If you think cryptocurrencies are still too risky, you’ll want to stay away from real estate cryptocurrencies. But, if you have no problem taking speculative financial risks, this article is for you.

Buying real estate cryptocurrencies is one of the most speculative investments you can make. It is about buying digital land in different real estate crypto projects (also known as metaverse project). If that metaverse ends up taking off, it could be like buying land in 18th-century Manhattan. Of course, it’s hard to tell whether your digital land will end up in “digital Manhattan,” “digital rural Wyoming,” or total dereliction.

Digital lands are backed by non-fungible tokens (NFTs). NFTs are digital tokens that can represent almost anything. They are normally used to represent images, video or audio. In this case, they represent parcels of digital land. NFTs act as the digital certificate of ownership that proves that you own that land.

A handful of investment firms are investing heavily in real estate crypto projects. In fact, DeFi startup Everyrealm recently made headlines by spending $4.3 million for a single parcel of metaverse land. This is the largest single purchase made by an investor to date.

As you may have guessed, you can’t exactly use PayPal to buy digital land. Instead, you need to buy real estate crypto. With that said, let’s look at a step-by-step guide on how to get started.

Step No. 1 Choose your Project

The first thing to note is that there is no single “metaverse”. Many different companies are in the process of building their own metaverse. For example, the company formerly known as Facebook is creating its own digital world. But it hasn’t really delivered anything tangible yet. CEO Mark Zuckerberg has said that he may not deliver a metaverse for another decade.

Companies like Apple, Google and Microsoft are in similar positions. They are undoubtedly working on creating a metaverse behind the scenes. However, there is nothing that is ready for the consumer.

Fortunately, there are still some metaverses where you can buy digital land. The two most popular are:

1. Decentralized (MANA)
2. The sandbox (ARENA)

These are just two options and new crypto real estate projects are emerging every day. To investigate more, you can also scroll through the NFT market Open sea. This is a good way to quickly navigate through different projects.

Another real estate crypto project to consider is that of Yuga Lab. Other side. I’m highlighting this particular project because Yuga Labs is the owner of Bored Ape Yacht Club, CryptoPunks, and Meebits. It has a lot of momentum in it. webspace3 and there’s a good chance your metaverse will be instantly popular.

So, once you have decided on a project, how do you buy real estate cryptocurrencies?

Step #2 Open and fund a wallet

Like I said, you can’t exactly use PayPal or your credit card to buy digital land. Instead, you will need to open and fund a wallet. The most popular option is Metamask. This is a good time to point out that your deposits are not FDIC insured. If you somehow lose your crypto or get hacked, there’s really no one to complain to. Welcome to web3!

That said, your deposits are protected in the block chain. Buying cryptocurrency is different, but it’s really no more risky than carrying around a wallet with cash. When you think about it, there is always a small chance that you could inadvertently lose your funds.

Metamask is one of the most trusted wallets and has 21 million users worldwide.

Step No. 3 Buy your Crypto Real Estate

After funding your wallet, you will need to purchase the token that powers your metaverse project. For example, let’s say you want to buy a piece of land in Decentraland. First, you need to buy the token used in Decentraland, which is called MANA. It’s a bit like converting your dollars to euros when you visit Europe.

Once you have some MANA, you can visit the Decentraland market and start browsing. The cheapest land currently sells for around 3600 MANA. The conversion rate for MANA is approximately $2. This means that it would cost you about $7,200 to buy the cheapest piece of land. But, there are a few things to remember:

1. It’s (digital) real estate. You can always bid and negotiate for a lower price.
2. Metaverse projects rise and fall in popularity rapidly. The price of a plot of land could drop dramatically if the project loses steam in the coming months. On the other hand, it could also increase dramatically.
3. The price of cryptocurrencies is also constantly fluctuating. At its peak, MANA cost just under $6 USD. But, in early 2021, it was around $0.10.

Don’t worry too much if a minimum of $7,200 is out of your budget. Decentraland is one of the most popular real estate crypto projects. There are many other cheaper projects where you can buy land.

Should you buy real estate cryptocurrencies?

Buying real estate cryptocurrencies is not for the faint of heart. It is highly speculative and should only represent a small portion of your portfolio.

Most of the top investors in digital land are investment firms that have money to spend. They buy digital land with the full knowledge that the land could lose its value. It’s a bit like investing in startups. Venture capital funds will invest in ten different startups at once. Of these ten, they expect nine to fail and hope that one will become the next Uber, Doordash, etc.

However, that does not mean that you should not buy real estate cryptocurrencies. Just make sure you’re doing it with money you can afford to lose.

Another way you can get started is by simply buying the real estate crypto token. This is like dipping your toe in water instead of making a cannonball. For example, instead of buying land in Decentraland, you could just buy and keep MANA. The same is true for SAND, APE and others. real estate crypto projects.

If these projects end up taking off, their tokens will likely increase in value. If they don’t, it will be much easier to offload your token than a plot of land. This is a way to reduce your risk while still exposing yourself to real estate crypto projects.

I hope you found this step-by-step guide to buying real estate cryptocurrencies valuable! Please remember that I am not a financial advisor and am only offering my own research and commentary. As usual, base all investment decisions on your own due diligence.