How to Invest in the Metaverse

How to Invest in the Metaverse

The Metaverse is a virtual world that utilizes social media, augmented reality, and virtual reality to allow people to interact on a whole new level within online communities. However, the Metaverse is much more than a virtual game where people can recreate themselves in any image they want. 

The Metaverse has become lucrative for several blockchain projects, and it has had investment opportunities in recent years. According to Bloomberg analysts, the total value of the Metaverse could reach $800 billion by 2024.

Mastercard, American Express, Meta, and food companies like Taco Bell and Pizza Hut have filed metaverse trademark applications. With so much potential and growth, the Metaverse provides numerous investment opportunities.

There are different ways to invest in the Metaverse; you can purchase various assets like stock, virtual land, NFTs, and cryptos. You can also invest in real-world businesses establishing a presence in the Metaverse. We’ll share useful information to help you decide where to invest your money.

What to Invest in the Metaverse

Enterprises are working to bring the vision to life, allowing the Metaverse to grow further. The accessibility of the Metaverse will increase as technology advances, and more businesses will be able to benefit. It’s good news for inventors because this massive growth opens up numerous investment opportunities.

It is important to note that, because the Metaverse is still in its early stages, investments should be considered speculative. However, a few high-risk and moderate-risk investments are available for those who want to jump in early. Let’s take a look at how to invest in the Metaverse.

Metaverse Cryptocurrencies

Buying metaverse cryptos is a way to profit because most metaverse companies have their digital currency or use an existing cryptocurrency. This is because they need them to operate (purchases, sales, etc.), and it provides the flexibility the Metaverse needs.

For instance, the case of Decentraland is a virtual 3D platform that runs in the browser and features games like Genesis City. In addition, it has organized virtual events for well-known companies like Adidas and D&G.

Users can buy and sell virtual land parcels using MANA’s Ethereum-based money or choose to purchase MANA as an investment. However, because of its price’s potential for extreme volatility, it is a riskier investing approach.

Another excellent illustration is Theta blockchain, the Metaverse’s first content delivery network (CDN). THETA is the company’s own money. So another option to invest in the Metaverse is to purchase their coin.

One of the main reasons crypto emerged was to facilitate the transition of the world to the virtual world. Consider buying one or more cryptos to hold and eventually sell and rebuy them to create a flux, because what makes the Metaverse profitable is people’s interest. 

NFTs

You can join the Metaverse by creating, purchasing, or selling non-fungible tokens (NFTs). The first example is using NFTs to purchase land or digital real estate. Decentraland, for example, sold virtual land via NFTs ranging from $6,000 to $100,000.

Virtual marketplaces and applications like VRChat are other options that allow users to create digital items right in the VR environment. For instance, Nike has developed its own virtual “Nikeland” and is producing NFTs of its goods.

A nice example of where investors can purchase digital art in the form of NFTs is in virtual reality art exhibitions. Some physical museums even sell their artwork in the Metaverse as NFTs.

Metaverse Stocks

Investing in metaverse stocks is one of the simplest methods because it does not necessitate the creation of a digital crypto wallet or the registration with a crypto exchange. 

You can invest in metaverse stocks in the same way you would in regular stocks by purchasing stock from companies that support metaverse development.

Metaverse company shares fluctuate as much as those traded on traditional stock exchanges, if not more. However, it remains the more secure investment in this case.

Meta Platforms Inc. (NASDAQ: FB), Nvidia (NASDAQ: NVDA), and Roblox (NYSE: RBLX), a tech company that operates a popular human co-experience gaming platform, are a few examples of metaverse stocks.

Metaverse Exchange-Traded Fund (ETF)

You can also invest in the Metaverse through ETF, of which there are already a few to choose from. If you don’t want to invest in individual stocks because you lack time or knowledge, consider a managed metaverse stock portfolio. 

Since the Metaverse’s performance and future are still up in the air, investors hoping to lower volatility could choose to consider Metaverse ETFs that provide diversification. Blue-chip tech equities like Meta and emerging businesses are included in Metaverse ETFs.

These are some of the best metaverse ETFs to look into:

  • Evolve metaverse ETF.
  • Fount Metaverse ETF.
  • Horizons Global Metaverse Index ETF.
  • ProShares metaverse ETF.
  • Defiance Metaverse ETF.
  • eToro Metaverse Life Smart Portfolio.

Buy Metaverse Land or Buildings

Another option is to invest directly in metaverse real estate and land. Then, on the virtual land they purchased, users can construct art galleries, mansions, or houses.

Land in the Metaverse is typically sold as an NFT and is available in lots, so to purchase land, you must first have cryptocurrency. After purchasing cryptocurrency and registering your digital wallet, you can purchase virtual land on the Metaverse.

For example, just like in real life, you can purchase a plot of land next to a celebrity. Also, if a building is iconic or sufficiently appealing, people will be interested in purchasing it in the future, and buying it early can be extremely profitable.

Another option is to purchase a pre-built virtual property. For instance, you could buy virtual land and build a storefront or an NFT gallery to display your goods in the virtual world.

It can apply to various industries, including art, retail, and entertainment. However, because the industry is young, this method is risky, and you need to buy a noticeable place to produce wealth through this investing strategy.

Use Cases for the Metaverse

So far, gaming has been the primary use case for the Metaverse. However, in the future, it may provide various other opportunities. For example, the Metaverse can personalize online business meetings, collaborative projects, and shopping.

Let’s look at what the Metaverse’s future might look like and which use cases might benefit from virtual reality.

Socializing

Social interactions are an important part of the metaverse ecosystem, allowing users to communicate and interact with others in different locations. Metaverse elevates online chats by adding a personal touch that makes people feel more present.

Decentraland, for example, has hosted many virtual events. In March 2022, fashion brands ranging from D&G to Tommy Hilfiger took part in the Metaverse Fashion Week; people could attend the event while at the same time socializing virtually.

Furthermore, Meta allows attendees to chat with one another while attending virtual events using a 3D avatar and an Oculus Quest headset. The MBA, for example, has already used the platform to host several virtual live events.

Gaming

The video game industry has been at the forefront of the Metaverse’s expansion, a fictitious virtual world in which we can simultaneously interact and play 3D games. Undoubtedly, the gaming industry will continue to grow alongside the Metaverse.

The gaming aspect of the Metaverse allows users to communicate with one another while playing together and purchase digital goods within the game with cryptos.

Shopping

Shopping in the Metaverse opens up a world of possibilities, which is why retailers ranging from Nike to Gucci are jumping on board. 

Users can view clothing in “real life,” browse the store, dress in a virtual fitting room for a 360-degree view of the outfit, and interact with virtual shop assistants. In addition, tracking customer activity, purchase history, and demographics can help brands provide a more personalized shopping experience.

Business

Because it eliminates the need for businesses to travel or use physical spaces, the Metaverse has the potential to reduce operational costs. For example, we could collaborate and share presentations and information in the Metaverse instead of switching browsers and screens.

Furthermore, because many of the workforce now work remotely from home or anywhere in the world, traditional offices will likely disappear. The Metaverse can take video conferencing to the next level, allowing us to attend meetings as full-length avatars rather than via video call.

Manufacturing

Thanks to digital twins, manufacturing is another growing and innovative use case for the Metaverse. It is a digital representation of an actual building in the physical world, either existing or new.

A factory, for example, can create a digital twin of their manufacturing line and test various layouts and production conditions without disrupting the regular production process, saving time and money.

While the concept has been around for a while, the popularity and ease of creating digital twins are growing. BMW Group, for example, collaborated with Nvidia Omniverse to create a digital twin of their entire factory.

Conclusion

There are numerous ways to invest in the Metaverse, and it, like any other industry, has its advantages and disadvantages as well as several risks. Because the metaverse industry is new and rapidly growing, investors should diversify their portfolios to reduce volatility.

On the other hand, investors with a high-risk tolerance can benefit from the new industry, which is expected to grow rapidly in the coming years.

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