4 Best Practices I Recommend When Deciding On Which NFT Project To Invest In
By: Mohammed Machraoui
Tags: Best Practices, Nft, Nft Marketplace, Shopping, Crypto

4 Best Practices I Recommend When Deciding On Which NFT Project To Invest In Mohammed Machraoui Dec 30, 2021·3 min read

NFT Shopping 101

When deciding which NFT project is suitable for you, you should ask a lot of questions. This, like investing in cryptocurrency, is heavily dependent on your unique strategy. Today, we’ll look at some best practices for NFT shopping.

Which Blockchain?

When deciding which NFT to purchase, one of the first things you should consider is the blockchain on which it is constructed. This year has seen a slew of blockchains emerge to compete with Ethereum.

When it comes to overall NFT volume, Ethereum is by far the clubhouse leader. The majority of new and existing A-List projects are hosted on ETH. During the peak of 2021 NFT hype, we saw a number of chains emerge to compete with ETH by offering lower gas/transaction costs.

Cardano, WAX, Solana, and Binance are other prominent chains. These are just a few examples of the numerous options available.

What Type of NFT?

The next step in purchasing your NFT is determining which type to purchase. That can be a little perplexing, but what I mean is what utility your new NFT will have.

NFTs were first as simple as a profile picture (PFP). CryptoPunks is a prime example of this, and they are among the most expensive NFT to acquire. It doesn’t hurt that they were among the earliest NFTs. Not to add, Visa purchased one in August.

When Bored Ape Yacht Club (BAYC) released its soon-to-be blue-chip NFT, they changed up the utility element. When you bought your BAYC in April, you also got unique access to their Club. Fast forward eight months, and it has grown into a very elite Club to be a part of. The most intriguing aspect is that this “Club” includes some of the most different members. Steph Curry, Post Malone, Jimmy Fallon, Logan Paul, and others are among the members you may be familiar with.

Because time passes at warp speed in the NFT universe, the utility of contemporary NFTs is limitless. Virtual real estate inside The Sandbox, Decentraland, and other platforms appears to be popular right now. The same goes with play-to-earn games. As with most things in crypto, most of this is speculative, which is why having a strategy is essential.

You’ll be much better prepared to go shopping once you’ve decided on the chain and type of NFT you want. But now that you’ve done all of that legwork, which NFT should you get?

Best Practices?

It’s never easy to predict whether NFT will be the next BAYC or your winning lottery ticket. However, there are certain general recommended practices to follow while investing.

The following are some common measures to take:

Community: As we frequently preach here, community is HUGE. Discord discussions and social media might provide insight into a potential investment’s community. Helpful community members are essential, particularly in the early phases of a project.

As we frequently preach here, community is HUGE. Discord discussions and social media might provide insight into a potential investment’s community. Helpful community members are essential, particularly in the early phases of a project. Leadership: Investigate who started the initiative and what their plan is. Is this a money grab for someone, or do they have a strategy that is similar to yours? Every hour, a new NFT project is launched, so the project’s leaders are crucial. Especially if you’re putting your own money into the endeavor.

Investigate who started the initiative and what their plan is. Is this a money grab for someone, or do they have a strategy that is similar to yours? Every hour, a new NFT project is launched, so the project’s leaders are crucial. Especially if you’re putting your own money into the endeavor. Roadmap: What is their plan when the initial FOMO subsides? It is normal for a project to start and then lose traction due to a lack of a defined plan for their community. A roadmap should outline the strategy and provide an overview of how they intend to carry out their main ideas. It’s always a fluid scenario, and things may change rapidly, which is why the project’s leadership is critical.

What is their plan when the initial FOMO subsides? It is normal for a project to start and then lose traction due to a lack of a defined plan for their community. A roadmap should outline the strategy and provide an overview of how they intend to carry out their main ideas. It’s always a fluid scenario, and things may change rapidly, which is why the project’s leadership is critical. Does It Make Sense: When considering an NFT investment, it’s essential that the project makes sense to YOU. Can you see the long-term goal coming to fruition, can you imagine additional people wanting to invest in this initiative, and so on? There is no correct or incorrect response, but the more information you have, the better.

Maybe this is the year you receive your first NFT?