How To Invest in the Metaverse: Beginners Guide
How To Invest in the Metaverse: Beginners Guide
The online worlds termed 'Metaverse' are filled with potential investment opportunities, especially given corporate interest in the area in recent years. While enticing, the Metaverse is also complex, so it can be challenging to recognize good investments from bad ones. This guide will help you understand the basics, so you can start making financial decision in the digital world.
If you're reading this, there's a good chance you've heard of the Metaverse. But what is it, exactly?
The Metaverse is a parallel universe that exists online, and it's growing in popularity every day.
The Metaverse offers something for everyone with gaming, social media, virtual land ownership, and business applications.
So how do you get started in the Metaverse? In this guide, we’ll walk through the basics. You're about to learn about this new technology and how it works and get tips on investing in this exciting platform.
Looking for expertise on the metaverse? Consult an expert blockchain team from The Manifest.
What Is The Metaverse?
The Metaverse is a parallel universe that exists online. It's made up of virtual worlds where people can interact with each other and create new experiences.
The Metaverse is located on the Internet. It exists on web 3.0, which is a newer version of the Internet. Web 3.0 is decentralized and works through blockchain technology. This means that there is nobody in control that can shut everything down.
In 2.0 platforms, companies can control the content. They can take down whatever they want, whenever they please, as we see happening with Facebook, YouTube, and others.
But in the Metaverse, there is no one in control. You can post whatever you want without censorship from companies or anyone else.
Although this technology is still new, there are already a few popular platforms, such as:
These platforms also have their cryptocurrency. The most popular one is Decentraland, which uses the MANA token.
Why Is The Metaverse Important?
People can now connect and communicate anywhere in the world virtually. You can build businesses, play games, chat with friends, and watch events from the comfort of your home.
Although the Metaverse was initially created for gaming, it has already expanded to other industries.
For instance, businesses use these platforms for virtual events, training, and product launches.
Even famous singers are using the Metaverse. Like Justin Bieber performed his first show in November 2021. Where he sang his most popular hits, Peaches and Lonely, and anyone with a VR headset could freely attend.
But let's take a closer look at a few applications.
Gaming
The Metaverse offers a new way to experience games. With virtual reality and 3D worlds, the possibilities are endless.
A VR headset is a great way to experience the Metaverse. With a VR headset, you can enter virtual worlds and interact with other players.
There are many different types of VR headsets on the market. If you're interested in gaming, I recommend the Oculus Quest 2 or Valve Index.
Social Media
The Metaverse provides a new way to experience social media. You can interact with your friends in ways never before possible.
For example, imagine being able to attend your friend's wedding without leaving your home. Or visiting the pyramids of Egypt without ever leaving your living room.
Business Applications
Virtual reality makes it possible for people from all over the world to come together in one place.
This allows businesses to save money on travel costs while providing an immersive experience for their employees or customers.
The Metaverse is also great for training employees, similar to the Matrix movie, where Neo perfects his combat skill in a virtual training room. Now employees can learn new skills in a safe and controlled environment.
And businesses can launch products in a virtual world before releasing them to the real world.
Why Should You Invest In The Metaverse Today?
The Metaverse was worth over $40 billion in 2020.
Experts predict that the Metaverse will be worth $800 billion by 2024 and $10 trillion to $30 trillion within 10 to 15 years. Just to give you an idea of the explosive value of this new blockchain technology.
Although this is speculation, there is still good reason to believe this may happen. For instance, someone bought a Metaverse land plot for $2.43 million in Decentraland.
And Sandbox beat the record for the most expensive land ever sold! A digital land was sold for $4.3 million in Sandbox.
As you may see, people are already making huge money transactions in the Metaverse. So, there's a promise of a bright future, and you certainly don't want to miss it! You should get in early to make the most of it.
3 Best Ways To Invest In The Metaverse
Currently, you have three main ways to invest in the Metaverse. This includes:
1. Metaverse Real Estate
The Metaverse is made up of virtual land. And just like in the real world, you can buy, sell, or rent this land. However, contrary to the real world, there's unlimited digital land.
For this reason, the value of the land depends mostly on the platform's popularity. For instance, Sandbox has partners like Snoop Dog, Binance, and Adidas. Also, it wants to bring its platform to mobile devices by the end of 2022. This brings more people to Sandbox, increasing the digital land value there.
You can buy Metaverse land through Decentraland, Sandbox, or other platforms. Or, you can through third-party platforms like OpenSea or Nonfungible.com.
These virtual spaces can be used for multiple purposes, such as:
- Events: You can host virtual events like music festivals, conferences, or product launches.
- Stores: You can open a virtual store and sell products or services.
- Games: You can create a virtual world for people to explore or a game for people to play.
The demand for digital land can only go up in the next few years, making this a great investment.
How To Buy Land In The Metaverse?
The process of buying virtual land is similar to buying a domain name. You find a piece of digital real estate you like and then purchase it through a platform like Decentraland, Sandbox, or OpenSea.
Anyway, there're a few things you need to have at hand before you start.
- Need Digital Money: You'll need a cryptocurrency to buy virtual land. But first, get a digital wallet like Metamask or Coinbase Wallet to store your digital currency. For instance, if you're using Decentraland, you'll need to use the MANA token. And if you're using Sandbox, you'll need SAND tokens. So, make sure you choose a platform that accepts your cryptocurrency.
- Sign Up For A Metaverse Platform: To buy digital land, you must first sign up for a Metaverse platform like Decentraland, Sandbox, or OpenSea.
- Find A Piece Of Virtual Land: Once you're signed up, it's time to find a piece of digital land that you like. You can use the search function on the platform to find what you're looking for.
- Buy The Land: When you've found the perfect piece of digital land, it's time to buy it! The process is similar to buying a domain name. You simply pay the price, and the land is yours.
2. Metaverse Stocks
The second way to invest in the Metaverse is through stocks. Currently, a few different companies are working on expanding virtual reality. Here are three of the most popular ones:
1. Meta Platforms($FB)
Facebook has rebranded itself as Meta. Meta refers to the virtual world that Facebook plans to create in the next ten to fifteen years. This virtual world would allow users to connect using augmented reality (AR), with its Ray-Ban stories Smart Glasses, virtual reality, and cryptocurrencies.
2. Matterport ($MTTR)
Matterport is a 3D camera and software company that creates immersive 3D models of real-world spaces. This company helps consumers and businesses bring real spaces to the cloud.
These models can be used for several purposes, including virtual reality, 3D printing, and augmented reality.
3. Unity Technologies ($U)
You have probably already heard about Unity Technologies. This game development company is responsible for games such as HearthStone, Rust, Assassin's Creed, and others. Unity wants to be the main developer and provider of tools and platforms for creating virtual worlds.
3. Metaverse NFTs
The Metaverse is also a great place to invest in non-fungible tokens (NFTs). NFTs are digital assets that are stored on the blockchain. This means they're unique and can't be replaced.
Some popular examples of NFTs include art, collectibles, and in-game items. You can buy, sell or auction off NFTs through platforms like Opensea, Rarible, or SuperRare.
NFTs are a great investment because they're scarce and can potentially increase value. The idea is to buy NFTs at a low price and wait until their value increases so you can sell them for more money.
For instance, an NFT called CryptoPunk sold for $7.5 million in February 2021. This shows that there's a lot of potential in this market.
The other alternative is to make your NFTs. You can create them through platforms like Mintable or Rarible. Mintable is an easy-to-use platform that allows anyone to create and sell NFTs.
How To Mitigate Risks While Investing In The Metaverse?
Now that you know how to invest in the Metaverse, it's important to understand how to mitigate risks.
- The first way to do this is by investing in different assets. This way, if one asset decreases in value, you won't lose all your money.
- The second way to mitigate risks is by diversifying your investments. For instance, you can invest in virtual land, stocks, and NFTs. This way, you'll be less affected if one market crashes.
- The third way to mitigate risks is by doing your research. Digital assets are still new, so their value changes a lot. For instance, NFTs are an extremely unstable market. One day, an NFT may be worth thousands of dollars, and a week later, a few dollars.
For this reason, read about the platforms and Metaverse companies you're interested in before investing any money. Also, try to find reliable YouTubers or blogs where you can find good information about the digital assets you want to invest in.
This way, you'll know what you're getting yourself into, and you can make informed decisions.
Lastly, only invest the money you're willing to lose. The Metaverse is a risky investment, so you should only use the money you're comfortable losing.
The Metaverse Requires an Open Mind
The Metaverse is a thrilling place to invest in digital assets. I recommend looking into NFTs, virtual land, or stocks in different metaverse platforms.
Also, keep learning more about this new technology until you feel confident to invest.
Often people get confused about investing in something virtual. However, it's like anything else. It only requires an open mindset!
Before investing, it's important to do your research and understand how to reduce risks. Also, only invest the money you're willing to lose.
You can find the best blockchain companies on The Manifest.
Jordan Alexo
Digital Marketer, Jordan Alexo