NFTs becoming more popular, but there are things you should know before investing in them

Posted at 9:03 AM, Apr 11, 2021
and last updated 2021-04-11 11:09:19-04

Technology is always evolving and so are the things we invest our money in.

Now people are buying things online called Non-Fungible Tokens (NFTs).

Simply put, they're unique digital tokens that can be attached to any item, both physical or digital.

Several websites sell these NFTs including NBA Top Shot, Foundation, Nifty Gateway, and OpenSea.

Tom Brady is also launching his own NFT platform called Autograph.

You can even sell your tweets or buy other people's on the platform valuables.

Twitter CEO Jack Dorsey sold his very first tweet for $2.9 million.

Anthony Citrano, the CEO & Founder of Acquicent said that these are essentially the new digital baseball cards.

His Los-Angeles based company is starting to specialize in NFTs.

"In many cases with our digital collectables, we’ll also be tying them to real-world physical items that will be delivered to the people who buy the tokens," said Citrano.

When you buy an NFT, you're buying a digital token that has a link back to the digital or physical item you bought.

Many NFTs don't come cheap either, so you need to make sure you buy them from a reputable source.

Citrano said, "We need to be really careful if you’re considering this as an investment, the same way you would if this was a stock or something else."

NFTs can be bought with dollars or cryptocurrency, most commonly Etherium.

Some of the legitimate websites sell things for as little as $20, but they can go for upwards of a million dollars.

A big concern with NFTs right now is the potential for fraud, which can happen in a couple of ways.

One way is someone selling an NFT that's linked to something that doesn't belong to them.

"If you were to go on Twitter right now and look for NFT fraud you’ll see that there are a lot of artists that are pretty upset that their art is being re-purposed, stolen frankly," said Citrano.

Another way is selling an NFT that claims to be linked to one thing, when in fact it's linked to something that's entirely different.

Citrano said, "There are real challenges out there right now as far as authenticity, so you have to know and trust who you’re dealing with."

You can resell NFTs, but be warned, the value of them can go up and down based on the value attached to them, whether it's dollars or cryptocurrency.