The Metaverse, a network of interconnected virtual worlds also known as “internet 3.0,” is one of the most fascinating developments of this decade. Due to its uniqueness and high potential, it seems ready to withstand the global financial markets’ downturn this year.
As a result, it is critical to understand how to invest in it. eToro.com, a stock, commodity, and cryptocurrency trading platform, offers a unique metaverse investment portfolio dubbed ‘Metaverse Life,’ which selects metaverse equities and cryptocurrencies and adjusts their proportion in the metaverse portfolio over time.
Read ahead as we explain the intricacies involved while investing in Metaverse.
Your capital is at risk.
Is it Possible to Invest in the Metaverse?
The answer is ‘Absolute yes’.
The Metaverse is a decentralized, immersive environment powered by 3D visualizations and experiences on the front end and a blockchain-based governance system on the back end (commonly referred to as a decentralized autonomous organization or DAO).
This means that in order for a decentralized metaverse to function, many users must invest in the platform’s native cryptocurrency token, which is highly linked to its architecture.
In short, investment activity is necessary for a metaverse to function and succeed. Today, all of the major metaverse platforms have their own cryptocurrency tokens, which are in high demand.
The Advantages of Investing in the Metaverse
In the long run, the metaverse concept of a ‘virtual universe’ is unlikely to fade away. From business to leisure, virtual real estate tours to life-like gaming experiences, telemedicine to virtual events, the metaverse has the potential to create a replica of a real-world setting and immerse the user in such surroundings, no matter what the use case.
A simple explanation of what Metaverse means
ocial media giant Facebook, which changed its name to Meta and launched the metaverse in Q4 2021, has stated that its investment plan in the metaverse will ‘increase even more for each of the next several years’, according to Facebook CEO Mark Zuckerberg in the Wall Street Journal.
Because of the current stock market and crypto market dips, this could be an excellent moment to invest in metaverse enterprises.
How to Start Investing in Metaverse Projects?
The good news is that metaverse investments are, by their very nature, democratic. There is no minimum investment required for purchasing crypto assets or shares of cryptocurrencies.
Unlike real-world economies, metaverse crypto has no geographical boundaries; this is why anyone from anywhere can invest. This might be a huge profit opportunity for people who live in areas without their own stock or capital market.
When it comes to investing in the metaverse, you could choose any one or more of the following alternatives. Each involves creating a crypto wallet and loading it with cryptocurrency, just like real-world wallets must be stocked well to invest in commodities in the metaverse.
Buying Metaverse Crypto
- How to Buy:
Use cryptocurrency from your wallet to purchase metaverse tokens from reputed platforms like eToro.
One of the easiest ways to invest in metaverse ventures, purchasing metaverse crypto on trusted platforms like eToro is a great place to start, because you neither need a lot of money nor have to deal with complex procedures.
The minimum deposit for purchasing crypto on eToro is $10 in the United States and the United Kingdom and slightly higher in other countries. The globally trusted and authentic platform currently has over 27 million registered users and is regulated by the FCA.
The features of copy trading and copy portfolio allow a variety of methods to invest in the metaverse. You could ‘copy trade’ an individual trader who invests in metaverse crypto ventures or use its Metaverse Life ‘Smart Portfolio.’
The Metaverse Life offering by eToro
The Metaverse Life portfolio is currently weighted about 87 percent stocks, spanning a diverse range of metaverse companies, including Facebook stocks, Roblox stocks (an American gaming company that launched a metaverse project), and 10 more.
Then there’s the 13% metaverse cryptocurrency, which includes Decentraland, Enjin, and The Sandbox, which some investors prefer purchasing land. ApeCoin, a metaverse currency that works as a governance token in the Otherside metaverse and is created by Yuga Labs, the designers of the Bored Ape Yacht Club NFT collection, has also been listed on eToro.
The token prices of metaverse systems often rise as they evolve.
Your capital is at risk.
Acquiring Metaverse Land
- How to Buy Land in the Metaverse:
To make purchases in a game, you must first register an account with the game and link your crypto wallet such as eToro to it.
You can log on to Decentraland to purchase and sell virtual real estate, Axie Infinity to buy and sell characters and land plots, and Sandbox to purchase and sell artistic masterpieces.
If you want to access all of the NFTs in one place for convenience, you can register an account with OpenSea.
The next best option to invest in the Metaverse is to acquire land, which has the same buying requirements as cryptocurrencies and offers returns on investment just like in the real world. Once the user has a digital wallet such as eToro, they can choose an upcoming metaverse platform, study its layout and available parcels, select the parcel they desire, and buy it.
eToro wallet helps in safe storage of Cryptos and NFTs
The procedure is simple, but it carries greater risk than pure-play crypto token investments as the value of virtual land is determined by a range of uncontrollable factors such as the rate at which nearby parcels are developed. It is, nevertheless, one of the most popular investment strategies, with analysts predicting that the market will reach $1 billion this year.
Above all, the growing popularity of virtual real estate demonstrates an easy way to invest in metaverse crypto. Many businesses are spending millions of dollars to secure a piece of virtual real estate. Pavia, an NFT initiative, just sold out over 60% of the total 100,000 virtual land parcels available.
The Sandbox metaverse, for instance, offers digital pieces of real estate in the form of a LAND, which can be purchased and owned by players to create and monetize experiences, such as hosting contests and events.
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Renting and Buying Prefabricated Metaverse Buildings
- How to Rent
Instead of purchasing land, you might buy prefabricated structures that you can immediately use.
For example, a person or company could buy a virtual shop and use it to display 3D digital representations of their real-world products in the metaverse.
This investing strategy can be used in a variety of industries, including retail, art, and entertainment. However, major entrance obstacles exist because the minimum investment requirement is extremely expensive. To develop value in the metaverse using this way, one must purchase a relatively large space.
Land and its usage in Metaverse – Image Source
Take the example of Otherdeed for the Otherside NFT collection, which offers similar value in the metaverse. Shortly after its public mint, this NFT collection rose to the position of the fourth largest NFT collection based on market cap.
This is the kind of metaverse real estate investment you should be eyeing.
Your capital is at risk.
Buy Metaverse Stocks
- How to Buy Metaverse Stocks
Purchasing shares in a metaverse company is one of the most straightforward ways to invest in the technology.
It is because it does not necessitate the use of Bitcoin or the creation of a digital wallet. But as metaverse stock options are primarily intended for high-end investors, this investing choice is relatively tough.
Different Metaverse Stocks and Companies via VentureBeat
The value of cryptocurrency changes dramatically, and it is feasible to make a quick profit. On the other hand, Metaverse shares function just like any other corporation and can be traded on a standard stock exchange.
Meta Platforms Inc. (FB), Electronic Arts (EA), Roblox Corp. (RBLX), and Nvidia are among of the most popular stocks in this sector (NVDA).
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Your capital is at risk.
Investing in Metaverse ETFs
- How to Buy Metaverse ETFs
A metaverse Exchange Traded Fund (ETF) is a new type of investment that allows you to buy a basket of equities that are dynamically traded by a professional fund manager.
ETFs, like mutual funds, assemble a collection of comparable or thematically structured stocks into a single asset with reasonably predictable returns. They vary, however, in that a specialist fund management actively trades the ETF and ensures that it maintains its optimal market value.
Examples of Metaverse ETFs
Roundhill Ball Metaverse ETF, Subversive Metaverse ETF, and ProShares Metaverse Theme ETF are just a few of the metaverse ETFs that have surfaced in the previous year.
Their complexity level is high because most ETFs have a $1,000 minimum investment requirement and prior stock market expertise is recommended.
Your capital is at risk.
Investing in Metaverse Index
- How to Invest in Metaverse Index
The Metaverse Index, or MVI, is another option for “how to invest in the metaverse indirectly.”
The Metaverse Index is similar to stock market indexes in that it tracks the performance trends of a country’s top enterprises. MVI aims to track various commercial, gaming, and entertainment trends in the virtual environment.
The ‘less volatility’ is one of the best aspects of investing in the metaverse using MVI. As a result, investing in the MVI is anticipated to involve less risk than investing in metaverse tokens.
Invest in Metaverse Index via FCA regulated platform- eToro
Your capital is at risk.
Creating, Purchasing, Selling and Trading NFTs
- How to Buy NFTs
Use cryptocurrency from your wallet like eToro to buy NFTs on eToro, Coinbase, Binance, etc.
Because most NFTs are based on Ethereum, it’s best to buy the Ether (ETH) cryptocurrency with your local currency. You can create an account with OpenSea to gain access to all of the NFTs in one convenient location.
Non-fungible tokens are arguably the most versatile option to invest in the metaverse (NFTs). You can make 3D things and sell them on metaverse marketplaces, which is a technically difficult task. Alternatively, a simpler strategy is buying NFTs and selling them for a profit.
Decentraland NFTs on Opensea
NFTs are in-game characters in the Bored Ape metaverse, represent Sandbox and Decentraland land plots, and symbolize unique experiences and memorabilia on other platforms.
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Your capital is at risk.
Other Alternatives to Participating in the Metaverse with Good Returns
There are a few more methods to invest in Metaverse that are well worth your time as well. Consider these opportunities to profit by investing in Metaverse:
Rent Your Metaverse Property:
You may always rent out your Metaverse virtual land or virtual building to content creators, artists, gamers, and others, who can use it to host events or concerts to reach out to a whole new audience that prefers virtual socializing to attend such events or concerts in person.
Sell event tickets in the Virtual World:
You need to have an event where you can create tickets for people to go and make it appear like a fantastic event that they shouldn’t miss. You can charge each ticket to earn a solid return on your Metaverse event.
Advertising on Metaverse Billboards:
There are roads, traffic, and people in the metaverse universe, just like real life. You will also discover virtual billboards in such a virtual world, which can be a terrific way to market your services and products to the general public.
Consider advertising your company on such virtual billboards to inform Metaverse users about your offerings.
Renting Your Property for Retail:
The retail business is well-represented in the Metaverse, and many brands will demand plenty of room for their stores and retail locations. You can rent out your Metaverse property to companies like these to help them promote their products.
People that sell NFT may require such stores to open up shop, and you may find that your renters are selling NFT products while you earn money by renting out such shops on your Metaverse property.
Renting Out Property for Offices:
MNCs are constantly seeking new methods to bring their people together, and Metaverse is a terrific place to start. You can rent out your Metaverse property to MNCs looking for virtual office space.
Keep in mind that MNCs that seek to expand their reach into virtual employment in order to earn a living in their physical environment exist.
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The Bottom Line
The overall impression of metaverse investments demonstrates the ease of investing in metaverse using simple approaches. You can open a crypto wallet such as eToro and purchase metaverse tokens from any of the leading metaverse platforms. Investors can also buy in-game NFTs and virtual land parcels to invest in a particular metaverse platform.
On the other hand, Metaverse investors have access to indirect investment options such as exchange-traded funds and metaverse firm stocks. While the metaverse has great growth potential, it is still in its infancy. As a result, before investing their valuable assets in the metaverse, investors must thoroughly examine all aspects of the investment.
It’s vital to realize that Metaverse investments aren’t for everyone. Having a significant concentration of assets in stocks of Metaverse-related companies can be dangerous. When it comes to investing in the Metaverse, you should consider your risk tolerance and diversify your portfolio and eToro Metaverse Life could be a great option for that.
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