Beginner’s Guide to Investing in the Metaverse

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Over the last year, the notion of ‘the metaverse’ has grown in popularity, with hundreds of initiatives, both on-chain and off-chain, attempting to combine virtual world principles. Given that the metaverse technology niche is predicted to be worth roughly $5 trillion by 2030, many investors are keen to participate in this expansion.

This tutorial will cover how to invest in metaverse in 2022, offering numerous prominent ways used by investors before outlining key elements to consider when selecting a metaverse platform.

Top Methods for Investing in the Metaverse

Those that buy bitcoin on a daily basis will have witnessed the metaverse’s expansion over the last year, with several initiatives assisting in bringing this notion to the public.

The five ways outlined below illustrate how to invest efficiently in the metaverse, each with its own set of advantages for investors:

  1. Games
  2. NFTs
  3. Cryptocurrency
  4. Real Estate
  5. Stocks 

A Closer Look at the Best Metaverse Investments

Let’s take a closer look at the tactics mentioned above, outlining what they are and how they might assist investors in the long run.

1. Metaverse Video Games

The greatest method to invest in the metaverse is through metaverse games developed by NFT game developing companies or the top metaverse NFT projects, in our opinion. The rise in this sector of gaming has been exponential in the last year, fueled by high-profile initiatives such as Decentralization The Sandbox. Smaller initiatives, on the other hand, are constantly launched in an attempt to profit on the success of those that came before.

Metaverse games are, as the name suggests, gaming systems that exist within the metaverse. Many of the greatest metaverse currencies are native to these gaming projects, allowing them to function properly. The amount of immersion that these games can provide is one of their most enticing features.

Those who have seen Steven Spielberg’s ‘Ready Player One’ will be familiar with metaverse games. They have extensive 3D worlds where users may build their own avatars and interact with the avatars of other players. This provides a new method to socialise, one that appears to be growing in popularity in today’s post-pandemic environment.

The metaverse gaming niche is home to some of the most undervalued cryptos, with ‘play-to-earn’ (P2E) mechanics being one of the most tempting elements for players. These methods enable gamers to receive incentives (in cryptocurrency) for their in-game activities. This essentially implies that players may monetize their gaming talents in a pleasant way.

One metaverse game project that has lately gained public notice is Battle Infinity. This intriguing project includes a fantasy sports league into its metaverse, allowing sports enthusiasts to plot and receive prizes for skillful participation. These incentives are given out in IBAT, Battle Infinity’s native token.

Many investors are eager to purchase Battle Infinity in order to gain exposure to the project’s expansion, since it provides a number of additional appealing characteristics. One of them is the ‘Battle Store,’ which offers a variety of multiplayer P2E games for players to play, increasing their reward potential. Those who want to learn more about this amazing initiative should join the Battle Infinity Telegram group.

The Top Five Metaverse games:

  1. Decentraland 
  2. Battle Infinity
  3. Axie Infinity 
  4. Gods Unchained
  5. The Sandbox 

2. Metaverse NFTs 

NFTs are another popular option to invest in the metaverse. Because of their valuable properties, several of the top NFTs in the last year have been included in metaverse-based initiatives. One major feature that makes NFTs appealing from a metaverse perspective is their ability to enable ‘real’ ownership of in-game assets.

In the Gods Unchained metaverse game, for example, the in-game playing cards are organised as NFTs. This implies that all of a player’s cards are authentic and cannot be stolen or changed. As a result, the idea of cheating or hacking is reduced (or eliminated) from the game.

Another advantage is that in-game things may be exchanged easily if they are arranged as NFTs. Battle Infinity, which we previously discussed in the section above, is one of the greatest NFT projects right now that offers this functionality. Within its ecosystem, Battle Infinity offers a dedicated NFT marketplace (named Battle Market) where users may buy, sell, and trade in-game products.

Users, for example, may go to the Battle Market and buy a new costume for their in-game avatar with IBAT – Battle Infinity’s native token. Because supply and demand variables tend to define each NFT’s pricing, this is another choice for the best method to invest in the metaverse. As a result, as the platform’s user base expands, NFTs will become increasingly rare and valuable.

Many of the better NFT games (like Battle Infinity) enable players to buy pieces of virtual land inside their globe that are also structured as NFTs. This topic will be discussed more in the guide, but it’s important noting since it emphasises the metaverse’s continuous relevance of NFTs.

Top 5 NFTs in The Metaverse:

  1. Decentraland 
  2. Battle Infinity 
  3. Lucky Block 
  4. Gods Unchained
  5. Axie Infinity

3. Metaverse Cryptocurrency

Another way to invest in the metaverse is through metaverse cryptocurrency. Metaverse crypto , in a nutshell, refers to the native coins of metaverse-based projects. These coins are commonly utilised for a variety of purposes, including transactions, staking, and even governance.

Let’s take a closer look at these:

In-world transactions: The native token of each metaverse may often be used to purchase products from the in-world marketplace. Users can, for example, purchase Axie Infinity and use tokens to purchase extra ‘Axies’ for use in-game. Sellers are also reimbursed in metaverse crypto, which they can then trade for another digital money. You can exchange your crypto by using crypto exchange software.

Staking: Crypto staking is ‘locking up’ tokens for a set length of time, generally to improve the platform’s security. Many metaverse systems have their own staking mechanism, allowing token holders to earn a return on their investments while also benefiting the greater community.

Governance: Finally, many metaverse initiatives are designed as a decentralised autonomous organisation (DAO), which means that token holders run the platform. Most of the greatest crypto DAO initiatives allow token holders to vote on governance ideas, with the proposals that receive the most votes moving ahead.

The Top Five Metaverse Cryptocurrencies:

  1. Axie Infinity 
  2. Battle Infinity 
  3. Ethereum 
  4. Decentraland
  5. Enjin

4. Real Estate in the Metaverse

Metaverse real estate has emerged as one of the most intriguing aspects of this expanding sector, providing a fresh perspective on ownership and renting. Those interested in learning how to invest in metaverse real estate can do so by engaging in metaverse initiatives that allow people to buy parcels of virtual land.

Decentraland is one of the most well-known projects that provides this capability, since its 3D environment has around 90,000 plots of 16m x 16m land units (called LAND).

Specific parcels of land are judged more valuable than others owing to their location, just as they are in real life. Some LAND plots near Decentraland’s ‘Genesis Plaza’ were worth more than $13,000 in 2021. Given that these plots are just 16m x 16m, it’s clear that metaverse real estate may be expensive in some cases.

According to a CNBC story, virtual land sales in the metaverse will exceed $500 million by 2021. Much of this was due to the advantages that virtual real estate may provide investors. Investors can gain not only from value appreciation caused by improvements in project popularity, but they can also produce returns through renting.

Top 5 Metaverse Real Estate Initiatives:

  1. Battle Infinity
  2. Decentraland
  3. Meta Mansions
  4. Sandbox 
  5. Somnium Space

Is Investing in the Metaverse a Good Idea?

Now that we’ve covered some of the finest methods to invest in the metaverse, let’s take a look at whether the metaverse is a suitable investment opportunity. Because it provides a unique platform for individuals to connect and play game. The metaverse is frequently cited as one of the finest long-term crypto investments.

Non-crypto firms have also proposed concepts based on the metaverse. Roblox is a pioneer in this field, offering a platform for children and teens to engage and play games together.

Along with crypto-based ventures, the finest metaverse firms to invest in may also be a solid investment because they give exposure to different sectors of the cryptocurrency industry. These topics include blockchain technology, decentralised finance (DeFi), and non-financial tokens (NFTs), all of which have seen rapid growth in recent years.

Having said that, investment in the metaverse remains intrinsically risky. Because these platforms are all very new in the great scope of things, estimating price fluctuations over the long term – something far more possible with stocks – is difficult. Successful initiatives, on the other hand, may generate substantially larger returns, which is why they are appealing to many.