“The metaverse is a shared virtual 3D world, or worlds, that are interactive, immersive, and collaborative,” according to Nvidia (NASDAQ:NVDA). It’s a futuristic vision that has long been a staple of science fiction, and the prospect that technology has advanced to the point where it will soon be viable has piqued the interest of many investors.
Several multimillion-dollar real-estate transactions this year have put the term “metaverse” on the tip of our tongues. The metaverse is a virtual world in which users can explore using their own avatars. It goes beyond gaming by allowing visitors to interact virtually and participate in a variety of real-time activities. According to experts, the metaverse now represents a one-of-a-kind $1 trillion revenue opportunity.
It is possible to invest in the metaverse both directly and indirectly. There are three direct ways to invest in the metaverse. The first is to purchase metaverse tokens such as SAND or MANA. Alternatively, non-fungible tokens can be purchased in-game. The third option is to buy virtual land in the metaverse. Indirectly, one can invest in metaverse-related stocks such as Apple or Facebook. Another option is to invest in a metaverse index. Here’s a step-by-step guide on how to invest in metaverse.
How to invest in Metaverse
There are three ways to invest directly in the metaverse:
- Buy metaverse tokens.
- Purchase non-fungible in-game tokens (NFTs)
- In the metaverse, you can buy virtual land (also sold as NFTs)
Let’s take a look at how to invest in metaverse in two simple steps:
Make a cryptocurrency wallet.
- Every purchase, like physical commodities, necessitates a wallet full of cash. To invest in the metaverse, you must first create a crypto wallet and load it with currency.
- In India, the most popular options for purchasing metaverse tokens are WazirX, CoinDCX, and CoinSwitch Kuber.
- MetaMask is the most popular crypto wallet in the world for NFT purchases. Coinbase and Binance are also viable alternatives. Because most NFTs are Ethereum-based, it’s best to buy the ether (ETH) cryptocurrency with your local currency.
- Completing know your customer (KYC) formalities will allow you to validate your wallet.
Make an account on the platform of your choice.
- Purchase metaverse tokens: The simplest way to obtain these tokens is to go to crypto exchanges such as WazirX or CoinDCX and use your currency-loaded wallet to directly purchase the tokens. MANA, the native currency of the Decentraland metaverse; SAND, the currency of the Sandbox metaverse; and AXS, the native currency of the Axie Infinity metaverse, are among the most sought-after metaverse tokens.
- Purchase in-game NFTs/possess virtual land: You must create an account with the game in which you wish to make purchases and link your crypto wallet to their account. Log on to Decentraland for virtual real estate, Axie Infinity for characters and land plots, Sandbox for artistic creations, and so on. If you want to access all of the NFTs in one shared marketplace, you can sign up for an account with OpenSea.
Choose the NFT you want to buy and pay for it.
- If you look through any of the platforms mentioned above, you will notice that NFTs do not have a set selling price. To obtain ownership of the NFT, one must bid on it and outbid all other bidders. The NFT is then quickly paid for using the wallet you created and loaded with cryptocurrency in Step 1.
- You should keep in mind that there are advantages and disadvantages to purchasing from a primary marketplace (Decentraland, Axie Infinity, Sandbox, and so on) versus a secondary marketplace (OpenSea, etc.). An NFT traded on the primary market will invariably have a higher resale value. However, determining its true market value in the primary market is more difficult. Because you can compare the price of one NFT to the price of others on the secondary marketplace, which displays all NFTs on a single platform.
How to invest in Metaverse indirectly
Buy metaverse-associated stocks: Metaverse-associated stocks are stocks of companies that are actively involved in the development of the metaverse. The companies could be involved in the production of virtual reality (VR) goggles, networking technologies, 3D rendering applications, and so on. Apple, Facebook, NVIDIA, Roblox, and Unity are among the most popular stock options. These stocks are available for purchase through brokerages or metaverse ETFs (Exchange Traded Funds).
Invest in the Metaverse Index (MVI): Similar to stock market indices that capture the trends of the nation’s top-performing companies, the metaverse index captures the trends in entertainment, business, and gaming that are shifting to the virtual universe. It is currently worth $225.86. The MVI reduces the risk of purchasing metaverse tokens by significantly lowering volatility. The MVI incorporates all of the top-performing metaverse tokens in existence.
