Hi @Sarah_Osay ,
Thanks for your post and for being part of the Cesium community.
For the first approach you outlined, some extra steps would be required. Here is a previous thread discussing the approach How do you pick point in a point cloud? - #4 by Alexander_Johannesen
For the second approach, as you suggested, of you assigned feature IDs to each point, they would be available thought the custom shader API, and you could use them to modify the appearance of the points. cesium/Documentation/CustomShaderGuide at main · CesiumGS/cesium · GitHub
Please let us know if these resources are a step in the right direction or if you have further questions about either approach.
Thanks,
Luke