With so many projects out there, we know it can seem hard to find an NFT you love. Here are a few things you may want to keep in mind to simplify the process.
- Consider the purpose of purchasing. Are you buying an NFT you’ll use for a profile photo (PFP)? Alternatively, is it purely for art? Is it something you’d display at home? Maybe you’re looking for virtual land? How long do you plan to own the NFT? Asking these questions will help you narrow down the search as you browse.
- Research the project. Start with the official project website. This is a great starting point to understand motivations and goals of the founder(s). Many projects these days have a roadmap with lots of milestones. Does it seem realistic, or is it overly ambitious? Make sure to also check the project’s social media.
- The founders. Most times, founders drive the vision, future and success of a project. It’s time to introduce two terms: doxxed and undoxxed. Doxxed founders have made their identity publicly known so you are able to research their background/history of success. Undoxxed founders have not revealed their identity and often go by an alias.
- Join their Discord. You might buy an NFT just for the art, but you shouldn’t overlook the community. Checking out the project’s Discord is usually the best way to get a sense of the community and meet your fellow collectors. Join the discord and ask questions of the community and moderators. Are they helpful and welcoming?
- Research the artist. Artistry takes many forms. Some artists are brilliant and just starting out. Others are accomplished and have a history of other successful projects. At the end of the day, does the art make you feel a certain way? Do you want to support the artist?
- Rarity features. NFT’s are unique and each one has unique rarity. Usually, NFT’s that are more rare are more sought after. You can see the traits, which drive rarity, in the left hand bar when on a project page.
- Project stats (eg. floor price, volume, owners). NFT users often focus on floor price. Yes – some projects might “moon” overnight, but you shouldn’t overlook other stats like volume and the number of owners. A collection with a high floor price and no volume is meaningless.
If this is a short term purchase, factoring in the volume of how many users are buying and selling at any given time will be important if you ever decide to sell. Likewise, for profile picture projects (PFPs), projects having fewer owners may have difficulty gaining long-term traction and building community.
Ultimately, there are many points to think about when purchasing a NFT. At the end of the day, most people love NFT’s for the art and joy they provide. Once you have your NFT, make sure to share it with your fellow collectors!