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How to invest in the Metaverse

How to invest in the Metaverse?

Metaverse is a term you must have started to hear recently, a few people had a certain idea of what it is or made an assumption but it got into the limelight when Mark Zuckerberg started to rebrand Facebook by changing its name to Metaverse.

There’s no use hiding that that’s when most of us heard the term “Metaverse” for the first time. But still, there are many people out there who have seen metaverse in talks and at top of the tongue for a few months now but still are aware of what exactly it is.

Every new stage of technology brings with it the opportunity to commercialize it or to use different ways to make money with its help. But to understand clearly how to invest in the metaverse, we would first have to grasp the knowledge of metaverse meaning.

What is Metaverse? What are its properties?

The term metaverse can be traced back to a dystopian cyberpunk novel, called Snow Crash, written by Neil Stephenson. It was in this novel that for the very first time virtual reality was created and called the matrix. So if we try to explain metaverse in layman’s words, it would be something like “a virtual world which can be explored by people using their own personalized avatars”.

Metaverse hasn’t actually arrived yet and Mark Zuckerberg believed that it would arrive by the end of this decade or even sooner, as the preparations are already in place. Metaverse actually goes beyond the world of gaming, as it can allow people to interact with each other in real-time using virtual reality and experience various activities.

So now if we try to look at all of its properties from the perspective of the venture capitalist Matthew Bill, it would include the Metaverse being massively scaled, interoperable, 3D virtual worlds, synchronous, real-time rendered, persistent, different individual sense of presence,  and the continuity of data.

How to invest in the Metaverse?

Now you know why everyone is running after the metaverse investment. Simple reason – it’s huge and undoubtedly promises profit in the long run. Let’s now look at the investment opportunities then you can take advantage of to earn some money. Initially, there are. 3 ways through which you can directly make metaverse investment these days. These are through purchasing metaverse tokens; by buying Non-Fungible Tokens, which are called NFTs, and also by buying metaverse real-estate in the virtual world.

Direct ways to invest in the Metaverse

Let’s look at the process of investing in the metaverse in an easy, direct, and simple way, step-by-step.

Step 1:

The first step is to create a crypto wallet. This is similar for all kinds of metaverse investment and metaverse investment funds. Even when you make a simple purchase from a nearby shop, you still need a wallet to keep your money, same in online payment where you have a Paytm or Google pay wallet, so the same goes for metaverse too. Here also you’ll need a crypto wallet where you can save the currency earned from the metaverse.

Now for the purpose of buying the metaverse tokens, the second direct way of investing in the metaverse, there are different platforms available. The most popular ones are WazinX, CoinDCX, and CoinSwitch Kuber.

And for the purpose of buying NFT, the most popular crypto wallet is MetaMask. Other good option options include Binance and Coinbase. Though it is suggested that the best currency to buy NFTs in is your own traditional currency as NFT is Ethereum based. After this, just like you do in other digital wallets, verify your details by completing the KYC process.

Step 2 :

The next step is of opening an account on a platform of metaverse of your choice. What comes next is purchasing metaverse tokens. Now you already have your wallet ready so the easiest way to go about this is to go to crypto exchanges of either CoinDCX, WazirX, or whatever other platforms you chose and then use your wallet to purchase these tokens directly. Now you must be thinking about which ones are the most wanted and famous metaverse tokens. You can do your own personal research regarding this and make a choice but if you want to know the most poop ones, then these are MANA, which is the native currency of the Decentraland metaverse; SAND, which is the currency of Sandbox metaverse, and the AXS,  the currency of Axie Infinity metaverse.

If you wish to buy the in-game NFTs, the process for this is to simply create an account with the game you want to make the purchase in and then connect your crypto wallet with jay particular account. For instance, if you wish to buy characters on Axie Infinity, then do the Metaverse login and buy the tokens. You can also create an account on OpenSea in case you desire to access all the NFTs in one place for your own convenience. The process of buying virtual land or real estate would be explained in detail after this.

Step 3 :

The last step in the whole process is of selecting the final NFTs one wants to purchase and making the payment. When you browse the before-mentioned metaverse platforms in the article, you will realize that these NFTs do not have a pre-decided price. Why is that? It is primarily because in buying NFTs, the user must make a bid for the particular NFT of their desire and then beat all the other bidders in the auction to gain the ownership of that NFT. 

It should not be forgotten that are advantages and disadvantages, upside and downside of every single process, and the same go for buying from a primary marketplace like Axie Infinity, Sandbox, Decentraland, et cetera, as well as secondary market places like OpenSea and many more. The NFT in the primary marketplace would automatically have a higher resale value but it is equally difficult to estimate the true value of that NFT In the primary marketplace. That is why this is the downside of the primary marketplace, whereas the opposite is the upside at a secondary marketplace where the NFTs can be compared against each other.

Indirect Ways to invest in the Metaverse

These above-mentioned were the direct ways to invest in the metaverse, but these aren’t the only ways to make an investment in this unique place. There are indirect ways too. And these indirect ways are by either buying metaverse-associated stocks or by investing in Metaverse Index. Let’s look at both in detail now.

The first way is by buying stocks of the companies that are associated with Metaverse. And these days, there isn’t a dearth of such companies. There are tons of stocks of organizations that are very actively involved in the development of the Metaverse. These organizations can simply even be engaged in making VR goggles, 3D rendering applications, networking technologies, and many more. The most popular stock options these days are Facebook, of course, Apple, NVIDIA, and Roblox. These stocks can be bought with the help of metaverse ETF, that is Exchange Traded Funds, or through brokerages.

The second indirect way of making a metaverse investment is through investing in Metaverse Index. Just like the stock market guides people regarding the trends of top companies in the nation, the metaverse index does the same in terms of entertainment, gaming, and business, that are owing to the virtual universe. This helps in reducing the risk of buying the wrong metaverse tokens. It includes in it the details of all the trends of top-performing metaverse tokens that are in existence, just like the stock market does with companies. This is extremely helpful and thus everyone should do a significant amount of research on this platform before making any kind of investment.

Buying Metaverse Real Estate

We have above mentioned that one of the direct ways of metaverse investment is through metaverse real estate. So let’s look at its process in a little detail now.

Investing money earned from years of hard work can be put to good use and invested into metaverse real estate in three steps:

  1. Platform Selection
    Metaverse is bringing unlimited opportunities to users and there are already many options to consider when looking for a platform for buying a home or real estate property. Third-party platforms such as OpenSea and NonFungible offer the opportunity to purchase metaverse locations and both have virtual land packages, generally displayed in equivalence with a real-world currency.
  2. Moving Funds to a Digital Wallet
    As in the real world, we need money in the bank to buy real estate. Metaverse allows items to be purchased using cryptocurrency, which means we need to open a wallet with digital currency accepted at our chosen place of purchase or the buying platform.
  3. Make an offer and seal the deal
    After ensuring the property the platform will give you purchase options to make an offer. If your bid is successful and your wallet has enough money you will be told to confirm the purchase. Once the payment has been approved on the blockchain you will have completed the purchase and the sale will get recorded in your wallet.

When would the Metaverse become available?

We now have an idea of what metaverse is and a timeline as to when it might become available but how would we know that it has become available? Well to give you an example, it would be available when for instance, you, along with as many more people as want, can enter a virtual shopping mall, buy a virtual digital item, and then sell that virtual digital item on an altogether different virtual platform.

Now you might get it confused with the movie “Ready Player One” which was actually adapted from a book. But the major differences that the expert are assuming would be between the movie’s metaverse and the real one would be the absence of Oasis and of less use of VR too.

Why invest in the metaverse when it hasn’t even arrived yet?

Metaverse investment is getting to a new peak each passing day Even though it hasn’t been even a year since Metaverse has come into the limelight, you still must have seen many people around you investing in it in different ways. But then often comes the question of what is the reason behind this huge level of metaverse investment when it isn’t even real yet? Well, for starters, one of the biggest social media platforms – Facebook has even changed its name to META, did you even imagine one day it would be metaverse Facebook? There are many other global brands like Gucci, a fashion brand, that collaborated with Roblox to sell its rare items, as a way of entering the metaverse. These bags were sold at a much higher price than on offline or even online stores.

Not only Gucci, but many other fashion brands have also started to walk on the same road as Gucci, to enter into the metaverse, like Louis Vuitton, Marc Jacobs, and Valentino. Now, why are these brands investing in the metaverse? Because it is the jackpot. It is the future of technology and virtual reality.

Frequently Asked Questions

Below are some of the most commonly asked questions in the context of Metaverse investment.

How can I invest in Metaverse?

There are different ways of investing in the metaverse, both indirect and direct, and both the kind of investments have their negative and positive aspect.

Are a direct way of investing in metaverse better than an indirect one?

No, there is no such thing as indirect ways of metaverse investment being riskier or profit worthy as both kinds have their ups and downs.

What are NFTs?

NFTs are Non-Fungible Tokens that can be bought in a metaverse game or platform and then sold at a different platform of the metaverse.

NFTs are Non-Fungible Tokens that can be bought in a metaverse game or platform and then sold at a different platform of the metaverse.

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