NFTs get sold daily; however, understanding how long you should hold an NFT is critical for success. So we go in-depth on how to identify a long-term nft, which nfts are worth holding for a long time and what the definition of long-term nft investing means.
Also, our article includes examples of the best long-term nft investment opportunities on VeVe and further analysis using data from our surveyed community.
Let’s start with the basics:
What Does Long-Term NFT Collecting Mean?
Long-term NFT collecting is acquiring a digital asset and retaining it for at least a year (or longer), resulting in the digital collectible being excluded from the market (from being sold, traded, or acquired) and safely stored in your smart wallet.
Depending on the non-fungible token, it can increase its value over time since there’s a decrease in the supply of that digital collectible. However, it’s not guaranteed.
In some cases, collectors are less concerned about the total value of a digital collectible; the long-term cashouts are a bonus to the enjoyment of collecting along the way. It’s different for different types of collectors.
Each collect needs to know their definition of a ‘long term’ investment when collecting NFTs. Deciding on what’s considered ‘Short-term’ and ‘Long-term’ is the essential aspect of nft investing.
So first, let’s explain why this matters.
Why Holding NFTs For The Long Term Matters
Most people, when collecting non-fungible tokens, focus on what they get:
- Can I make $1,000+ in flipping for profit?
- Or what utility do I get? Give me exclusive access to merch.
- And what can I do with it? Turn it into a Twitter profile picture.
Then they start asking themselves how fast they can get it, and depending on the answer, they decide to hate non-fungible tokens.
For example, projects which develop too slowly become losers, and projects which produce fast enough compete for attention that fades fast.
It doesn’t work. It leads to a market collapse and a decrease in overall demand (and interest) because supply can’t keep up. However, intelligent collectors who invest intentionally into projects with a strong foundation do exceptionally well. Why?
NFT collectors who can understand the big picture and focus on the potential long-term effects of non-fungible tokens can see clearly. Like index funds and stocks, warren buffet explains, “Our favorite holding period is forever.”
Unlike crypto, which has a lot of variabilities impacting the price and its worth, NFTs become a safer bet because the new profound technology verifies digital ownership, which is the first of its kind.
Which NFT Will Survive Long-term?
NFT collections that will survive the longest are those with strong communities, the best utilities, and continuously delivering on their roadmap.
Conversely, those who do not do this or have this competitive advantage are at greater risk.
While no one can determine which exact nft projects will be successful in the long run, you can still find projects that have all: Strong communities, Best Utilities, and delivers on their Promises.
These 3 nft projects have the highest chance of suriving long term:
Best Long-term NFT Investments on VeVe
As a veve nft collector, there’s an intense debate between which nft is worth holding for the long term and will be the highly-sought after digital collectible everyone wants.
We’ve surveyed our community of nft collectors to find some interesting data points.
Veve nft collectors say Batman and Star Wars characters will be the best long-term holds:
- Todd McFarlane Batman
- Darth Vader – Star Wars
While no one truly knows which character or specific non-fungible token will go up in value for years to come, we do know the fundamental technology of verifying digital asset ownership on the blockchain will remain.
It’ll increase in popularity, and even convention centers are looking at ways to implement it more in the future.
For example, Veve announced a function where they will allow artists to sign digital comics. Artists at conventions like Comic Con will sign digital copies of comic covers.
These digital copies veve NFTs using a new concept called ‘Proof of signature’ that emerges from their original roadmap. Upon receiving the signature, it will become recorded and verifiable from the blockchain. They are potentially eliminating the need for a third party to be involved in validating a creator’s signature.
It’s a game-changer in both the collectibles and nft space. Imagine getting a series one Batman or Star Wars (Darth Vader) veve nft digital signed; the amount it can be sold for and auctioned would be huge.
Batman (DC nfts) and Star Wars (Disney nfts) have high odds for success because of their fandom around these series and intellectual property.
Perform Peak Price Analysis on NFTs For Long-Term Holding
Identifying when to sell your nft to make the most profit with the least risk requires performing a data analysis process called ‘peak price analysis.’ It’s an effective way to reduce risk and provide context to your position.
Step 1: Analyze average sales per hour.
Are they high or low? NFT projects with an average of 7 transactions per hour are healthy. Anything below or above becomes risky.
Step 2: Analyze the average transaction size
Determine if the price of the transactions is large. Another healthy sign is when there are significant values per transaction.
For example, anything between 3 to 10 ETH consistently shows holders are willing to get in at a hefty price.
Step 3: Check the floor price over time
It’s a healthy sign when buyers aren’t racing to buy the floor price of an nft.
Unfortunately, when that occurs, there’s a high chance the nft collection’s overall value will decline.
Ask yourself the following questions when checking the floor price:
- Is the floor price holding?
- How long has the average floor price been within this range?
For example, if you see the trend of the average floor pricing dipping each week, you want to avoid it, especially when floor prices go from 1 to 2 ETH and suddenly become .05 or .02 ETH. A significant difference in the percentage of drops over time.
However, if a floor price increases incrementally or stays steady at a reasonable average, you know the project is healthy.
Buy NFTs Early And Hold Remains Most Effective Strategy
We’re finding most nft collections with a healthy floor price, steady average transaction volume, and large purchase amounts can last long. They surive the ups and downs of crypto and consumer interest. Each tends to become a blue chip nft project, and we share more about which ones those are.
Also, something to remember is the risks of getting stuck with an nft you don’t want or need.
Getting stuck with unwanted nfts tends to happen when you buy non-fungible tokens with speculation simply because you thought it could make money.
Remember collecting NFTs is more than trying to make money or flip to make a sale. Instead, it’s about supporting brands, companies, and people you admire. Those digital collectibles can then appreciate if you pick the right ones. Gary Vee mentioned, ‘beat on the jockey not the horse,’ and you’ll do great by sticking to what you know.
If you’ve enjoyed reading about long-term NFTs, you may also like: