If you are new to the world of NFTs, or perhaps already becoming an old pro, you may find that the more NFTs you have, the more you want. Starting a collection can be a fun and exciting investment, but one thing that often gets rather cumbersome is keeping track of it all.
If you are struggling to keep up with the comings and goings of your NFTs, it is wise to consider tracking your NFT collection. This process, however, may be easier said than done most times.
Let’s break down some of the tools and best practices in tracking your NFT collections so that you can make the most of your investment goals, collector goals, and entertainment.
What Is an NFT?
Chances are you are somewhat familiar with the concept of the NFT if you are thinking of or already have amassed a “collection” of them. But, it is always wise to start at the beginning and be sure you know what you truly have in your possession.
The Non-Fungible Token
Breaking down a word or phrase often is helpful in understanding its key components and even the origination of a word. In the case of the NFT, we can break this down in a few ways.
NFT, in short, simply stands for non-fungible token. The non-fungible portion of the phrase means that it cannot be replaced or swapped. There is no equal. There is not another perfectly identical item anywhere on the planet.
A token, which again you are likely familiar with in one context or another, is in its simplest terms, an item that stands in for another. As a child, if you frequented arcades like Chuck E. Cheese or Aladdin’s Castle, it is likely you are all too familiar with a “token.”
Stand In for Another
Upon entering an arcade, one did not simply place a quarter in the slot. With the advent of such spaces, so too was invented the token. A gamer would bring true money in, place it in a machine, and exchange their funds for a golden token.
Such tokens would operate the games. In those times, they were typically representative of one-quarter of a United States dollar. Instead of placing a silver-colored quarter in the machine, a player had to have the gold token emblazoned with the specific arcade’s logo.
Similar processes occur in the casino and gambling world. Instead of taking a pile of dollar bills to a table game, one must visit a Cashier in a casino and exchange the funds for playable chips. Oftentimes a plastic, round “coin-like” object, these chips are what are used for gambling.
Once a player chooses to leave a game or “cash out,” they simply return the chips to the cashier and receive paper money back. The online world operates in much of the same way.
Different platforms operate on different cryptocurrencies. To do business, buy, sell, or trade on that platform, you need to often exchange funds into the proper token.
The Comparison Factor
The concept of tokens also allows users to compare objects that are difficult or even impossible to weigh against one another. The proverbial “comparing apples to oranges” phrase comes to mind.
If one were to ask how many apples are worth how many oranges, it would be a difficult computation to compare the two. Without a known value for the objects, it would be unfair and uninformed to say just how much each is worth.
However, if we know two apples are worth a token and one orange are worth a token, we can easily surmise that two apples are the same value as one orange. The token is worth a token, thusly providing a level playing field for comparing dissimilar objects.
NFTs have become a form of digital assets. Operating on the blockchain technology concept, these unique assets can take many forms. An NFT itself can stand in for nearly any imaginable object, real or digital.
Some platforms allow NFTs to represent a car or a piece of actual real estate. However, the most common use of the NFT today is in the form of art. NFT art allows digital creators to not only take credit and ownership of their work but also create a stream of revenue.
The blockchain’s technology allows for the NFT’s ownership to be accurately and securely tracked. Each transaction is recorded in a block of data (blocks), then strung together in a chronological series (the chain), creating a transactions history of the exchanges.
This blockchain, also often referred to as a decentralized and distributed ledger of sorts, is the log noting all the comings and goings of an NFT (or in other spaces a cryptocurrency). Crypto art can be tracked from creation to present owner, and show all the exchanges in between.
Such transaction logging keeps the ownership secure, and easy to prove. There can be only one NFT of its kind (hence the non-fungible definition), and that means proving who owns the true, authentic piece is important. It is the blockchain itself that allows for this.
A collection of NFTs is simply the NFTs you presently have ownership over and store in your own manner. Typically, NFTs are stored in a digital wallet.
Your NFTs live in the digital realm. They are not tactile objects. They have value in the marketplaces and trading exchanges that operate in the specified type of NFT you wish to collect, buy, sell, or trade.
The place where you will do this business is called the NFT marketplace. These are the platforms on which you can buy, sell, trade, store, and make exchanges with your NFTs. Think of it as a traditional marketplace, where people gather to purchase goods and services.
NFTs are the goods, and there are plenty of ways to go about buying, selling, trading, or even just holding onto your investment. Depending on the type of NFT you are looking for, marketplaces can be anything from a Christie’s live auction, to a platform like Ethereum, which offers developers their own unique spaces for NFT creation and sale.
Research the Market
Before you decide to dive into NFTs or start an NFT collection, it is important to consider what you are buying and why you are buying it. Reasons people begin collections are as varied as the NFTs themselves, but many choose to do so to:
- Support art and artists
- Enjoy or be entertained by the purchase
- Hold on to the purchase for long-term gain
- Buy and sell like a rapid stock market attempting to cash in
Depending on the reason you want to begin collecting, you will need to choose where to do that purchasing.
The NFT Market
While you will have plenty of marketplaces to choose from, pending the type, cost, and purpose of your purchase, another important factor (and why tracking your NFT collections will become crucial) is the volatile market of the NFT.
Just like cryptocurrency, on the whole, this is a market with drastic changes happening constantly. From the highest of highs, making millionaires from nothing to the lowest of lows, wiping once highly valued tokens to values under a penny, there can be a lot happening.
And these changes happen quickly. It is important to keep an eye on your values and know what is happening in the NFT market.
A digital wallet is the storage device for your cryptocurrency and NFTs. Your collection “lives” here, and is stored depending on the method of digital wallet you intend to use. Not all digital wallets are compatible with all crypto, nor all NFT formats, so be sure when you are shopping for the style of digital wallet that works best for you, you also consider compatibility.
Other factors, such as how much you trust yourself not to lose things (tactile objects or passwords), how often you travel, your planned uses, your frequency of use, and required bandwidth are also things to weigh when planning your digital wallet product.
Types of digital wallets include:
- Software (mobile or desktop)
The digital wallet, however, is simply the place you store your collection. Once you’ve amassed a handful or more, it can become quite cumbersome to keep track of your NFT collection.
Let’s take a look at some of the tools of the trade when it comes to tracking your NFTs.
Tools to Track NFT Collection
As we have noted clearly, the NFT marketplaces can be a space of crazy changes that happen even faster than overnight. The most popular NFT collections can drastically change in value in seconds.
Changes in the NFT market, unlike that of the New York Stock Exchange, are rapid and without warning. The only reassurance an NFT owner can have is to keep a close eye on what is happening in the space from moment to moment.
Most applications and even digital wallets will allow the user to determine notification settings. It is advisable when working with NFTs to have such settings alert you of any pricing changes. This will keep you with up to the second data to help you make informed decisions about your NFT collection.
Additionally, unlike the stock exchanges and traditional trading markets, the NFT marketplace is always open. A globally popular phenomenon, your portfolio is always open for your to analyze.
As you will soon realize, however, even keeping a 24/7 eye on your NFT will soon become quite a process. One could create an entire job from just watching a single collection. If your aim is to track the value of your NFT collection, or if at any time you aim to sell or trade, you are going to want to search its values and keep an eye on your own NFTs at all times.
Another growing business to come from the world of crypto and its investment opportunities like NFTs is tracking applications. Designed to add minute-by-minute data, these platforms contain a constantly growing database of sales data. While many sites will show the current price for any given crypto, and what the average NFT in your collection may be going for, keeping tabs on them can become quite a process.
Instead of attempting to go it alone, try some of these websites to assist you in your tracking.
BitDegree is a site that allows users to build their personal portfolios and easily track the progress of all their favorite NFTs. Currently, BitDegree is tracking 357 different NFT collections from three unique protocols.
In total, these collections are spread over 58 different NFT marketplaces. Because the tracking is done up to the minute with new NFTs sale prices, net worth values of collections, and an average value for any given asset in its database, BitDegree is just one of the tools that may make the user experience a tad bit easier.
BitDegree also provides users with an analysis of the top NFT collections. This can help you to know very which NFTs are currently booming in the market and which are not.
Analyzing such trends can also alert you to upcoming drops of new NFTs. Depending on the usage of the site, many of the basic features are free to those seeking self-analysis. Gathering the data is just one part of your project, and a page like BitDegree can help by bringing helpful tools into one page.
ArtCentral.io Portfolio Tracker
Designed to sync with your digital wallet and keep track of all NFTs in your collection, the ArtCentral.io Portfolio Tracker is another evolution in the analysis game. This application can take into account a collection’s entire net worth (value) and show your ongoing “performance” in the NFT trading world.
Collections vary greatly in terms of value, with a huge emphasis on the rarity of a piece. Just like in crypto, the basic building blocks of supply and demand are always in play. The fewer there are of something (the lower the volume), the more the price value will increase.
Having a limited amount of flow will drive up the cost of an NFT as its rarity is more unique. ArtCentral.io has a unique tool to help you understand those concepts, and can even use its own formula to calculate your NFT values.
Having an account with this application means you have access to its free “Value by Fair Price” tool, a formula that Artcentral.io currently uses to value the NFT based off recent sales. This formula, unique to the site, looks at the last five most recent sales of an NFT collection.
The unique aspect, however, is how it weighs those figures for you, giving higher importance to the most recent sale. If the piece has only been sold in the primary market, the Fair Price is its sell price. If the piece has been sold in both primary and secondary, it will tie in just the secondary values.
Kubera: All-in-One Tracker
If you aim not only to track your NFT collection but also are in the DeFi (decentralized finance) and crypto markets as well, you may want to search for services that offer multiple tracking tools on the same platform. Kubera is one such tool.
From fiat funds to your crypto values, Kubera uses its unique code to keep track of everything you own in a diversified portfolio. With a wide variety of services, this project can help even the newest of users search and understand the sales of countless products in today’s markets.
For those focused on the NFT space, you may want to consider sticking to the more focused NFT tracking tools, as the bells and whistles on Kubera may be overwhelming to the newcomers.
If the thrill of the chase and finding the best bargains out there is the name of your game, a tool like NFT OnChained can be a major asset. It is difficult to roam the very vast and varied NFT space alone, and this tracker keeps an eye out for upcoming NFT projects, can watch for a particular NFT, or can monitor entire NFT projects, depending on your settings.
NFT OnChained’s most useful feature is to track underpriced listings of NFTs. The platform uses machine learning to estimate the current fair value of NFTs. Rarity, traits, market data, and other factors are all taken into consideration for price estimates for each individual NFT on this platform that has the users seeking a sale in mind.
Another main feature is the “Screener” which lists the currently most underpriced NFTs across all tracked collections in its system. If you are considering buying an NFT it can be beneficial to pick one that is recommended as “a bargain” or a deal, as you are most likely to find something at floor prices with a platform like this.
Another great application for beginners can be the ever-popular DappRadar. Not only is this site monitoring dApps (decentralized applications), but also is a useful tool for watching NFTs sold day to day.
DappRadar has a portfolio portal where users can connect directly to wallet addresses in order to monitor the value and performance of its holdings, including NFTs. While it does give some insight into net worth, it’s lacking when it comes to analytics and notifications.
DappRadar is a good fit, though, for those who want to really dive into the NFT and digital asset world, but don’t desire a ton of cutting-edge features from their portfolio tracker.
While we just shared with you some really great tracking tools, we must not forget our favorite one which is near and dear to our hearts…. oh wait we developed it, FLOLiO.
With FLOLiO we took the best features we used each day in other platforms, tweaked them, and added some really cool value-added items which the community needed. FLOLiO gives you access to your entire NFT portfolio, providing you the most accurate value of your holdings, rarity rankings, floor pricing, trait floor, and fair market valuation across top Web3 marketplaces (e.g. OpenSea, NBA Top Shot).
Don’t just take my word for it, give it a try yourself, it’s FREE – https://app.flolio.com
The NFT project isn’t going down anytime soon and coupled with the vast amount of tools on today’s market, neither likely are the ways one can track their digital assets. You can discover a vast assortment of products out there that can keep tabs on your NFT collections. From watching for the top NFTs out there to learn about new NFT projects, there is always more to learn.
Monitor Your Collection
Keeping an eye on your NFT collection is the name of the game. Knowing where your values stand will help you find an NFT balance that you are happy with overall. From the newest NFT enthusiasts to the owners of top NFT collections, there is plenty to keep tabs on in this market.
Finding the proper tool, which combines on-chain data, with project and rarity factors you need to understand, can make a world of difference in shopping for your next NFT. Users are constantly monitoring changes, and to stay informed, so must you.
The analytics platform you select can make or break your entire collection. Trending projects are always on the rise, and knowing they even exist can be tough. The best advice is to keep researching, keep digging, and keep informed.
A Trusted Resource
Ultimately, the best defense in nearly any situation is staying on top of information in that industry. Through trusted resources like FLOLiO, you can be sure to stay updated with the latest developments, advancements, and changes in the space.
There will always be challenges in an online world, but by staying informed through resources you can trust, you can be a diligent and smart consumer, keeping your information safe in the process.