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An NFT Beginner’s Guide to Using Rarity.Tools

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TL;DR- Rarity.Tools has an excellent scoring system for NFT rarity. The more rare the NFT you buy/hold is, the more likely it is to retain and increase its value. For a step-by-step on how to find a rarity score for a specific NFT, use the ‘Jump to Section’ to navigate to How to look up the rarity of an NFT you’re looking to buy.


Note: Rarity.Tools currently only works for big ticket NFT collections on OpenSea and the Ethereum blockchain.

Rarity.Tools uses a method to calculate the rarity score of each of the pieces in an NFT collection.

These scores are added together for each of the traits that an NFT possesses

Are you looking to make 50x or 100x on your next NFT?


With thousands of NFT collections all over the place, it’s going to be harder than you think. I’ll let you in on a disturbing truth: only a few percent of these collections are actually going to survive. You’ll completely lose your money in the rest. You’ve got to do some heavy research before aping into some JPEGs.


This same thought is true with the over 10,000 cryptos that are on CoinMarketCap- most are shit projects that are going nowhere fast.


The good news is that most of the projects at or near the top of OpenSea’s ranking are stable and will have longevity. The other good news is that there are criteria you can use to evaluate a project.
This video by Guy over at the Coin Bureau outlines what you need to look for in NFT collections, but I will outline his criteria here:

Five criteria to use when evaluating an NFT collection

1) Art: How many immutable traits are there? This is where rarity.tools comes into play. Collections need to be able to produce specifically scarce features. There need to be rare items in the collection. Rarity.tools ranks each of the NFTs in the collection to check the rarity. We’ll go over the process of getting that rank below.


2) Founding Team: The more well known they are, the better. A good example is Gary Vaynerchuk’s VeeFriends. Gary is a big celebrity in the business space and it’s likely his NFT collection will have staying power. Other examples of famous founders of NFT collections include the NFL’s Rob Gronkowski and Elon Musk.


3) Community: Check out the Twitter pages, Discords, or Telegrams or the project. Are there a lot of followers? Is there a lot of activity? The more, the better.


4) Road Map: Projects that have events and drops coming up in the future and are more active are better. Plus, this can be a way for you to get in on the NFT drops when they’re minted. Unfortunately, this is an extreme pain in the ass because any NFT collection drop worth anything sells out in seconds. It requires vigilance and great timing. I choose not to live this way, because I have a full time job.

5) Trading Metrics: For a full explanation of this see my article on spotting good NFT collections on OpenSea. The idea here is that you want a lot of owners, a lower amount of assets, and a high amount of trading volume.

*A higher number of owners can also be good. Watch out for collections that have tons of assets but very few owners.

How to look up the rarity of an NFT you’re looking to buy with Rarity.Tools


I will be using a specific NFT from the Mutant Ape Yacht Club collection as an example today.


1. First, go to OpenSea.io and find the collection and NFT that you’re looking for. Make sure and click into the page of the exact NFT you’re evaluating.



2. Open another browser tab and go to Rarity.Tools.In the search bar in the top left, begin to type the name of the NFT collection you’re looking for. Make sure what you’re typing matches the exact text of the collection on OpenSea.io



3. On the OpenSea page, look at the menu underneath the NFT picture. Click the down arrow next to details. The second item you see listed will be the token ID. Hover over the token ID until you see the copy command pop up- then click the token ID. Now you have that ID saved to your clipboard.


4. On the Rarity.Tools homepage of the NFT collection you’re looking at, click into the ID lookup search bar in the top left. Paste the token ID you copied from OpenSea. Click lookup immediately to the left of the search bar.



5. The Rarity Score box will pop up giving you the data for this specific NFT. A few things to pay attention to:

  • The overall rank of the NFT out of all NFTs in the collection (i.e. 510/2000)
  • The specific traits of the NFT that add the most to the total NFT score
  • Any one trait that boosts the score significantly


Rarity.Tools also has an upcoming releases calendar you can check out to see if you can beat others to the punch on some hot new collections. Again- be careful, most of these will fail. Apply the 5 criteria above to see if the collection is worth anything.

OpenSea ‘Properties’ tool

Another powerful tool to check out while you’re using rarity.tools is the ‘properties’ tool below the NFTs on OpenSea. The box will show you which traits the NFT has and exactly how rare each of those traits are. Look for anything lower than 1% to find something truly rare.


From an investing standpoint, what you’re trying to do here is find NFTs that are underpriced relative to others in the same collection. This means they will have a high rarity score but a relatively low price on OpenSea. This may seem like a daunting task, but the NFT market is wrought with inefficiencies- thus you may have a damn good chance of getting a bargain with a little research.


A common piece of advice of NFT experts is that you should try and bid on the price of an NFT instead of buying it outright. This may involve putting several bids out on NFTs and only having one or two go through.


Conclusion


The NFT space is small, but booming. That means it’s a wild west of activity, where you can strike gold. There are so many who don’t understand NFTs or their value. Use this to your advantage by learning as much as you can about the space, and then use that knowledge when the space inevitably grows. The metaverse is real!

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