Indice
The Metaverse is now a multibillion-dollar investment opportunity, and by 2021, mention of the term has increased exponentially at board meetings and earnings calls, and investors are taking notice.
The Metaverse has also transformed the economy in two ways: first, by providing an alternative investment tool through blockchain, and second, by opening up new asset classes. All this results in a bullish environment with moderate to high risk appetite.
KEY TAKEAWAYS.
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Can you invest in the Metaverse?
The answer is a resounding yes. The metaverse refers to a decentralized, immersive universe powered by 3D visualizations and experiences on the front end and a blockchain-based governance system (often known as a decentralized autonomous organization or DAO) on the back end.
This means that for a decentralized metaverse to work, multiple users must participate in its operations by investing in its native cryptocurrency token, which is intrinsically linked to the platform architecture.
In short, the operation and success of a metaverse is based on investment activity. All major metaverse platforms today have their own cryptocurrency tokens for investment, which are in high demand.
How to invest in the metaverse? 6 options to explore
The good news is that investment in the metaverse is democratic in nature. Anyone can buy cryptocurrency assets or cryptocurrency stocks with no minimum entry threshold.
Unlike real-world economies, there are no geographical barriers and one can invest in the cryptocurrency metaverse in any region. This could be a huge income opportunity for those who reside in places without a mature stock or capital market. There are six options when it comes to investing in the metaverse.
Buying cryptocurrencies from the metaverse
Difficulty level: very easy
Buying cryptocurrencies is one of the easiest ways to invest in the metaverse. All you need is a digital wallet to house cryptocurrency tokens and the ability to participate in a coin exchange.
Different countries may have their own rules for participating in the exchange, such as identity verification and Know Your Customer (KYC). However, they are usually quite simple and barriers to entry are minimal.
Some of the top cryptocurrency investors in the metaverse can be found on almost every exchange, including MANA from Decentraland, SAND from The Sandbox, BLOK from Bloktopia, and AXS from Axie Infinity. As metaverse platforms mature, their respective token values typically increase.
Acquiring land in the metaverse
Difficulty level: easy to moderate
Purchasing land is the best way to invest in the Metaverse, as it requires the same prerequisites as buying cryptocurrencies. Once a user has a digital wallet, he or she can select an emerging Metaverse platform, explore its layout and available plots, locate the desired plot, and make the purchase.
The process is relatively simple, but it carries more risk than investing in pure crypto tokens because the value of virtual land depends on a number of unpredictable factors, such as the pace of development of adjacent lots. Nevertheless, it is one of the most popular investment methods, and analysts believe the market could reach US$1 billion this year.
Renting or buying prefabricated buildings for the metaverse
Difficulty level: high
Instead of purchasing land, one can directly purchase prefabricated structures that can be used directly. For example, a private individual or company can purchase a virtual storefront and then use this space to display 3D digital replicas of their actual offerings in the metaverse.
This investment method is applicable to a wide range of industries, from retail to arts and entertainment services. However, there are significant barriers to entry, as the minimum investment threshold is quite high. It is necessary to purchase a moderate-sized space to actually generate value in the metaverse using this method.
Buying shares in the metaverse
Level of difficulty: moderate
Buying shares in a metaverse company is one of the easiest ways to invest in technology, as it does not require managing cryptocurrencies or opening a digital wallet. However, this investment option is moderately difficult, as metaverse stock options are intended primarily for serious investors.
The value of cryptocurrencies fluctuates dramatically and it is possible to make a good profit in the short term. However, metaverse shares work like any other company and are tradable on a traditional stock exchange.
Major titles in this segment include Meta Platforms Inc. (FB), Electronic Arts (EA), Roblox Corp. (RBLX) and Nvidia (NVDA).
HERE you can find a valuable guide to the Nasdaq here 7 stocks to buy to invest in the metaverse.
Investing in an ETF on the metaverse
Difficulty level: high
A metaverse Exchange Traded Fund (ETF) is an emerging investment vehicle that allows the purchase of a set of stocks that are dynamically traded by a dedicated fund manager.
ETFs are similar to mutual funds in that they collect a set of similar or thematically organized securities into a single asset that provides relatively predictable returns. However, they differ in that they have a dedicated fund manager who actively trades the ETF and makes sure to maintain its optimal market value.
Several metaverse ETFs have emerged in the past 12 months, including Roundhill Ball Metaverse ETF, Subversive Metaverse ETF, and ProShares Metaverse Theme ETF. However, the difficulty is high because most ETFs have a minimum investment threshold of up to $1,000 and it is advisable to have previous experience in the stock market.
Create, buy and sell NFTs
Difficulty level: varies from easy to high.
The last, perhaps the most flexible way to invest in the metaverse is through non-fungible tokens (NFTs). One can create 3-D objects and offer them for sale in the metaverse markets, a technically demanding process. Or you can simply buy NFTs and sell them to make a profit, a simpler approach.
Although this list is not exhaustive, investment opportunities in the metaverse are numerous and range from conventional equity options to high-risk, high-yield real estate.