The metaverse concept is a growing trend that has opened a new world of investing opportunities. It is considered the next stage of the Internet that will provide immersive experiences in the form of gaming, interacting with people, wealth accumulation, spending leisure time, and building personal or professional relationships. Wondering how to invest in metaverse?

In a more straightforward sense, the metaverse is a collection of virtual worlds aided via digital devices to help users interact with each other in a new way. Metaverse rose in popularity when Facebook changed its name to Meta in 2021. Soon after, companies predicted the growth and potential of digital worlds and began investing in them. As a result, the market for the metaverse has grown exponentially. According to Bloomberg, the Metaverse market is expected to reach $824.53 Billion, Globally by 2030 at 39.1% CAGR.

What is Metaverse?

Metaverse refers to various digital worlds that allow users to act, interact, and participate in activities as done in the real world. It is like a parallel world that offers immersive experiences with the help of Virtual Reality (VR). The virtual world can be a replica of a real place or completely fantastical. Nevertheless, it is gaining popularity with new worlds and projects being introduced daily. 

Users can interact with each other without the constraints of geographical borders and as a link between the real world and the virtual world. Various business leaders have realized the potential growth of the metaverse and have invested in it to drive their impact on the economy. As a result, the metaverse can provide economic activities in sales, entertainment, marketing, trading, and other activities possible through virtual reality.  

Why Should You Invest in Metaverse?

Metaverse gained popularity after Facebook changed its name to Meta and began investing in the venture. Soon after, other major companies like Unity, Nvidia, and Microsoft started investing in the same. Even Nike has been interested in acquiring rights for virtual sneakers and other apparel for the metaverse. 

As a result, various investors have started taking part in the metaverse to gain a first-mover advantage. Creators and developers have started to earn extra income by creating beautiful virtual worlds, in-game items, and other virtual assets. As an example, metaverse real estate prices from September 2019 through March 2022 grew by 879%, while real estate prices in the real world only grew by 39%, according to the following statistics by Chain analysis:

How to Invest in Metaverse?

With active involvement from significant companies, metaverse’s future is on a great start. It is still in its beginning stages, and there are various direct and indirect ways to invest in the metaverse. Here are 4 ways to invest in the metaverse: 

1. Metaverse Real Estate

If you have a surplus amount to invest in the metaverse, purchasing a plot of digital land is the best way to get started. These plots are called ‘parcels’ and vary in cost and size across different platforms. According to NBC, the idea of virtual land was first introduced by Decentraland in 2017. Back then, they sold parcels for $20 a piece. Currently, the average price of these parcels is around $3,000, with a few exceptional purchases from $6,000 to upwards of $100,000. 

How to Invest in Metaverse Real Estate?

Purchasing a piece of metaverse real estate works the same as buying a Non-Fungible Token (NFT). An NFT is a record stored on the blockchain network that associates an individual’s ownership with a digital or a physical asset. Its ownership can be transferred, which allows it to be sold and traded. 

Subsequently, an NFT in purchasing a digital land will act as a Deed of Ownership which will be stored on the blockchain. This deed will give ownership rights on the land to its purchaser. Most digital land is sold by the Big Four – Sandbox, Decentraland, Somnium Space, and Cryptovoxels. You must have a crypto wallet with your desired cryptocurrency to purchase anything on the metaverse. After that, you can buy a digital land on the following:

Sandbox

Sandbox is currently dominating the metaverse real estate market with the most market share among the Big Four. Some virtual plots can cost upwards of $20,000. You can buy different types of land, from hangout spots of different sizes to art galleries, commercial spaces, and family homes. Community members build all properties available on Sandbox.

To buy a piece of land on Sandbox, you need to do so by purchasing LAND. You can do this by visiting the official website of Sandbox and opening an account on the platform. You can browse and choose your desired LAND in exchange for the crypto it is being auctioned off. Most LAND is bought via Ethereum. Once you buy a piece of LAND, you can monetize it with the help of NFTs and SAND tokens. 

Decentraland

As mentioned earlier, Decentraland was the first to come up with the idea of virtual land. It is a 3D virtual world accessed via Virtual Reality (VR). Its platform is primarily built on the Ethereum blockchain. All purchases are made via MANA tokens on Decentraland. Apart from purchasing land, the tokens can also be used to buy in-game items. Ownership of LANDs is provided via an NFT with exact coordinates on the grid and reference to LAND details.

To purchase LAND on Decentraland, you need to visit the official website of Decentraland and start by creating an account. After that, you must buy your desired MANA tokens with your crypto wallet. Next, head to the Marketplace and browse the various LANDs on sale. Before buying, you can jump into the land and see what it offers using VR goggles. 

Somnium Space

Somnium Space is a unique addition to the metaverse that is different from others. It is a Virtual Reality platform that allows users to explore various land parcels in space. The virtual world is entirely built by players and offers an immersive experience on mobile and desktop devices. Land bought on Somnium Space is recorded and authenticated on the Solana and Ethereum Blockchain. 

There are different types of land parcels available for you to buy. You can begin by visiting the official website of Somnium Space and opening an account. There are two ways to buy land parcels on the platform – direct purchase against cryptocurrency and purchasing via NFTs. Depending on your choice, head to the marketplace and begin exploring the land parcels on sale. Generally, the average price of a parcel can go upwards of $10,000. However, the price is dependent on the size. Hence, smaller parcels of land can be bought at around $2,000 to $4,000. Similar to Decentraland, you will be able to experience the land before finalizing the purchase.

Cryptowexels

Cryptowexels is a favorite platform to buy digital land for those who are familiar with the game Minecraft. It shares the same features as building lands with the help of monochrome blocks. As a result, it is an excellent choice for gamers who wish to earn extra income on the platform. You can build your land or purchase land built by other gamers. 

The land is purchased on Cryptowexels directly via Ethereum crypto. To do so, visit the official website and go to Marketplace. If you have a Metamask wallet or something similar, it will request it to be connected to the platform. Make sure that you have enough Ethereum in your wallet. After that, explore and discover land parcels on the platform and buy the one that suits your liking. Prices are dependent on both location and size. The average price of a land parcel is around $5,000. Once bought, the ownership details are recorded on the Ethereum blockchain. 

Other Metaverse Real Estate Options

There are many other platforms for purchasing metaverse real estate aside from the Big Four. Some major ones include Aavegotchi, Bit Country, Star Atlas, and Axie Infinity. Big Four dominates the real estate market because major brands like Adidas, Samsung, and Atari actively buy land on these platforms. 

If you are unsure where to buy digital land, you can take help from property managers or brokers on the platform. However, it is important to note that it is a common way to get scammed since they do not require licenses. Hence, you should trust and purchase from reliable sources. 

Once you buy a piece of land, you can further monetize your asset by doing the following:

• Rent property for meetings/events/concerts/etc.
• Rent property to creators, gamers, and developers who cannot buy land by themselves. 
• Host events and earn income by selling tickets, branding, and advertising.
• Open a virtual shop to sell either digital assets or a place to order real-world items or services if you have an existing business.
• Open a virtual marketplace to sell or trade NFTs.

2. Metaverse Index

The Metaverse Index is a collection of tokens (MVI tokens) that is a form of digital currency but is different from existing cryptocurrency. The main difference lies in its usage, which is used to purchase items exclusive to the metaverse. The index was launched by Index Coop that offers investors to invest in the metaverse without the risk of losing investment. It also provides steady returns and is considered a safer option.

The index is available for investment on Uniswap (V2) and Uniswap (V3). However, you can find it on other crypto exchanges as well. The protocol of MVI tokens covers categories like entertainment, NFTs, Augmented Reality, and Virtual Reality. Ensure that you choose a protocol with an active history in trading of at least 3 months. 

How to Invest in MVI Tokens?

MVI tokens can be bought from any DEX where it is listed. You must have a crypto wallet with enough Ethereum balance in it. Then, find the desired tokens and buy them with the required ETH. If you cannot find the token on a DEX platform, you can visit https://etherscan.io/ to find its smart contract address. Once found, swap the ETH balance against the MVI token. 

The most popular MVI tokens include the following:

MANA (Decentraland)

As discussed earlier, MANA tokens are used to purchase LAND on the Decentraland platform. However, it can also be used to buy in-game items, products, and services. In some cases, it is used to manage virtual properties as well. 

SAND (Sandbox)

Virtual properties on the Sandbox platform are bought via its token called SAND. Like Decentraland, the tokens can be used to buy in-ha,e items, and other virtual assets. These assets help to give further value to a piece of digital land. 

ATLAS (Star Atlas)

Apart from the Big Four, Star Atlas is another popular metaverse real estate provider. It allows users and players to explore lands in space using customized spaceships and by creating or joining a faction. The ATLAS tokens allow players to use an in-game currency called POLIS to further enjoy additional experiences within the game.

Other MVI Tokens on the Metaverse Index

3. Metaverse Stocks 

Investing in metaverse stocks is a good indirect way to invest in the metaverse. These stocks consist of companies that actively support and help develop the metaverse. Some major players include Facebook (Now META), Microsoft, Zoom, Nvidia, and Amazon. Stocks of these companies have already profited many investors due to their contribution to the metaverse.

How to Invest in Metaverse Stocks?

There are two ways to invest in Metaverse Stocks. The first way is to simply invest in stocks of the following companies on a public trading market:

• Meta (FB)
• Microsoft (MSFT)
• Adobe Systems (ADBE)
• Nvidia (NVDA)
• Alphabet (GOOG)
• Snap (SNAP)
• Roblox (RBLX)

The second way to invest in Metaverse Stocks is through an ETF (Exchange Traded Funds). An ETF is a collection of stocks that are traded under one fund. It is traded on stock exchanges and is similar to mutual funds. Investing in metaverse stocks through this method is far easier and cheaper than purchasing a stock. 

The most popular ETF to invest in metaverse stocks is the Roundhill Ball Metaverse ETF (METV ETF). As mentioned before, it comprises stocks that actively participate in the research and development of the metaverse. Some of the top holdings under this ETF include: 

• Tencent Holdings Limited
• Meta Platforms Inc
• Microsoft 
• Nvidia

Apart from the METV ETF, there are other ETFs available for investors to get started in metaverse stocks. Some popular ones include the following:

• Subversive Metaverse ETF (PUNK)
• Horizons Global Metaverse Index ETF (MTAV)
• Evolve Metaverse ETF (MESH)
• Fount Metaverse ETF (MTVR)
• ProShares Metaverse ETF (VERS)

4. In-game NFTs 

A fun way to invest in the metaverse is via in-game NFTs. Due to the recent boom in NFTs, it has become a hot topic for investment throughout the world. They are encoded with the same technology as crypto. According to a report by DappRadar, sales from NFTs amounted to $2.4 billion in the first two quarters of 2021. NFTs are created to showcase in-game items, music, videos, and, most commonly – digital art. 

How to Invest In In-game NFTs?

NFTs can be bought or sold on various gaming platforms. Some gaming platforms offer NFTs as rewards for playing the game. However, you must have a crypto wallet and some amount of crypto to get started with playing these games. Generally, you are provided some tokens to get started. Over time, the number of NFTs and their rarity will depend on how well you play the games against other players. Although time-consuming, it is a great way to invest in the metaverse without much capital. It is also the most popular option for investment. 

Some of the top games to invest in in-game NFTs include the following:

• Axie Infinity 
• Splinterlands
• CryptoKitties
• The Sandbox
• Gods Unchained
• Star Atlas 
• Ember Sword 
• Phantom Galaxies 
• Skyweaver
• Crypto Space War

Once you win enough NFTs, they can be sold or auctioned for real-world currency or existing crypto. The prices usually depend on their rarity and demand in the gaming market. Some games allow you to sell NFTs to NPCs as well.

Conclusion

Metaverse is a remarkable technological advancement that is constantly evolving the way the Internet works. It is a part of Web3 technology but is still in its early stages. The above methods will help you to enjoy a first-mover advantage by investing in the metaverse. Always do proper research before you invest, as it can bring a lot of fortune in the future. The best way to get started is via In-game NFTs, as it is both enjoyable and rewarding with minimal investment. It is always advisable to invest in that you can afford to lose.