Satoshi’s Girls: 6 Things To Consider When Purchasing An NFT
Welcome to our first article in our new series, Educational Resources!
This is a new series aimed at anyone and everyone looking to learn about the world of NFT’s and become an NFT-pro! This article will cover 6 key factors to consider when making your digital asset purchase.
Lets jump in…
1. The Community
As the NFT (Non-fungible token) space has evolved, communities have arguably become one of the most important factors and essential to the success of a project. These communities have become a vital part of our metaverse existence, and the majority of successful NFT projects are those that have an active and positive community. You will meet friends, mentors, and teachers from all over the world who will help you advance your knowledge of both crypto and NFTs
2. The Team
The project is driven by the community but steered by the team. When doing your own research (DYOR) on a project, look for an active, responsive, responsible, and knowledgable team. These are some great indicators of long-term success. Don’t be shy and engage with the project’s community and team! You may gain valuable insight, and any project looking for long-term success would be more than happy to help and answer any questions you have. Sometimes, the knowledge you can gain in these communities can be more valuable than the token itself! “Knowledge itself is power” (Sir Francis Bacon, 1597).
3. The Art
PFP projects have become all the rage. However, NFTs first gained mass popularity with artists who utilised this technology to help their art stand the test of time while being rewarded for their work. So, whether you are buying an ape, a sloth or a 1/1 museum piece, it always helps if you like the art you are buying.
You may often hear, “We’re still so early in this space,” and the fact is that this is true. The first cryptocurrency, Bitcoin, only came into existence following the recession in 2009, and although NFT’s have been around since 2014, this technology really only broke through to the main stream, disrupting the art world in 2021. Our point is, nobody really knows where the NFT market is going. You may or may not make the life-changing gains from your investment. To ensure that you don’t make a loss, invest in project art that you love. If the monetary value goes down, you still own a valuable piece of art that you can enjoy.
4. The Price
This one is important. NEVER INVEST MONEY YOU CAN’T AFFORD TO LOSE. No matter what somebody tells you, nobody knows where this market is going. Everybody’s price point will be different. For example, 99.9% of us will be priced out of BAYC (currently at 89 ETH floor), but there are many great projects that you can mint at 0.02–0.1 ETH. This may still be out of budget for some people, so again, you need to ask yourself if you can afford to lose it. One last thing… Stay liquid! The perfect investment opportunity might be just around the corner, and if you are not liquid, you will not be in a position to capitalise on it.
5. The Utility
Yes, NFTs are pieces of digital art. However, an NFT assigns a use to the digital asset outside of owning a piece of artwork.
More often than not, NFT projects will have a “roadmap” or “goals and objectives” of what they intend to do. This will often explain the utility of the NFT you purchased. A great example would be The Bored Ape Yacht Club (BAYC). A BAYC collector can benefit from IRL events, gamification, mansion party access, exclusive merchandise stores, and so on. This is just one example. Some projects may give holders ‘breeding’ opportunities, others may have a presence in Decentraland, and some projects may create a ‘fractionalized DAO’, meaning the owner of that token will have part ownership of the NFT project. So, before you pick your NFT, be sure to check out the roadmap to get a better understanding of the project you are buying into.
6. The Socials
This is a no-brainer, but still something that should be paid attention to. Whether it be on Twitter, Instagram, Tik Tok, or Youtube, a project without visibility will have issues and face difficulties growing. Don’t just focus on the followers that back the project, but also on the content and how active the team and the community are as a whole. A successful project should look to build a culture, and the community is core to this. So look for continuous engagement and activity from both team and followers.
We hope you found this article useful! We will be updating our educational resources regularly, and if you want to stay up-to-date with all things Satoshi’s Girls, be sure you follow our socials.
