Mar 24, 2021
How To Invest In NFTs Using Data
Nothing in this post and or newsletter is to be considered financial advice. All the content here is just a representation of the author’s opinions and views.
We learned that NFTs are illiquid in our last installment, but not all are like that.
That’s why a good data approach can help you increase your chances of liquidity when buying an NFT, be it a collectible or a piece of art.
So what should you do instead?
Currently, there a couple of resources that you can use depending on which type of NFTs you are looking to buy.
Collectibles
- For NBA Top Shots, you can use evaluate.market
- For OpenSea, use their rankings page
General Market Data
- For marketplaces data, use DappRadar and Nonfungible
- For collectibles ranking, use CryptoSlam
Crypto Art
- For artist ranking and art market data, you can use CryptoArt
- For real-time sales on specific platforms and/or artist, you can use CryptoArtPulse
- For specific history on a NiftyGateway secondary market sale, you can use NiftySecondary
Now that you know all the available tools, how do you use them?
Well, it’s just a market like any other, so it’s driven by supply and demand.
Ensure that the specific collection and/or crypto art you are buying have multiple buyers and transactions in the last 24 hours.
On the contrary, if there its almost no transaction or even just once in the last 24 hours, that means the specific NFT you want to buy is illiquid, and if you buy it, most likely it will be hard to sell in the short term.
Summary
Use more tools to have a better-informed decision when buying your next NFT. Data tools and data perse in the NFT space it’s a little bit scattered everywhere, but the hunt is what makes this early space so interesting.
