How to know the true value of NFT before investing
In the true value of NFT, the ease of buying or selling NFTs is very important
Just like the stock, forex, and crypto markets, where there are criteria for assessing the fundamental value of assets, there are criteria you can use to assess the true value of NFT before investing. Four criteria will be explained in this article, along with some of the benefits and risks you should be aware of before investing in NFTs.
NFTs have no monetary value on their own
NFTs can be very valuable in several ways. Besides being investment tools with high-profit potential, they are also used to create identity, virtual community, and ownership. Some people buy NFTs to support artists, and often artists earn more because they sell their work directly without any middleman. As a new form of collectibles, NFTs are enhanced versions of comic books, artwork, posters, sports cards, etc., which has attracted many tech fans who are also interested in art to purchase these digital assets. In the meantime, some people do not seek to make a profit from buying these assets and only buy these NFTs for exclusive access to events in the virtual space or to open premium accounts in some games, and others only because these assets are new to them. They are buying these assets. For investors, NFTs have also become a profitable technology (although only a few people have gotten rich buying NFTs!). One question you might ask is how to determine which NFTs have financial value and which ones you should skip for investment purposes
readmore : MonoCoin NFT Signal
4 factors to understand the true value of NFT
Below are four factors to consider when investing in NFTs.
1- How rare is NFT?
The rarity of an NFT determines its value. For example, a rare NFT could be a first-of-its-kind digital artwork by an illustrator. Some NFTs created by celebrities also fall into the category of rare NFTs. The appeal of an asynchronous token as a technology is its uniqueness. As such, the rarer an NFT token is, the higher its market price. This is why it is so important to consider their rarity before buying NFTs. Preferably choose projects that have launched a limited set of NFTs. Note that the goal is buying rare NFTs affordably and not pay too much.
2- What can NFT be used for?
This topic covers how NFTs can be used in the real or digital world. In addition to being unique digital assets, some non-fungible tokens serve other purposes. For example, some NFTs give the owner intellectual rights and benefits. Bored Ape Yacht Club started as a collection of NFT images, but now they are tickets to special events and grant their owners rewards, such as the ability to print new NFTs. Many NFTs are also used in games and have different values based on the functions they perform.
3-Is the NFT you have chosen available to buy and sell?
In the true value of NFT, the ease of buying or selling NFTs is very important. Investors like to invest in tradable NFTs .because the risk of holding them is reduced. ERC-standard NFTs can be traded on a wide variety of exchanges. Ease of trading adds to the true value of NFT.
4-Who owns or is behind the NFT project?
You have to be very sensitive, make sure and thoroughly check the influencers and celebrities of the project (if any). We have seen several projects that have been supported by celebrities, which did not have the expected value. The most recent example, in January 2022, was a project called Ethereum Max, which was backed by high-profile celebrities including Kim Kardashian. However, partly the opposite is also true. One of the most famous NFT projects, The Bored Ape Yacht Club has become so popular that celebrities such as Justin Bieber, Eminem, Serena Williams, Steph Carey, and many others use the BAYC brand and own NFTs from this collection. It is difficult to understand the complexities and technology involved in creating or developing an NFT project if the team has refused to publish a white paper or roadmap. If you're going to spend your hard-earned money investing in a project, you should at least be able to gauge the team and their roadmap. According to Patrick Casey, director of marketing at Felix Health, the NFT whitepaper gives you a clearer idea of why the project exists, the research the development team has done, and how the brand plans to continue to expand in the long term.