How to Invest In The Metaverse: An In-depth Guide

Bishal Kumar Chanda

Since the social media giant Facebook rebranded and reinvented itself as Meta in October last year, there has been a metaverse of madness. Many decentralized organizations and game studios are also trying their best to make their idea of metaverse a profitable reality. With so many metaverse projects popping up here and there, now is the right time for investors, collectors, developers, and gamers to hop in on the action. The year 2021 was a year of NFTs and crypto, with trillions of dollars invested in them. In 2022, we will likely get to experience the hyped metaverse firsthand and witness a new digital revolution. 

What Exactly is the Metaverse?

Metaverse is a vague term, and it can mean different things depending on who you are asking. It is still the building block for a new form of communication, and no one can predict with 100% accuracy what the final product will look like. It is just like discussing the internet in the early 1980s; no one could expect it to become such an integral part of our lives. With the lines between the real and virtual worlds blurred, we can describe metaverse in general as a combination of various elements of technology. We might get to see virtual reality, augmented reality, etc., in the metaverse where we live within a virtual universe. The vision is to work, play, communicate, travel, and do anything and everything in the metaverse. 

How to Make Money Investing in The Metaverse?

I. Buy Metaverse Stocks

Stocks are the least volatile option for you to get in on the metaverse trend. One of the safest ways to start investing in the metaverse is to buy stocks of companies with metaverse-related business models. Here is a list of a few stocks that you can check out.

1. Nvidia (NASDAQ: NVDA): It ranks as the top Artificial Intelligence stock and can be considered as one of the best stocks to invest in right now. While many companies are trying hard to associate themselves with the metaverse, Nvidia already has a successful product. On Nvidia's Omniverse platform, manufacturers, game developers, and engineers collaborate to make 3D designs and simulations. As the metaverse is developed, we can predict a tremendous demand for Nvidia's graphics processing units (GPUs). Nvidia has few competitors in the graphics card development industry and powering virtual reality applications.

2. Unity Software (NYSE: U): More than 70% of the top 1,000 mobile games available in the market are developed using Unity. We can expect Unity's stocks to double as the metaverse unfolds realistically. Recently Unity acquired Weta, the platform used for creating visual effects for various famous movies and TV shows like The Lord of the Rings and Game of Thrones. Unity believes that artists will also play a significant role in building the metaverse and programmers. Unity is set to become an all-in-one platform for metaverse development. 

3. Meta Platforms (NASDAQ: FB): Facebook was so invested in the metaverse that it changed its name to Meta Platforms. While the current revenue model is heavily based on advertising to the targeted audience on their social media applications, Meta is focused on building its metaverse. The company aims at bringing the metaverse to a minimum of 1 billion users and creating a massive digital and physical goods economy. Meta has an abundance of resources to develop an entire metaverse ecosystem. For making the metaverse a reality, Meta is already developing its operating system, social platform, e-commerce architecture, and AR/VR devices.

4. Adobe (NASDAQ: ADBE): Adobe is a digital media giant, best known for its Photoshop, Acrobat, and Creative Cloud products. Adobe also offers an excellent augmented reality development product known as the Aero for developments in the metaverse. Adobe is striving to be the best software play for the metaverse. Counting on Adobe's massive opportunity in the metaverse, it is easy to predict that the demand will only go up in the long term.

5. Roblox (NYSE: RBLX): It is an online metaverse platform for gamers to create and share their virtual worlds with other gamers. Since 2006, Roblox has multiplied with more than 9.55 million independent developers and about 50 million daily active users. Despite these great numbers, the company is et to turn a profit, and we can expect it to grow even further with the trend of the metaverse. 

2. Buy Metaverse Real Estate

You can't ignore the hype around metaverse real estate even in its infancy. Decentralized development platforms like Decentraland and The Sandbox have already been selling digital real estate NFTs (Non-fungible Tokens) for quite some time. When you purchase a block of real estate in the metaverse, the blockchain network verifies the sale and transfer the ownership to you. 

Once you purchase the real estate, you get to decide whether you will rent, sell or build on your digital property. Many big companies and celebrities have joined the landrace, including Atari, Adidas, Binance, Snoop Dogg, etc. You can read our review of one of the metaverse projects you can buy land in: The Sandbox Review: How to Play and Earn Crypto.

You can use various marketplaces to buy and sell digital real estate. Here are the steps that you need to follow:

1. Choose the project: First, you need to decide which platform you want to invest in. The popular options for buying digital real estate are The Sandbox and Decentraland. There are various other projects offering land, and you should do your research before investing in any metaverse land. 

2. Create a wallet: You need to create a digital cryptocurrency wallet compatible with the blockchain in which you want to buy land. MetaMask is the most popular wallet for all tokens based on Ethereum, and many metaverse developers suggest it. 

3. Connect your wallet: After deciding the platform where you want to buy land, you need to connect your wallet to their marketplace. Typically you can find the marketplace from the particular metaverse platform's website.

4. Identify the right piece of land: After the first three steps, it should look like buying real estate in real life. Consider the price, location, and future value for deciding which plot you want. 

5. Acquire the tokens: After identifying the right piece of land, you need particular tokens to buy it with. The token required would vary from one metaverse platform to another. You need to acquire the tokens required for your chosen platform and store them in your crypto wallet.

6. Buy the real estate: Once you have connected your wallet to the marketplace and have enough funds in it, you can place a bid or buy the land directly. The NFT representing the digital real estate will be transferred to your wallet when the transaction is completed. 

3. Buy Metaverse Cryptocurrency

Although most of the assets in the metaverse are in the form of Non-fungible Tokens, they are powered by fungible tokens like SAND and MANA. You can use these cryptocurrencies for purchasing digital assets, paying for transactions, and so on. Specific metaverse tokens are also used as governance tokens, with which you can vote on critical administrative decisions. Some of these tokens are also burned when you buy assets with them, making them more valuable. Buying metaverse cryptocurrency is currently the easiest way to get involved with your favorite metaverse projects. 

1. MANA (Decentraland): Decentraland is a decentralized virtual reality platform on the Ethereum blockchain where you can create, experience, and monetize your content. MANA is an ERC-20 utility token used in the Decentraland ecosystem. Users can use MANA for various digital assets such as LAND, avatar, wearable, etc., on the Decentraland marketplace. 

2. SAND (The Sandbox): The Sandbox is a play-to-earn blockchain-based game metaverse built on Ethereum. There are 166k parcels of digital real estate in The Sandbox metaverse, called LAND. SAND is its native utility token with which you can buy LAND and monetize it with various custom NFTs. The Sandbox Game Maker enables users to develop their own game and publish it on LANDs.

3. GALA (Gala): GALA is an Ethereum based non-refundable utility token that powers the Gala Games ecosystem. You can use GALA as a medium of exchange with other Gala Game users. It is also a governance token that you can use to influence Gala Game's future developments. 

4. AXS (Axie Infinity): Axie Infinity is a turn-based card game where players battle each other with their Axies in real-time. AXS (Axie Infinity Shards) are ERC-20 tokens used for the governance of the Axie metaverse. As an AXS holder, you can earn rewards by staking, participating in governance, and by using it to breed Axies. 

5. ENJ (Enjin Coin): Enjin is a blockchain-based game company that offers a host of interconnected play-to-earn games. ENJ is Enjin's native token infused into every NFT minted in the Enjin ecosystem. It is an Ethereum based crypto that provides real-world value to fungible and non-fungible tokens.

Companies worldwide are spending millions of dollars developing and marketing their version of the metaverse. The metaverse concept is quite old and has existed only in fiction. With the help of emerging blockchain technologies, we can finally see some success in the journey of turning fantasy into reality. As an investor, you can explore various platforms and decide metaverse's future value for yourself. Who will win the race to create the best parallel digital universe? We never know, but the journey sure seems fun! 

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