Here’s a Complete Guide to Investing in the Metaverse


Key ideas:

  • October 2021 saw a massive surge in popularity for the metaverse.

  • The global revenue opportunity of the metaverse could approach $800 billion by 2024.

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

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

October 2021 saw a massive boom in popularity for the metaverse, when Facebook made big news by changing its name to Meta. However, there is much more to the metaverse than Mark Zuckerberg or social media.

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

The metaverse and its growth

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

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

Terms such as social, shared, virtual, and persistent 3D are used to describe metaverse technology. According to many, metaverse technology is the convergence of the digital and physical worlds within the evolution of the Internet and social media. Additionally, the metaverse also uses real-time 3D software.

In recent years, major organizations have begun to jump on the metaverse bandwagon as customer demand for technology increases. The idea of ​​the metaverse revolves around an online space where people connect and interact with each other.

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

Also, in March 2022, the presenters, artists and nominees of the Grammys had a virtual reality experience in the metaverse through CEEK. More recently, in April this year, another project partnered with Decentraland to introduce people to marrying in the metaverse.

Metaverse-focused organizations like Decentraland, Meta, The Sandbox, and others are also building promising metaverse platforms and projects. Prophecy Market Insights predicted that the global metaverse market represented $337.23 million in 2020 and is estimated to be $1,003.06 million by 2030. The sector is forecast to post a CAGR of 11.50% over the years. years.

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

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

Investing in the Metaverse for beginners

A report by Bloomberg presented that the global revenue opportunity of 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 cryptocurrency market and the metaverse is a complicated sector that often leaves new investors overwhelmed.

Like cryptocurrencies, the metaverse allows almost anyone to invest and earn in the space. It is essential to note that investing in the metaverse is not limited to buying crypto assets, in fact, you can also invest in or trade shares of metaverse companies.

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

Decentraland is a company that offers users the opportunity to purchase virtual land in the metaverse. On the other hand, Meta is a traditional financial firm offering investments in the growing space.

That said, some ways a newcomer can invest in the metaverse include buying virtual land and pre-made metaverse properties. Investors can also consider buying metaverse crypto, which offers decent exposure, especially for beginners.

More experienced investors may also consider investing in a metaverse ETF which is often considered much safer and less volatile. Also, one can consider buying metaverse stocks and creating and trading NFTs.

Invest directly in the metaverse

While investing in the metaverse can also be done indirectly, direct investment in metaverse projects has attracted many investors. For the past year and a half, investing in cryptocurrencies and the metaverse has been one of the most exciting areas in the financial space.

Although many new investors think of investing in CRYPTOCURRENCIES I like it bitcoin and ether as similar to investing in the metaverse, it’s not always mutually exclusive. In fact, one can invest in cryptocurrencies and the metaverse by taking various approaches.

One way to invest directly in the metaverse can be through cryptocurrencies and digital assets like NFTs in the metaverse space. Another way could be to invest or trade metaverse cryptocurrencies like Decentraland (MANA), The Sandbox (SAND) and Enjin Coin (ENJ).

These metaverse cryptocurrencies can be bought or traded directly from any major cryptocurrency exchange like Binance or Coinbase. Various assets in the metaverse can be used to purchase products and services.

You can also invest in metaverse stocks from prominent firms like Meta Platforms, Roblox, Microsoft Corporation, NVIDIA and 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 by the year 2022. New investors and traders play a huge role in fueling the metaverse space by paying millions of dollars to buy real estate in the metaverse.

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

As metaverse technology gains more traction, entrepreneurs and business leaders stand to gain by researching 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 capitalization, and macro growth is something to keep in mind.

With that said, one of the most crucial things in space is staying safe and making informed decisions. Most importantly, it is vital to do your research on the market and properly assess the volatility of this growing space.

East Article originally published on FX Empire

More from FXEMPIRE: