You may be looking to learn how to buy blue chip NFTs if you have a huge budget and don’t want to end up losing money buying these blue chip NFTs. NFTs are gaining popularity as games and entertainment become fully digitized. However, most NFT investors are finding themselves investing in low-quality tokens instead of top-tier NFTs due to a lack of knowledge in the NFT space.
If you’re interested in long-term investing and want exposure to the ERC721 market, then this blog post lists the top 10 blue chip NFTs which are all high probability assets.
What is a blue chip NFT?
A blue-chip NFT is a highly sought-after digital asset that is backed by the value of traditional financial instruments, such as stocks, bonds, and real estate. They are typically issued by companies with a proven track record of success and stability, and they’re often considered more stable than other types of crypto assets.
Because blue chip NFTs have a physical representation in the real world and can be exchanged for crypto assets, they provide investors with increased protection against volatility.
Moreover, the term “blue chip” comes from the stock market, where blue-chip stocks are those whose value is not likely to fluctuate significantly.
What Makes a Blue Chip NFT?
Of the several factors that make one consider an NFT to be a blue chip NFT, the rararity, artist reputation, and authenticity of the collection are the most crucial points.
If you have a blue-chip NFT, it means that you own a percentage of the small number of tokens created by the company that issued it. These companies did not print more of them, meaning people can only buy the existing ones.
Tokens with such a high rarity score are typically more valuable. I have explained how to check rarity in my post about NFT rarity and rarity checkers.
Blue-chip NFT artists have been creating works for years and have won multiple awards, which has built a good reputation around them hence making their work more legit than others who are starting.
A blue-chip NFT is created by an artist who has a proven track record of creating quality artwork.
Another aspect of authenticity also lies in an item’s history. For example, a sports card being sold on the OpenSea marketplace should have a sale history on the blockchain to show all its previous owners.
Blue Chip NFT VS Blue Chip Stock
Blue-chip stocks and NFTs are both high-quality assets.
However, they have some differences including:
- Blue-chip stocks are issued by companies with a large market capitalization while blue-chip NFTs can be issued by individuals as long as they are reputable.
- Blue-chip stocks are found in major market indexes like the S&P 500, and the Dow Jones Industrial Average while blue-chip NFTs can be found on marketplaces like OpenSea.
Importance of Blue Chip NFTs
Several reasons make blue-chip NFTs important, and these reasons include:
Blue Chip NFTs Have a High Inherent Value – Blue Chip NFTs are rare, so they cost more to make than other types of NFTs. This means that you can sell them for a higher price and make a good profit.
Blue Chip NFTs Can Increase One’s Potential Wealth – Blue Chip NFTs can be traded on secondary markets, meaning holders can trade them for profit. This is different from traditional stocks, which lack the same liquidity in the market.
Blue Chip NFTs Can Represent Large Brands – If you want to represent a large company like Google or Apple with your NFT, you could create an NFT representing its logo. This would allow people who own this token to trade it on their favorite blockchain platform and show off their love for the brand they love.
Blue Chip NFTs List (Top 10)
Here’s is the top 10 blue chip NFT list for 2022:
- Cool Cats
Cool cats NFTs are collectibles of unique cats, and they have an average daily sale volume of 210 ETH, which translates to $ 610,000 worth of cool cats.
Bored ape yacht club’s NFT collection comprises 10,000 collectibles that have picked up sales momentum in a short period since being launched. Celebrities such as Eminem, Steph Curry, and Post Malone are among the people that caused its fame to skyrocket rapidly.
- World of Women
World of Women is an NFT collection that features animated pictures of women. The NFT collection has garnered fame recently due to its quality and is now worth $30,000.
- The Sandbox
The sandbox NFTs involves buying virtual land on the Metaverse. The site acquired a blue-chip status after it partnered with Snoop Dogg.
Decentraland boasts a sale of $ 2.4 million and $10,000 ETH has been transacted on the platform, making it join the list of top 10 blue chip NFTs.
Cryptopunks is a unique collection of NFTs created through an algorithm. You only needed gas fees to acquire it initially, but now it’s worth $ 150,000, with a recent sale generating $23.7 million.
- Clone X
Clone X features 20,000 NFT collectibles of 3D high-quality avatars. Each avatar has unique features that play different roles in the Metaverse. One avatar is now worth 122,000 ETH making it one of the most valuable NFTs on the top 10 blue chip NFT list.
- The Doodles
This NFT collection comprises 10,000 collectibles made of colorful animated artwork that has a similar appearance to kid’s cartoons. One doodle is worth $40 000 and has a floor price of 14.32 ETH, making it one of the top 10 blue chip NFTs.
- Mutant Ape Yacht Club
The mutant ape yacht club has seen many celebrity endorsements, and one NFT collectible from the collection is now worth 21 ETH, making it one of the top valuable NFTs.
Phantabear is an NFT collection that features animated bears with a unique artistic style. The NFT has seen sales of up to 3,000 daily.
How to Buy Blue Chip NFT
In case you are new to the world of blue-chip NFTs, here are some of the things to consider before buying them:
What Percentage of My Portfolio Should I Invest?
If you’re new to the NFT world, start with 5% of your portfolio invested in Blue Chips.
Once you’ve gotten comfortable investing in NFTs, increase your investment to 10%. This is to minimize the risk of spending too much on an NFT that might take years to increase in value.
To buy Ethereum, create an account on a crypto exchange like Coinbase.
Next, link your bank account or credit card to your new exchange account.
Once your account is set up and verified, you can buy Ethereum with USD or EUR.
The Value Investing Approach (Buy Future Chip NFTs)
The idea is to find NFTs whose stock prices are lower than their intrinsic value, based on the company’s assets, earnings and liabilities. Over time, the market will recognize these NFTs’ actual value, and their market prices will rise to reflect it.
The Blue Chip Approach
This strategy involves buying NFTs that are proven to be high-quality and valuable rather than buying a wide range of NFTs, hoping that some will become valuable.
How to Avoid Scams on Blue Chip NFTs
Generally, the crypto industry is full of scams and rug pulls because of its unregulated nature. Here I will outline some tips to help you avoid being scammed when buying blue chip NFTs. Read my post about NFT scams for a more in-depth guide.
Buy NFTs only from reputable artists
Ensure you only purchase from artists with a track record of selling quality work. Search for artists who have sold their work in the past and analyze their portfolios. If it looks good, you can be confident that they’re legit.
Use a reputable wallet provider
Please, ensure the crypto wallet you are using has been around for at least a year or two for you to review its track record. The longer a company has been in business, the more likely it will be able to stay in business for many years and without fraudulent issues.
Check the listing history and activity
A listing history is a record of all the transactions that have taken place on an NFT. It will show how much the owner has sold or traded their NFT, ratings, and any other comments that sellers have left.
To check the listing history, Click on the collection and select an NFT. Tap on “Item Activity” and analyze the transactions for the NFT. You should also check the Offers in your due diligence. The more information you have at your fingertips, the better off you’ll be avoiding a money pit of a ‘blue-chip NFT.’
Check for verification
You can check if a specific NFT is verified by searching for the number of its token on the blockchain explorer. For example, if you want to check if Cryptopunks NFT is verified, search for the token ID on etherscan.io or a similar block explorer.
If the token ID has a green checkmark next to it, it means that it has been verified by the blockchain.
The top-performing blue-chip NFTs have a great deal of potential over the coming years. Given the current market, no one can say what will happen in the coming months.
But it’s not bad advice to prepare for the future now. Whether you’re an investor or an NFT owner that wants to sell your asset to realize maximum ROI, these top 10 blue-chip assets should be at the top of your list.