What do NFTs, diamonds, baseball cards, and land have in common? They are all non-fungible assets, meaning a unit of each has unique traits, and hence, they cannot be exchanged or traded at equivalency.
In the case of NFTs, they contain unique metadata and identification codes that make them different from each other. They cannot be copied, replaced, or subdivided—a unique feature that enabled NFT sales to surpass the $17B mark in 2021. Unfortunately, only 1% of NFTs sell for more than $1,500.
If you want to make money as an NFT collector or trader, you need to set your sights on 1-of-1 NFT pieces. These one-of-a-kind tokens are more valuable because of scarcity, and this guide will give you insights to kickstart your portfolio.
Why Are 1-of-1 NFTs Better Than Your Normal NFT Drop?
A regular NFT drop mints anywhere from a few hundred to 10,000 NFTs. And since you’re competing against thousands of other collectors, you have low chances of scoring a rare and valuable NFT.
On the other hand, DaVinci's Marketplace allows you to buy NFTs from recognized artists that only have one copy in the entire world—and that makes them more valuable and tradeable for collectors and investors.
As you can see, it’s a better move as a collector or trader to invest in one-of-a-kind NFTs - because you can obtain a higher ROI.
What Makes One-of-a-Kind NFTs More Valuable than Regular NFTs?
You already know that these tokens are more scarce than regular or generative NFTs, but let’s dive into the some other reasons they’re more valuable. When an artist/creator decides to launch a series of NFTs, they combine different traits to make a unique piece of art, such as:
Apparel
Background
Body appearance
Facial expressions
Special items/accessories
Then, a program chooses a random variation for each trait so it can build a unique NFT. The creator can create as many pieces as they want or as many as the program can generate based on the number of possible variation combinations.
As you can see, the creator can easily create thousands of NFTs at a time, but each one isn’t necessarily very different from another.
On the other hand, artists that publish on DaVinci’s Marketplace only release 1 copy of each of their artworks, making them truly one-of-a-kind NFTs. You can buy them directly, as opposed to generative NFTs that are more like a lottery.
How to Valuate 1-of-1 NFT Pieces?
As an investor or trader, you need to learn how to evaluate the fair price of a 1-of-1 NFT, whether you buy it from a marketplace like DaVinci, or plan to attempt to buy it in an auction. Here’s how you can do this by answering 4 simple questions:
Does the creator have a large following and a good reputation? (i.e. Is there value behind the creator?)
Is there a good chance that it will be valued more in the future? (i.e. Are other one-of-a-kind NFTs by the same creator increasing in value?)
Is the NFT worth it to you?
Are other pieces from the creator currently selling successfully for a similarly high price?
If the answers to the above questions are yes, then your NFT may be worth some serious money.
For example, Beeple’s Everydays: The First 5000 Days still holds the record for the most valuable NFT ever sold, fetching a price of USD 69.3 million when it was auctioned off in 2021. Beeple’s piece checked all of the boxes in the affirmative for the above questions (assuming the buyer thought it was worth it).
We are not telling you that every one-of-a-kind NFT will sell for millions of dollars, but your chances of selling it for big money are much higher.
Why Buying One of One NFTs is Worth It
Now you should have enough reasons to shift your focus away from regular drops to collecting 1-of-1 NFT pieces. The benefits are clear:
1-of-1 NFTs tend to sell for more than NFTs from regular drops
One-of-a-kind NFT pieces are more popular and marketable
Collectors actively look for 1-of-1 NFTs
However, buying a one-of-one NFT requires patience and knowledge of when these types of items go up for auction. You need to read news and announcements and be involved in the community to find these awesome deals.
Also, you need to look through the marketplaces that sell such one-of-a-kind NFTs, such as DaVinci—The NFT Experience Platform, where you can find valuable auction NFTs to build your portfolio.
At DaVinci, we help artists, athletes, event organizers, and others easily create NFTs for their art and event tickets that unlock exclusive experiences for NFT holders.
Get in touch with our team today to schedule your personalized demo and start powering your events and art sales with NFTs.
To get in on the action and see how DaVinci brings the above possibilities to life in the coming weeks, months, and years, sign up at DaVinci – The NFT Experience Platform to check out our marketplace and auctions.