Guide to Buying NFTs – Forbes Advisor Australia

Like many things in this world, the value of an NFT is in the eye of the beholder.

This does not mean that NFTs cannot command a high price. For example, in addition to “The Merge’s” $91.8 million price tag, Beeple’s “Everydays: The First 5000 Days” sold at auction for $69.5 million.

“The value extends from the authentication and the uniqueness,” says Ozair.

But not all NFTs come with a hefty price tag. Some are valued at less than a dollar. According to data from CryptoSlam, the average price among the $647 million in NFT sales in July 2022 was $115.15.

In fact, 2022 was the big level in the NFT universe, with prices falling from monumental heights as cryptocurrency values ​​plummeted and around $9 billion wiped from the NFT market as a result. It is estimated that $17 billion worth of NFTs changed hands in January 2022, which dropped to $400 million by November.

Of course, NFT does not have to be art. There are also sports NFTs, which include digital variations on trading cards and highlights. For example, a photo of LeBron James taken by Kimani Okearah sold for $21.6 million. The MLB Champions blockchain-based baseball game sold for $21.3 million, while a signed card of World Boxing Council (WBC) middleweight champion Jermall Charlo went for $19.1 million.

Virtual land, which is space in the metaverse, can also be sold as an NFT. However, after many multi-million dollar purchases in 2021 and throughout 2022, the value of virtual lands has reportedly decreased by more than 66%.

In the metaverse, however, NFTs can also include accessories for users’ virtual avatars such as photos and clothing, says Jerry Eitel, partner emeritus and chief metaverse officer at global accounting firm Prager Metis.

As the world becomes increasingly digitized, NFTs can even represent a deed to physical property, a user’s medical records, proof of ownership or proof of attendance. These things may not be as easily transferred from one owner to another, but they can each occupy their own unique space on a blockchain.

Of course, buying an NFT is not like buying a stock or putting money into a high-interest savings account.

As 2022 has shown us: there is no guarantee that the price of an NFT will go up. That means investors need to take the time to understand what they are buying when they buy an NFT and consider what they think the value of that NFT will be.

The advice and information provided by ForbesAdvisor is general and is not intended to replace independent financial advice. ForbesAdvisor encourages readers to seek expert advice in relation to their own financial decisions and investments.