Buying NFTs is easy if you have enough money to invest in the most popular collections. Finding cheap NFTs with great potential, however, is the real goal. It may take a few tries and also lead to some bad buys. But if you follow this checklist to find and buy cheap NFTs, you stand a good chance of making a profit on them.
Before we get into the specifics, let’s look at some basic information about the market and what’s happening in general.
Here’s what to expect in this article:
The NFT explosion
Total spending on NFTs in US dollars – Source: NonFungible
A lot of money has been made in the NFT market in recent years. A lot of capital has been added through the gambling, art and financial markets. Here’s how the cumulative volume of the NFT market in 2020 was about $46 million. In the overall global trade, an astonishing volume of 41 billion US dollars was also reached by the end of 2021.
The more time goes by, the clearer it becomes that both brands and individuals will spend even more money on NFTs in 2022. While some NFTs can be bought for pennies, others sell for millions. An NFT collection by artist Beeple sold at auction for a total of $69 million, making it the most expensive NFT. Another Beeple NFT sold for nearly $30 million U.S. In addition, Twitter co-founder Jack Dorsey auctioned off his first tweet for nearly $3 million.
Am I too late for the NFT boom??
Even if you feel like you missed the NFT boom, you’re Not too late yet. You have to look for cheap NFTs with high potential though.
In recent months, certain NFT investments have even eclipsed cryptocurrencies like bitcoin or Ethereum. Celebrities such as Jay-Z, Jimmy Fallon and Eminem bought NFTs and posted their purchases on Twitter, further driving demand for limited edition NFT art.
Profile pictures of U.S. talk show host Jimmy Fallon and rapper Eminem feature NFTs from the BAYC collection
But how much are people willing to pay to own digital art on the blockchain? And how can you find NFTs that will bring you good profits?
While there are some opportunities, but you have to research carefully, to make wise investments. You will probably need to familiarize yourself with the NFT tools that most traders use to buy NFTs. Also, understand how the market works. A good insight is provided by the data from DappRadar. There you can observe how many traders are interested in and trading the various NFT collections. But you will find that the market is not as liquid as the crypto market.
Also as an NFT artist you can easily participate in the market, because the most popular NFT marketplaces let you create NFTs for free.
What are blue chip NFTs?
Similar to today’s blue-chip cryptocurrencies, blue-chip NFTs are very high-priced and we do not recommend buying them. Here are some examples of NFT collections that are blue-chip NFTs on the Ethereum blockchain.
Buy blue-chip NFTs – An image from BeInCrypto.com
CryptoPunks
This original and iconic NFT collection with 10.000 individual pieces came on the market in 2017 and became one of the most expensive collections. Prices start at 50 ETH (currently approx. 164.000 US Dollars), but you have to be lucky and find a deal for it as well.
Bored Ape Yacht Club (BAYC)
The Bored Ape Yach Clubt NFT collection is similar in structure to the CryptoPunks collection, but has more add-ons and offers owners additional benefits. The project has its own roadmap and each NFT is a ticket to the community. Prices are around 80 ETH (currently approx. 263.000 US dollars), but with a little luck you will pay less if you buy an NFT at an auction.
type blocks
Art Blocks is an NFT marketplace that offers limited edition digital art from well-known artists. The platform is primarily known for its Curated-Collection known. You can buy into almost any Curated Art Block invest, but the Chromie Squiggle is one of the most popular. Prices start at about 5 ETH (currently approx. 16.000 US dollars).
Find NFTs before the price explodes
There are already some very successful NFT collections. To make a profit yourself, you need to find a cheap NFT that is about to explode.
If you want to buy NFTs, you should know the most important criteria for a profitable investment. The recommendations and advice you find online are not a guarantee to find the right NFTs. But the following steps seem to have worked well for most.
1. Find new NFT projects before they are released.
NFTs are usually cheapest when they’ve just been released and mined on the blockchain. Finding the right NFTs before they go live and knowing everything about them beforehand is therefore especially important.
The search for cheap NFTs will take some time. We recommend you check out some of the NFT Tools to use used by most successful NFT investors – rarity.tools and UpcomingNFT. You can also find new projects through social media, but that will probably take more time.
In addition, the NFT Instagram account (@nft) regular news about upcoming NFT releases. Rarity.tools will show you, for example, projects that have not been launched yet. The platform highlights the basics of the project, such as the Blockchain used, the Links to social media and the Minimum price of the NFTs.
Keep in mind that your main goal is to do this, to buy cheap and sell expensive. At the same time whole collections tend to be more successful than single releases, looking at the most successful NFTs in recent times.
So what should you look for when searching for new NFT projects?
In your research, simply try to answer these questions. Focus on the projects that have the greatest chance of selling for 10 times the asking price or more.
- Is the project unique?
- Does the project have links in social media?
- Is there a website?
- What is the minimum price for an object from the NFT collection??
- How many objects are in the collection?
2. Check out the project’s social media accounts.
In the world of cryptocurrencies and NFTs, community is the name of the game. So you should make sure that the project you’re going to invest in has an active social media following and an engaged community. Even low-cost NFTs should have an active social media account.
Most projects have a presence on Twitter and Discord, and that’s a good place to start your research. You should not invest in a project with only a few followers. Because that means it will be harder to find a buyer for your NFT.
However, you should be careful, because it happens all the time that scammers buy followers to fake a community. So you have to make sure that these numbers are real. This means you need to manually verify that posts and linked profiles are real people. It may take some time, but it’s worth it.
You should also check the Discord server of the project. Join the general chat on Discord and make sure there is an active and large community there. Here you should find announcements and reactions and moderators or even founders should be active in the chat. An active community with a larger number of members than the number of objects in the collections automatically leads to a higher demand.
Online research to buy the right NFTs – An image from BeInCrypto.com
3. Check the project’s website.
Every crypto project should have a reputable website that is free of grammar and spelling mistakes. A bad website should be easy to spot and is a clear sign that you should stay away from it.
A good NFT project’s website should have all the necessary information new investors need. Including a roadmap, the whitepaper, founding team members, partnerships, links to social media channels, and anything else about the project. Some projects are even developing their own cryptocurrency. If that’s the case, you should also find information about them on the website.
Although cryptocurrencies are mostly about privacy, most reputable projects have recognized team members that potential investors can contact. Make sure that the founders are reputable people and that they have been involved in similar projects before.
We advise against investing in projects that refuse to publicly reveal the identity of their founders. This is a risk you should not take, given the growing number of online scams on the Internet. You can often find more information about the founders on the project’s social media channels. Probably the founders use their personal accounts to report about the project. If you find these accounts, you can find out more about the people behind the project.
4. Be sure that you actually like the NFT.
If you don’t really like the project you want to invest in, there’s a chance that others will too. This can mean that there are not many potential buyers and you are stuck with the part of the collection.
Another point is the artwork: is it good?? This is subjective, but it is important that the artwork is original and good.
Your first attempt at finding cheap NFTs may not be an immediate success. This is why you should really like your NFT in case you can’t resell it. And you shouldn’t buy NFTs where you just hope to make a profit from reselling them. The important thing is that the quality of the artwork is high and it is unique in some way that sets it apart from others. After all, we are talking about NFT collectibles here.
Be careful when looking for cheap NFTs.
You should be aware that a cheap NFT does not necessarily mean that you will make a fortune selling it. If not all the criteria are met, your NFT will remain nothing more than a nice piece of digital art in your collection.
Finding the right NFTs takes time. – An image from BeInCrypto.com
Most NFT collections today are part of Video Games or with the Metaverse linked. They can either be used as digital assets within the game or used elsewhere.
You need to find out how many people are playing the game and how big the NFT community is behind it, and determine if the NFT is being used in a blockchain-based game. Sometimes projects are also supported by well-known celebrities. So it’s worth checking out.
If you want to buy NFTs, you should plan enough time to research the project and the community behind it to find cheap NFTs. The most successful projects always have active communities behind them.
Frequently asked questions
You can use tools like rarity.Use tools and UpcomingNFT to discover potentially lucrative NFTs that are about to launch. As a rule, the minimum price for these projects is affordable. To find the NFTs you need to visit an NFT marketplace.
Prices for NFTs can vary widely, so you’re very likely to find something that’s in your budget. However, cheap NFTs are still no guarantee that you can make a profit with them.
NFT marketplaces are the best place to buy and sell NFTs. But if you want to buy NFTs at the entry price, you need to find the projects before the launch and buy the NFTs directly from the project’s website.