Think of Metaverse as ‘Ready Player One’ but built on blockchain.
It is a shared digital space combining virtual reality, augmented reality and blockchain technology to give users an immersive experience.
Too many complicated words? Understand Metaverse as a 3D virtual environment where you can do everything you do in real life using your digital avatars like shopping, meeting friends, work and more. Users can even create and share virtual assets through NFTs. You can either create your own Metaverse or explore the ones created by others.
However, with many believing we are headed towards a world where the Metaverse will become a way of living, investors are seeking an opportunity to invest in the Metaverse and gain returns.
Metaverse has vast potential for investors as they can buy/sell land, NFTs, and even metaverse cryptocurrency virtually.
How to Invest in the Metaverse?
According to a recent McKinsey report, in the first half of 2022, more than $120 billion was invested in the metaverse, which was only $57 billion last year.
Brands like Nike, Gucci, and Samsung have already noted how big of a shift Metaverse could be and set up shops in this virtual world. Even companies like Meta, Microsoft, Alibaba, Sony and more have even joined hands to form the Metaverse Standards Forum. Their objective is to streamline the Metaverse initiatives of companies better.
These large corporations going big on Metaverse might be a good indication for retail investors to jump on the bandwagon. Here are some ways you can invest in the Metaverse.
1. Buy Metaverse crypto-
Metaverse cryptos are digital assets representing Metaverse projects. These projects could either be creating their own Metaverses or creating infrastructures for people to create one. MANA (Decentraland), AXS (Axie Infinity), SAND (Sandbox), and ENJ (Enjin Coin) are some examples of Metaverse crypto. Here is our blog on top Metaverse tokens to invest in.
You can invest in tokens of projects that you think may flourish and profit from the token’s price appreciation. But the challenge people often face here is identifying which metaverse crypto to invest in because the options are endless. And for that, the following point will help you.
2. Invest in Metaverse Coin Sets-
Many people hold back from investing in cryptocurrencies due to market fluctuations. Some might not have the time to manage their crypto portfolio investment and regularly track it. While some may not have the expertise to figure out where to invest.
If you are one of them, Mudrex Coin Sets are for you! A Coin Set is a basket of cryptocurrencies representing a particular theme like Metaverse, NFT, Smart Contracts etc. Each Coin Set consists of the top coins in that category that are periodically rebalanced to give you better risk-adjusted returns.
Investing in the Metaverse Coin Set can save you from the hassle of cherry-picking cryptocurrencies. It will automatically invest your money in the top Metaverse tokens.
3. Invest in Metaverse stocks-
Metaverse is not just limited to crypto. Many publicly listed companies like Meta, Microsoft, Disney, Apple and more are also dipping into the world of Metaverse.
You may invest in businesses that participate in activities or offer technology that support the Metaverse. While some businesses, like Meta, are developing top-tier VR headsets that will help elevate the Metaverse experience, others, like Nvidia, are in charge of supplying the processing power that will power the Metaverse.
Investing in Metaverse stocks will make your journey less volatile since the stock prices of these tech giants are relatively stable.
4. Invest in Metaverse through ETFs-
An exchange-traded fund, or ETF, is a bundle of assets that trade like stocks in the stock market. ETFs allow investors to purchase stocks in various businesses that are directly or indirectly associated with the metaverse.
For instance, The Roundhill Ball Metaverse ETF exposes investors to businesses that create the infrastructure required for the Metaverse like Nvidia, games and gaming engines like Roblox and Tencent, to name a few.
For new investors, it might be challenging to evaluate Metaverse businesses to invest in as this sector is still in its infancy. An ETF makes the job easy!
5. Purchase Metaverse real estate-
Buying land in the Metaverse today has become as lucrative as buying real estate was once.
However, the biggest problem with buying land in the Metaverse is the astronomical capital required. This also comes as an advantage as only a few people can own land in the Metaverse.
If you own land in the Metaverse, you can always rent it out and make decent returns. You can even purchase prefabricated buildings that are ready for use instead of land. For instance, a company or person may buy a virtual shop and utilise it to display 3D digital representations of their actual products in the Metaverse.
6. Investing in Metaverse through NFTs-
Non-Fungible Tokens represent unique assets on the blockchain. Most items in the Metaverse are tokenised as NFTs, including land and accessories used by your avatar.
For instance, In the Axie Infinity Metaverse, apart from land and Axies, in-game items are also tokenised as NFTs. One can buy non-fungible tokens that are part of Metaverse and sell them after they appreciate in value. The value of these NFTs may depend on varying factors, including their utility.
Metaverse and NFTs, both, have garnered quite some attention lately, so this might be a route you wanna consider.
Things to Consider Before Investing in the Metaverse
Before you put your money anywhere, it is important to understand the risks associated with Metaverse investing.
This concept is still in its infancy; nobody knows yet which projects will be successful in building a fully functional Metaverse. Meanwhile, many businesses will attempt to capitalise on the growth of the metaverse by jumping on the bandwagon, but only a few will thrive.
So it is vital to be mindful of a few things –
1. DYOR or Do Your Own Research –
It’s very important to research the metaverse projects you are bullish on. Sentiments play a big role in Web 3.0 but also try to understand the model of the metaverse platform you are trying to invest in, whether it is sustainable or not, who are all the investors etc.
2. Do DCA or Dollar-cost Averaging –
Doing DCA safeguards you against unforeseen market events and minimises your risk. Putting small sums of money at periodic intervals helps reduce the impact of volatility on your investments in the long run.
The sky is the limit for Metaverse. Your investments in this 3D virtual space can pay off well if done correctly. However, the key is not to get carried away and always do your due diligence before/while investing.
Each investment means that we discussed above carries a different level of risk and ease of investing. For instance, investing through Metaverse real estate and NFTs requires decent capital investment and risk, while investing through Coin Sets and stocks might be relatively safer and more convenient. You may evaluate all the options and decide which one’s best for you.
FAQs About Metaverse Investing
1. What is the best way to invest in the Metaverse?
This article discusses 6 best ways to invest in the Metaverse; you can evaluate each of them and decide what’s best for you.
2. Does Metaverse have stock?
Yes, there are stocks associated with Metaverse, such as Meta (previously Facebook), Microsoft, Nvidia etc.
3. Is there a Metaverse ETF?
Roundhill Ball Metaverse ETF, Subversive Metaverse ETF, Horizons Global Metaverse Index ETF etc., are just some of the many Metaverse-based ETFs