OpenSea is the oldest and one of the most successful NFT marketplaces in the NFT space. It was founded in December 2017 and has since gained traction, attracting several high priced sales. It is based on the Ethereum Blockchain, infamously known for high gas prices, negatively affecting the environment. This platform has helped several artists, collectors, and traders make a fortune from NFTs. It is quite popular and therefore one of the best options for beginners. Its popularity also means that it has several users and thus a huge market for NFTs and collectables.
However, to make money on OpenSea, you must know the right projects to pursue. This article will furnish you with tips on how you can select the best NFT project to help you earn a fortune from this platform, just like thousands of NFT collectors and investors. Let us walk you through.
1. Monitor the Community
Most, if not all NFT marketplaces, are community-driven. Remember, among the many reasons developers created Defi and smart contracts were to decentralize finance and all the related services, allowing people to have more control of their assets and valuables. NFT marketplaces such as OpenSea have seemingly heeded to this by allowing people to build communities behind NFT projects and identify with them.
The best way of finding out about a viable project is by getting involved in different OpenSeas’ communities. You can build or access a community through this platform’s discord, where you get to talk to people and get involved, thus discovering assets likely to increase in value. It also means that you will first find projects with great potential, purchase them at relatively lower prices, and, in return, highly benefit.
You should also ensure that the NFT project you are interested in has a healthy community behind it. It is a no brainer that projects with huge followings have greater possibilities of future success. Note that NFT ownership goes beyond the artwork or asset itself and extends to the community behind it. Projects such as CryptoPunks are becoming increasingly popular and valuable owing to their community. These avatars have the blessings and support of top musicians, tech entrepreneurs several whales in the NFT market, which is a good reason why people are parting with as high as $400 000 for a piece.
Making sure that a project has a great community cherishing it means that you are aware of its potential. Another great example is the Bored Ape Yacht Club, which successfully created a culture where people can proudly wear its offerings, such as merchandise. It has proven to be one of the most successful 10k projects in the NFT world. However, note that the following and community behind the project only shows its potential, not absolute success. All in all, you are better off buying one with a great community behind it than without.
Some tokens automatically give new owners privileges and even allow them to join a community of other owners. They are entitled to events and support, a reason why assets such as CryptoPunks seem to be increasing in value. Do not also forget to take part in the
2. Consider the Roadmap
You must take a look at the roadmap of the given non-fungible token project before spending a huge chunk of your crypto assets on it. This is an important process when conducting the needed due diligence before buying an NFT for future trade or ownership. What exactly is the NFT roadmap?
The roadmap, also known as the white paper, contains all the goals that the project aims to achieve and the strategies it will use to achieve them. It also has the marketing and growth plans, short and long term goals as well as key milestones. As a result, it tells you the long term value of the non-fungible token to help you decide whether you are making the right decision or not. Do not invest in a project without clear missions or visions.
Also, while still on the roadmap, please find out how the project was built and pieced and whether the effort guarantees what the creators intend to achieve. Lastly, ask yourself whether it is feasible. This tip will greatly rely on your judgment, an important aspect or activity for investors. If possible, let it come first before anything else. You will be better positioned to proceed once you know what you are getting into.
3. Does it Have a Social Presence?
Does the NFT project enjoy a social media presence? Are people talking about it? Are there YouTubers making videos off it? Even though this should be an automatic consideration, most people fail to observe it, ending up with less known or unknown projects. Note that an invisible project will be hard to sell.
One of the greatest social media applications that any NFT enthusiast can use is Twitter. Here, people talk about projects with future potential, the expected performance of different projects, and their feasibility. Tweets have been repeatedly used to influence the value of Bitcoins and other cryptos, explaining just how powerful Twitter is.
Also, do not just rely on the number of followers a project has since without continuous engagement and related activities, it doesn’t attribute to anything. However, do not forget to stick to the second tip.
4. Type of Project
You must also consider the project itself. What exactly are you investing in? Remember, thanks to its popularity, OpenSea has several collections and projects you can invest your hard-earned money in. You should confirm the project’s brand if you intend to make money off it. This is important since a brand attracts buyers and determines demand, just like in the real world. A good brand will always have buyers owing to high demand.
Therefore, it is imperative to extensively research a project’s brand and determine if you like it or support its foundations and missions. Step into the shoes of a consumer by asking yourself whether the brand would appeal to you in the real world or not.
Also, note that some projects are more lucrative than others. PFP and gaming NFT collections normally have greater potential given their scarcity and popularity, respectively, making them good options to trade. NFT artworks have also been performing quite well in the recent past and should feature somewhere on your list. All in all, conduct due diligence and only choose what will work for you.
5. What is the Age of the NFT?
This is an important question, especially for long term investors. What is the age of the NFT project you intend to buy? Is it old like CryptoPunks or relatively new? Remember, older NFTs keep increasing in value, as seen from the trends since they are past the obsession and massive buying phase. They are therefore excellent options for long term investment.
Therefore, when considering a long term investment in an older and newer NFT with the same characteristics, we advise you to go for the older one. Most of these are scarce 10k projects, which keep rising in value with increased demand, allowing you to make a decent profit through a sale.
6. Metaverse Orientation
It would be best if you discovered whether the NFTs in a particular project have a use in the metaverse or not. Remember, big tech companies such as Microsoft and Apple are rushing to create the metaverse, a virtual world project set to revolutionize the internet. As a collector or trader on OpenSea, you are better off purchasing digital assets that will be relevant once this virtual world becomes common. Most people are currently looking for tokens to be used in the metaverse, such as digital lands and spaces.
If the project can be owned or used in the metaverse, there are high chances that it will increase in value soon and earn you some decent profit. A good example is the furniture project by renowned Australian digital creator Andres Resinger. His creations, considered ‘impossible’ are destined to be used on the metaverse, especially among virtual landowners and entrepreneurs, meaning that he will benefit greatly once the demand for furniture increases in this future revolution.
This sixth point means that you should consider buying NFTs that respect or combine emerging future trends on the Blockchain. Ask yourself whether the NFT project captures useful trends in gaming if you decide to mint and sell yours. Will it attract gamers?
7. Choose What You Love
It would help if you considered buying and selling tokens you are interested in, which is important as people understand the market dynamics and trends surrounding the things they love better. Remember, NFTs should be fun, meaning that you don’t have to partake in something you don’t enjoy. Instead of looking for the trending or popular NFTs, try as much as possible to narrow into a few NFT categories that spark an interest in you and get to work.
You have to decide alone since not everyone knows the categories you love or enjoy. If you are a basketball fan with lots of knowledge about the game, we advise that you focus on a basketball NFT project, find out more about it by going through the roadmap and finally decide whether it is viable or not. The same also applies if you love art.
This is an important process in picking the best NFT, and therefore, be as thorough as possible. It is especially important for beginners trying to get the hang of the space. Dealing with assets you love and understand would save you time and allow you to familiarize yourself with the NFL faster.
8. Consider the Founders of the NFT Project
OpenSea brings together several creators, collectors and enthusiasts. Therefore, you will deal with hundreds of thousands of creators, sellers, and buyers trying to benefit from their assets. To give you an easier time separating the wheat from the chaff in terms of feasible projects, we advise you to consider founders and creators. Remember, the person behind the project is just as important as the assets.
Ensure that you only consider projects whose investors are transparent and can easily win your trust, which you will know by just looking at the project roadmap. Also, make sure that you look at the creator’s past performance, social status and different abilities such as execution and brand awareness building. An NFT with a successful creator who understands how to build a brand has excellent future potential and can earn you higher profits.
This is also equally important for long term investors and traders, whose earning potential depends on an asset’s ability to increase value. The past track record shows how his creations have been performing and, therefore, whether you will gain from a long term investment or not.
9. Consider the Floor Price
One of the most recommended ways to know whether an NFT collection will increase value is by monitoring its floor price. This popular term describes the lowest listing price of a non-fungible token or collection. It is normally advisable to buy NFTs with lower floor prices at the beginning since you stand to gain more if their value skyrocket. However, that is not all. Make sure that you consider projects whose floor prices are rising.
Remember, a rising floor price shows great growth potential and can earn you good profits. This is also one of the most popular NFT trading techniques, where investors buy tokens at the least prices, selling them when the market changes positively. However, this means that you find the project early, something that OpenSea users enjoy as they can see projects that have been released or are yet to be released and track them.
Remember, just like in real-world commerce; you have to take advantage to earn money off your investments to trade.
10. Does the Project Have a Staunch Following?
Do the NFT projects you intend to invest in, and trade have enough clout? How many Twitter or Discord followers does it have? NFT listings on OpenSea have social media links as part of the metadata, which you can click to discover an asset’s social media following.
Keep in mind that one of the most useful important apps when conducting a followers’ check on any digital asset is Twitter. Therefore, click on the embedded link on the token listing, which will directly take you to its profile, where you can see the number of followers. Find out if it has a decent amount of followers and whether people are talking about it, giving it the popularity and clout it deserves. You can also monitor its popularity through the number of new followers in a given period.
Remember, an increase in popularity occasioned by a notable increase in followers may indicate the asset’s future potential. NFTs with a good number of active followers have better growth potential and are good trading options than their counterparts.
OpenSea also has a direct way of viewing or monitoring an NFT’s following. The platform has an NFT catcher, which reveals NFT drops taking place. Remember, you will get a variety instead of one. Visit the drop directly from what is captured on your screen. Some of the information you will get include the date and the time of these drops, which will come in handy when learning about these projects. If possible, ensure that the token has at least 10 thousand followers on discord and a similar number on Twitter.
The number of followers also tells a project’s reach, which is another important consideration when buying an NFT either for trading or investment purposes. A project with a huge following has a wider reach than its counterparts, making it a viable investment opportunity.
11. Only Invest What You are Comfortably Losing
This is an important yet ignored tip when buying NFTs either as assets or for trading purposes. Spending everything you have on non-fungible tokens may be fatal, especially if the tokens’ value heavily falls instead of skyrocketing. When things go astray, you need somewhere or something to fall back to, which calls for wisdom, tact, and better purchase decisions. Investing what you can afford to lose means that you will have exactly that when things fail to go your way.
You also don’t need to subject your family to hard times by investing everything you have, unless you are a degen, a popular NFT term that means a degenerate. These are people with high-risk appetites, normally known for investing thousands of dollars on digital assets without conducting any due diligence. Therefore, when buying an NFT for later sale, remember not to be overly optimistic as the market may be difficult to predict. What if the NFT craze dies, and we are left holding valueless assets?
Conclusion
These are some of the most important tips to have at the back of your mind when selecting NFTs to trade on OpenSea. Ensure that you settle on the right choice of NFT as it determines the profitability you will enjoy. Continue reading our articles and following us to learn more about NFTs and the different trading marketplaces.
