If you are riding the wave of cryptocurrency, you might have heard of Metaverse and the virtual world with cryptocurrency as the base form of transaction. But before we dive deep into how to invest in the metaverse, let’s understand what metaverse is.
What is Metaverse?
The Metaverse is a simulated digital world that uses AR (Augment Reality), VR (Virtual Reality), and Blockchain to mimic the real world. So you can create your character and interact with people just like you do in the real world.
Here, there are no limitations. Anything you do in real life can be done in the metaverse, from basic interaction to playing games. A good example of this is the movie ‘Ready Player One’.
According to many people, the Metaverse is the next big thing as Facebook rebranded their primary branding to Meta Platforms. According to a recent quote from Bloomberg, the overall global revenue opportunity from the Metaverse can approach close to $800 Billion by 2024.
How to Invest in Metaverse?
During the pandemic, cryptocurrency made a massive boom by reaching almost the majority of the people. Almost everyone knew what bitcoin and cryptocurrency were. Following the cryptocurrency boom came the Metaverse & NFT boom.
Metaverse Crypto Tokens
While investing in Cryptocurrency isn’t the same as investing in Metaverse, you can invest in both through Metaverse Investments or Metaverse Cryptocurrencies. These include investing a piece of land and participating in their tokenomics. Some of the popular tokens include:
- Decentraland (MANA)
- Sandbox (SAND)
- Enjin (ENJ)
To invest in the metaverse, you can directly purchase these tokens straight from Binance. Later, these can be used to purchase assets, products, services, etc in the Metaverse or use those tokens in the physical world and make a profit.
Purchasing Metaverse lands
The best way to invest directly in the metaverse is to purchase a virtual plot of land or real estate. Multiple reports state that real estate sales can double to $2 billion in 2022, and there are numerous instances where investors are already paying millions of dollars to buy the virtual space in the metaverse.
Some of the current land projects include:
- Sandbox
- Decentraland
- Yuga Labs Otherside
Metaverse is still a very new concept, and no one knows how these lands will be valued in the future. Also, it is worth noting that multiple companies are working towards this, and not everyone will be able to implement an immersive experience successfully.
Renting Metaverse buildings
If one can’t buy land in the metaverse, there are options to rent prefabricated structures that you can put to use directly. For example, you can buy a prefabricated building with a virtual storefront to showcase their real-life offerings replicated as 3D models in the metaverse.
While this might sound interesting, easy, and convenient at first, these kinds of rental properties usually require a huge sum of investment initially thereby putting a barricade to the new investors trying to get into the world of the metaverse.
Metaverse Stocks
If you are looking for the easiest way to invest in the metaverse, then purchasing shares/stocks in metaverse companies is the way as it doesn’t involve any complex process to handle a crypto wallet or in that case, there’s no need to even open a digital wallet to purchase metaverse stocks.
The only drawback in investing in metaverse stocks is that they are very limited in the inception stage. This involves only serious investors looking to invest a huge sum in potential companies.
Right now, the leading stocks in the metaverse include Meta Platforms Inc (Facebook), Nvidia (NVDA), Roblox Corp (RBLX) and Electronic Arts (EA). If you’re looking to get into Metaverse Stocks, Etoro is the best place to get started. Check out our comprehensive Etoro Review.
Exchange-Traded Funds (ETF)
Exchange-Traded Funds or ETFs are still a fairly new term for most of the crypto heads out there. However, a Metaverse Exchange-Traded Funds (ETF) is a rapidly emerging method of investment where the best performing funds are readily available to invest as a collection.
Most of the ETFs are the same way you find mutual funds, where you can find different themed stocks organized into a single fund. Similarly, ETFs are a bit different as there are dedicated fund managers who actively keep the ETF trades going and ensure maintaining their optimal marketing value.
The ETFs are rapidly emerging in the market, and a few well-known ones include Roundhill Ball Metaverse ETF, Subversive Metaverse ETF, ProShares Metaverse Theme ETF, and more. However, the only drawback here in ETF investments is that they have a minimum investment threshold of $1000 and require prior experience with investing in the stock market.
Non-Fungible Token (Metaverse NFT)
By now, you should have heard of NFTs; it is also a way of investing in NFT. This is one of the most complex ways to invest as it involves multiple levels of process, from the creation of NFT to actually trading/selling an NFT. This involves the creation of 3D objects and listing them in the metaverse marketplace, or one can also buy & sell NFTs, which is a comparatively easier approach.
While these are few options to invest in the metaverse, there are yet lots of available opportunities in the metaverse that must be looked upon. Similarly, it should also be noted that Metaverse isn’t for everyone. The best example for that is the price drop we saw in cryptocurrencies like ETH, BTC, etc where one small move can affect the whole portfolio. That is why, while investing in Metaverse, you should maintain a diverse portfolio that is independent of its nature that can help to reduce the risk comparatively.
Easiest way of Investing in the Metaverse
With the above options explained, the easiest way to invest and get exposure to the Metaverse is by buying the tokens. Here are some of the best Metaverse Tokens that are available on Binance:
- Decentraland (MANA)
- The Sandbox (SAND)
- Axie Infinity (AXS)
- Illuvium (ILV)
- Ape Coin (APE)
You can create an account on Binance and then instantly buy these coins for GBP or swap them for other cryptocurrencies. As always, do your own research.