# My Principles for NFT Investing

By [thediv.eth](https://paragraph.com/@thediv) · 2021-12-05

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*   Understand what category of NFT you are buying before you make any purchase (art, community access, utility, metaverse cosmetics etc.) Note: one NFT could represent multiple categories
    
*   Don’t buy anything you wouldn’t be comfortable holding forever
    
*   Don’t spend what you can’t afford to lose
    
*   Do not panic-sell and do not be swayed by short-term fluctuations
    
*   Only buy into projects you believe in (whether it’s the vision/execution of the founders, quality of the art, utility etc.)
    
*   For art / community purchases – think of the long-term mainstream brand appeal
    

**Quick fire questions when making a purchase:**

*   Do I actually like the art work?
    
*   Could this become a mainstream brand / IP?
    
*   Are the founders builders / artists or copycats?
    
*   What about this project is innovative or superior to others?

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*Originally published on [thediv.eth](https://paragraph.com/@thediv/my-principles-for-nft-investing)*