NFTs and the metaverse have become buzzwords in 2021, and they will likely be trending in 2022 as well. As large companies and investment firms are looking into investing large sums into the metaverse, you might be interested in doing so as well. In this article we highlighted several traditional and non traditional ways that you can hold a stake in the metaverse and be part of the hype.
How to invest in the Metaverse?
According to Goldman Sachs, the metaverse is an $8 trillion opportunity. With all the large tech companies Meta, Microsoft, Alphabet and co starting to make the digital world their main focus, you can expect billions of dollars to flow into this space as old and new companies will fight for market share. One thing is certain though, web 3 and the metaverse is still young and nobody knows how it will exactly look like. So how do you invest into a space that is still a big question mark and has not been shaped yet?
Digital Real Estate
If you are a real estate person, digital land might be the right metaverse investment for you. Yes, you can buy digital land and even develop it. People are building casinos and museums in the digital world and even renting out apartments and opening stores. With the right mind, you can even start a business and earn passive income on your metaverse land.
Digital land has gotten a boost when Facebook announced their name change to Meta in the end of 2021. Land prices have surged on popular metaverse platforms such as The Sandbox and Decentraland and more and more metaverses are appearing on the market almost daily.
As the world of digital land is still new, it is safest to invest into the best known metaverse brands such as The Sandbox and Decentraland.
How do you buy digital land you ask? We prepared a guide for you on how to buy land on Decentraland, which is one of the best know metaverse brands: How to Buy Land on Decentraland? – A Simple Guide
If you like to keep it simple, you might be interested in investing into metaverse related token.
Most metaverse platforms have their own native token: Decentraland has $MANA, The Sandbox has $SAND. These tokens usually have a use case within their ecosystem. $MANA, for example, can be used to buy land on Decentraland and is used as a currency within the platform. This means if you go to a Casino in Decentraland, you can use $MANA to place your bets.
The more utility a metaverse token has in the ecosystem, the more there will be a need for this token, hence the more popular the platform becomes, the more people will need to purchase the token in order to interact with the platform.
We recommend that you study the tokenomics before making an investment, as each token has their unique attributes.
Another way you can be part of the metaverse is by buying token from NFT Games, also know as play-to earn games. As gaming, NFTs and the metaverse are becoming more and more interconnected, the play-to-earn games are gaining popularity and make for a great metaverse investment. Currently, the most popular P2E game is Axie Infinity. Here is a list of the 7 most popular NFT play-2-earn games that you should know about.
For this investment vehicle you need to have experience with the world of NFTs as this is a more complex investment and you can easily get scammed.
NFTs are becoming more and more interconnected with the metaverse and therefore, can make for a great metaverse investment. Most of the A-List NFT collections are now setting themselves up to enter the metaverse. They do so by buying land and developing their own ecosystems and games in the metaverse and designing 3-D avatars of their NFTs that can be used to complete quests in the digital world.
This is probably the most exciting and creative way that you can invest into the digital world, but it comes with a lot of risks and you should be aware of high fees, scams and the fact that the market is being flooded with NFTs that most likely will not keep their value.
One of the best NFT-metaverse plays out there is the Cyberkongz franchise. Not only did they create 3-D Cyberkongz VX avatars, they are also developing a Cyberkongz park in The Sandbox called Kongz Island where the the avatars can hang out and complete quests and spend and earn $BANANA token.
You can see that some of these NFT projects are creating their own ecosystems in the metaverse and therefore can be a good investment.
If you are more of a traditional investor you might want to stick with stocks or ETFs. Don’t worry, there are plenty of metaverse plays you can do in the traditional market.
All the large tech firms are starting to be involved in the metaverse:
Facebook just changed their name to Meta, which shows you how serious they are bout the space.
Microsoft is working on creating the metaverse for businesses and Nvidia is creating the chips and the processors that are going to run the metaverse platforms and Google (Alphabet) just announced that they too will be focusing heavily on blockchain related products although they did not directly mention the metaverse.
Another traditional approach is to invest into funds that manage a portfolio of metaverse related stocks.
One of these funds is The Roundhill Ball Metaverse ETF (META). It is a globally listed fund that focuses heavily on companies that are entering the metaverse play. Their portfolio contains stocks such as Nvidia, Meta, Microsoft and Roblox.
The metaverse is still young. If you believe in it’s future, then you are still early as there will be billions if not trillions of dollars flowing into this space. Now that you know several ways that you can invest into the metaverse space, you can choose the investment that fits most to your needs.
Important: This article is not investment advice. As always, please do your own research before making an investment.