The Metaverse is a virtual world that uses social media, augmented reality, and virtual reality to allow people to interact within their online communities on a whole new level. But the Metaverse is not a virtual playground where people can freely recreate themselves. The metaverse is maturing with recent investment opportunities.
GOBankingRates.com recently reported that an investor paid Snoop Dogg $450,000 for a parcel of land next to his virtual home. In the same article, Bloomberg Intelligence analysts revealed that the total value of the Metaverse could reach $800 billion by 2024.
If you want to learn how to invest in the metaverse, you can consider purchasing different types of assets such as stocks, virtual land, NFTs, and cryptocurrencies. You can also put money into real-global agencies that might be constructing a metaverse presence.
It is important to note that investing in the Metaverse is not for risk-averse investors. Do not spend more money than you are willing to lose on speculative investments such as cryptocurrencies, metaverse land, art, or business. But if you’re interested in investing in the metaverse, read on to find out everything you need to know.
What is the best way to invest in the metaverse?
As with any type of investment, the best way to invest in the Metaverse is what you are most comfortable with. Many people start with stocks or ETFs because these investments do not require the presence of the metaverse, and US dollars can be used instead of cryptocurrencies for purchases.
What kind of investment can I make in the Metaverse?
The Metaverse offers many investment opportunities. Investments that can be made in the metaverse include:
Non-fungible tokens representing art or goods
Cryptocurrencies used in the metaverse, such as MANA and SAND.
Alternatively, you can buy stock in companies that have already invested in the Metaverse project. For example, Samsung has a virtual flagship. As well as a store in his Decentraland neighborhood in the Metaverse, Nike has a separate sneaker brand dedicated to the Metaverse. You can also invest in companies that help develop technologies that power the metaverse.
For example, NVIDIA is a computer graphics chip company whose products are an integral part of the seamless Metaverse experience for many users.
Autodesk and Unity Software are the developers of the design software used to create the 3D models seen in the Metaverse. The value of these companies is likely to increase as the metaverse grows in size, reach, and popularity.
How to invest in the metaverse
It’s not hard to get started if you decide it’s time to take a risk and put your money into investing in the metaverse. Of course, how you take practical steps to invest in the metaverse depends on what you invest in.
Buying land in the metaverse
If you want to buy land in the metaverse, you first need to choose a metaverse platform and sign up. The two most important districts in the Metaverse are the Sandbox and Decentraland. You can access both of these virtual regions from their respective websites, choose your avatar, and navigate the world.
You can look for houses within the metaverse similar to those within the current world. While you can visit Zillow or Redfin to compare similar properties and decide if buying a property is cost-effective, the Metaverse allows you to use sites like OpenSea.io and NonFungible.com.
These sites, like Zillow in the real world, let you view your metaverse slot sales history, check comps, and compare values for similar lots in the metaverse.
When you purchase land in the Metaverse, you receive a non-fungible token representing the purchased land.
Purchasing NFTs in the Metaverse
While receiving an NFT representing a country from the Metaverse, you can also purchase NFTs featuring artwork, music, and other collectibles from the Metaverse. Sotheby’s, a world-renowned art gallery and auction company operate a digital art gallery in Decentraland in the Sotheby’s Metaverse. You can buy NFT digital art here. You can also purchase merchandise in the form of NFTs from top brands such as Gucci and Adidas.
If you want to buy his NFT in the Metaverse, you will need to log into the Metaverse using your platform or world of choice and connect your cryptocurrency wallet to make the purchase. You can purchase cryptocurrencies for Metaverse transactions on any of the top cryptocurrency exchanges.
Investing in crypto in the metaverse
It is possible to make purchases in the Metaverse using cryptocurrencies. MANA, SAND, and other metaverse-based cryptos can be purchased from any of the major cryptocurrency exchanges, including Coinbase.
Buy stocks in the metaverse
If you want to buy shares in highly active companies on the Metaverse, use your exchange platform of choice. The metaverse does not have its own version of the stock market or stock indices like the Dow Jones or the S&P 500 themselves. Stocks of Metaverse-primarily based organizations are traded on conventional stock exchanges.
You can also consider exchange-traded funds with companies that play a role in the metaverse. Some examples are:
- Round Hill Ball Metaverse ETF
- Subversive Metaverse ETF
- ProShares Metaverse Themed ETF
But if you’ve already played, shopped, and socialized in the Metaverse and are in the risk-tolerant phase of your financial life, investing in NFTs, cryptocurrencies, or virtual land is a good idea.
If you’re considering investing in the metaverse, do your research like you would any other investment. Please note that because the Metaverse is a new concept, investing in the Metaverse may be riskier than investing in proven ETFs, blue chip stocks, or other asset classes.
You can spend money on metaverse-unique NFTs or purchase digital land. However, you can also buy shares in companies that currently invest in the Metaverse, including big names like Microsoft and Nike.
Whatever your choice, if you want to build a diversified portfolio, investing some of your money in digital assets in the Metaverse might make sense.
Also Read: What are Play-to-Earn Metaverse Games?