How to choose an NFT
There are tons of projects that offer their users a chance to buy NFTs, but not all of them make for good investments.
NFT projects usually follow the same pattern: a lot of hype around the launch and people rush into buying NFTs. When the hype dies down, prices fall, although some projects can regain momentum through successful game development and community building.
There are few indicators you should seek to comprehend if a project is potentially a good investment.
the Trading Volume
A good starting point is to look at projects which have the highest trading volume using a site like Opensea or Cryptoslam.
The trading volume fluctuates a lot but it’s always a good indicator to see what people are into.
Activity Trend
Once you have a project to evaluate, a factor to check is how activity is changing over time. Are the number of users and trading volume going up or going down? It’s important to comprehend the tendency of the project, as it will determine when you should buy and when you should sell.
Community
To get an idea of how active and involved community members are with the project, follow the project’s twitter, join Discord and Telegram groups and read some conversations. Are there a lot of people discussing the project? Are they playing (and enjoying) the game or just sitting on the sidelines? The more the community is involved in the project the more the project will perform in the NFT market.
These are the 3 criteria we encourage you to use when you want to buy an NFT. Of course, the NFT market is quite unpredictable sometimes and you shouldn’t blindly follow our advice. But we strongly advise that : Do not invest more money than you can afford to lose !