Behzad Daniel Ferdows

How to invest in the metaverse; the easy guide to understanding how to invest in the digital world of the future

NFTinsvestment

The metaverse, otherwise known as the ‘all-encompassing digital world that exists parallel to the real world’ is now a multi-billion dollar investment opportunity that has grown exponentially over the past few years. This has led to an influx of interest coming from various different investors, with even JP Morgan opening a lounge in the block-chain based Decentraland, which begs the question, is the metaverse something you should be investing in?

What is the metaverse?

To understand whether the metaverse is worth investing in, it is first important to understand what it is. Overall, the metaverse stands for a digital life, which includes virtual worlds, digital architecture and digital art amongst many other things; ultimately focusing on social connection and creating an online alternative to reality. 

The metaverse has been gaining traction for the past few years, with more and more opportunities being loaded onto the digital world. With the capability to invent almost anything on the metaverse, it brings a heap of opportunity to creators, entrepreneurs and investors.

As of now, the metaverse is still currently quite young in its development compared to other forms of digital platforms, such as the world wide web, something which many investors have noticed. With the ability to grow to exponential levels, the metaverse is thought to grow into a platform that will be a part of daily life that will allow you to create a digital persona that will work in the same way as you do physically.

Can I invest in the metaverse?

Simply put, the metaverse is there to be invested in. Anyone is able to purchase things from the metaverse and have the ability to resell or keep what they’ve bought. Unlike physical real-world economies, there are no boundaries regarding geographics, allowing anyone, from any region, with any amount of money, to invest in the metaverse. 

There are a few popular options to consider when it comes to investing in the metaverse:

Buy metaverse cryptocurrency

Purchasing cryptocurrency is one of the easiest ways to start investing in the metaverse. Cryptocurrency is essentially a digital form of payment that has become increasingly popular in the last few years. Although big names including Bitcoin and Dogecoin are leading the industry, there are forms of cryptocurrency that work hand in hand with other aspects of the metaverse. There are three stocks in particular that are bridging this gap in 2022:

The Sandbox is a user-created digital world in which users can create and sell digital content within the game. Within this digital world, there are in-game tokens that act as currency that can be bought through the cryptocurrency SAND that sits on the Ethereum blockchain network. This form of cryptocurrency can be used to purchase virtual land, buildings and NFT’s. 

Axie Infinity is a video game that has developed an in-game economy. Using the cryptocurrency AXS, players of Axie Infinity can collect NFT’s which represent the digital pets in the game, known as Axies. With Axis Infinity being a ‘play-to-earn’ game, this means that participants can actually earn AXS tokens that can buy NFT’s, making it easier to move into the metaverse investment space. 

An Ethereum-network based metaverse, Decentraland uses the cryptocurrency MANA within it to create tokens that can purchase virtual land and develop it. This will help gaming experience as well as avatars and accessories. Many major companies have already invested in Decentraland, with JP Morgan creating the Onyx lounge in the Metajuku mall. 

Invest in metaverse land

Buying land in the metaverse is something that all the big timers are doing at the moment. Secure your place in the new digital world, by ensuring that your name is associated with a specific piece of land. To buy your land in the metaverse, you must first decide which Metaverse platform you would like to buy within. Lands including Decentraland, The Sandbox and Somnium Space all provide opportunities to invest in land within the digital worlds, therefore it is crucial to look closely at each platform and see which serves your needs the best. 

The process of buying metaverse land is quite straightforward, but it involves more risk than buying metaverse cryptocurrency due to variable factors including the pace of development. It is, however, proving to be a very popular investment in 2022. 

Invest in metaverse stocks

This is the easiest way to get your hand in the metaverse without having to truly immerse yourself in the digital world. Handling cryptocurrency is not required, or even opening a digital wallet, however this investment option is slightly difficult due to metaverse stock options primarily meant for more serious investors.

Due to the value of crypto fluctuating dramatically at times, it is possible to profit from it in a very short space of time, however it is important to always track due to declines in the currency are also a very real possibility.

Some of the leading stocks within the metaverse include Roblox Corp and Unity Technologies.

Invest in NFT’s via creating, buying and selling

The most flexible way to invest in the metaverse is through non-fungible tokens, otherwise known as NFT’s. This essentially stands for a piece of art, whether that be an image, video or audio of any form, that can be bought. 

It is possible to create your own NFT and there are several websites online that will help aid you. Sites including Opensea and Rarible make the process as easy as possible, helping you to create a unique piece of art that can be sold online. 

If creating your own NFT is not your thing, then you can simply buy NFT’s that are already available online. There are many talented artists who have created incredible NFT’s that are ready to be sold on for profit. These NFT’s can vary from the Bored Ape Yacht Club aesthetic, to more intricate designs including artist Claire Silver’s Genesis collection.

Although the list is not exhaustive, there are several ways to start investing. With the metaverse estimated to value at $13 trillion by 2030, it is definitely time to start looking sooner rather than later! Get familiarised with the metaverse by doing further research online and understanding what method of investment works for you. Whether that be metaverse stocks or looking online at what NFT speaks to you and seems like a good investment, there is no doubt that the digital world is going to implode with popularity, so it is smart to start investing now.