how do you find the best non-fungible tokens?

As I described in the column ‘Opinion: Are cryptocurrencies still in a bubble? Yes!’ I am very skeptical of most crypto assets right now. In my opinion, there is still far too much for sale that should be worth nothing or next to nothing. It is for NFTs (Non-Fungible Tokens) not different.

Discussions in our Discord group showed that there is still a lot of interest in NFTs, but there is still a lot of uncertainty in this market. It is often difficult for people to understand exactly what this means and this often makes investing in NFTs very difficult.

There are reasons why Bee .’s NFTsple of Cryptopunks sell for huge sums and why others work no whistleblowing costs. If you have a good step-by-step plan for distinguishing the pearls from the polished pebbles, then you already have a whole big lead.

Think outside the box

NFTs are not just digital painting. You can pretty much make an NFT for anything. The projects with the greatest potential have yet to be discovered by the masses. If you find a project that no one understands because it is creative, you can benefit greatly from it.

So there are many more categories for NFTs than just that digital drawings. Spotify wants to integrate them into the platform, presumably for music on the blockchain. Kings of Leon has already released a limited edition album as an NFT, and work is also underway to integrate NFTs into games. The most tangible example of a use case for NFTs is real estate – homes in both the digital and real world are increasingly found on the blockchain.

If you have ideas for creative NFT projects that might fall outside the ‘digital graphics’ category; put it in Discord!

Art as NFT: become an art dealer

I think people market for Non-Fungible Tokens and cryptocurrencies in general are completely wrong. It is actually not important at all that you NFT or any other blockchain project. Much more important is what characteristics a project has – apart from the blockchain, that is. Blockchain is simply the underlying technology, just as the Internet is to an influencer on Instagram or YouTube. Over time, you may not even realize that you are buying a cryptocurrency. It is then simply integrated into the products and services you use.

If you do soIf you want to buy regular NFTs, it is important to find out what the market really is. If you do it right, you are dealing in art. It is a profession in itself. One study found that as many as 64% of respondents invested in NFTs solely to make money – not because this group was interested in the work purchased. That really needs to change if we are to assume that the worst is over.

For many people, art is one of those subjects that is simply ‘boring’. But if you can make a lot of money from it, is it still boring? For many people, there will be a button, and NFTs make it relatively easy to flip that button. But it will never be easy, unfortunately. We can make it a little less difficult.

Analyzes well

In the world of the art trade, there are a few very important rules. First, we are no longer living in the eighteenth century, so whether something looks ‘visually competent’ is less important these days. Instead, the meaning of the work or the underlying story about, for example, the work or the artist at least as important, and perhaps even more important.

That means you need context. For example, look at the title, or at what the artist has to say about his work. This is why, for example, the Cryptopunk NFTs have become so wildly popular. It was the first NFTs and thus also the first art project as an NFT series.

Of course, it is also important to look at the work. You can pay attention to aspects such as the shape, the color scheme, the techniques used and just what you can recognise. There may be symbolism hidden in it. Sometimes it goes a little longer than you would think, because it is not always immediately clear.

The same applies for example to music and movies and videos as NFTs. So it is important to ask yourself, what exactly you see and/or hear and what exactly it tells you about the context, about the creator and about how it fits into society. You can’t just ‘just look at’ art, you can analyze it for striking features.

Additional features of NFT

In the Crypto Insiders’ Discord group, our Premium members argued that many NFTs have an additional use case. For example, the Bored Ape Yacht Club NFTs are a ticket to exclusive meetings, and the Tomorrowland NFTs give you access to hidden concerts.

Some NFTs are for more practical purposes, such as proving your home’s title. This can significantly reduce the additional cost of buying a house.

Another interesting purpose of NFTs is that you don’t need physical space to store a large amount of art, one of our Premium members emphasized. In theory, you could travel the world with a huge amount of digital art in your pocket. All you need is a piece of software. Of course, it’s best to store your private keys in a hardware wallet for security, but they weigh next to nothing.

Is much going to zero?

Art was once a very boring subject that only creative people were involved in, but now everyone is working on it. I assume that most people do not fully understand what they are putting their money into. This probably also means that they do not pay much attention to buying art. in this case, in NFT form, it’s a little more complicated than you might think.

And finally, I want to emphasize that you often buy NFTs with the token from the network it’s on. It is often Ethereum (ETH), which itself has a lot of volatility. So the price of NFT denominated in ETH can rise and fall in value, but so can ETH.

All of which, in my opinion, lead to the perfect cocktail to make many projects go to waste. And ‘zero’ doesn’t have to mean completely disappearing from the market, but isn’t a drop of 95% or more almost the same as ‘zero’? Of course, it’s always better to buy at the bottom than at the top, but hey, we all know how hard it can be.

If you can’t see the forest for the trees when investing in NFTs, it might be helpful to join our Discord group. We can share our knowledge and tips with each other in a separate channel specifically for NFTs. This way we all stay better informed about the market and make investing much easier.

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