Even if the Metaverse may seem utopian to many people, in reality its development and growing popularity in recent times make it a real opportunity for investment as well. According to recent estimates, the size of the Metaverse market will reach USD 800 billion by 2024. This should prompt many investors to inquire about these new revenue opportunities.
Let us therefore see how and where to invest in the Metaverse.
For our investments to be profitable, we need to identify the most suitable types. What are the types of investments in the Metaverse? Which ones should we choose?
Three can be identified.
One can focus first on the actions of the companies that are engaged in building this digital universe. Alternatively, you can invest in the cryptocurrencies already used in the Metaverse or in the land present within it.
A first area to invest in is the actionsor securities related to the activities taking place in the growing Metaverse. The stocks that can be bought in the Metaverse are not virtual stocks: they are stocks of real companies that are contributing to the development of this new virtual world.
The first of the stocks to invest in is clearly the company where it all started: Facebook. Buying Facebook shares today is not just about investing in the social networking giant. It is much more: Facebook is a huge company that has spread across the planet thanks to its various apps, including the popular Instagram and Whatsapp. In October 2021, the company Facebook changed its name to Meta. The famous CEO and creator Mark Zuckerberg has declared that the future of his creature will not simply be that of a social media, but that of a company operating in the Metaverse.
We should also not forget that Meta also owns Oculus VR, a company that makes virtual reality visors and launched its first glasses precisely to exploit augmented reality. Also companies such as Electronic Arts , Nintendo, Microsoft, Amazon e Walt Disney are investing in the Metaverse.
Microsoft is working on certain aspects of the Xbox to make the most of the evolution of virtual reality-based games. Nvidia will provide its Omniverse, a platform specifically designed to programme virtual reality applications and serve as the basis for the development of the Metaverse.
Buying the shares of a company in the Metaverse means, in simple terms, owning a very small part of the company itself. This entails the right to vote on all business decisions and the right to receive so-called dividends, which are the profits generated by the company.
In addition, the shareholder has the opportunity to gain on the sale of shareswhen their value is in an upward phase. The price of stocks, however, can also fall and generate a loss. This is why some users prefer to invest in stocks via the CFD contracts. This is a particular type of contract whereby you do not become the owner of the shares, but bet on their value and its changes. In this way you can earn whether the value increases or decreases, provided you have made accurate predictions.
The Metaverse has its currencyWe are talking about cryptocurrencies. At the moment, there are several types of cryptocurrencies that have performed well during 2021 and, according to several analysts, have great potential that needs to be exploited in the coming years. Some of the best cryptocurrencies circulating in the Metaverse are the following: Decentraland, Axie Infinity, The Sand Box, Enjin Coin.
Decentraland is one of the first virtual multiplayer role-playing games on the Ethereum blockchain. Simply put, it is a virtual world where you can buy and sell land, but also buildings, objects and services through two currencies MANA and LAND. MANA are the virtual currencies used for the various transactions that can be performed in the Metaverse. The LAND token, on the other hand, represents the plots of land in the platform.
Also The Sandboxis a video game based on this system. In this Metaverse, built by the company Pixowl, users can buy, build and sell via the cryptocurrency SAND. The Sandbox community is very large and growing.
Axie Infinity is a video game of this genre. The main purpose is to capture digital animals called Axis, with whom one can have adventures or engage in fights. Alternatively, they can be traded as NFTs. The cryptocurrency of the video game is AXS, which gives users a stake in the ownership and operation of the game.
Enjin coin Instead, it can be defined as a real exchange platform on which virtual goods can be minted, stored and sold. Its currency is ENJ, available on eToro at very low prices.
eToro is a very secure and regulated platform, a leader in its field thanks to a number of advantageous aspects that set it apart. First of all, it offers a wide range of assets: all the aforementioned securities and tokens are available, as well as a varied choice of ETFs. The platform is easy and very intuitive to use, with a minimum deposit of only fifty euros to start using it. There are no fixed commissions and the spreads are low and very competitive. The eToro user then has the opportunity to practice investing free of charge with a demo version, and can consult some of the training materials provided directly by the platform.
Both assets and CFD trading can be purchased directly. All these aspects make eToro an excellent opportunity for those who want to build a portfolio linked to the Metaverse's assets and manage it in complete security. There is even a copy trading function, which allows you to copy the portfolios of well-known investors to take a cue from them.
Another aspect of investing in the Metaverse is the possibility of owning a virtual earth. One can in fact buy a land, a piece of land within a virtual city. One thus obtains an area to build houses, shops, companies, in short, business realities that see their possibilities multiplied thanks to the virtual. Unlike a physical location, in fact, access to the land is unlimited and immediate for an infinite number of users. Not to mention the fact that constructing buildings of different types allows business to be set up in multiple sectors.
The concept of buying virtual land is becoming increasingly trendy. The way one buys Metaverse land is similar to the way one buys real estate in the real world. A Metaverse land, which can also be called earth Non-Fungible Token (NFT)can be defined as a digital space that can be purchased in the Metaverse project.
Naturally, a Metaverse project divides its map into smaller plots and sells them in single or multiple plot offers. Anyone who owns NFTs can buy virtual land via cryptocurrency. There are however some Metaverse projects which also accept legal tender as a means of payment.
There are a few main reasons why it may be advantageous to make such an investment in the Metaverse. The concept of owning virtual land is the same as owning NFT: the asset later appreciates due to its development and profits. One can decide to rent out the virtual land one owns for exclusive parties or events if it becomes particularly popular. You can also resell it to other users if it seems a convenient choice. You can build a virtual house and rent it out or set up a digital art gallery for artists to show their work, earning even more money. It is also possible to benefit from selling participations in exclusive events, something that some VIPs have already started to do: rapper Snoop Dogg, for instance, has put a large number of tickets for a show where he will perform for sale on the Sandbox platform.
Metaverse land offers the owner a three-dimensional experience. Since this land is NFT, it is easy to prove authenticity and ownership: it is registered, exists on a dedicated blockchain. In addition, those who own virtual land can sell the property through a third-party exchange.
But how to acquire land in the Metaverse? Buying Metaverse NFT lands basically follows the same process as buying NFTs. All you need is a cryptocurrency wallet and a small amount of cryptocurrency to get started. Like other investments, it is a good idea to do some research before you start, so that you choose an area that is safer and more likely to profit.
Before purchasing a Metaverse property, one must be in possession of a cryptocurrency wallet that provides access to one's cryptocurrencies. Ideally, the wallet should integrate into the browser. Using a web-based wallet is easier, but alternatively, you can also do everything from your mobile phone. As far as the wallet is concerned, one can choose between MetaMask and Binance Chain Wallet. During the wallet registration process, the user is given a string of words also referred to as a 'seed phrase', to be kept in a safe place. Before purchasing any Metaverse property, it is necessary to choose a Metaverse platform.
It is good to get to know several of the Metaverse's virtual platforms before purchasing virtual real estate. To confirm your purchase, simply link your wallet to your account.