Recently, I’ve noticed that a lot of people are asking what the metaverse and NFTs are. In fact, these two concepts have long seeped into our everyday lives. Have you ever wondered what the fundamental difference is between spending money on LINE animated sticker packs and buying NFT artwork on virtual platforms? The former is merely purchasing server-usage rights, while the latter is truly owning portable digital assets.

As for the term “metaverse,” it comes from the 1992 science fiction novel *Snow Crash*, which depicts a virtual world parallel to reality. Today, the definition is broader— the metaverse is a visually rich virtual space where people work, entertain themselves, shop, and socialize, and behind all of this lies the support of blockchain technology and NFTs.

Venture capitalist Matthew Ball once said something quite interesting: “The metaverse represents the fourth wave of computing after mainframe computing, personal computing, and mobile computing.” This assessment indeed reflects why capital and the market are so enthusiastic about the metaverse.

So what role do NFTs play in all of this? Simply put, NFTs are the metaverse’s “anti-counterfeit identity cards.” Built on blockchain technology, they provide clear proof of ownership and scarcity for virtual assets. What would a metaverse look like without NFTs? The game items you buy can’t be resold, virtual clothes can only be worn by yourself, and the houses you painstakingly build can be taken down by the platform at any time. It’s basically a nightmare.

I noticed that during the last bull market, metaverse projects like Decentraland and The Sandbox sparked a frenzy, with many users rushing to buy virtual land. In 2021, the MANA token surged by 4,100%. The Sandbox’s average virtual land price jumped from 1,000 to 45,000—an increase that even Taipei real estate couldn’t keep up with. But as the crypto market topped out, these projects’ floor prices kept hitting new lows one after another. Halving was already common, and some niche projects were even left with little to no attention.

If you want to get involved in the metaverse and NFTs, the process is actually not complicated. First you need a digital wallet, such as MetaMask, and then connect your wallet on mainstream platforms like OpenSea. Next, buy cryptocurrencies such as Ethereum and transfer them into your wallet, and then you can start selecting NFT projects to purchase. If you think the floor price is too high, you can also try auctions—sometimes you can snag a bargain. To sell, you can either place orders directly in your profile or participate in auctions.

However, there are three “don’ts” you must remember here: don’t enter your private key on unfamiliar platforms, don’t register all accounts using the same set of passwords, and don’t trust NFT airdrop ads that claim “guaranteed profit.”

To be honest, investing in the metaverse and NFTs is still a niche area, and liquidity is generally insufficient, making it easy to end up in the predicament of having no one willing to take your position. Many projects marketed under the metaverse banner are essentially just trading on hype—once the market cools down, they can fall off a cliff. So my advice is: for investors who are just getting started in this space, it’s best to test the waters with a small amount of capital and stay away from projects you don’t understand.

In the long run, the metaverse still has potential. Tech giants like Meta, Microsoft, and Google are investing, and virtual reality and AI technology will become important components. In the future, more new business models and industry supply chains will be implemented on the ground, and the boundary between virtual and real life will become increasingly blurred. Corresponding laws and regulations will also gradually improve, lowering the barrier to entry.

As for whether the metaverse and NFTs are scams, I believe that while mainstream projects do carry risks, they won’t completely detach from real application scenarios. Every investment involves risk; the key is to have basic judgment and not be drawn in by cheap but fundamentally hollow projects. Since there’s no leverage factor, as long as you maintain good trading discipline and there’s sufficient liquidity, you can enter and exit with confidence.