be included on an NFT project’s website?
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