Here’s a Complete Guide to Investing in the Metaverse

Key Insights:

• A massive boom in metaverse’s popularity was witnessed in October 2021. 

• Global revenue opportunity from the metaverse could approach $800 billion by 2024. 

• NFTs, metaverse tokens, and virtual land are ways in which one can invest in the crypto space. 

Metaverse and NFTs were the buzzwords of 2021 as both sectors saw a massive rise in market capitalization and general interest.

A massive boom in metaverse’s popularity was witnessed in October 2021, when Facebook made big news by changing its name to Meta. However, there’s much more to the metaverse than Mark Zuckerberg or the social media.

Over the last years, curiosity about the investment opportunities in the metaverse has often crossed traders’ and investors’ minds. However, before investing in the metaverse, it is crucial to know more about the virtual world that investors and institutions are so excited about.

The Metaverse and its Growth

According to many, metaverse technology is the next big tech as it has managed to attract social networks, online game makers, and various technology leaders globally.

In a more general sense, the metaverse can include virtual reality – characterized by usually purposeful virtual worlds that continue to exist. It also has augmented reality that combines aspects of the digital and physical worlds.

Terms like social, shared, virtual, and persistently 3D are used to describe the metaverse technology. According to many, metaverse technology is the convergence of the digital and physical worlds within the evolution of the internet and social networks. Additionally, the metaverse also makes use of real-time 3D software.

Over the last couple of years, mainstream organizations have started to jump on the metaverse bandwagon as customer demand for the technology rises. The idea of the metaverse revolves around an online space where people get to connect and interact with each other.

In fact, the metaverse mania is so immense that in January this year the Tennis Australia partnered with Decentraland to host the Australian Open (AO), which was the first official tennis grand slam in the metaverse.

Likewise, in March 2022, presenters, performers, and nominees, at the Grammys had a virtual reality experience in the metaverse via CEEK. More recently, in April this year, another project partnered with Decentraland to introduce for people to marrying in the metaverse.

Metaverse-centric organizations such as Decentraland, Meta, The Sandbox, and others are also building promising metaverse platforms and projects. Prophecy Market Insights predicted that the Global Metaverse Market accounted for $337.23 million in 2020 and is estimated to be $1003.06 million by 2030. The sector is anticipated to register a CAGR of 11.50% over the years.

A Citibank report highlighted that the metaverse economy could be valued between $8 trillion and $13 trillion by 2030.

So, for a market growing at such a high pace, what are the ways in which one can invest in the space? This article will highlight how one can, directly and indirectly, invest in the metaverse.

Investing in Metaverse for Beginners

A Bloomberg report presented that the global revenue opportunity from the metaverse could approach $800 billion by 2024. With investment opportunities in the metaverse on the rise, it could be a good space for beginners to explore. However, the crypto and metaverse market is a tricky sector that often leaves new investors overwhelmed.

Much like cryptocurrencies, the metaverse allows almost anyone to invest and earn from the space. It’s essential to note that investing in metaverse is not limited to buying crypto-assets infact one can also invest or trade-in stocks of metaverse firms.

There are quite a few publicly traded companies from the metaverse space. Furthermore, beginners can choose from different industries in the metaverse space, including real estate, video games, and entertainment.

Decentraland is one firm that offers users the opportunities to buy virtual land in the metaverse. On the other hand, Meta is one traditional finance firm offering investments in the growing space.

That said, some ways a newcomer can invest in the metaverse include purchasing virtual land and prefabricated metaverse properties. Investors can also look at buying metaverse crypto, which offers a decent exposure, especially to beginners.

More seasoned investors can also look at investing in a metaverse ETF which is often considered to be a lot safer and less volatile. Furthermore, one can look at buying metaverse stocks and creating and flipping NFTs.

Directly Investing in the Metaverse

While investing in metaverse can be done indirectly, too, directly investing in metaverse projects has lured many investors. Over the last year and a half, investing in cryptocurrencies and the metaverse has been one of the most exciting areas in the finance space.

Even though many new investors think of investing in cryptocurrencies like bitcoin and ether as similar to investing in the metaverse, it isn’t always mutually exclusive. In fact, one can invest in cryptocurrencies and the metaverse by taking various approaches.

One way of directly investing in the metaverse can be via cryptocurrencies and digital assets like NFTs in the metaverse space. Another way could be by investing or trading metaverse cryptocurrencies like Decentraland (MANA), The Sandbox (SAND), and Enjin Coin (ENJ).

These metaverse cryptocurrencies can be bought or traded directly from any major crypto exchange like Binance or Coinbase. Multiple assets across the metaverse can be used for buying products and services.

One can also invest in metaverse stocks from prominent firms such as Meta Platforms, Roblox, Microsoft Corporation, NVIDIA, and the Boeing Company, among others. Metaverse real estate is another industry that has seen tremendous growth over the last year.

Market reports have estimated that real estate sales in the metaverse could double in the year 2022. New investors and traders play a huge role in pumping the metaverse space by paying millions of dollars to buy real estate in the metaverse.

One can buy lands on the metaverse with cryptocurrencies like ether, SAND, and MANA. AXS, MANA, THETA, and ENJ are some of the most popular metaverse cryptocurrencies in use. Thus, buying one of these crypto-assets could be the first step to owning land on the metaverse.

As the metaverse technology gains more traction, entrepreneurs and business leaders stand to gain by looking into the space and investing in virtual real estate. Platforms like Decentraland and Otherside offer exciting opportunities in the virtual real estate market.

Staying Safe is the Key

While investing in cryptocurrencies and the metaverse is often seen as a glamorous, get-rich quick scheme investing in projects for their value, ecosystem, market cap, and macro growth is one thing that needs to be kept in mind.

That said, one of the most crucial things in the space is to stay safe and make informed decisions. Most importantly, it is vital to do your research in the market and assess the volatility of this growing space well.

This article was originally posted on FX Empire

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