How to Invest in the Metaverse: From Virtual Land to Metaverse Funds
Although the Metaverse is in its infancy, investors are already investing in it thanks to the new revenue opportunities it offers – from virtual land to metaverse funds. Read on to learn what the Metaverse is, why crypto-savvy investors are excited about it, and how you can invest in the Metaverse.
What Is the Metaverse?
While the metaverse blew up last year when Facebook (now known as Meta) announced it will focus its business on it, the term has already existed for over three decades. Its origin is credited to Neal Stephenson, who authored the novel ‘Snow Crash,’ which was published in 1992, and the concept has been further delved into in Sci-Fi films and novels, such as ‘Ready Player One’ and ‘Tron’.
So, what exactly is the metaverse?
The metaverse is expected to be the future of the internet, merging augmented reality, extended reality, and virtual reality that will be accessible via digital items such as avatars. In the metaverse, human beings will be able to play, work and socialize as they do in the real world.
In short, the Metaverse – once fully developed – will be a collection of interrelated virtual worlds that will bear resemblance to the physical world that we live in, with people being represented as virtual avatars.
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Why Are Crypto-Savvy Investors Excited About the Metaverse?
The Metaverse has the potential to be very lucrative. Bloomberg expects its market size to grow to $800 billion by 2024. Moreover, Metaverse proponents believe that the Metaverse will have a greater impact than what the Internet has had over the last few decades.
For starters, crypto-savvy investors are thrilled about the Metaverse because it will bring forth an era of barrier-free digital interaction and mass adoption of virtual currencies and digital assets, such as BTC, ETH, and NFTs.
It’s anticipated that the Metaverse will significantly alter a wide range of industries and bring forth new business opportunities, thus making it an exciting sector to invest in.
Moreover, major tech companies, such as Epic Games, Meta, and Microsoft, are already investing money and talent to develop and shape the Metaverse.
So, how can you get started in investing in the Metaverse so that you don’t miss out on what this new digital realm has to offer? Let’s take a look!
5 Ways to Invest in the Metaverse
There are various ways that crypto-savvy investors can start investing in the Metaverse. Investors can purchase virtual land, invest in Metaverse cryptocurrencies, buy Metaverse stocks, invest in Metaverse ETFs, and more.
Let’s take a look at each of the most popular and accessible ways you can add Metaverse exposure to your portfolio today.
Buy Virtual Land
Buying virtual land is one of the ways that you can get started on investing in the Metaverse. Virtual land is a term used to describe NFTs representing digital plots of land found in virtual worlds. Digital or virtual land is similar to physical land in the sense that it’s sold in plots and once purchased, the owners can develop them or use them for whatever purposes they deem fit.
Platforms such as Decentraland and The Sandbox already sell virtual land that can be purchased in the form of NFTs. For example, a plot of land in Decentraland sold for $900,000 last year. And that’s only one example that goes to show the potential profitability that virtual land offers to crypto-savvy investors. Moreover, virtual land owners can opt to build, rent or sell their digital land and earn an income from it.
Invest in Metaverse Cryptocurrencies
There is a range of Metaverse digital tokens that you can add to your investment portfolio. Each blockchain-powered Metaverse has its own in-platform token typically used as the transactional currency within the virtual world. Moreover, they can also be traded for fiat currencies or other digital currencies.
Some of the Metaverse cryptocurrencies that you can consider purchasing include MANA – Decentraland’s native token, AXS – Axie Infinity’s governance token, SAND – The Sandbox’s governance, staking, and utility token, and ENJ – Enjin Coin’s native currency.
Add Metaverse Index Tokens to Your Portfolio
Another exciting way for you to invest in the Metaverse is by adding the Metaverse Index tokens to your portfolio to gain broad exposure to Metaverse cryptocurrencies.
The Metaverse Index (MVI) token, for example, is an ERC20 token that was established as a basket of tokens to illustrate the business trends of companies in different sectors such as business, entertainment, and sports migrating to a virtual environment.
Investing in the MVI token gives investors exposure to different tokens from a wide variety of crypto projects dedicated to building virtual worlds.
Purchase Metaverse Stocks
Purchasing Metaverse stocks is another easy and accessible way that investors can gain exposure to the Metaverse. Metaverse stocks refer to shares in publicly traded companies that are part of the development of the Metaverse.
The Meta stock (Facebook) is a good example of a Metaverse stock that you can purchase considering that Meta is at the vanguard of developing the Metaverse.
Besides Meta, you can also consider investing in stocks from Amazon, Microsoft, Nvidia, and Roblox, among others.
Invest in Metaverse ETFs & Funds
Last but not least, you can invest in exchange-traded funds (ETFs) that provide exposure to the Metaverse.
An ETF is a basket of securities that get traded on exchanges similar to traditional stocks. Metaverse ETFs are a great way of helping investors – both beginners and advanced – gain exposure to the burgeoning Metaverse industry.
Similar to Metaverse stocks, Metaverse ETFs allow people to invest in companies that are contributing to the development of the Metaverse or are best placed to do so in the future.
An example of a Metaverse ETF is the Roundhill Ball Metaverse ETF (META), which was established to enable anyone to invest and enjoy the benefits of this new realm. Moreover, the company’s ETF exposes investors to companies such as Amazon, Microsoft, Nvidia, Roblox, and Tencent, among others.
The Metaverse is still in the development stages. While there is no single linked Metaverse currently, there are early-stage standalone Metaverse worlds, such as Decentraland and The Sandbox, that are giving us a glimpse of what the end product will look like. And with a burgeoning industry that is expected to rake in billions of dollars, it may be wise to start investing in it today.
FAQs
What is the Metaverse?
The Metaverse is a collection of interconnected virtual worlds that proponents believe will replace the internet in its current form in which individuals from across the globe will play, socialize, connect, and even work via their digital avatars.
How Can You Invest in the Metaverse?
You can add exposure to the Metaverse into the portfolio by purchasing virtual land in early-stage metaverse platforms, investing in companies developing metaverses by buying their stocks or blockchain tokens, or by investing in funds that invest in companies that are involved in building the metaverse.
Is Investing in the Metaverse Risky?
The Metaverse is still in its early stages, and investing in new, budding technology is always risky. So if you are planning to add Metaverse exposure to your portfolio, only invest as much as you can afford to lose, especially if you are buying NFTs or cryptocurrencies related to the Metaverse.
