Finding NFTs to buy has never been easier—marketplaces are flooded with digital art, collectibles, and utility-driven tokens. But choosing a good NFT that holds long-term value? That’s where most investors stumble. With so many projects launching daily, it's critical to know what separates a genuine opportunity from a fleeting trend.
After extensive personal experience acquiring and evaluating NFTs, I’ve identified the key factors that define a high-potential project. The process isn’t magic—it’s research, observation, and strategic thinking. Whether you're new to the space or expanding your portfolio, this guide will walk you through the essential criteria for identifying valuable NFTs in 2023.
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5 Key Signs of a Good NFT
Choosing a strong NFT investment mirrors how you’d evaluate any real-world purchase: you find something you like, research it thoroughly, and assess whether it's worth your money. Below are five proven indicators to help you spot quality NFT projects.
1. Evaluate the Creator’s Reputation and Influence
One of the first things to investigate is who is behind the NFT project. A creator with a strong public presence, established credibility, or a track record in art, tech, or business often brings legitimacy and visibility to a project.
Take Gary Vaynerchuk’s VeeFriends as an example. His influence in marketing and entrepreneurship gave the project instant attention and trust. Similarly, Beeple (Mike Winkelmann) wasn’t a household name before NFTs, but his decades-long dedication to digital art built credibility that culminated in a $69 million Christie’s sale.
When researching creators:
- Check their social media footprint.
- Review past work or ventures.
- Look for transparency—do they engage with the community?
- Are they doxxed (publicly identified), or anonymous?
A reputable creator doesn’t guarantee success, but it significantly reduces risk.
2. Assess Brand Value and Intellectual Property (IP)
An NFT backed by strong intellectual property or an established brand has a higher chance of long-term growth. Projects like Pudgy Penguins or Bored Ape Yacht Club didn’t just sell profile pictures—they built entire ecosystems around their IP, including merchandise, games, and media rights.
Even newer projects without big names can show promise if they have a clear roadmap—a strategic plan outlining future development. A solid roadmap typically includes:
- Upcoming utility features (e.g., access to events or services)
- Partnerships or collaborations
- Token-gated experiences
- Community-driven initiatives
You can usually find the roadmap on the project’s official website. If it’s missing or vague, that’s a red flag.
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3. Analyze Community Strength and Engagement
In the world of NFTs, community is everything. A vibrant, active community drives adoption, fuels hype, and supports long-term sustainability. Projects like VeeFriends, with over 150,000 Discord members, thrive because of passionate holders who contribute ideas, support newcomers, and promote the brand organically.
Signs of a healthy NFT community:
- Active discussions on Discord, Twitter (X), and Telegram
- Regular updates from the team
- Member-led events, art contests, or AMAs
- Low tolerance for spam or scams
Spend time in the community before buying. Ask questions. Observe how the team responds. If moderators are quick to help and creators are present, it’s a good sign.
4. Review Smart Contract Terms and Utility
Beyond aesthetics, smart contract details determine an NFT’s real value. These blockchain-based agreements define what rights and benefits come with ownership.
Key elements to check:
- Royalty structure: Does the creator earn resale fees?
- Burn and mint mechanics: Can tokens be destroyed or upgraded?
- Access privileges: Does owning the NFT unlock exclusive content, events, or services?
- Expiration dates: Are perks time-limited?
For example, some NFTs grant lifetime access to courses or VIP experiences. Others offer staking rewards or governance rights in decentralized organizations (DAOs). The more utility embedded in the contract, the stronger the investment case.
5. Investigate Past Projects and Track Record
Experience matters. Before investing, research whether the team has launched previous projects—and how those performed.
Ask:
- Have they delivered on past promises?
- Did earlier projects fail? If so, how did they respond?
- Are they transparent about setbacks?
A history of failed launches isn’t automatically disqualifying—what matters is how they handled adversity. Founders who communicate openly, learn from mistakes, and keep building earn trust.
Conversely, teams with successful track records—like those behind CryptoPunks or Art Blocks—often repeat their success because they understand market dynamics and community needs.
How to Know If an NFT Is Valuable
Determining value goes beyond price tags. While rising floor prices and high trading volume are positive signals, true value comes from fundamentals.
Key indicators of a valuable NFT:
- Sustained demand: Consistent sales over time, not just initial hype.
- High resale premiums: Buyers paying more than mint price on secondary markets.
- Utility beyond art: Real-world benefits like event access or investment opportunities.
- Scarcity and uniqueness: Limited supply or one-of-a-kind traits.
Like rare trading cards or vintage sneakers, NFTs derive value from scarcity, culture, and perceived worth. But unlike physical collectibles, NFTs can offer dynamic utility through programmable contracts.
Which NFTs Should You Avoid?
Not all NFTs are worth your time—or money. Steer clear of projects that:
- Lack clear purpose or roadmap
- Have inactive or toxic communities
- Offer no utility or intellectual property
- Are created by anonymous teams with no track record
- Use copied art or plagiarized concepts
If an NFT feels like a “get-rich-quick” scheme with no substance, it probably is.
Risks of Buying NFTs
NFTs are high-risk assets. Understanding the dangers helps you make smarter decisions.
Common risks include:
- Total loss of investment due to market crashes or project abandonment
- Wallet security breaches from phishing sites or malicious links
- Addictive buying behavior, leading to overspending
- Counterfeit NFTs sold as originals on fake marketplaces
- Social stigma, though this is fading as adoption grows
- Life-changing opportunities, both positive and negative—NFTs can open doors to new networks and income streams
The best defense? Do your own research (DYOR). Never invest based on hype alone.
Frequently Asked Questions (FAQ)
Q: How much research should I do before buying an NFT?
A: Aim for at least 50 hours of deep research across social channels, contracts, roadmaps, and community interactions before committing significant funds.
Q: Can unknown creators make successful NFTs?
A: Absolutely. Beeple was relatively unknown before his breakthrough. What matters is talent, vision, and execution—not fame.
Q: What’s the most important factor in choosing an NFT?
A: Community strength. A dedicated holder base can sustain a project even during market downturns.
Q: Are expensive NFTs always better investments?
A: Not necessarily. High price doesn’t equal high value. Focus on utility, team credibility, and long-term vision instead.
Q: How do I verify an NFT’s authenticity?
A: Use trusted marketplaces like OpenSea or Blur, check the smart contract address against the official website, and confirm creator verification badges.
Q: Should I only buy NFTs from famous people?
A: No. While celebrity-backed projects get attention, many lack substance. Prioritize projects with real utility and strong fundamentals over star power.
Choosing a good NFT in 2023 requires patience, diligence, and emotional intelligence. Look beyond the artwork—examine the team, community, contract terms, and long-term vision.
The best investments aren’t just profitable—they’re meaningful. Buy what you believe in, support creators you trust, and always stay informed.
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