How to Invest in Metaverse- Beginner’s Guide
The Metaverse is one of the newest areas of technology that have taken the cryptocurrency world by storm. Some Metaverse enthusiasts may have heard of it but are unsure what it is, while others may know what it is but are still determining how to participate.
How Can You Invest Directly In The Metaverse?
Recently, cryptocurrencies and the Metaverse have been two of the most exciting areas to invest in. However, these two areas are not mutually exclusive. You can invest in Metaverse and crypto at the same time by investing in Metaverse cryptocurrencies. These refer to cryptocurrencies and other digital assets, such as NFTs in the Metaverse space. Some Metaverse tokens include Decentraland (MANA), Sandbox (SAND), and Enjin (Enj). To invest in Metaverse in India, you can buy these tokens directly from any major crypto exchange.
You can trade these assets in the Metaverse, buy products and services, and redeem them in the physical world to make a profit. However, directly buying NFTs and other assets comes with additional risks and volatility. Another way to invest directly in the Metaverse is to buy virtual land or real estate in the Metaverse. According to an estimation, real estate sales in the Metaverse could double to $2 billion by 2022. Additionally, investors are paying millions to purchase properties in the Metaverse. One of the most popular Metaverse is currently Axie Infinity.
How To Invest In Metaverse – The Best Methods
Regular buyers of cryptocurrencies can witness the growth of the Metaverse over the past year, as many projects have helped bring the concept into the mainstream.
The following five approaches describe how to efficiently invest in the Metaverse – each with its unique benefits for investors.
1. Metaverse Games
The convenient way to invest in the Metaverse is through metaverse games or the best metaverse NFT projects. Growth in this area of games has been exponential over the past year, driven by high-profile projects like Decentraland and The Sandbox. However, smaller projects are also being launched regularly, trying to capitalize on the success of their predecessors.
In short, metaverse games are exactly what the name implies – game platforms based in the Metaverse. Many of the best Metaverse coins are integrated into these game projects to make them work smoothly. One of the most adorable aspects of these games is the level of immersion they can offer players. In the metaverse games niche, “play-to-earn” (P2E) mechanisms with cryptocurrencies are among the most attractive factors for players. These mechanisms allow players to earn rewards (in cryptocurrency) for their actions in the game. This means that players can monetize their gaming skills in a fun way.
2. Invest in Metaverse Lands
There are numerous methods to invest in the Metaverse, but one of the easiest is to buy stocks or real estate. XANA Metaverse and The Sandbox are two of the most well-known Metaverse developers that sell real estate in their virtual worlds.
These digital properties are offered as non-fungible tokens created on blockchain networks and represent digital assets. If you own a Metaverse property, you can rent it out, try to sell it for more than you paid for it, or even build on it virtually.
Building your own virtual property can make money from it, just like business owners do in the real world. For example, Atari built its crypto-casino on the 20 parcels it bought on the Decentraland blockchain. Players can enter this virtual casino and use Atari’s native ERC20-based tokens to place bets and receive tax-free winnings in cryptocurrency. The game builders also announced plans to build its virtual hotel later this year. It’s unclear how Atari can monetize a virtual hotel, but if unveiled, the game maker could give other investors some ideas on how to turn a profit from virtual real estate they buy.
You can monetize from real estate in the Metaverse just as you can from real estate in real life – by buying it and then selling it at a higher price. One property in Decentraland sold for an astounding $2.5 million, a testament to how much money can be made. The hope is that this property will become a fashion district, with real luxury brands promoting their luxury goods and selling digital versions.
3. Invest in Metaverse Stocks
Purchasing shares in a Metaverse company is one of the easiest ways to invest in this technology, as you don’t have to handle cryptocurrencies or even open a metaverse wallet. However, this investment method is moderately complex, as Metaverse stocks are primarily intended for serious investors.
The value of cryptocurrencies fluctuates dramatically, and it is possible to make a good profit in the short term. However, metaverse stocks function like any other company and are tradable on traditional platforms. Some of the leading stocks in this section are Meta Platforms Inc (FB), Electronic Arts (EA), Roblox Corp (RBLX), and Nvidia (NVDA).
4. Buying NFTs in the Metaverse
The world-famous art and auction house Sotheby’s operates a digital art gallery in Decentraland, Sotheby’s Metaverse. Here you can buy NFTs of digital art. You get an NFT representing your Metaverse land, but you can buy NFTs of Metaverse artwork, music, and other collectibles. You can also purchase merchandise in the form of NFTs from top brands like Gucci and Adidas.
When you buy NFTs on the Metaverse, register on the platform or world of your choice, link your cryptocurrency wallet, and purchase NFTs. You can buy cryptocurrencies for your Metaverse transactions on any leading cryptocurrency exchange.
Investing in cryptocurrencies in the Metaverse.
To make purchases in the Metaverse, you may use cryptocurrencies. You can buy XETA, SAND, and other cryptocurrencies based on the Metaverse through one of the best cryptocurrency exchanges.
5. Buying shares in the Metaverse
If you are buying shares for a very active company in the Metaverse, you should use the exchange platform of your choice. The Metaverse does not have its version of the stock market, stock indices such as the Dow Jones or the S&P 500, and shares of companies active in the Metaverse trade on traditional exchanges.
Alternatively, you could invest your money in an exchange-traded fund that holds companies that play a role in the Metaverse. Some examples include:
- ProShares Metaverse Theme ETF
- Roundhill Ball Metaverse ETF
- Subversive Metaverse ETF
Should You Invest In The Metaverse?
Investing in the Metaverse is only for some. When it comes to investment, there are some things you should consider before taking the plunge. Anything to do with the Metaverse is still highly speculative, so investing money you can’t afford to lose is never a good idea. Conversely, investors can make money with one or all options on this list.