The metaverse has been a hot topic of discussion in the last few months, with big tech companies such as Facebook and Microsoft assuring people of its creation and achievement in a few years to come. Facebook even went ahead to rebrand itself as Meta Inc., to cash in early from the metaverse. However, do you know what the metaverse is? Are you willing to invest and see your assets grow as more people get accustomed to it? Well, this virtual world requires users to have avatars for exploration. You can take advantage of several investment opportunities as you virtually interact and enjoy several functionalities. We’ve seen several real estate deals worth millions in the past year, which should tell you just how serious people are about it.
This article will guide you on investing and taking advantage of this sophisticated yet brilliant internet creation. Remember, it is believed that the metaverse comes with a $1 trillion revenue opportunity. So, would you like to cash in on that? Stay with us.
Monetization of the Metaverse
At the moment, the primary source of revenue for the metaverse is games. We have seen a steady increase in the revenue generated by virtual games, with different experts estimating that we will be at $400 million in the next four or five years. More game developers are monetizing their games, allowing players to earn as they play.
Well, it is also worth noting that there has been a steady shift to play to earn games, monetized by selling player items and assets, creating and improving social statuses in the virtual world, and making the games more enjoyable.
This monetization was made possible the shift from Web 2.0 to 3.0. Whereas the former was centrally owned and controlled by big players, the latter is decentralized and managed by users. Developers keep the Web 2.0 world closed, prohibiting players from transferring their virtual wealth to the real economy. They cannot also trade items with other players.
Web 3.0 technologies also eradicated the several capital controls leveraged on the virtual world by its predecessor, allowing users to own digital assets such as non-fungible tokens, trade them and even incorporate them in different virtual experiences. It enables the creation of an internet economy that can be easily monetized in the real world. This economy is often referred to as ‘play to earn.’
We expect big corporations relying on Web 2.0 technology to adapt their models by opening up their economic systems and losing a bit of their competitive advantage. The metaverse promises over $1 trillion revenue opportunity in terms of digital events, hardware, advertising, social commerce, and creator monetization that they can benefit from.
Let’s now delve right into our main topic of discussion.
How to Invest in the Metaverse
The metaverse offers two primary means of investment. You can either choose to invest directly or indirectly, depending on your needs and preferences. Direct investment involves the purchase of Metaverse tokens, virtual land, or non-fungible tokens. In contrast, users inject their money into leading metaverse proponents stocks such as Apple and Facebook in indirect investment. They can also invest in the metaverse index. All in all, these two means will allow you to take advantage and also enjoy metaverse revenue.
As we mentioned above, the three main ways of investing directly in the metaverse are purchasing Metaverse tokens, buying in-game non-fungible tokens, and purchasing virtual land or real estate.
Purchasing Metaverse Tokens
You can take advantage of the several metaverse tokens when directly investing in the metaverse. These include SAND, ATLAS, and MANA. To make money off these tokens, stake or lend them to the platform’s system or other users.
MANA is offered by Decentraland, a virtual space that allows users to trade, manage and maintain their virtual properties, popularly known as LAND. You can develop the LAND to suit your preferences through various devices, including your mobile phone.
MANA is, therefore, the game’s main currency. You must have it if you intend to buy or sell goods and services available in the game. It is worth noting that this token is based on the Ethereum Blockchain and has since managed to attain 400% value ever since the rebrand of the giant tech company Facebook.
The third token is Atlas, offered by Star Atlas; a game that allows people to delve deeper into the virtual through a customized spaceship. They can travel the metaverse, personalize it, create and join a faction. You must have the ATLAS metaverse token found on the Solana Blockchain for all these activities.
The good news is that the Solana Blockchain is cheaper as it doesn’t attract gas charges, is more scalable and more secure than Ethereum. You can also use ATLAS to obtain POLIS, an in-game currency that supports virtual life by adding additional experiences.
Lastly, we have SAND, found in The Sandbox, a virtual world that lets people manage their virtual lands and digital assets. You can only perform these activities if you have SAND, which facilitates the monetization of digital experiences.
You can use SAND to conceptualize and manage virtual assets and other games. Like MANA, SAND is found in the Ethereum blockchain hence secure and safe. One of its leading proponents is SoftBank, a renowned tech investor in the metaverse.
How to Buy Metaverse Tokens
When buying a metaverse token, the first step is to create a crypto wallet. You will need a wallet to conduct any purchase in the metaverse world, just like you need money to obtain physical commodities. Create a crypto wallet and ensure that it is loaded with currencies that allow you to invest in the metaverse. Some of the most popular wallets include WazirX and CoinDCX. You can easily create a crypto wallet by downloading the wallet app and creating an account, after which you can transfer money to your wallet.
Choose a Platform
The second step is to open an account with the platform you prefer. A good platform, in this case, would be Binance or Coinbase. You can then directly purchase the tokens by heading to a particular crypto exchange platform, after which you will directly buy a token using the currency in your wallet. Some of the tokens you might want to consider are MANA, the primary currency for Decentraland, SAND for the Sandbox Universe, and AXS, the main token for the Axie Infinity metaverse.
Buying in-game NFTS
The second means of directly investing in the universe is purchasing non-fungible tokens. Popularly known as NFTs, buyers, and sellers can trade these digital items through blockchain technology to make some money. They have also gained popularity in the past few months since the conversation of the metaverse started.
How to Buy NFTs
1. Open a Crypto Wallet
You must have a crypto wallet before you purchase anything in the metaverse. Therefore, create a crypto wallet and load it. Also, make sure that you settle for good crypto wallets and verify your identity by completing the KYC formalities.
2. Pick a Platform
The second step is to open an account with the platform you prefer. For NFTs, you must have an account with the game you intend to make purchases in before connecting the crypto wallet with your account. One of the best platforms is OpenSea, as it allows you to access all the NFTs in a shares marketplace and is highly convenient for users.
3. Purchasing the NFT
The third and last step is to select the NFT of your choice and authorize payment. Note that these tokens do not have pre-decided selling prices, meaning that you have to bid and win to own the NFT. You will then quickly pay for it from your wallet.
However, keep in mind that buying from a primary and a secondary marketplace comes with its fair share of advantages and disadvantages. NFTs bought on primary marketplaces such as Decentraland have higher resale values even though it may be challenging to estimate their actual value compared to those purchased in the secondary market.
4. Purchase of Virtual Land
The third direct means of investing in the metaverse is purchasing virtual land, often sold as NFTs. We have seen people spend millions of dollars on virtual land in the recent past on Axie Infinity, The Sandbox, and Decentraland. Buyers are customarily awarded non-fungible tokens on the purchase of land. Some ways of making money off virtual land are selling them to willing buyers and staking the land on the ecosystem.
One of the largest deals occurred in late 2021, when Republic Realm, one of the biggest metaverse real estate developers, purchased a piece of land for $4.3 million on The Sandbox.
How to Purchase Virtual Land
To purchase virtual land, you will follow the steps used to buy non-fungible tokens. First, you must create a crypto wallet and load it with enough currency for your purchase. You can try MetaMask, Coinbase or Binance. Second, you must open an account with the specific game you intend to make your purchases in. Afterward, link your crypto wallet with the account to facilitate easier and faster disbursement of funds. You can access virtual real estate in Decentraland or land plots in Axie Infinity.
The last step is to select the plot of land you wish to buy and pay for it. However, note that you will have to bid since NFTs do not have pre-decided selling prices. The amount will then be deducted from your wallet to close the deal.
It is clear from these illustrations that investing directly in the metaverse is not as difficult as it may sound. You only need to follow the proper steps, and you will be good to go. Let’s now unravel some of the forms of indirect investment.
Indirect investment is the second means of investing in the metaverse. You can achieve it through buying metaverse-associated stocks and investing in the metaverse index, popularly known as the MVI.
Purchasing Metaverse-Associated Stocks
Several organizations are after the formation and actualization of the metaverse. Facebook, for example, took a leap and rebranded itself to Meta Inc., showing the trust they have in the metaverse. Other organizations include big players in virtual reality, 3D rendering applications, and the production of wearables. All in all, if you do not want to buy NFTs, virtual lands, or metaverse tokens, you can check out stock options for companies such as Roblox, Unity, NVIDIA, Facebook, Apple, Microsoft, among many others. These can be purchased through Metaverse Exchange Traded Funds or Brokerages. Buying stock will give you shares in these companies, which normally increase in value, earning you a profit.
The Metaverse NFT captures the metaverse in a single portfolio, making it easy to buy the associate stock. It was launched in June 2021 and tracked the performance of companies heavily involved in this universe. It, therefore, heavily ranks pure pay companies whose growth models are directly linked to the metaverse. In contrast, core and non-core companies lowly rank since only a significant percentage of their growth is connected to the metaverse.
How to Buy Stocks through Brokerages
This is one of the most common means of purchasing stocks. Here are the steps:
1. Identify a Good Online Broker
You need an online broker that can access the stock you wish to buy. Also, ensure that your choice is affordable just in case you feel like purchasing more shares from time to time. In short, consider the fees, trading platform, ease of opening an account, safety, and accessible markets.
2. Open a Brokerage Account
This is the immediate step after carefully selecting a broker. It is a relatively easier process as it is more work less similar to opening a bank account.
3. Depositing money into the Account
You can deposit money into the account through bank transfer, credit card, or debit card. Other brokers also allow you to make deposits from electronic wallets such as Toro or Paypal. However, note that you must deposit this cash to a broker first.
4. Buy Shares
The last step is to buy the shares by logging in to your online brokerage, searching for the right stock, choosing the number you wish to purchase, and authorizing payment. You can select the market order to buy the stock at the actual buying price or limit order to input your preferred price.
6. Investing in the Metaverse Index
The metaverse index comprises 15 tokens that capture the trend of entertainment, gaming, and business shift to a virtual environment. It helps mitigate the risks involved in purchasing Metaverse tokens by offering you the trends of all the top-performing metaverse tokens available. Therefore, you will know the ones that will increase in value and earn you a profit.
You can also make money by earning INDEX funds through staking. Note that the index fund differs from stock. In comparison, acquiring stock means that you own the shares of a given entity, whereas, for the index, you have a wide portfolio of shares.
How to Buy the Metaverse Index (For Binance)
1. Create Your Online Wallet
This is necessary for all Metaverse purchases. Some of the best platforms you can use for your online wallet are Binance and Coinbase.
2. Buy Crypto
When investing in the metaverse index, you are only limited to Bitcoin or Ethereum. You can use your credit or debit card to purchase these two cryptos. However, note that the options differ from one platform to the other.
3. Create a MetaMask Account
There are two ways avenues of creating a MetaMask account. You can visit their website or use the MetaMask extension. For the extension, click Install MetaMask for Chrome immediately after finding it to have it as one of your extensions.
After installation, add the cryptocurrency wallet you created in the first step. You will then see a 12 words seed phrase that you should save or copy to somewhere safe. You will have already created an account with MetaMask and can easily view your address on Etherscan.
4. Deposit Crypto in the MetaMask Wallet
The fourth step requires you to fund your MetaMask wallet by depositing crypto in it. Ensure that you only key in the right amount and complete all the steps needed. You should then submit after choosing the right transfer network.
5. Trade on Uniswap
You will have to get the Uniswap V2 exchange platform, which has a ‘connect to a wallet’ feature on the top right. Click the feature and log in with your MetaMask wallet. You will then see the trading window on your screen. You should then select the token you wish to exchange for the metaverse index, which gets you ready to place an order.
Remember, you can choose the amount you would like to buy or spend by typing the exact figure. The bottom menu should tell you your possible earnings. Once ready, click the swap button and confirm the trade. The transactions will be processed, and the tokens will appear in your wallet.
Alternatively, you can use applications such as Coinbase that allow you to invest in the Metaverse index directly through the trade tab.
The metaverse is first gaining popularity. You should not be left behind with the potential revenue generation it promises. Having explored all the ways you can invest in the metaverse, we hope that you will begin your journey to financial freedom.