How to Start Investing in the Metaverse?

While the concept of the metaverse has been around for many years, in 2022, this combination of the physical and digital universe is gaining significant momentum. From the ever-growing number of cryptocurrencies to the great rise of NFTs, the metaverse is becoming more and more interesting to visit.

Today, the number of users of the web 3.0 virtual worlds is over 50,000. Since the popularity of this universe is rising, the numbers are about to start growing exponentially. The evolution of social technologies coupled with the long-pestered dream of moving into a virtual realm is making the metaverse highly attractive.

While the majority of people are using metaverse for entertainment, a big number of users sees it as a serious investment. If you are thinking about becoming a metaverse investor, you have a variety of options.

Versatility and Volatility

While metaverse investments seem appealing and have a high potential, they are also highly volatile. This digital universe is developing and growing quickly. However, according to Intel, it still needs 1,000 times more computation efficiency to become powerful enough to handle the demand and become mainstream.  

Since the metaverse, as we know it, is still in its infancy, the lack of rules and stability is obvious. This universe’s economy is based on cryptocurrencies, which makes it highly volatile. Any investments you make in the metaverse right now can both be highly profitable and highly upsetting.

That’s why before you consider making an investment, take the time to understand how much money you are willing to lose if something doesn’t go as planned.

While there are many investment opportunities in the metaverse, this universe may be upstaged by another approach to digital universe creation at any time. Since new technologies are appearing quickly, becoming outdated is a significant possibility.

3 Ways to Invest in the Metaverse

If you’ve made a decision to invest in the metaverse, you have several options to do it. The choice depends on how well you know one of the niches, how much research you are willing to do, and what your budget is.

Metaverse real estate

Right now, you can easily buy land in the metaverse. All you need is a crypto wallet and a little time. Some people are likely to benefit from such an investment while others should take a long hard look at the downsides.

According to Mario Nawfal (age 32, net worth $130 million), the investment in real estate in the metaverse is far from similar investments in the real world. With a huge number of unknowns, it can be hard to predict where this market will go. The benefits of investing in meta real estate include:

A great way to promote your brand – if you have a business, the real estate you buy will turn into another marketing channel and a touchpoint for your audience. You can start reaping the benefits almost immediately.

An excellent way to back others – if you want to help other companies develop in the metaverse, you can make a real estate investment.  Basically, you can become a digital landlord. By the time, this universe becomes mainstream, you can start earning a significant amount of money from your digital tenants.

A wonderful way to build something new – if you are hoping to create something in the metaverse, you need a place to do it. Maybe you want to develop a game, build a virtual stadium, or design an art gallery. If so, real estate may be a great investment.

If you are simply looking for ways to make quick money (as people hope to do with cryptocurrencies), real estate is hardly the best option. It’s a long-term investment, which may or may not bring dividends in the future.

NFTs

The latest hype around NFTs inspired inexperienced investors to rush into purchasing, bidding, and selling. NFTs or non-fungible tokens are the ownership right of a unique digital asset.  It could be anything from a movie or a video game character to a work of art or concert tickets.

NFTs seem to be a wonderful choice to invest in since you actually have something to hold on to. With time, it may increase in price so you can sell the asset and get a significant profit. The downside of NFT investments is the volatility.

Since the metaverse is still in its infancy, no one can predict whether NFTs are going to stay valuable. There is a good chance that they can lose value over time, giving way to other types of metaverse assets.

Keep in mind that an NFT isn’t a work of art. It’s far from being a Picasso painting. While our world is becoming more and more digital by the minute, investments in physical assets are still much less volatile.

Cryptocurrencies

The simplest way to invest in the metaverse economy is to trade cryptocurrencies. Since they have been around for over a decade, many investors know ins and outs of such trading. You can get valuable consultations from people with experience and do some research on your own.

However, no matter how hard you try to predict the cryptocurrency exchange market, it’s likely to surprise you. That’s why similar to real estate, there aren’t any guarantees. In fact, the world has already seen drastic Bitcoin fluctuations.

Some people make millions on cryptocurrency trading. Others lose millions and go bankrupt. If you are planning to invest in the metaverse, you need to learn how to handle cryptocurrencies. In the process, you may decide to trade them or turn to real estate or NFTs.

Also, Read: Differences and Similarities in Bitcoin and Ripple

What are metaverse stocks?

Besides investing in the elements that make up the metaverse, you have an opportunity to buy a part of this universe.  By buying metaverse stocks, you are securing partial ownership in the metaverse company. Today, dozens of metaverse platforms exist. It’s hard to predict which one will eventually take over.

Today, you can consider investing in Meta (ex-Facebook), which is making definitive steps into developing a full-blown metaverse. Meanwhile, companies like Roblox have been creating cyberworld elements for over six years.

Another way to buy metaverse stocks is to invest in companies that cater to the design, development, and growth of the metaverse. It can be software developers, 3D designers, and the like.

Contrary to the rest of the investment options, buying stocks of a successful company is a somewhat less volatile decision. However, if these companies get run over by the competition, you could lose all of your money.

Other benefits of buying metaverse stocks are a large choice of options and affordability. You don’t need to have a large budget to buy a small piece of the development company.

The downside of such an investment is time. You would likely need to wait several years until the metaverse finally takes off and your investments pay off.

The Takeaway

While there are many different ways to invest in the metaverse, the majority of them are highly volatile. Since this university is still in its infancy, it’s hard to make any predictions about its future. It could be a short-lived trend or a highly profitable endeavor. The time will tell.

If you are planning to invest in the metaverse, do some research and speak to the experts. You need to be ready for the high volatility and risks while hoping for substantial returns.

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