NFTs are a risky form of investment as the NFT market is highly speculative. There is no manual or science behind what type of NFT you can invest in that will guarantee you a profit. There are, however, a few steps you can take to get yourself acquainted with the NFT market. 

Firstly, get to know the different NFT marketplaces and types of NFTs, then join Twitter to connect with other NFT buyers. Twitter is where most NFT enthusiasts communicate, so it’s a great place to get the gist of what’s going on in the space and who’s buying what. You can also make NFT friends on Twitter and learn about new projects before they launch. Many new projects launch every day, so you’ll certainly not be able to keep up, but at least you’ll have an idea of what’s happening in the market. 

Secondly, do your own research and educate yourself from various sources to fully understand how to buy, sell and trade NFTs. You can also check websites such as CryptoSlam or DappRadar for the latest NFT sales data or the NFT Plazas Weekly NFT Rundown, which gives an overview of the different NFT segments stats. 

Thirdly and lastly, use basic investment principles and stick to what you know. If you love gaming, then perhaps you’ll better be able to identify good blockchain games with in-game NFT items. If you love art, you’ll likely have a good eye for unique art pieces. What’s even more important though, is that you can identify an undervalued NFT that you think will increase in value. After all, scarcity, supply, and demand are what drives prices up.

Value can be very difficult to identify in the NFT space as it is a highly speculative market; however, it is still better than cherry-picking some random NFT in the hopes of it going to the moon, as it probably won’t unless you are really lucky. 

For more information on NFTs as a form of investment, read ‘How to Make Money from NFTs‘.