Millions of people worldwide are keeping a close eye on the metaverse, an online virtual world. With its rapidly growing user base and cutting-edge technology, it’s no surprise that more and more individuals are looking to invest in this promising new space.
Investing in Metaverse is a hot topic amongst today’s investors, due to its ability to provide digital asset ownership, non-fungible tokens (NFTs), and access to blockchain technology. Metaverse offers investment opportunities that are not available through traditional investment methods, allowing individuals to have more control over their investments in the digital space.
What is the metaverse? It’s a 3D digital environment with endless possibilities for gaming, entertainment, shopping, communication, business meetings and more. This immersive virtual world is powered by blockchain technology and provides users with an entirely new way of interacting with one another regardless of location. As such, any savvy investor should consider investing in the metaverse as it stands to benefit greatly from its upcoming technological advancements over the next few years.
Metaverse, which operates on the blockchain protocol, allows individuals and businesses alike to create various types of digital assets such as NFTs. These assets can be traded for fiat currency or other cryptocurrencies and offer potential returns based on market conditions. The platform also allows users to securely store their digital assets with enhanced security features such as two-factor authentication and private keys. Additionally, Metaverse provides access to decentralized applications (DApps) that can be used for gaming, trading or even finance management purposes.
It’s no secret that metaverse investments carry both risks and rewards — but those who take a chance stand to benefit greatly if they can navigate these markets correctly.
How to Invest in Metaverse
Investing in the Metaverse can be a great way to grow your portfolio and make money. As this technology evolves, it has plenty of potential for investors looking to get involved early. Here’s what you need to know about how to invest in the Metaverse.
The first step is learning more about the Metaverse itself. What is it? Where are its applications? What benefits does investing in this technology provide? Knowing these answers can help determine whether or not investing in the Metaverse is right for you.
Once you’ve done your research and decided that investing in the Metaverse is a good option, there are several ways to get started.
Metaverse Stock
We have established that businesses based in the metaverse that focus solely on the sale of cosmetic items have the potential to generate a substantial amount of revenue. So how exactly do you put your money into the metaverse? You have several options available to you. Investing in stocks is one of the most straightforward and easy-to-comprehend ways to put money to work in the metaverse.
The stock of Meta Platforms is, without a doubt, the most transparent investment opportunity in the metaverse. Horizon Worlds is a virtual reality (VR) metaverse platform that Meta Platforms has released since the company changed its name. Horizon Worlds users can engage in conversation with one another through legless avatars and participate in gaming activities while exploring the virtual world.
The company’s offering of the metaverse has yet to be very successful, but it is attempting to broaden its appeal by targeting office workers with its Horizon Workrooms product. Meta Platforms has pledged to spend $10 billion on developing metaverses in 2022 alone.
Buying in Game NFT’s
Non-Fungible Tokens (NFTs) display real-world goods like music, artwork, films, and other game-related items. NFTs are bought and traded online. They’re encoded with cryptocurrency software. NFTs have been in the market for a while but have recently gained popularity due to their unique properties.
You must be wondering why people would spend so much on digital artwork since it is free in the form of NFTs like images and can be downloaded or screenshotted. However, they are expensive because buyers receive digital rights and encoded authentication to confirm NFT ownership.
People can invest in and make money in the Metaverse by playing NFT Games. This is because so many NFT Games let you make money while playing. As a result, the Metaverse’s economic trend will increase with the demand for NFT. In addition, gamers may make money by playing and live-streaming their favorite games on many platforms.
NFTs are top-rated digital assets now. In the first quarter of 2021, they were sold for about USD 2.4 billion. In addition, DappRadar, an NFT valuation and portfolio management company, reported USD 2.47 billion in NFT revenues in the first two quarters of 2021.
Purchasing Land in Metaverse
In the Metaverse, you can opt for purchasing land in the Metaverse. Games like Decentraland and Sandbox offer you the option to do so. In addition, there are options to invest in equity shares and mutual funds in the Metaverse, but these options have gained little traction compared to land. But the only issue while purchasing land in Metaverse would be the excessive investment you’ll need.
Land is a scarce resource in the Metaverse because it is an asset that cannot be created or destroyed. Land can be bought and sold on secondary markets, but it is costly due to scarcity. For example, you can buy a plot of land that costs around $1M from developers who have built castles and hotels on their land.
You will have to pay a hefty amount if you want to acquire a plot of land for your building project or commercial purposes.
Metaverse Token
While some metaverse tokens can only be used in the metaverse, others are traded on exchanges like WarziX, Coinbase, and Binance. Metaverse tokens are a form of currency used to conduct transactions within the metaverse.
Notably, metaverse tokens have strategists highly enthused. Users may rest sure that metaverse tokens are “a big, massive opportunity,” according to Bank of America analyst Haim Israel.
Which metaverse tokens, then, are most promising?
SAND. Players in the virtual game world known as The Sandbox can get SAND tokens by accomplishing tasks in the environment. The SAND utility coin, based on the Ethereum network, is essential to gameplay. In the metaverse, SAND tokens can be used to pay for virtual goods and operate on a play-to-earn basis. Right now, 1 SAND is equivalent to 6.55 USD.
Big names in the gaming industry are also paying close attention to The Sandbox. An investor group that contributed $93 million to the gaming platform was led by SoftBank’s Vision Fund 2. This came after the volume of transactions made by monthly active users reached $144 million.
AXS. Axie infinite is a play-to-earn game that resembles The Sandbox. Acquiring AXS tokens entails buying, selling, and trading collectible monsters.
Each of the NFT tokens used to depict the monsters is distinct. Over the past six months, usage of the entertaining game has increased dramatically, with daily users rising by about 5,000%. As a result, AXS now has a market capitalization of more than $8 billion, and the AXS coin is valued at $138.75.
THETA Currency Theta Network is a decentralized video delivery network that offers several blockchain-enabled fixes for the issues that the conventional video streaming industry is now experiencing. The THETA cryptocurrency powers the network. With this token, nodes may verify transactions, create blocks, and cast votes for network modifications. The current value of one THETA currency token is $6.69.
Final Thoughts
The metaverse offers a virtual environment that blends digital and physical reality, and it has immense power to change our lifestyle drastically.
As online connection has become more common and the demand for broader use cases has increased, the development of metaverses has advanced significantly in the post-pandemic age. However, despite the growing popularity of metaverse tokens, users should always conduct their research before making a purchase or investment.
