The NFT sector has seen unbelievable growth so far in 2021. The introduction of the Metaverse and the integration of NFT’s non-fungible tokens in that sector has provided a very strong use case. Up until December 3rd, the NFT market had seen sales worth 19 billion US dollars, which had increased about 29% over the course of the 30 days prior.
Out of this, approximately 57% is measured in primary sales. So, this implies that people are finding NFT projects early and then selling them for profit. Pure capitalism so can all NFT projects survive. Honestly, we don’t think, so that’s just not how things work in any kind of market dynamic. Only a few will truly survive and thrive in this particular space. Therefore as you guys may understand kind of where I’m going with this, the key is to find the right project in this NFT sector, and to find it early.
Tip number one should come as no surprise. We’ve been saying for years that if you’re at all interested in the crypto and altcoin space, especially you need to be on Twitter.
Here’s my personal Twitter feed. Now, this may just look like a random assortment of updates here from personalities, and platforms, and websites. But, you know it, it’s the sort of thing that really comes together. Because you’re gonna get a sense of the zeitgeist in the space. The cream will rise to the top you’re able to follow particular projects that are of interest to you.
Therefore you can see, which popular influencers and buyers in the space are following, and what they’re interested in sometimes. They signal their intentions as well. So. That’s very important. Twitter is very much where everyone is talking about new projects and new developments, what they like, what they dislike, different upgrades, and different developments that are catching people’s interests, what they’re buying as well, what they’re holding, and what they’re selling.
For example, there are accounts like bobbyquinn.eth that use more of an analytical approach in terms of evaluating NFTs, and then you have other accounts like Bored Ape Yacht Club that have been around really since the start of the NFT craze that trade very well on conviction, and data of a let’s say more subjective or potentially qualitative nature.
Don’t forget some of the tools that are at your disposal on Twitter. Users can create lists to organize common topics and branch out, and also, users can see who interacts with whom and proceed from there.
Finally, as a reminder, you can engage in Twitter spaces to see what the people you are following are thinking really in live time in real-time. It’s a valuable tool and one that we recommend you take full advantage of.
Discord
Tip number two, another tool you really ought to be using is Discord. This is really an even better tool than Twitter to find NFT gems if you can filter through the noise, and there tends to be a lot of it, but every project community or influencer really has to have these days a proper Discord server with various levels of alpha and engagement likewise. If you can find servers with very tightly knit communities that openly discuss new projects, you’re going to find a lot of benefits.
Examples are servers such as The Free Mint Club that give announcements about free mints that are upcoming, and also there are servers for individual NFT collections.
If you like, you can join the Bored Ape Yacht Club server to talk with Ogbayc minters.
Cool Cats is another service that allows you to talk with Cool Cats developers, and these are just anecdotal examples. But, the same is generally true for every reputable project. You can find all kinds of inside members here on Discord.
Really the best way to find what the community is buying and selling is to interact, and in our opinion, there’s no better way to interact than with Discord. Again as a bit of a disclaimer, you do have to cut through some of the noise, but once you do, there’s treasure buried in this platform.
Nansen.ai
Tip number three we’re looking at a platform that you may not have heard of. It’s Nansen.ai, and we’re gonna be talking about analytics here. True analytical data is one of the most logical ways to identify NFT gems.
You know, we talked about it a moment ago. When it comes to some investors, it’s more about conviction. It’s more about a subjective feeling or a sense that the NFT provides, and there’s a space for that, to be fair. But, certainly, analytical tools aren’t going to hurt. Therefore, Nansen puts the power of that analytical data into an accessible format for its users.
Here’s the idea Nansen aggregates buyer data from OpenSea and breaks it down into easily digestible graphs and analytics. Those are all kinds of bite-size. Users can see where the smart money is going or, in other words, see what the market’s most influential buyers are buying and are holding.
Also, you can set alerts to notify you when specific wallets mint or buy a new collection, and you can also see what the hottest collections are for any given week. So, surely some of you have heard of Nansen, but if it’s not quite on your radar just yet, check it out we do highly recommend this platform.
RyzeNFT
At number four, we’re looking at RyzeNFT, which is an admittedly expensive but powerful tool for finding undervalued NFTs and acting quickly.
Ryze solutions is a secret sneakerhead tool before being adapted for NFTs. With the NFT extension, users can get access to a variety of incredibly powerful tools, such as a Rarity Sniffer. This allows you to see the rarity rankings right on OpenSea. Mint sniping tools allow you to automatically mint from the contract. The second amine opens, which helps you to skip over any gas war basically, and OpenSea sniper this allows you to set a max price to sweep floors on underpriced NFTs, very valuable if you have that advantage.
Ryze automatically watches this collection, and if anyone posts well below the floor looking for quick liquidity, Ryzeis going to notify you and allow you to quickly purchase it.
Ryze also sells access to this tool in the form of an NFT. It’s available on os for 0.94 ETH plus a 0.08 ETH monthly subscription. If you prefer, a lifetime subscription is available for the price of 3.89 ETH.
At least as the subscription comes in the form of an NFT, you do have the choice to sell it on OpenSea at any point if you so choose, so what you’re watching now is a tutorial video on how to download the extension.
This one may not be for everybody, and again as we discussed, it is expensive. But, it is a tool that is available for you to add to your arsenal if you so choose.
OpenSea Activity
At number five, we’re considering OpenSea activity. Another strategy is to use OpenSea tools specifically, which other sites give you. We can use Twitter, and Discord, and other tools to find hot or trending collections and monitor their os activity. Because this is a free and easy option to find the collection and click the activity tab, and that’s where you can see a minute by minute list of transactions and stats like the average price, for example, the owners and more.
Additionally, you can watch all OpenSea activities manually just click on stats, activity, and then sort by a chain. You can watch the trends in high sales and recurring collections, and you will begin to recognize almost every collection if you spend enough time on OpenSea.
Also, you can watch for trends of wales scooping up rares from a collection to see if early indications of a trending collection are worth following further.
Finally, you can watch for recurring collections in the feed to see what the entire community is moving on, so you really get a sense of where the collective energy is flowing here.
Roadmaps
At number six, we must consider the roadmap. This is one of the most important documents given to the public for essentially every project. This is the list of upcoming events, drops, and important dates for the project, so kind of a generic entry here. But one that you should always double-check in terms of what every project lists and publishes.
The roadmap can be one of the most telling parts of a successful NFT project. If you’re investing in a project for the longer term, a roadmap with strong long term events is something that you definitely want to be on the lookout for. In addition, road maps with tons of unrealistic short-term pump and dump potentially schemes are indicative of a rug pull, so watch out. These are promises that come in the form of free airdrops, token benefits and more, and often if it’s too good to be true or it sounds that way, it probably is.
Being able to sniff these red flags out, typically coupled with anonymous price floor-oriented devs, is essential in finding rug pulls. Unfortunately, it still is the reality we have to be on the lookout for these.
On the other hand, a roadmap is a collection guide to the future, and being able to decipher these guides and find new innovative roadmaps is key to discovering the most profitable NFT projects.
Finally, a roadmap is typically found on the project’s website or social media page, and it should be one of the first things you look for. Again one of the first things you look for before investing in a new collection.
Icy Tools
Tip number seven, we recommend that you check out Icy Tools. This is a subscription-based platform that gives minute-by-minute trends in the NFT market, and instead of using OpenSea to watch trends, just try letting Icy Tools aggregate all the data for you. It’s much easier.
In the free plan, Icy Tools provides hourly and daily trends, and with a paid 62 dollars per month subscription, you get access to 15 minute and 30-minute trends.
You can also track wallets, and get alerts for when they buy, sell, mint as well as hot mint alerts. While this may seem like a steep investment, one lead on a hot mint really could pay for your subscription many times over, really for the entire year or more. So, try to look at it that way if you’re serious about this space.
ICY, in our opinion, is a worthwhile investment for the analytically minded traders looking for a user-friendly UI user interface.
Rarity Tools
At number eight, we’re looking at rarity tools, which is a fantastic website for finding new mints as well as underpriced rares. Here’s the idea users can use the upcoming mints Calendar to see a curated list of mints for the next few weeks and feel what the community is excited about for those next few weeks.
Also, users can see who is following the projects and branch off from there. To do as they choose. Some may mint out, some may mint a few, and you can use this as research and a jumping-off tool. Moreover, rarity tools are great for finding underpriced rares in a collection. You can pick the collection you’re interested in and really zero in on those rares.
In addition, users can set the filter to buy now, and rarity will populate the site with an ordered list of purchasable NFTs from the collection with their prices.
Find your price range, and you just might find yourself a nice deal. However, this isn’t a foolproof plan for buying and selling NFTs. Because some sellers post their price on the sentiment, they have towards the collection and not their true value.
Click each to find the recommended floor price for each trade, and then you can use this to price your NFT for sale or find NFTs listed below the recommended floor price for a quick flip.
Finally, this is a free tool, so a lot of this work needs to be done manually. Therefore tools like Ryze monitor this activity automatically and give alerts and notifications based on your inputs.
NFT Calendar
At number nine, we have the NFT Calendar. This is the go-to site for every upcoming NFT drop. Projects submitted to be featured on the site and a running list of upcoming NFT mints are published, and nowadays, this is becoming a very saturated list.
Anyone can submit to NFT Calendar to be featured, and just remember that sellers can even pay to boost their projects to the top of the list. So, this is not necessarily the most unbiased option. But, it is something that you may want to consider.
It’s a great website to use as a jumping-off point for your research. It is free and constantly updating, which means that you can access it and do your mints for the week’s research at any time.
Here’s a video about the upcoming NFT drops, and NFT Calendar puts all the links for the project on each page. So, you can use it to aid your research. You can navigate to their Twitter page as well and see the engagement they get on their tweets. Navigate to the Discord to see the type of community they have and how involved they are.
In addition, use the website to determine if this is an interesting new and innovative project. If the project hits any of the above criteria, well try to get on the white list for that project or get ready to mint.
Personal Research
At number ten, as a general tip, just honestly looks at the project. Because the most important aspect to finding a valuable NFT project is to look at the project yourself look as closely as possible and do your own research. Because first, you need to invest first and foremost in projects that interest you.
Simply buying what everyone else is buying or what the trends are showing is going to lead to anxiety-induced paper hands and bad decision making.
In other words, invest in projects that you believe in and see long-term use cases for. The NFT market right now is unbelievably volatile. You may well wake up to 100 gains or losses. It’s really one or the other, and they’re almost equally likely, and you need to make well-informed decisions during that time.
When you invest in projects that you understand have an interest in, you’re going to be able to sit through some of the bad days. Trading on what everyone else is doing is only going to lead you to be stuck with illiquid jpegs.
You also need to be able to look at the project and determine what makes this collection unique from every other one on the market. Using these tools to see what everyone else is buying is useful, but really to make money long term in this market, you need to understand why people are buying. So, judge it for yourself at a personal level.
As you progress, you can spot trends and categories before the websites find them. You’re going to get better at this. You’re going to develop your own intuition. So, treat these websites to confirm or deny your hypotheses. Spending quality time looking at projects and seeing what’s successful and what isn’t can really help you to become a truly successful NFT trader.