Have you heard about the NFT market? Wondering how to choose a valuable token with high return potential? In today’s article, we’ll tell you about several indicators that will help you estimate the potential of a given piece of digital art. But first, we’ll introduce the new possibilities for buying non-fungible tokens that the Binance exchange has introduced on its Binance NFT platform. So, here we go!
New Ways To Buy NFTs On Binance NFT
Binance is the largest cryptocurrency exchange in the world. Some time ago, it also launched its dedicated platform for trading non-fungible tokens called Binance NFT. Initially, its offering was quite poor. Nevertheless, we can already see that Changpeng Zhao cares a lot about the experience of its users. This is because it is constantly introducing newer and newer features. Only recently, it has implemented quite a few new ways to purchase NFTs. Here they are:
- Firstly, for some time now there has been an option to search NFTs. You can search either the NFT marketplace or the profiles of specific artists, in the [Created], [Collections] and [Favorites] tabs.
- Mystery Boxes can now be purchased at a fixed price or at auction. Alternatively, you can also bid on a seller. This is great for people who would like to buy rare NFTs at a lower price.
- The collections are divided into two versions, Premier and Standard. The former are created in cooperation with Binance NFT, while the latter are not verified by the platform. Therefore, you should be very careful when investing in the second ones. How to distinguish between Premier and Standard collections? There is an orange symbol next to the name of NFTs verified by Binance.
- It is also possible to view special rankings, which are divided, for example, according to best sales, collections and creators. Moreover, next to each NFT you can find such information as floor price, volume, last price, etc.
How To Find Valuable NFTs?
Finding a valuable NFT with considerable profit potential is not that easy. Nowadays, the trend of non-fungible tokens is already so big that a huge number of new projects are created every day. Nevertheless, certain indicators can help us estimate the value of the NFTs:
- Floor price – This is the minimum price at which NFTs in a given collection are sold. It is generally a barrier to entry into the market. On Binance NFTs, it is possible to buy NFTs below the floor price by submitting an offer to the seller. The floor price depends on a number of factors, including usability, volume, the benefits given to holders of a given NFT, etc. Looking at the floor price, we can easily assess how well the project is received by the community. Usually when the demand for a collection increases, the floor price also increases. Therefore, when choosing NFTs for investment, it is worth paying attention to projects with high price and availability.
- Market capitalization – In the case of NFT, the market cap of a collection cannot be accurately calculated (due to high fluctuations). However, it can be estimated. All we need to do is multiply the 7-day average transaction price by the total supply of collections. This will give us a sense of how popular the NFT is
- Supply – This is the number of NFT tokens in a given collection. It is determined in the smart contract even before the minting process itself. The higher the supply, the less rare a given NFT becomes, and thus the price is lower. However, this is not always true. Some collections are so popular that NFT prices rise despite the high supply
- Sales – It is also worth noting whether a particular collection sells. A high volume of sales indicates the popularity and interest in a collection, and therefore indicates to us how easily we will be able to get rid of a given NFT, in case we want to exit our investment.
- Rarity – This indicator seems obvious. The rarer something is the more expensive it is, and not just in the digital world. In general, NFTs are usually minted with certain characteristics and features, and it is on the basis of these that the rarity of a piece of art is determined. These could be, for example, some unique benefits in Play 2 Earn games. On Binance NFT you can easily check the minimum price of an NFT containing a given characteristic using the filter option.
- Volume – This indicator shows us the total demand for the project. Usually, well-established projects have a high volume. Volume analysis is extremely important when estimating risk. In case it is low, finding a buyer who will buy back a given token from us can be long and arduous, or in the worst case – impossible.
Finding a valuable NFT is not a simple task. Especially now, when thousands of different collections are issued every day. However, we can reduce the risk of investment by checking a few basic indicators. Using the Binance NFT exchange, we can also buy tokens verified by the largest trading platform in the world! So don’t wait, sign up for an account on Binance today by clicking on this link!