As non-fungible token, or NFTs, continue to gain momentum in the crypto world, they’re also attracting more and more investors looking to make a profit. But just how easy is it to get rich off of NFT investing? That depends on a number of factors, but if you follow these dos and don’ts from New Beginning, you can increase your chances of success with NFT investing.

Getting in early on an NFT can result in a huge return, but it also comes with many risks.

First, there is the underlying risk of cryptocurrencies themselves. Cryptocurrency is still a very volatile market and even the most stable tokens can have wild price swings, especially when new projects are first getting off the ground.

Secondly, there is the specific risk associated with each NFT that you choose to invest in. Some projects are better thought out than others, which means they may be more likely to succeed. Some projects may not be able to deliver on their promises, while others might get hacked or otherwise fall apart due to poor leadership or management.

Lastly, there is the risk that your NFTs won’t appreciate in value at all over time. While this appears to be less common than the other two risks mentioned above, it still happens from time to time. No investment strategy can account for every possible scenario and you should always be prepared for the possibility that your investment will lose money.

So, how do you invest in NFTs? There are a few different ways to go about it.

Buying and Holding Perhaps the most straightforward way to invest in an NFT is to buy the token and hold onto it for a long time. As more people purchase and sell the token, its value increases over time. Essentially, you’re looking at long-term investment strategies here. This approach works best for investors who don’t mind waiting months or even years before they see any returns on their investments. However, there is no guarantee that this approach will actually work out for you.

Tipping Platforms NFTs can also be used in tipping platforms like Cryptokitties where users can tip each other with tokens and the amount of tips received is recorded on everyone’s blockchain addresses. This method of earning NFTs can be lucrative, but only if you’re lucky enough to get tipped by someone with valuable tokens in their wallet (you might want to go with something like CryptoKitties where everyone has good, valuable kitties). So if you’re not a lucky person, this may not be the best way for you to earn NFTs.

Gaming NFT. The non-fungible token market has exploded over the past year. The concept of digitally owning a virtual item that is impossible to replicate is intriguing for the majority of gamers. The idea of rare digital items being traded across the internet is a dream come true for kids growing up with Pokemon, Yu-Gi-Oh and Magic: The Gathering cards.

So, you want to buy some non-fungible tokens (NFTs) but don’t know where to start?

It’s certainly a confusing space, but there are lots of places to buy NFTs out there. Here are a few do’s and don’ts on how to invest in them:

Do: Educate yourself: Non-fungible token investing is brand new, so there’s not a lot of information out there. If you’re making an investment and don’t fully understand it, find another opportunity.

Do: Research the market: Find out what types of NFTs already exist, what they’re used for, and who made them. Dive into the blockchain itself and find out if the project is backed by a solid team.

Do: Look for reputable exchanges: Most reputable exchanges will require proof-of-ownership for NFTs before allowing you to trade them. There are also many shady exchanges that do not require this proof. If you’re trading NFTs on a shady exchange, you have no idea who actually owns those NFTs and could be putting your money at risk.

Do: Do look for less costly ways to participate in NFT market as the market has been overly hyped by a lot of marketers and brands in this space. A lot of celebrities’ have been able to utilize their popularity to sell NFTs. This doesn’t mean you should buy their NFT or it doesn’t mean you will also be able to make the same amount of money as they are. The reason they have been doing well is because of the marketing behind the NFT that has created this craze and hype. So a less costly option may be playing NFT games and earning NFTs through that.

Don’t: Trade NFTs on an exchange that doesn’t require proof-of-ownership.

Don’t rush into it: Since NFTs are still a new form of investment, the market is still developing. That gives you some time to do your homework. Take some time to learn about NFTs before you get involved in the market. There’s lots of information online—and even more if you attend an event like Decentraland’s Virtual Reality Festival or ETHDenver. The more knowledge you have, the better your chances of success.

Don’t: Don’t risk money that you can’t afford.

Don’t: Don’t buy overly hyped and speculative NFTs. Investing in one NFT or even several different ones does not mean that your portfolio will be safe from large swings in value, especially if they are overly hyped.

Don’t fall for high returns: There are many different websites out there which offer guaranteed returns on investments and these type of sites should be avoided at all times at all costs. We have noticed a huge amount of scams on these types.

I would argue that investing in non-fungible tokens should be a core tenet to every crypto enthusiast. With the uncertainty surrounding the crypto industry, it’s always a good idea to diversify your portfolio with multiple classifications of cryptocurrency. NFTs are no different, and can represent an important piece of a broader portfolio strategy. But there is one caveat: if you’re going to get in on the action, you need to do your homework first. Good luck, and happy researching!