Several multimillion-dollar real-estate transactions this year have put the term “metaverse” on the tip of our tongues. The metaverse is a virtual environment in which people may explore using their own avatars. It goes beyond gaming by allowing visitors to engage electronically and participate in a variety of real-time activities. According to experts, the metaverse currently represents a one-of-a-kind $1 trillion business prospect.
How To Invest In Metaverse?
There are three methods to invest directly in the metaverse:
- Buy metaverse tokens.
- Purchase non-fungible in-game tokens (NFTs)
- In the metaverse, you may buy virtual land (also sold as NFTs)
Let’s take a look at how you can invest in the metaverse in two simple steps:
Step 1: Make a cryptocurrency wallet (common for all)
Every purchase, like tangible goods, necessitates a wallet full of cash. To invest in the metaverse, you must first build a crypto wallet and load it with currency.
In India, the most popular choices for purchasing metaverse tokens are WazirX, CoinDCX, and CoinSwitch Kuber.
MetaMask is the most popular crypto wallet in the world for NFT purchases. Coinbase and Binance are also viable alternatives. Because most NFTs are Ethereum-based, it’s advisable to buy the ether (ETH) cryptocurrency with your local currency.
Completing know your customer (KYC) procedures will allow you to authenticate your wallet.
Step 2: Open an account on the platform of your choice
Purchase metaverse tokens:
The simplest approach to obtain these tokens is to go to crypto exchanges such as WazirX or CoinDCX and use your currency-loaded wallet to buy them directly. MANA, the native money of the Decentraland metaverse; SAND, the currency of the Sandbox metaverse; and AXS, the native currency of the Axie Infinity metaverse, are among the most sought-after metaverse tokens.
Buy in-game NFTs/own virtual land:
You must register an account with the game in which you desire to make purchases and link your crypto wallet to their account. Log on to Decentraland for virtual real estate, Axie Infinity for characters and land plots, Sandbox for artistic works, and so on.
If you want to access all of the NFTs in one single marketplace, you may sign up for an account with OpenSea.
Step 3: Select the NFT you wish to purchase and make the payment
If you go through any of the sites mentioned above, you will find that NFTs do not have a set selling price. To get possession of the NFT, one must bid on it and outbid all other bidders. The NFT is then promptly paid for using the wallet you generated and loaded with bitcoin in Step 1.
You should keep in mind that there are advantages and disadvantages to purchasing from a major marketplace (Decentraland, Axie Infinity, Sandbox, and so on) vs a secondary marketplace (OpenSea, etc.). An NFT traded on the primary market will invariably have a better resale value. However, determining its genuine market worth in the main market is more difficult.
Investing in metaverse indirectly
- Buy metaverse-associated stocks:
- Metaverse-associated equities are those that are actively involved in the creation of the metaverse. The companies might be involved in the manufacture of virtual reality (VR) goggles, networking technology, 3D rendering programs, and so on. Apple, Facebook, NVIDIA, Roblox, and Unity are among the most popular stock options. These equities are available for purchase through brokerages or metaverse ETFs (Exchange Traded Funds).
- Invest in Metaverse Index (MVI):
The metaverse index, like stock market indexes that catch the patterns of the top-performing corporations in the country, captures the trends in entertainment, business, and gaming that are shifting to the virtual world. It is presently worth $225.86. The MVI minimizes the risk of acquiring metaverse tokens by considerably lowering volatility. The MVI incorporates all of the top-performing metaverse tokens in existence.
The metaverse is constantly changing, and many new advancements are still in the works. We are experiencing a major shift from the physical to the virtual worlds. While the potential is enormous, it is prudent to conduct an extensive study before making any big investments.