Although it is still extremely young, there are good reasons to pick invest in metaverse. Well-known research groups including Prophecy Market Insights, Grandview Research, Bloomberg Intelligence, etc. predict that metaverse will touch the value of $800 billion by 2030, which can make it one of the great secular growth trends to follow in this decade.
The question now is: What is the best way to invest in metaverse? How can you get the highest advantage with your investment in metaverse? In this article, we aim to answer these questions and discuss how to invest in metaverse in 2023. We present popular approaches that successful investors take and the points they keep in mind.
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What is metaverse?
probably you heard about metaverse, but really what is metaverse? The metaverse is a virtual environment where avatars (or digital people) can connect, communicate and transact. This 3D virtual space is parallel to the physical world, and users can access it using Virtual Reality (VR) headsets.
VR headsets stimulate the presence of the virtual world and generate the physical sensation of actually being in metaverse
There are two main forms of the metaverse:
- Virtual reality
Virtual reality, produced by VR headset, takes over a user’s field of vision to provide an immersive experience. Immersive experiences include audio and positional tracking of the body to enable movement of body parts, such as the hands, to interact with the virtual environment.
Augmented reality is less immersive than VR. It adds virtual overlays on top of the real world via a lens. Users can still interact with their real-world surroundings.
Why to invest in metaverse?
Recently, many large tech companies have entered in metaverse to develop their digital customer domain. Many businesses see metaverse the next big market with decentralization, smart contracts, cryptocurrencies, and virtual marketplaces. In fact, they call metaverse the next iteration of the internet, which is 3D, decentralized and highly interactive. Therefore, there are numerous reasons to invest in metaverse.
Besides, metaverse has shown capable to support almost all types of businesses, including gaming, fashion, real state, automobile, etc. Metaverse is using various technology, software, video gaming businesses and payment services to facilitate use of online services involved in metaverse. It improves the potential beneficiaries of metaverse to both users and businesses that follow the virtual world.
A Closer look at the best ways to invest in the Metaverse
There are five major sectors of metaverse that present long-term investment opportunities, each of which comes with its own unique benefits for investors. The list includes metaverse gaming, metaverse NFTs, metaverse crypto, real state, and metaverse stocks. Let’s discuss them in details.
Metaverse Games (one of the best ways for investing in metaverse)
The most beneficial way to invest in metaverse and making money is through metaverse games, which provides some of the best metaverse NFTs. There has been an exponential growth in metaverse gaming over the past year, driven by high-profile projects like Decentraland and Sandbox. Smaller projects are also launching that can be successful in the near future.
These games use Play-to-Earn (P2E) mechanism, which allow gamers to earn rewards (denominated in cryptocurrency) for their in-game actions and monetize their gameplay skills in a fun way. Such games have their native metaverse coins, which enable them to run smoothly.
Metaverse games also offer high levels of immersion to gamers. Owning rich 3D worlds, metaverse requires its players to create their own avatars to be able to interact with other players’ avatars. This offers a new way to socialize and communicate.
Some of the top metaverse games are Battle Infinity, Decentraland, Sandbox, Axie Infinity, Gods Unchained, etc. You can check the specific details of metaverse games here.
Another popular way to invest in metaverse is through NFTs. Metaverse-based projects include some of the best NFTs ever due to their valuable characteristics. Since NFTs can provide ‘true’ ownership of in-game assets, players find them most attractive in metaverse.
Players can use their profile picture NFTs (PFP) as their avatars in metaverse. Besides, in-game playing cards, for example in Gods Unchained, are structured as NFTs, meaning that they cannot be stolen or altered. In turn, this reduces (or removes) the concept of cheating or hacking from the game.
In addition, in-game items can be easily traded if they are structured as NFTs. Some metaverse games, such as Battle Infinity, have their dedicated NFT marketplace within their ecosystem. These markets allow players to buy, sell, and trade in-game items using their native cryptocurrencies. Most of these native coins can be changed to other cryptos in crypto markets.
Next way to invest in metaverse is metaverse crypto. Simply put, metaverse crypto describes the native tokens of metaverse-based projects. Players can use these tokens to do various tasks, such as transactions, staking, and even governance:
- Transactions: Each metaverse’s native token can usually be used to purchase items from the in-world marketplace. Players can exchange their native tokens into another digital currency in crypto markets. For example, players can use Axie Infinity tokens to purchase Axies for in-game use.
- Staking: Crypto staking means ‘locking up’ tokens for a specific period, usually to help improve the security level of a platform. Metaverse platforms usually have their own staking mechanism whereby token holders can generate an earning on their holdings as well as benefitting the given ecosystem.
- Governance: Since most of the metaverse projects are structured as a decentralized autonomous organization (DAO), their token holders are allowed to govern the platform. Crypto DAO projects allow their token holders to vote on governance proposals, and those that receive the highest number of votes are the ones that move forward.
Besides, metaverse cryptocurrencies are often listed on crypto exchanges and a quick review of well-known crypto coins such as AXS and MANA can explain the growth of metaverse cryptos in 2022. Therefore, even the investors who are not active in a specific metaverse can still gain exposure to its growth by investing in tokens.
Metaverse Real Estate
Metaverse has brought about another exciting feature which offers a unique chance on ownership and renting of real estate. Those interested in investing in metaverse can participate in metaverse real estate projects that enable users to purchase plots of virtual lands.
Upland and Decentraland are good examples of metaverse real estate projects. Decentraland, for example, offers roughly 90,000 plots of 16 m×16 m land parcels (called LAND). LAND can be purchased using MANA (Decentraland’s native token) or Ethereum. All LANDs are structured as NFTs.
Much like in real life, the value of plots of land is directly determined by their location. For example, LAND parcels located near Decentraland’s ‘Genesis Plaza’ worth higher than other places.
According to the news, virtual land sales in the metaverse are expected to raise to 1 billion Euro in 2022. Much of this was down to the benefits that owning virtual real estate can offer investors. Investors can benefit from value appreciation, driven by increases in the project’s popularity. On the other hand, they can also generate returns through renting.
Renting land is also another choice to take advantage of metaverse. Virtual landowners can lend their land to others for a fee. Almost all metaverse games such as Upland, Decentraland and Battle Infinity’s ‘Battle Arena’ provide the feature so that users can rent land from others and then use it for advertising or social events.
Ultimately, those who care for investing in metaverse real estate must ensure that the land they buy has inherent value – since this ‘land’ is still just a collection of pixels within a 3D world. However, as many NFT land projects have shown, making smart investments in this area can be highly beneficial.
Last but not least on the list of ways to invest in metaverse is metaverse stocks. There are various types of metaverse stocks available to invest in. It is much appealing to investors who prefer to operate in the equity market rather than the crypto market.
It is worth noting that rather than direct exposure to the growth of a specific platform, the best metaverse stocks usually offer exposure to the industry’s growth overall. Consider Meta Platforms (formerly Facebook) as an example; it is now deeply involved in virtual reality (VR) and the expansion of metaverse concepts.
It is rather easy to find metaverse companies to invest in. Among all, Nvidia is a popular option which produces chips that are now used to power various metaverse projects. With the expansion of metaverse and increasing number of projects requiring Nvidia’s chips, it can be a good choice to invest in the company.
Recently, many undervalued companies with many established firms related to virtual worlds are involved in the metaverse.
Nike has shown to be successful in terms of metaverse stocks to invest in, as the company has partnered with the likes of Decentraland and Roblox to boost its presence in this area. if you wanna know How to enter metaverse, you should be read related article.
Therefore, investing in metaverse stocks can be a great way to gain indirect exposure to a specific project as well as direct exposure to the industry’s growth. Besides, it is always easier for beginners to buy stocks compared to purchasing crypto. It means that buying metaverse stocks may be more suited to newcomers to the market.
At the time of writing, some of the best metaverse stocks to invest in include Meta Platforms, Nvidia, Nike, RTFKT, Snap, Coinbase and Roblox.
The decision to invest in metaverse can be profitable, given that the business is projected to be worth over $5 trillion by 2030. As explained in this guide, there are multiple accessible ways to get exposure to this growth, providing options for all types of investors. Metaverse is a project that has a lot of potential and there are many best ways to invest in metaverse.
Some frequently asked questions about investing in metaverse:
Is metaverse a good investment?
The metaverse is an industry with enormous future potential. It is one of the megatrends of the coming years, thus investors see it as a great long-term investment opportunity.
How to invest in metaverse?
Five ways to invest in the metaverse have been mentioned, such as metaverse game, metaverse NFT, metaverse crypto but with the coming of large and renowned companies into the metaverse in recent years, there are an increasing number of inventive ways to invest in the metaverse.
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