As the metaverse continues to be developed, many of you might be curious to know how to invest in the future of this shared virtual space. Here are 5 realistic ways that you can invest in the metaverse today.
Five ways you can invest in the metaverse are to buy metaverse cryptocurrency, invest in digital real estate, exchange-traded funds, play-to-earn gaming, and purchase metaverse-related NFTs.
Buy metaverse cryptocurrency
The metaverse economy is fueled by cryptocurrencies which people use to buy various assets like NFTs, land, or experiences like attending a music concert or playing a game.
Finding the right metaverse cryptocurrency to invest in might be the most challenging aspect of this particular investment strategy, but that’s not to say you can’t make some serious money investing in crypto.
To find a metaverse cryptocurrency worth investing in, you need to research the most popular and up-and-coming metaverse worlds. Some of the most popular metaverse worlds currently include:
- Decentraland
- Cryptovoxels
- The Sandbox
- Somnium Space
- Meta
Depending on the metaverse, each virtual world may use different crypto as its native currency.
Two of the most well-known cryptocurrencies in the metaverse currently are AXS and MANA. You can earn AXS by playing the Axie Infinity game built on the Ethereum blockchain. When you play the game, you earn Axie tokens which you can exchange for ETH cryptocurrency.
In 2021, Axie Infinity was the most popular blockchain game generating $1.3 billion in revenue, making it the top decentralized application in sales.
The MANA token fuels the virtual world of Decentraland. Decentraland is also an Ethereum based metaverse where users can buy parcels of land, develop it and sell it. There are 1.8 billion tokens in circulation, making MANA an attractive buy for gamers, companies, and creators alike.
If you want to explore some other potential metaverse cryptocurrencies to invest in, check out our article on 15 of the best metaverse cryptocurrencies to invest in.
Invest in virtual real estate
After digital artwork, virtual real estate is the next big thing. Investors are going all-in on this because of the potential ROI. Buying virtual real estate shares the concept of owning NFTs. You buy a digital asset, in this case, property, which you can develop, sell, or rent out in the metaverse.
Virtual real estate may seem unappealing now but as more companies are going digital, the need for virtual space is becoming a true necessity. Think about it. As humans, we already spend the majority of our time in a digital world.
Whether you are listening to music, watching videos, buying goods, or even learning something new, we are consuming the world in a digital space, and the metaverse is the next step in the evolution of our economy.
In fact, big-name brands like Microsoft, Nike, and Sony are already building in the Metaverse and taking advantage of the opportunity that is yet to come. Additionally, metaverse real estate reportedly topped $500 million in 2021 and is expected to continue to climb as the metaverse continues to be developed.
Some of the most popular metaverses to buy virtual real estate are Decentraland, The Sandbox, and Cryptovoxels. If you’re a first-timer, OpenSea.io is a great option to explore different lots of virtual land because you can easily compare prices across several metaverse worlds.
Don’t just invest in any metaverse though, make sure you take the time to research and find the best metaverses. Where are other people and companies putting their money, and why?
Or perhaps you notice someone building something extremely innovative in a metaverse that sparks your interest. Generally, if something interests you, then it’s likely you’re not the only one, and if you can catch wind early enough, you have the potential to invest while things are still cheap.
So take your time, explore the worlds, learn who the creators are, who else is spending time there, and what the future holds for each metaverse, only then will you be able to make the best possible decision, and rely more on your intuition.
Exchange-traded funds
When Facebook made the big change to Meta, other big tech companies and investors began to see the potential in the metaverse. The Bank of America projected that the Metaverse global market could go up to $800 billion by the mid-2020s.
Many companies have poured a lot of money into developing and commercializing the metaverse based on the numbers.
That being said, buying stocks of public companies whose business model and profitability are tied to the metaverse might be a safe option, especially for retail investors. Some companies to consider include:
- Meta Platforms Inc (NASDAQ: FB)
- Roblox (NYSE: RBLX)
- Microsoft (NASDAQ: MSFT)
- Boeing (NYSE: BA)
- Nike (NYSE: NKE)
- Shopify (NYSE: SHOP)
- Amazon (NASDAQ: AMZN)
- Unity Software (NYSE: U)
Of course, these are only a few companies whose stocks might be worth looking into when considering investing in the future of the metaverse.
Play-to-earn gaming
For many years game developers and publishers have been the only ones who profit from in-game purchases. They also had full ownership and control over any assets the players bought in the game. However, a new generation of gamers demanded compensation or rewards for the time spent playing these games.
Enter the metaverse, which has led to the rise of the play-to-earn model. So, what does this mean? The play-to-earn model has allowed players to own all the digital assets acquired in the game. Most play-to-earn games are built on blockchain technology, meaning as you play, you are rewarded in the form of crypto tokens and NFTs.
The most popular play-to-earn games in the metaverse are Axie Infinity and Decentraland. The tokens you earn in these games can be sold, exchanged, or borrowed on a dedicated site like OpenSea, where you can sell NFTs. Since these tokens are powered by blockchain technology, players are assured of security for their assets.
For Decentraland, you have to play with your digital wallet for a better experience. After logging in, you will create your avatar and begin to explore the virtual world of Decentraland.
Another Metaverse play-to-earn game that is actually advertised as the world’s largest Decentralized Metaverse Investment Organization is vEmpire.
The vEmpire protocol incorporates different strategies to incentivize metaverse token staking to fund the battle against centralization. vEmpire is entirely focused on protecting decentralized technologies through virtual property and metaversal asset acquisition.
Overall, the play-to-earn model has increased in-game purchasing, and although it is still at the infancy stage, the industry is projected to earn more than $75 billion by 2025.
Buy metaverse related NFTs
NFTs are the most versatile component in the metaverse. They are used in gaming, virtual property, and your virtual avatar life. For example, you get an NFT as proof of ownership when you buy virtual property instead of a title deed.
In the gaming world, NFTs allow you to collect, own, and trade in-game assets for real money and are used as a reward system. As well, you may need to own certain NFTs to gain access to specific events in the metaverse such as concerts, conventions, and other shows.
There are four ways you can invest in the metaverse via NFTs:
- Buy and sell metaverse-based NFTs
One of the most simple ways to invest in the metaverse is to buy and sell metaverse-related NFTs. To do this, find an NFT project that incorporates the metaverse in some form. This can be something as basic as a product that is popular in the metaverse or has the potential to be popular.
One example is Adidas Originals: Into the Metaverse NFT. The original purchase price for this NFT was 0.2 ETH, and it quickly spiked to over 1 ETH upon sellout. That’s a 500% increase, which is practically unheard of in the investment world.
Buying and selling NFTs is easily one of the most straightforward ways to invest in the metaverse via NFTs.
- Yield-generating NFTs
Instead of tracking your assets in Web3, you can earn passive income through governance tokens as an NFT holder for various projects. For example, Genesis Cyber Kong, SupDucks, and Mutant Cats.
- Nested NFTs
Generally, when you buy an NFT, that’s that. But, with Nested NFTs you can now layer NFTs with other NFTs using a platform like Charged Particles. Essentially, you are able to create a virtual basket that can hold multiple NFTs.
These are layered NFTs that add value by customizing and creating new functionalities to existing virtual items and can be turned into yield-generating assets.
- Staking
With this method, you earn rewards by holding certain assets or locking them in a smart contract. The reward tokens are usually specific to a certain project and have limited features such as governing or voting rights. If you receive rewards that are in a decentralized exchange platform, you can trade them in the market and make more money.
NFTs are a growing market, with people spending billions of dollars on digital assets as of 2021. Considering NFTs are the only way to prove ownership of these digital assets, they are becoming increasingly popular as more people are beginning to understand the value of their online identity and as society delves even deeper into a digitalized economy.
Is investing in the metaverse safe?
Investing in the metaverse is risky. Although the future of the metaverse is promising, the various means to investing in the metaverse should be approached with caution. It’s hard to say what’s a good investment. However, choose wisely, and you can make big profits.
Experts believe that the metaverse is an investment opportunity worth over one trillion dollars. Besides that, major companies such as Apple, Sony, Amazon, Microsoft, and many more are jumping into this unique money-making opportunity. As an individual, you might want to go with the trend and grab the opportunity while it’s still early.
However, since it’s new, you also wonder whether it’s safe. Many people and even companies are studying what others are doing so they can have a clear picture of how they can get into the business of the metaverse.
So, what does the market look like? Will the big players today still be there ten or twenty years to come? Will the same infrastructure, i.e., smartphones, PCs, VR headsets, tablets, etc, be the same down the line? These are some of the questions cautious investors are asking because right now, the metaverse is being built on the assumption that people already have the infrastructure to participate in it.
The bottom line is that this is a new opportunity, and there are risks. Therefore, before making the decision, it’s crucial to learn as much as you can about the metaverse and what it’s all about. Instead of looking at the big winners right now, look at the ones working on the technological infrastructure needed down the line.
Also, keep in mind that there is more than one metaverse. Different companies are working on their versions of a virtual world, so you might have several investment options to consider.
