The metrics to consider to buy and sell NFT

Reading time: 5 minutes

TL: DR

When choosing to buy or sell NFT you should have some basic metrics in mind to gauge its potential value.

I count eight, eight key metrics to consider when evaluating the intrinsic value of an NFT:

the minimum price
the maximum price
the volume
the offer
sales
the rarity
the origin
smart contracts.

Should you join an NFT early in the project or should you wait and buy later?

Index

NFTs have taken the internet by storm, and are showing no signs of slowing down. With its surge in popularity, there is no shortage of NFT projects being launched every day.

Deciding the precise value of an NFT can be difficult. However, to better assess the longevity and value of an NFT project for your portfolio, I am interested in pointing out that there are key metrics that can help guide an investment strategy. purchase and sale of NFTs in a better direction.

NFT evaluation metrics

Price of the plan

What is that?

In the NFT space, the floor price is the lowest priced NFT within an NFT project.

“Buying the flooor”, therefore buying on the floor, is considered a good starting strategy, as it is an accessible entry point for newcomers joining an NFT project .. the price will be the lowest.

Because it's important?

The floor price is a good metric to evaluate how well an NFT project has been received by the community. As demand increases, the minimum price will rise.

So, if you buy the cheapest NFT in a collection with the expectation that it will become more popular, you can then resell the NFT when the minimum price is higher.

A good goal is to find a project that balances high value and accessibility. While projects with higher base prices are worth more, they are more difficult for small traders to afford.

The "artistic" value of NFTs — The “artistic” value of NFTs

Maximum price

What is that?

The cost of the NFT with the highest price in the collection or the highest price an NFT was sold for.

Buying the maximum price can be considered a high risk, high reward NFT trading strategy.

Because it's important?

If you are willing to spend a lot of money on NFTs, try to buy ceiling NFTs, which is their highest price. These are usually the rarest and most popular digital goods that are sold at the highest prices.

If demand for the project increases, the price of ceiling NFTs can skyrocket. But if the project loses its appeal, investors looking to sell can suffer huge losses as liquidity runs dry.

Volume

What is that?

This metric refers to the total volume traded and shows the overall demand for the project.

Generally, consolidated collections have high traded volume values.

Because it's important?

The volume traded is a good indicator of how popular an NFT collection is. For a collection to reach a high volume, people must be willing to buy and sell.

By looking at the total volume traded, one can easily determine if an NFT project is currently in demand. The higher the volume, the more liquid the market tends to be. You want a liquid market so that you can easily enter and exit NFT positions.

Discount

What is that?

The offer refers to number of NFTs in the collection.

Because it's important?

Essentially, every NFT creator controls their job supply and inflation rate.

The offer of NFT affects how the value of a collection is perceived. Collections with a high supply tend to have a lower market value for each NFT. Low-supply collections often have higher base prices due to the rarity and scarcity of each piece.

Sales

What is that?

Il number of NFT sales helps investors identify past and present interest in an NFT collection.

Because it's important?

If an NFT collection shows a lot of recent sales, it could be a sign that there is growing interest. However, it is necessary to consider the direction of the movement in relation to the minimum price. If many NFT holders are selling and the minimum price is falling, it could indicate decreasing interest or even a panic sell.

Rarity rank

What is that?

La rarity of an NFT is determined from the traits and characteristics that the NFT possesses within a given collection. This metric can also translate into how difficult it is to obtain a specific NFT.

Because it's important?

Rarity rank is a metric that helps investors gauge how valuable NFTs can be in each collection.

Following the law of scarcity, rare and in demand NFTs often attract more buyers and are sold at higher prices. Additionally, NFTs with a higher rarity rank may be equipped with additional unique NFT utilities, such as greater perks in play-to-earn games that players can benefit from.

Origin

What is that?

In the NFT space, provenance can be defined as the history of ownership behind an NFT starting from its origin.

Because it's important?

Provenance is an important metric used to evaluate NFTs because it allows you to verify changes in ownership information across the blockchain. Your investment is protected because only an original can be traced back to the original creator.

Smart Contracts

What is that?

Smart Contracts are an application or program that runs on a blockchain. They are an important part of NFTs because they make it possible to sell or transfer a digital asset, set royalties for artists, allow users to interact in the metaverse, and more.

Because it's important?

Smart contracts can outline the rights of the owner and the buyer. As well as preserving the supply chain or the history of the transaction.

In terms of supply chain preservation, the preconditions required by smart contracts are tied to the original creator and the buyer. While the buyers take ownership, they don't necessarily own the copyright of the NFT. Unless it is part of the terms of the contract, the copyright remains with the author.

What role could NFTs play in your portfolio?

Like any other investment, NFTs can potentially be a great portfolio diversifier.

NFTs are a class of digital assets with infinite possibilities. NFTs can open doors to other opportunities within the metaverse, as well as give exposure to the world of blockchain.

However, keep in mind that not all that sparkles is a diamond. With so many NFT projects springing up every day, successfully conducting your own research and making an informed decision is especially important.

3 tips for building a successful NFT portfolio

Diversify your portfolio
Don't put all your eggs in one basket. Not all NFTs will be a success. Diversifying your portfolio can improve your chances of making successful investments.

Don't spend more than you can lose
It is recommended not to spend more than 10-20% of the total cost of your portfolio on a single investment. NFTs are no exception.

Be active in the NFT community
Whatever NFT project you are interested in, it is worth being active in the community. Doing your own research helps distinguish a good investment from a potential scam.

Conclusion

The value of NFTs is largely determined by market forces, and it is impossible to accurately predict the future of the NFT world.

However, it is possible to increase the chances of success by doing proper market research and using the metrics seen above. Use them to better evaluate and navigate the NFT space.

HP 255 G8 Laptop 39,6 cm (15.6 ") 1366 x 768 Pixel AMD 3000 8 GB DDR4-SDRAM 256 GB SSD Wi-Fi 6 (802.11ax) Windows 10 Home Black co 2W1D7EA

(222)

242,00 € (as of 08/08/2022 20:54 GMT +00: 00 - )

Anigaduo 20W USB C Quick Charger For iPhone 13/13 Mini / 13 Pro / 13 Pro Max / 12/11/8 / XS / XS Max / XR / X, iPad, AirPods, USBC PD 3.0 Charger Plug Power Supply Socket Charge Wall Adapter Charging

(336)

8,79 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Echo Dot (3ª generation) - Smart speaker with Alexa integration - Anthracite fabric

(144108)

19,99 € (as of 07/08/2022 20:43 GMT +00: 00 - )

HAKUSHA USB C Cable, [1M] USB Type C Nylon Fast Charging Cable for Android Samsung Galaxy S21 Ultra, Note 20, Z Fold 3, Huawei P50, Mate 40, MateBook, Xiaomi Mi 11 Lite, OnePlus 9, Google Pixel 5, Realme

(5251)

4,99 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Apple EarPods with Lightning connector

(10042)

15,00 € (as of 07/08/2022 20:43 GMT +00: 00 - )

SanDisk 128GB MicroSDXC Memory Card And SD Adapter, Red Gray

(232552)

18,81 € (as of 07/08/2022 20:43 GMT +00: 00 - )

HP 304 Black, N9K06AE, 120-page Original HP Cartridge, Compatible with HP DeskJet 2620, 2630, 3720, 3730, 3750 and 3760, HP ENVY 5010, 5020 and 5030 Printers

(54141)

11,99 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Smartphone Car Holder, Beikell Car Phone Holder [360 Degree Rotation] with Adjustable Dashboard and Car Extendable Arm Holder Strong Sticky Gel Pad

(49217)

14,99 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Power Bank 10400mAh, USB C Portable Charger with Digital LED Display Portable External Battery with 2 inputs and 3 outputs of 5V / 3A for Huawei Xiaomi Smartphone. (Black)

(9946)

21,99 € (as of 07/08/2022 20:43 GMT +00: 00 - )

NEW'C 2 Pieces, Tempered Glass Compatible with iPhone 11 and iPhone XR (6.1), Anti-Scratch, Anti-Fingerprint Protective Film, 9H Hardness, 0,33mm Ultra Transparent, Ultra Resistant

(66071)

5,89 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Xiaomi Smart Band 6, Xiaomi Smart Watch, 1.56 '' AMOLED Screen, SpO2 and Heart Rate Monitoring, 30 Fitness Modes, 5 ATM Water Resistant, Antibacterial Strap, Italian Version

(12994)

14,99 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Charmast Power Bank 26800mAh, Portable USB C Powerbank Battery Charger with 3 Input & 4 Output Compatible with iPhone 12/11 / XS / XR Samsung Huawei Xiaomi Smartphone Tablet (Black)

(12859)

31,44 € (as of 07/08/2022 20:43 GMT +00: 00 - )

TOSHIBA HDTB410EK3AA Canvio Basics, Portable External Hard Drive, USB 3.2, 1 TB, Black

(70822)

39,70 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Xiaomi Mi Portable Photo Printer, Portable Laser Printer, Glossy Photo Paper, Thermal Print, Bluetooth / USB / WLAN Connection, White, Italian Version

(449)

49,98 € (as of 08/08/2022 20:54 GMT +00: 00 - )

Xiaomi XM200068, Smart Band 7, 1.62 '' AMOLED Screen, Sleep Monitoring, SpO2, Heart Rate, VO2max, 5 ATM, 110+ sports modes, Battery life 14 days, Italian version, medium-small

(885)

53,81 € (as of 08/08/2022 20:54 GMT +00: 00 - )

HP 301 CH561EE Original Cartridge, 190 Pages, for HP DeskJet 1000 Series, 1050 1510, 2000, 2050, 2510, 2540 and 3050 Series, HP Envy 4500 and 5530 Series and HP Officejet 2620 and 4630 Series, Black

(160732)

14,90 € (as of 07/08/2022 20:43 GMT +00: 00 - )

TP-Link Indoor Wi-Fi Camera, 1080P Surveillance Camera, Night Vision, Two Way Audio, Motion Sensor Real Time Notifications (Tapo C200)

(65110)

29,99 € (as of 07/08/2022 20:43 GMT +00: 00 - )

New Apple AirPods (XNUMXrd generation)

(3730)

135,75 € (as of 08/08/2022 20:54 GMT +00: 00 - )

Echo Dot (4th generation) - Smart speaker with Alexa - Anthracite

(61185)

24,99 € (as of 07/08/2022 20:43 GMT +00: 00 - )

HP 302 Black, F6U66AE, 190 page Original HP Cartridge, Compatible with HP DeskJet 1110, 2130 and 3630, HP OfficeJet 3830 and 4650 Printers

(122871)

14,00 € (as of 07/08/2022 20:43 GMT +00: 00 - )

UNBREAKcable IPX8 Waterproof Smartphone Case [2 Pieces], Underwater Cell Phone Cover for iPhone 13 12 11 Pro Max Mini, XR XS X SE 8 7 6, Samsung S22 / S21 / S20, Huawei Xiaomi Up to 7.0 "

(12743)

15,95 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Kindle, now with integrated front light - With advertising - Black

(13435)

79,99 € (as of 08/08/2022 20:54 GMT +00: 00 - )

DVB-T2 HD 1080p Decoder AUTOMATIC TUNING Digital Terrestrial New Generation HDMI HEVC Main 10 Bit H265 receives ALL free channels DOLBY-DIGITAL + (GX1 (Without buttons on the display))

(7537)

21,99 € (as of 07/08/2022 20:43 GMT +00: 00 - )

TP-Link Tapo C310 FHD 1296P Outdoor Wi-Fi Camera, Surveillance IP Camera, Real Time Notifications, Night Vision up to 30m, IP66 Waterproof, 2 Way Audio, Alexa Compatible

(8523)

38,99 € (as of 08/08/2022 20:54 GMT +00: 00 - )

Fujifilm 16386016 Instax Mini Film Instant Film for Instax Mini Cameras, Format 46x62 mm, Pack of 20 Photos

(140829)

22,74 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Travel Adapter, Amoner Universal Travel Adapter with 2 USB Charger Ports Suitable for more than 180 countries (Black)

(2732)

14,99 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Xiaomi Mi Smart TV P1 32 Inch, Frameless, HD, Android 9.0, Google Assistant, HDR, HLG, Bluetooth, 3 HDMI, 2 USB, Black, Model 2021

(2162)

185,00 € (as of 08/08/2022 20:54 GMT +00: 00 - )

Xiaomi Redmi Note 11S - Smartphone 6 + 128GB, AMOLED display 6.43 "90Hz FHD +, MediaTek Helio G96, 108MP professional camera, 5000mAh, Graphite Gray (IT version + 2 years warranty)

(296)

221,71 € (as of 08/08/2022 20:54 GMT +00: 00 - )

(as of 08/08/2022 20:54 GMT +00: 00 - )

Xiaomi Mi True Wireless Earbuds Basic 2, Airdots 2 Bluetooth Headset, Wireless Bluetooth 5.0 Earphones, Magnetic Charging Case (Global Version) Black

(5479)

24,49 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Meet Blink Video Doorbell + Sync Module 2 | Two-way audio, HD video, app notifications, config. simple, with Alexa integration | Wired or wireless installation (white)

(95)

59,99 € (as of 08/08/2022 20:54 GMT +00: 00 - )

Power Bank, INIU Ultra Thin & Lightweight Powerbank 10000mAh Dual Output 3A High Speed, USB C Port Outdoor Portable Flashlight Charger for iPhone Samsung Huawei Xiaomi ETC. [2022 Version]

(21999)

20,99 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Fire TV Stick with Alexa Voice Remote (with TV controls) | HD streaming

(47897)

39,99 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Kingston Canvas Select Plus SDCS2 / 64GB Class 10 microSD Card with SD Adapter Included, 64GB

(95407)

7,59 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Apexcam 4K WiFi 20MP Action Cam Ultra HD Sports Cam Waterproof Underwater 40M 2 '' Action Camera 2.4G Remote Control 170 ° Wide Angle with 2x1050mAh Batteries and Accessory Kits

(9794)

69,99 € (as of 08/08/2022 20:54 GMT +00: 00 - )

TP-Link TL-WA850RE Wireless Wifi Extender and Access Point Repeater, 300Mbps Single Band Speed, LAN Port, Enhance your Wi-Fi coverage, Compatible with all wifi modem routers, White

(149078)

15,99 € (as of 07/08/2022 20:43 GMT +00: 00 - )

Welcome to the "Garden and Gardening" section! Cazoo, what a great product!

Discover our selection of various sub-categories such as in Flags, Statues and Sculptures, Ponds and Water Gardens, Garden Signs, Fountains, Decorative Fences and much more.