5 Things To Look For In NFTs (Use This Guide!!!)

Boxmining

31.1K views 1,015 3 years ago

Description

Non-fungible tokens (NFTs) are one of the fastest-growing sectors in the crypto industry. In this guide, we are going to tell you the 5 things that you need to look for in NFTs. These are some of the ...

Non-fungible tokens (NFTs) are one of the fastest-growing sectors in the crypto industry. In this guide, we are going to tell you the 5 things that you need to look for in NFTs. These are some of the tips we have used in the past to generate profits from NFTs flipping. However NFTs are illiquid assets. It means you can only sell if a buyer is willing to buy it at that exact price. It is so much riskier than crypto so do your own due diligence and be extremely careful. 0:00 Introduction 0:41 First Tip 1:17 Second Tip 4:25 Third Tip 5:28 Fourth Tip 7:05 Fifth Tip 8:54 Conclusion ●▬▬▬▬▬▬▬Recommendations▬▬▬▬▬▬▬● 📖 Guides, tutorials and insights: https://boxmining.com/ Recommendation List: https://www.cryptoatlas.io/Boxmining 🌼Buy & Sell Bitcoin: https://join.swissborg.com/r/michaeOQZM 🔒Hardware Wallet: http://boxmining.co/ledger 👍🏻Brave Browser: http://boxmining.co/brave 📲Bybit Exchange (Most powerful): https://partner.bybit.com/b/boxyt 📲Binance Exchange : http://boxmining.co/binance ●▬▬▬▬▬▬▬▬▬▬Community▬▬▬▬▬▬▬▬▬● Boxmining clips: https://www.youtube.com/channel/UCjFy3VBgOZanySOLhQu6GaQ Boxmining News Website: https://www.boxmining.com/ Telegram Announcements: https://t.me/boxminingChannel ●▬▬▬▬▬▬▬▬▬▬▬Social▬▬▬▬▬▬▬▬▬▬▬● Twitter: https://twitter.com/boxmining Discord: https://discord.gg/9qCpqpZm8G Facebook: https://www.facebook.com/boxmining ●▬▬▬▬▬▬▬▬▬▬Disclaimer▬▬▬▬▬▬▬▬● I'm not a professional financial adviser and you should always do your own research. I may hold the cryptocurrencies talked about in the video.

AI Analysis

Trading NFTs is a super hot topic right now for making money, but it's not as simple as it looks. It's actually a lot like trading art and is extremely speculative, so you need to be really careful. Based on insights from a bunch of NFT collectors and traders, there are five key things to look out for to boost your chances of success.

Here's a breakdown of what to consider:

* The Art Itself (and the Team Behind It):
* Naturally, you need to find art that's visually appealing and attractive to a broad audience. However, just having great art isn't enough to make a project successful.
* The real magic happens with strong marketing. A well-executed marketing strategy is essential to generate hype and demand for the NFTs.
* Crucially, the project needs a competent and engaged team. If the team isn't strong or doesn't know what they're doing, the project is far less likely to take off, no matter how good the artwork is.

* The Community (and its True Engagement):
* The community is arguably the most vital element. They are the ones who will buy more NFTs, encourage others to join, and ultimately drive up demand and value since the supply is limited.
* Here's a critical insight: assessing an NFT community is very different from traditional crypto projects. Just looking at the size of their Telegram, Twitter, or Discord groups is a "failure strategy" because NFTs are very illiquid – meaning they can take weeks, or even months, to sell.
* Because of this illiquidity, the community needs to be able to endure through ups and downs. You can't just rely on fleeting hype to offload an NFT.
* Instead of group size, look at voice activity in chat channels, especially Discord. This is key for two reasons:
* It helps filter out fakes and bots. It's much harder to fake genuine, real-time conversations than to inflate follower counts.
* It gives you a real sense of how passionate and committed the members are – these are the "hodlers" (long-term holders) who will stick around. You can genuinely hear the passion in their voices, which indicates they'll continue to "shill" (promote) their NFTs, talk about them, and even organize real-life events, helping the community grow organically over time.

* Exclusive Assets and Club Benefits:
* High-value NFT collectors, often called "whales," love to feel part of an elite, exclusive club. It's similar to the appeal of luxury brands – they want access to special benefits and invitations to exclusive events.
* Projects that are excellent at this strategy offer exclusive assets or benefits to their holders.
* A prime example is the Bored Ape Yacht Club (BAYC). They have a fantastic track record of providing "grant assets" (free NFTs) to early holders, like the Bored Ape Kennel Club (where members could mint a dog NFT for free) or the Mutant Apes breeding event (where serum vials were given to BAYC holders, allowing them to mint a new Mutant Ape for free).
* Such projects also often collaborate with well-known brands for merchandise, further enhancing the feeling of exclusivity and value for members.

* The Project's Roadmap:
* For newer NFT projects, a clear roadmap is incredibly important. It tells the community what the developers plan to do with the NFTs in the future.
* It's now standard to see roadmaps outlining plans for 6 months, a year, or even two years out. These plans need to be engaging and focused.
* Good roadmaps might include real-life activities, exclusive events (like music festivals), or developing a compelling story around the NFT series. Some projects use a "season" approach, where new seasons bring fresh hype to both older and newer collections.
* Crucially, if an artist just sells NFTs and then does nothing, it's considered a "rug pull" in the NFT world, meaning the money raised isn't being used to build or engage the community. The expectation is that developers or artists will reinvest the funds to develop the project and keep the community active.

* Finding "Undervalued JPEGs" (and Understanding Floor Price):
* This is arguably the trickiest part: identifying undervalued NFTs. While minting (buying directly from the initial sale) can feel safer, sometimes the "floor price" (the lowest current selling price for an NFT in a collection) can drop below the mint price.
* The golden rule is to always try to buy at the floor price, or slightly above if there are rare traits that justify it.
* The floor price is crucial because it tells you the minimum cost to enter a project and gives you a snapshot of the current market trend (whether prices are generally going up or down).
* You can also use the floor price to assess a project's stability. A stable floor price over weeks or days suggests more organic growth, while high volatility might indicate market manipulation, leading to huge wins or losses. Both have their risks and rewards.
* The ideal scenario is to find collections with a low floor price but high trading volume. However, be extremely cautious here: many groups create artificial "fake pumps and hype" to inflate volume and value, only to sell off their holdings quickly, leaving new buyers with heavy losses when the price crashes. This happens daily and can be financially devastating, so diligence and awareness are paramount.

In summary, navigate the NFT market by prioritizing projects with strong teams, genuinely engaged communities, clear future roadmaps, and exclusive benefits. Always keep an eye on the floor price, and be hyper-aware of market manipulation to avoid falling victim to pump-and-dump schemes.

Transcript

So what are the top five things to look out for when trading NFTs? Now, we all know that NFTs are one of the best ways to start making money right now. I think just everyone's talking about it. It's great. But not everyone can make money. So what I've done is I've talked to a lot of NFT collectors and traders, and I found out the five top most important aspects to look at. All right, guys, this goes without saying, NFT trading right now is extremely speculative. It's not financial advice this v...

So what are the top five things to look out for when trading NFTs? Now, we all know that NFTs are one of the best ways to start making money right now. I think just everyone's talking about it. It's great. But not everyone can make money. So what I've done is I've talked to a lot of NFT collectors and traders, and I found out the five top most important aspects to look at. All right, guys, this goes without saying, NFT trading right now is extremely speculative. It's not financial advice this video, and honestly, it's very much more akin to art trading than to investing. Take care as you leave it. Hey, guys, Jemmy here bringing you the things that you need to look out for in NFTs. First, and the most obvious one, you need to look at the art itself. You need to find art that other people would also be attracted to. But here's the difficult part. Great artwork is good, but it's not enough. Most of the time, it's the marketing to determine whether it's going to hype, and if the project doesn't have a strong team, or the team doesn't know what they're doing, the project is less likely to succeed. This brings us to the second point, and Michael will help cover that. The one thing that every NFT trader agrees on is the community. At the end of the day, the community is who's going to buy more and more of these NFTs and encourage other people to join and grow. And thus, of course, because the set is limited, value increases as demand increases. Now, looking at the community for a series of NFTs is very different from looking at a community of a normal crypto project. This is extremely important because if you're used to looking at normal crypto projects and you're like, oh, yeah, let me check their, you know, telegram group size, Twitter size, discord size, and kind of make a judgment on how big that community is, that is a failure strategy in NFTs. Hear me out here. Here's why. The issue with NFTs is that they're not very liquid. Selling an NFT might take weeks, if not months, if not half a year to sell a very rare, very kind of specific NFT that has holds value because it takes a long time to make that match. This means that this community needs to be able to endure the ups and downs. You can't just like, you know, kind of gauge a community. Oh, this community is really hype right now. It's really hot. I'm going to unload an NFT. Nope. That doesn't really work very well. This community must be able to endure. So here are some strategies. First and foremost, a lot of people who collect NFTs, when they look at communities, they don't look at the size. Rather, they look at the voice activity. So they go into the chat channels. They look, go into the discord, but more explicitly, they go into the chat areas in discord and looks at the numbers there. There's really two reasons to do this. One is because it kind of rolls out the fakes. A lot of times, you know, if there's already a lot of bots on the internet, kind of shilling and hyping them, but it's a lot harder to fake real voice conversation. So when you start discussing as a group, discussing as a community, you can get a gauge of that real size of the community. And of course, second of all, you can get a sense of how keen those people are, how big of a hodler they are. Hear me out here. When you start talking to people, you can really tell if they're passionate about something. I know this firsthand because I know a few people that love apes so much, right? That they'll literally, I feel like they're going to ejaculate if they're going to talk more about apes. I was like, oh my God, this is disgusting. Yes, it is disgusting. But there are people who are just really hyped up about it. You can just hear from their voice for a passion about something. And those people, they're going to be able to kind of endure through money, many months of both ups and downs for these NFT cycles. And, well, they're going to keep on shilling. They're going to keep on talking about their NFTs. They're going to talk about how good they are. And they're the ones that are most likely to grow that community too, to make real life events and kind of share that. So that's what I'm looking for, real life discussion activity, both Discord and Twitter and even Clubhouse offers those now. So that's one thing that's much more key. That thing you need to look out for is whether it offers exclusive assets to the clubs. NFT whales like to feel they are better than everyone else and want to be part of an elite community. It's almost like luxury brands and they want to be invited to exclusive events. A project that is really good at doing this is for a yacht club because it offers grant assets to members only benefit. You get all these NFTs dropped to the early holders, grant assets to members only benefits. For example, the Bot A Kennel Club, where the exclusive members can nint the dog NFT for free. And merchandise with different brands like the hundreds and a lot more coming. The Mutant Apes breeding as well. Of course, during the Mutant Apes Yacht Club drop, 10,000 vials of serum were given to 48 Yacht Club holders for free. Holders of the serum could breed a mutant version of their ape, effectively allowing them to mint a new NFT for free. All right. The next point is about the roadmap. This is much more important for newer projects than older projects. Newer projects, because they need to do better, they need to excel, they need to inform the community of what they're going to do next with their NFTs. That's extremely important. So nowadays it's quite conventional to see a six month, one year or two year roadmap of what else is going to happen with the series of NFTs. And this needs to be really focused and engaging to the audience. So some good examples include either real life activities, events, exclusive music festivals, et cetera. Those kind of entice people to move forward, to go and just be part of this overall journey, kind of building out that story for the NFT. Or the other approach some people are doing is the season idea, where there are multiple seasons. And as seasons progress, the original founders, they get something, the new guys, new guys can come in and get something. And the thing with the seasons is that once a new season releases, kind of brings hype for the older collection too. So that's kind of where you kind of really want to see that story being progressed, that story being moved forward and developing being made. A lot of times right now, if a artist just sells a bunch of NFTs, and then just doesn't do anything, that's really considered a rug pull in the NFT world, where that money that people spend buying those NFTs, that's not being used properly. So it's kind of weird to say this, but the expectation in the NFT community right now is that the developers or the artists involved, they will use the money raised to build something for the community and keep that community engaged and active. The final thing you need to do is to find under Farley JPEG. Now, this is the most difficult one, but I do have some tips for you. Meeting NFTs are a little safer, but sometimes the floor price would be even lower than the meet price. But of course, this doesn't apply to all projects. Some projects are more hype than the other, and your job is to find those nice JPEG that you like, at the same time is undervalued. Remember one thing, always buy at floor price. A little over floor price is fine, because some trades are rarer than the other, but the best entry price is always the floor price. The floor is the cost of the cheapest item in a project. The floor tells you how much someone needs this van to get in. It's also a great way to understand the current trend of the market, you know, up or down. You can use the floor price to feed the stability of the project. Is the floor going up or down constantly, or is it stable through a couple of weeks or a couple of days? High volatility could mean market manipulation and exponential wins or losses, while steady and stable prices could mean things are more organic but slower. Both have pros and cons. Be aware of both situations. What you're looking for are collections with low floor price, but high volume. At the same time, you need to be extremely careful, as some groups are creating fake pumps and hype to increase volume and value. They then sell and cash out quickly, and newcomers will buy in when it's too late, and the dump will happen. These actions could be lethal, because they could wipe fast bags of cash in a couple of minutes. And the sad thing is, it's happening every single day. So be very cautious, guys. All right, guys. So that summarizes our list of the top five things to watch out for. Obviously, there is more. So if you guys are NFT traders, share your experience down below. I'd love to hear what your additional strategies are. I'd love to grow this NFT discussion on this channel. I definitely feel like the way that NFT is going, they're going to stay. If you also like a lot of the discussions I had, you know, this is a kind of a combination of different discussions I've had, but I've got a few good friends that talk about NFTs. I'll put them up in their videos up here. So that's also helpful for you to look at and get additional reference points. And with that, guys, thank you guys for watching. See you next video.