How to Invest in the Metaverse

The Metaverse is up there with the riskiest and most speculative types of investment, like almost anything regarding cryptocurrencies, NFTs, or the digital world.

Learning the how-to’s of investing in the world’s future digital universe can end up making you the wealthiest person in the digital world if you know how to play your cards right.

Let’s find out how the basics on how to invest in the Metaverse today:

What is the Metaverse

The Metaverse is a digital universe where users explore using their personalized avatars. Remember Facebook’s Meta announcement video? This video is the closest thing we have to that. The Metaverse will be synchronous, open to unlimited inhabitants, and will feature a fully functioning economy.

The Metaverse isn’t just a place for trading Axies when playing Axie Infinity. It’s also one of the biggest modern opportunities for investment in the future of the internet, so investors should aim to understand how it’ll work.

From what experts have speculated, the Metaverse could possibly represent a $1 trillion revenue opportunity. The world still hasn’t seen a trillionaire in modern times, so this could be the first step in the right direction for many who wish to invest in wealth opportunities.

An individual can invest in the Metaverse directly or indirectly.

Ways to Invest in the Metaverse

One of the most common ways to invest in the Metaverse directly is by purchasing metaverse tokens. Metaverse tokens are the currency used inside of the Metaverse by its residents, similar to our real-life money. Some of these tokens include MANA or SAND. MANA, which stands for Decentraland, is currently the top-ranking metaverse asset, reaching a market cap of $10 billion back in November 2021. On the other hand, SAND stands for The Sandbox

NFTs and the Metaverse

The second way to invest in the Metaverse is by purchasing NFTs.

As with any kind of crypto transaction, you need a crypto wallet. In this case, you’ll be using different types of currency when investing in the Metaverse. Thanks to its ease of use, the most commonly installed crypto wallet is MetaMask, though Binance is another very popular and easy-to-use option. It’s also a good idea to purchase ETH as your main cryptocurrency, as most NFTs are Ethereum based. Purchase ETH in your preferred crypto exchange, and you’ll be all set to start investing in the Metaverse.

Purchasing the metaverse tokens above is also the only way to buy NFTs inside the games.

You should go to well-known crypto exchanges to purchase these tokens, such as CoinDCX and WazirX.

Finally, we have AXS, the currency used in the Axie Infinity game.

To purchase virtual land or in-game NFTs, logically, you need an account in the game you’re trying to invest in. The three main currencies mentioned are the three main metaverses where you can buy land plots.

These are Decentraland, Axie Infinity, and The Sandbox. Among these NFTs, we can mention virtual land plots, art creations, characters, avatars, and, of course, Axies.

Purchasing digital land in the Metaverse is no different from purchasing real estate in the real world, which is kind of ironic when you think about it. You need to consider the location, price, and resale value of the virtual plot you’re purchasing. Once identified, you pay for it using the metaverse tokens.

You can connect all of this with your OpenSea account if you want to keep track of all your NFTs too. Once you select the NFT you desire to purchase for your investment; the process is no different from buying it from an NFT marketplace.

How to Invest in the Metaverse Indirectly?

You can invest in the Metaverse Index, which is a liquidity-adjusted index created to capture the shift of enterprises to virtual environments. MVI has decreased volatility than SAND, MANA, and AXS due to its reduced risk and currently trades at $201.78.

You can invest in the Metaverse by purchasing stock of companies related to the development of a metaverse when thinking of a company related to the Metaverse, Facebook’s first one that’ll come to mind. After all, it was Facebook who released the first significant Metaverse trailer when they rebranded themselves to Meta. Other companies developing metaverse-associated items such as VR goggles, networks, and games include Unity, NVIDIA, Apple, Roblox, Autodesk, Coinbase, Amazon, and Microsoft.

To better summarize everything, here’s an overview of all the investment options we’ve analyzed today:

• Indirect options, such as the Metaverse ETF, are the lowest risk options, with the slightest upside potential.
• On the other hand, the stocks options (Facebook, Coinbase, Autodesk, etc.) feature a medium risk and a medium upside potential.
• The third option, which is the direct investment and metaverse tokens, offers the highest risk and the highest upside potential.

Bottom Line

As with any investment strategy, diversifying your investment portfolio is an excellent way to guarantee a return on investment sooner or later. Investing in all three options and seeing how things evolve with time is an intelligent course of action.

Authorities in the field have warned against rushing into the Metaverse hype and spending investment money on a whim. The Metaverse is still in its baby stages, and possible return on investment for big companies or small investors hasn’t been confirmed yet.

No investment is without risks, and new technology’s high-risk, high-reward nature is ever-present in the Metaverse.
Learn more of our Metaverse articles to better understand how to invest in it and win a proper return on investment.