Planning to invest in metaverse? Go through this expert guide on the process and methods for investing in metaverse.
The year 2021 marked the recovery of the world and the tech landscape in general. Interestingly, the developments in the world of tech in 2021 were more revolutionary in nature. Non-fungible tokens or NFTs set a formidable benchmark for ownership of digital assets, while crypto solutions found applications in mainstream use cases. However, one of the prominent topics in the tech landscape in 2022 which will have a massive impact on the future of technology is metaverse.
Many people are trying to discover ways to invest in metaverse, the three-dimensional iteration of the internet. On the other hand, you should also understand that the metaverse is still under development. As of now, you can find different metaverse platforms with unique virtual experiences. Considering the possible time required before you see a fully functional metaverse, you must be cautious before exploring possibilities for investment in the metaverse.
What are the possible ways you can try investing in metaverse? Is there any reliable method for investing your valuable money in the metaverse? The following discussion helps you find the answers with an outline of the proven methods for trying investments in metaverse.
Aspiring to Become a Certified Metaverse Expert? Enroll in Certified Metaverse Professional (CMP) Certification Course Now!
Basic Overview of the Metaverse
The metaverse spells the beginning of a new revolution in the way people use and experience digital services and solutions. A concept dating back to a science fiction novel published in 1992, the metaverse provides a new way for interacting with the internet. Associated commonly with the web 3.0 landscape, the metaverse promises the facility of immersive and engaging 3D virtual environments. Imagine browsing through a three-dimensional version of the internet by using VR headsets.
Users can enter the metaverse as digital avatars by using VR, AR, and XR technologies with the facility for seamless movement between virtual spaces in the metaverse. For example, you can visit a virtual mall and shop for clothes and then visit a casino for playing a gambling game. In addition, the advancements in virtual reality and artificial intelligence empower the experiences in the metaverse. Now, you might be wondering about how to invest in the metaverse, which is a virtual environment. Is it a feasible idea to put your money in a virtual environment like the metaverse?
Want to get an in-depth understanding of metaverse concepts? Enroll In Metaverse Fundamentals Course Now!
Why Should You Invest in Metaverse?
The first reason to consider the potential of metaverse as a suitable platform for investments is the association with blockchain and crypto. Smart contracts and NFTs are a critical component of the metaverse as they are essential for purchasing goods and exchanging them between different virtual spaces in the metaverse. Aspiring metaverse investors should notice that NFTs and metaverse crypto offer ideal instruments for investing in the different metaverse platforms.
On top of it, virtual real estate deals on metaverse platforms such as Decentraland and Sandbox exhibit the potential for growth of the metaverse in the future. In addition, Goldman Sachs has estimated the market opportunity associated with the metaverse is around $1 trillion. Considering the massive potential associated with metaverse, many top companies in the tech world have started exploring possibilities for investments in the metaverse.
Want to know the top companies which are investing in the metaverse? Check Now: Top 5 Companies Investing In Metaverse
What Is The Best Way to Invest in The Metaverse?
The popularity of the metaverse has everyone thinking about how to invest in metaverse crypto with assurance of best returns. Many tech companies have active investments in metaverse projects, while institutional investors are joining the play to discover investment opportunities. However, the average investor might experience some hurdles before investing in metaverse, such as a lack of information about the possible options. Here are some of the most common methods you can try out for making the most of investment opportunities in the metaverse.
-
Buy Metaverse Tokens
One of the easiest methods to invest in metaverse involves purchasing metaverse tokens. Interestingly, you don’t have to go through any complex steps for purchasing metaverse tokens. You can choose the metaverse platform in which you want to invest and buy their native tokens. As of now, the most popular metaverse tokens include,
- MANA, the native token of the Decentraland metaverse
- SAND, the native token of Sandbox metaverse
- AXS, native token of Axie Infinity metaverse
Since metaverse tokens are the primary form of payment in the metaverse, they can offer the right avenue for investors to enter investments in the metaverse. At the time of writing, the market cap of MANA stood at $4.11 billion. As the metaverse usage grows further, metaverse tokens would definitely grow in terms of value. However, the value of metaverse tokens is also variable, like that of cryptocurrencies. So, metaverse investors have to take on the risk of price uncertainty by purchasing metaverse tokens as an investment opportunity.
Want to learn quickly about metaverse concept and its working? Check the presentation: An Introduction To Metaverse
-
Purchase In-game NFTs or Virtual Land
Virtual real estate has emerged as one of the prominent highlights among investment opportunities in the metaverse. The popular metaverse platforms offer environments similar to games where you can build and trade assets and intuitive experiences. You can find how to invest in the metaverse with in-game NFTs and the virtual land parcels on metaverse platforms.
Create an account on the metaverse platform from where you want to purchase NFTs and virtual land. For example, Decentraland is an ideal destination for purchasing virtual land; Sandbox helps in purchasing or selling NFT art, and Axie Infinity for purchasing or selling NFT characters and virtual land parcels.
However, investing in metaverse through NFTs and virtual land also comes with certain critical implications. Non-fungible tokens don’t have a fixed price and could vary on the basis of different factors such as rarity. On the other hand, purchasing NFTs or virtual land parcels through primary and secondary NFT marketplaces has distinct advantages and setbacks.
For example, NFTs on primary NFT marketplaces, i.e., the metaverse platforms, can provide assurance of higher resale value. On the other hand, investors might struggle with estimating the actual value of NFTs in the primary marketplace. Secondary marketplaces such as OpenSea ensure that you can access information about all NFTs on one platform and compare prices.
Most important of all, the growing popularity of virtual real estate shows an easy solution for how to invest in metaverse crypto. Many companies are investing millions in claiming a share in virtual land. Recently, an NFT project named Pavia sold out over 60% of the total 100,000 lots of virtual land.
At the same time, you cannot miss the popular Decentraland, with almost 36 million MANA in circulation. Celebrities like Snoop Dogg are developing virtual properties on the Sandbox metaverse. All these factors show promising potential in virtual land NFTs and in-game NFTs as a reasonable investment opportunity.
Aspiring to Become a Certified NFT Expert? Enroll in Certified NFT Professional (CNFTP) Course Now!
What Are the Other Ways for Investing in Metaverse?
The possibilities for investment in the metaverse are quite simple. However, you can also try out alternative methods to invest in metaverse without any complexities. Here are some favorable suggestions you would like to try out for investments in the metaverse.
-
Exchange-Traded Funds
Among the many answers for “What is the best way to invest in the metaverse?” you should take note of exchange-traded funds or ETFs. The diversified assets offer an easy solution for reducing volatility, thereby lowering the risk exposure. One of the notable platforms for investing in metaverse through ETF is Roundhill Ball Metaverse ETF. You can use your brokerage account to invest in the ETF. The ETF fund is currently the biggest fund and emphasizes computer hardware solutions, gaming, and IaaS solutions.
-
Metaverse Stocks
If you don’t want to invest in metaverse, then you can try the indirect route of investing in stocks of companies working on metaverse projects. You can capitalize on investment opportunities with the stocks of gaming and 3D technology companies in the metaverse ecosystem. Investors can look for metaverse gaming stocks of companies like Roblox.
It started off as a regular video game and has created a unique virtual environment, much like the metaverse. With an active user base of 47 million, Roblox shares are promising enough for investments in metaverse. On the other hand, you can look for investments in stocks of metaverse 3D technologies companies such as NVIDIA.
-
Investments in Metaverse Index
Another answer for “how to invest in the metaverse indirectly” refers to the Metaverse Index or MVI. The Metaverse Index is basically like the stock market indices, which track the performance trends of top companies in a country. MVI works on tracking the different trends in business, gaming, and entertainment throughout the virtual universe. One of the best things about choosing MVI for investing in metaverse is the reduced volatility. Therefore, you are likely to bear less risk by investing in the MVI in comparison to investments in metaverse tokens.
-
Sell or Rent Metaverse Experiences
The final recommendation among solutions for “how to invest in metaverse crypto” focuses on the experiences in the metaverse. You can customize virtual land parcels and rent the virtual spaces for businesses or office spaces. In addition, you can rent out billboards on metaverse property for advertisements as a feasible investment opportunity in the metaverse.
Want to become metaverse expert? Checkout detailed guide on How To Become Metaverse Developer
Bottom Line
The overall impression regarding investments in metaverse shows the simplicity of investing in metaverse with easy methods. You can set up a crypto wallet and buy metaverse tokens from the top metaverse platforms of your choice. Investors can also purchase in-game NFTs and virtual land parcels for placing their stakes in a specific metaverse platform.
On the other hand, metaverse investors can also find indirect methods for investments such as exchange-traded funds and metaverse company stocks. While the metaverse presents promising growth potential, it is still in the nascent stages. Therefore, investors need to check every aspect of investments in the metaverse before putting in their valuable assets in the metaverse. Learn more about the metaverse and the best ways to extract its true potential right now.
*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!