The metaverse has been on people’s lips for a while now, as it shows great potential for the future of the internet. However, this virtual playground also offers outstanding investment possibilities.
If you want to learn how to invest in the metaverse, here’s what you need to do.
Metaverse 101
The term “metaverse” was created by a sci-fi writer, Neal Stephenson, who described it (in his 1992 novel called Snow Crash) as an all-encompassing digital world that coexists with the real world.
Today, the metaverse is often seen as a 3D replica of the internet or a place where you and other individuals use avatars to communicate and interact.
How to Invest in the Metaverse in 2022
Now that you know what lies behind the term “metaverse,” it’s time to learn how to invest in it. You can invest in numerous things, such as:
- Virtual land
- Metaverse stocks
- Metaverse ETFs
- NFTs
- Metaverse cryptocurrencies
Now, let’s get into more detail.
Virtual Land
Metaverse land is a digital land you can buy and use in any way you like. For example, you can build your own mansion and place it next to Snoop Dogg’s house (yes, you can do that).
In fact, when it comes to metaverse investments, virtual land seems to be extremely popular among investors.
Namely, in 2021, Metaverse real estate sales reached $500 million, and analysts predict that by the end of 2022, it will double in size.
Here’s what you need to do to buy metaverse land:
- Open a digital crypto wallet (such as MetaMask and Binance Chain Wallet)
- Buy cryptocurrency (MANA/SAND/SETH)
- Select a Metaverse (Decentraland and Sandbox are two of the most popular neighborhoods)
- Confirm your purchase
After your real estate transaction is completed and validated, you should be able to see NFTs in your wallet.
When it comes to investing in metaverse real estate, it works the same way as investing in the regular real estate market. You should pay attention to the location, as well as the size of the land you’re buying.
Furthermore, make sure to check the sales history and compare their value to similar properties. You can do this on platforms like OpenSea.io and NonFungible.com.
The average price of a parcel was $12,000 in 2021.
Metaverse Stock
Purchasing metaverse shares is one of the simplest methods of investing in blockchain technology because it doesn’t require knowledge of cryptocurrency or even the creation of a digital wallet.
You can buy metaverse stocks the same way you would regular stocks, i.e., by purchasing stocks of companies that support metaverse.
However, you should opt for this option only if you’re an experienced investor, as metaverse stocks, like the standard ones, can rise and drop in value.
Here are some of the best metaverse stocks to invest in:
- Meta Platforms Inc. (NASDAQ: FB). Current price: $157.24, as of August 30, 2022
- Nvidia (NASDAQ: NVDA). Current price: $154.01, as of August 30, 2022
- Roblox (NYSE: RBLX). Current price: $39.03, as of August 30, 2022
- Microsoft Corporation (NASDAQ: MSFT). Current price: $262.37, as of August 30, 2022
- The Boeing Company (NYSE: BA). Current price: $162.50, as of August 30, 2022
- Unity Software Inc. (NYSE: U). Current price: $43.04, as of August 30, 2022
- Autodesk, Inc. (NASDAQ: ADSK). Current price: $203.23, as of August 30, 2022
You can purchase these metaverse stocks on the NYSE (New York Stock Exchange) and NASDAQ (Nasdaq Exchange).
Metaverse ETFs
If you don’t want to invest in meta real estate and you think investing in stocks is too risky due to the metaverse stock price volatility, try investing in exchange-traded funds (ETFs).
ETFs, like mutual funds, are a way to combine several stocks that have certain characteristics into one cohesive asset for the purpose of providing more or less probable returns.
There are many metaverse ETFs that you can invest in, such as:
- Roundhill Ball Metaverse ETF
- The Simplify Volt Fintech Disruption ETF
- Subversive Metaverse ETF
- ProShares Metaverse ETF
- Horizons Global Metaverse Index ETF
NFTs
Another great way to invest in the metaverse is via NFTs (non-fungible tokens). You can do this by creating and selling 3D objects or purchasing NFTs and reselling them for a profit.
How do you get NFTs? By buying meta land as NFTs and by visiting virtual marketplaces and apps, such as Decentraland, AsyncArt, Mintable, and Zeptagram.
Investors can also acquire digital art in the form of NFTs from virtual reality art galleries and even some brick-and-mortar galleries.
Note that NFTs have no defined value, and their price may fluctuate depending on various factors (for example, rarity).
Metaverse Cryptocurrencies
When it comes to metaverse investing, many people turn to cryptocurrencies since it is the most straightforward investment method. Plus, if you plan to buy things in the metaverse, you’ll have to use cryptocurrency.
However, like with other popular cryptocurrencies, the price of meta coins is highly volatile. For example, after SAND was initially released in 2020, its price fluctuated between $0.04 and $0.06 before jumping to an all-time high of $8.40 (in November 2021).
After that, its value fell to $6.55, only to rise by 25% in late November 2021, after Adidas announced a collaboration with Sandbox.
Some of the most popular metaverse coins are SAND from The Sandbox, MANA from Decentraland, AXS from Axie Infinity, and BLOK from Bloktopia.
You can buy SAND at exchanges such as Bithumb, Bitmart, UpBot, and MXC, while MANA tokens can be purchased via various crypto trading platforms, some of the most famous ones being Binance, Gemini, Coinbase, and eToro.
Conclusion
Since metaverse investment is still a new and unexplored field, we can’t say with certainty which one of the above-mentioned methods is the best.
What we can do, however, is advise you to consider investing in companies that are active in the metaverse space, be aware of the volatility, and not invest more than you can afford to lose.
Since metaverse is a new and unexplored industry, we can’t say for sure if and when it will bring a big return on your investment. It’s too soon to call it anything other than a speculative investment at this point. Nevertheless, the metaverse has shown great potential so far. For example, the global metaverse market reached $38.85 billion in 2021. In 2022, it’s anticipated to top $47.48 billion, and by 2030, it could reach a staggering $678.80 billion. The first step is to find a platform that offers virtual land for sale. The most popular platforms are Decentraland and Sandbox. Once you’ve found a platform you like, you’ll need to use cryptocurrencies to buy your parcel (MANA, SAND, Ethereum, Bitcoin). After the transaction is completed, you’ll see NFTs in your wallet and be recorded as the property owner. You can start by investing in one of the following: Your safest bet is to invest in an ETF since they provide probable returns. NFTs are also a great option, but keep in mind that their value can fluctuate greatly. If you already know how to invest in the metaverse, you can try your luck with stocks or cryptocurrencies. Just remember to invest only what you can afford to lose. FAQs
Is metaverse a good investment?
How do I buy metaverse land?
How do you invest in the metaverse for beginners?