# Should You Invest in NFTs, or Their Future Practical Uses in Tech?
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-03-16
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Unlocking the World of NFTs: A Beginner's Guide
Meta Description: Discover the unique world of NFTs where digital assets are turning heads and creating new investment opportunities. Learn how to invest and understand the
URL: https://financedigest.com/should-you-invest-in-nfts-or-their-future-practical-uses-in-techhtml

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Non-Fungible Tokens (NFTs) took the successful essence of blockchain, its immutable public ledger, and ran with it. The opportunities on the horizon feel endless. New investment cases appear daily.

So what are they? Instead of keeping physical ownership certificates, you can hold NFTs in your [digital wallet–each token representing a unique asset](https://www.financedigest.com/guide-to-choosing-a-digital-asset-management-system.html "Guide to Choosing a Digital Asset Management System"). And [since the blockchain is public](https://www.financedigest.com/japans-emperor-gives-first-public-new-years-greeting-since-2020.html "Japan’s emperor gives first public New Year’s greeting since 2020"), nobody else could register as having it too. Do you remember when people [traded stocks](https://www.financedigest.com/stock-trading-platforms-for-beginners.html "Stock Trading Platforms for Beginners") via paper only? No, right?

**Where Did They Come From?**

Chances are you know about [Bitcoin and Ether](https://www.financedigest.com/cryptoverse-ether-snaps-at-bitcoins-heels-in-race-for-crypto-crown.html "Cryptoverse: Ether snaps at bitcoin’s heels in race for crypto crown"). Chances are you know their prices [can rise like rollercoasters](https://www.financedigest.com/cryptocurrency-2022-outlook.html).

Yet [NFTs are not coins of a cryptocurrency](https://www.financedigest.com/the-importance-of-nfts-in-the-cryptocurrency-world.html "The Importance Of NFTs In The Cryptocurrency World"). They are all unique. One might represent a work of art, another a song, another a video, or even an in-game item. If it’s unique, if it’s an asset somebody else on Earth might want, it’s fair game.

The first NFT was dubbed “Quantum,” a pixelated, mesmerizing octagon that _pulsed_ in an unforeseen way. See it for yourself [here](https://www.sothebys.com/en/buy/auction/2021/natively-digital-a-curated-nft-sale-2/quantum). Notice how it sold for over 1.4 [million USD](https://www.financedigest.com/application-specific-integrated-circuits-market-expected-to-reach-usd-33545-7-million-by-2026-tmr.html "Application Specific Integrated Circuits Market Expected To Reach USD 33,545.7 Million By 2026 – TMR")?

When the Ethereum [blockchain started to boom](https://www.financedigest.com/as-blockchain-booms-a-new-channel-challenges-sme-businesses-to-embrace-opportunities.html "As Blockchain Booms a New Channel Challenges SME Businesses to Embrace Opportunities") around 2017, so did NFTs. Ethereum enabled developers to create their tokens, paving the [way for a new level of online investing](https://www.financedigest.com/10-ways-to-put-together-a-killer-investment-pitch.html "10 WAYS TO PUT TOGETHER A KILLER INVESTMENT PITCH").

Cryptopunks is a prime example. A collection of 10,000 unique characters, each with its own NFT. They are all sold out, but current owners trade them through [online marketplaces](https://www.financedigest.com/online-marketplaces-embracing-embedded-finance-to-benefit-both-customers-and-vendors.html "Online marketplaces: embracing embedded finance to benefit both customers and vendors     "). The cheapest punk right now is still over 170,000 USD.

**How Can I Invest in Them?**

You need access to a [crypto brokerage and then to an NFT](https://www.financedigest.com/meta-to-wind-down-nfts-on-platforms-amid-crypto-bust.html "Meta to wind down NFTs on platforms amid crypto bust") marketplace. For example, online investing via [SoFi](https://www.sofi.com/invest/) is a great way to start because the whole process is simplified for you. And before you know it, you can buy your very own punk before it’s worth over 200,000!

Some of the most notable NFT exchanges we see today are:

- Opensea

- Axie Marketplace

- CryptoPunks

- Rarible

Take Opensea, for example. It’s clear that a purely online [investable universe has been crafted in the last few years](https://www.financedigest.com/cepsa-to-nearly-double-investments-over-next-3-years-as-profit-soars.html "Cepsa to nearly double investments over next 3 years as profit soars"). This is both an [opportunity and a challenge](https://www.financedigest.com/molasses-market-a-study-combine-with-challenges-and-opportunities-forecast-by-2017-to-2025.html "Molasses Market: A Study Combine With Challenges And Opportunities, Forecast By 2017 To 2025").

**How to Value an NFT?**

A diamond receives value from its beauty, its shininess even, and its scarcity. Gold is similar, as are several [precious metals](https://www.financedigest.com/u-s-money-reserve-reviews-real-talk-about-diversifying-with-precious-metals.html "U.S. Money Reserve Reviews: Real Talk About Diversifying With Precious Metals").

How do you value an NFT? Particularly when a digital pixel punk can [set](https://www.financedigest.com/digitized-overhaul-to-drive-the-bone-block-fixation-sets-market.html "Digitized overhaul to drive the Bone Block Fixation Sets Market") you back six digits. Why is a natural question.

All the more tricky when we have to acknowledge that art is subjective. There are, however, a few correlations to watch:

- Popularity. How much of the world is talking about it? A CryptoPunk, yes. A random watercolor, no.

- Utility. Backstage passes and tickets. There are NFTs for those too.

- Previous ownership. Who’s selling it? A celebrity? Or your neighbor? (No offense to the neighbor, unless he or she is a celebrity!)

- The artist factor. In the same way a Picasso is a Picasso. Who made the NFT?

**What is Their Future?**

Did you know that [Bill Gates was mocked](https://www.news18.com/news/buzz/elon-musk-shares-old-interview-in-which-bill-gates-is-mocked-for-backing-internet-4588934.html) for trying to spread the internet? Yeah, that happened.

So what is the correct response as the [online world](https://www.financedigest.com/jetlearn-the-worlds-first-web-3-0-online-academy-for-k-12-raises-e1-2m-in-seed-round-to-launch-its-platform-in-the-uk.html "JetLearn, the world’s first Web 3.0 online academy for K-12, raises €1.2m in seed round to launch its platform in the UK") expands yet again today? [History tells](https://www.financedigest.com/eus-michel-tells-ukrainians-during-kyiv-visit-history-will-not-forget.html "EU’s Michel tells Ukrainians during Kyiv visit: ‘History will not forget’") us in objective terms not to balk at the new, the unknown.

Particularly when the growth is pervasive, rapid, and relentless. There is no benefit to standing at the sidelines while new fortunes are made. With NFTs, anything is [potentially up for sale](https://www.financedigest.com/zara-owner-inditexs-first-half-sales-surge-ahead-of-potential-slowdown.html "Zara owner Inditex’s first-half sales surge ahead of potential slowdown"). So you never know, you might have in your garage the physical makings of a new hit NFT.

Disclaimer: This website is distributed for informational and educational purposes only. It is not intended to constitute [investment advice](https://www.financedigest.com/investment-advice-moving-towards-a-new-model.html "Investment advice – moving towards a new model"). All investments and [investment strategies](https://www.financedigest.com/2018-it-security-predictions-methods-for-attacks-investment-areas-cybersecurity-strategies.html "2018 IT Security Predictions-Methods For Attacks, Investment Areas & Cybersecurity Strategies") involve the risk of loss. Any investments and [investment strategies discussed herein should not be undertaken without prior consultation with a financial professional](https://www.financedigest.com/investment-in-mental-health-amongst-cybersecurity-professionals-set-to-increase-according-to-infosecurity-europe-poll.html "Investment in mental health amongst cybersecurity professionals set to increase according to Infosecurity Europe poll").

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