cryptocurrency

Playing the Long Game with NFT

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There’s a growing buzz around Non-Fungible Tokens as more famous individuals and top class organizations are paying top dollars for digital arts and collectibles. 

NFTs are relatively new and they demonstrate the capacity of Crypto to digitize buying and selling of different items. 

For creators, artists, and brands, minting and selling NFTs offers an opportunity to monetize their brand and talent. However, for the buyer or collector, NFTs are more or less a speculative investment.

The value of the NFTs are ascribed, largely unpredictable, and they fluctuate depending on the demand for the NFTs.  

Despite the uncertainty that surrounds NFTs it’s a fast-growing industry with digital arts and collectables selling for millions of dollars. 

While there’s no definitive formula for determining the NFTs that will appreciate in value, to fully benefit from NFTs, is to buy and hold with the hope that its value appreciates in the long run. 

Understanding the Long Game

NFTs are primarily digital versions of arts and collectables. What makes NFTs remarkable is that just about anything can be digitized meaning there are several valuable, as well as, worthless NFTs in the market. 

What makes traditional art valuable is it’s scarcity, uniqueness, and ultimately an unrivaled capacity to appreciate over time.

For collectors of art who pay good money for a piece of art, they do so with the intention of holding the prestigious piece with the knowledge that the item would have tripled in price while in their possession. 

The similarities between NFTs and traditional art means the same buying formula that applies to traditional art can also apply to NFTs as they have shown a propensity to appreciate in value over the years. 

For example, in December 2017, the first set of Cryptokitties were sold for $3.24 each. Today, Cryptokitties are worth close to $300 each. 

Playing the long game with NFTs means buying with the long run in mind instead of with the intention of just cashing in and cashing out. 

The long game requires that you purchase valuable NFTs and collectibles which you really care about. This way, you will be able to hold the assets till it becomes profitable instead of selling after a few months and making some quick profits.

Those who understand the long game also trade cryptocurrencies with quantum-ai.io and other top tools. This helps crypto traders in making better predictions.

How To Spot Valuable NFTs

While there’s no real way to predict the NFTs that will appreciate in future, there are indicators that suggest the quality of a particular NFT and its potential to increase in the long run. 

These are some of the factors you should consider when choosing an NFT to invest in. 

Road Map 

If your goal is long term investment, the roadmap will help you predict the potential of the NFT and determine if it’s worth the cost and risk. The roadmap outlines the goals, milestones, and strategies of an NFT project.  

Creators

The value of a traditional art is largely tied to the reputation of the artist. The works of famous artists with successful paintings are worth more to collectors. 

The same principle applies to digital arts and NFTs. The reputation of the creator or the company behind it will determine the value. The status of the holders also determine the value and future potential of an NFT. 

Visibility and Community

A project without visibility suggests a lack of public interest and trust. The best NFTs generate wide interest and buzz hence the visibility of an NFT project is an indicator of its potential.  

A healthy community following is an indicator of the potential of an NFT project. Reputable creators are often part of a Community that provides value and shapes culture. 

Hence a good NFT project should have a Community around it. The Bored Ape Yacht Club is an example of a strong NFT community.

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Aman

My name is Aman, I am a Professional Blogger and I have 8 years of Experience in Education, Sports, Technology, Lifestyle, Mythology, Games & SEO.

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