How to Start Investing in the Metaverse?

Introduction

The Metaverse is here, and with it a whole new era of internet-based interactions and experiences. While there’s still time to get in on the ground floor, not everyone knows how. 

It’s an exciting world still in its early stages of development, but there is already a lot of potential for growth. The perfect time to start investing in the Metaverse is now and we’ll show you how. 

What is the Metaverse?

So, what is the Metaverse? The Metaverse can be best described as a parallel universe that exists on the internet. It is a virtual world where users can create and interact with different objects, experiences and people.

In its most basic form, the metaverse already exists in video games. Online shooters like Fortnite, for example, allow players to interact with others through 3D avatars, earn virtual currency, and more. 

Big brands and celebrities have started experimenting with metaverse content. For example, Lil Nas X, the rap artist, hosted the world’s first Roblox concert. The event garnered 33 million views in two nights and resulted in eight-figure digital merchandise sales.

How to Start Investing in the Metaverse?

We’ll explore two broad options you can pick on to start investing in the Metaverse: direct and indirect investment in the Metaverse. Each option presents rewarding opportunities and strengths, so it’s important to consider your personal circumstances and preferences before making a decision. 

Option 1: Direct investment the Metaverse

Everything in the Metaverse is growing so fast, driven by smart people like you who are enthusiastic about this new world. You too can get involved directly in the Metaverse by finding something that you can do yourself and create opportunities to make a return on your investment. 

Direct investment in the Metaverse is by far the most diverse option, presenting enough opportunities for anyone to start investing. Whether you have skills or not, there is something for everyone in the Metaverse. 

Here are some of the popular ways you can start to invest directly in the Metaverse

Start a Metaverse business

You can start a Metaverse business and grow it as the Metaverse grows. This could be anything such as a gaming platform, a platform for developers and creators, a 3D company, digital fashion, digital art, virtual collectibles, etc. 

The best way to approach this is to think of any business in the real world sense then imagine how you can build it in the Metaverse and who will be the target market. If you get it right, you stand a chance to attract ready buyers and even startup funding from investors looking for bankable Metaverse businesses to fund. 

Invest in Metaverse cryptocurrencies

Cryptocurrency is the default digital currency that is used to pay for goods and services in the Metaverse, in the form of crypto coins or crypto tokens. And so as more and more people start joining the Metaverse, this form of currency will attract high demand and their value will skyrocket even more. You can buy cryptocurrency and hold on to it as an investment. 

Gaming in the Metaverse, for example, is already becoming a huge consumer of Cryptocurrency as top game platforms accelerate their offerings through cryptos. Players in these platforms are required to buy crypto tokens which they then use to play and earn whenever they achieve certain milestones in the games. Some platforms also allow users to create and sell games, for which they are mostly paid in the form of Cryptos. 

It’s important to point out at this stage that games in the Metaverse have become so lucrative that some participants are reported to have made it their full-time job. This will no doubt drive up the value of cryptocurrencies within the Metaverse. 

Sell NFTs

NFTs (Non Fungible Tokens) are used to represent ownership of unique digital assets that are stored on a blockchain and can be traded for cryptocurrency or fiat currency. Billionaire Mario Nawfal points out that NFTs are essentially the atomic unit of the Metaverse, they represent digital ownership in the Metaverse. 

An NFT can only be owned by one person at a time meaning it’s not transferable as the name suggests, a concept that gives them the unique tag which has seen them rise so rapidly in popularity. Anything that is digital can be tokenized into a blockchain. Examples of digital assets that can be tokenized include arts, collectibles, images, video games, written content, videos, etc. Ethereum is the most popular blockchain network where most NFTs are currently being stored. 

Where can you sell NFTs?

There are marketplaces where you can buy and sell NFTs, or even create your own NFTs and sell them. Some of the top ones include  Rarible, Axie Marketplace,SuperRare, Foundation and Mintable. To choose the right NFT marketplace for yourself, start by weighing out the type of digital assets that you are interested in, then go with the one that is strong on your favorite assets.

Also find out the kind of crypto tokens being supported by the different marketplaces, then fund your digital wallet appropriately. Some marketplaces require that participants use their own crypto tokens to buy while others accept different various tokens. Rariable for example restricts users to using its own Crypto that goes by the same name, Rariable.

Option 2: Indirect investment in the Metaverse

This involves buying stocks in valuable companies that are already investing in the Metaverse.

If you don’t have the time to go so deep into understanding the Metaverse in order to make something out of it, then this is your option. Simply invest in the future of the Metaverse by investing in companies that are already doing the work. 

For example, IBM has been heavily investing in the blockchain and is one of the leading companies working on developing the Metaverse. By buying stocks in companies like IBM, you’re betting on the future of the internet and cashing in on their investment. Here are more companies you can consider besides IBM:

  • Facebook (Now Meta): Meta, formerly Facebook, already owns popular Metaverse platforms.
  • Nvidia: Nvidia is a software company building various technologies and software that power the Metaverse.
  • Roblox: Roblox is a top gaming platform that is aggressively leveraging the Metaverse to drive immersive gaming activity.
  • Snap: Snap is a social media platform that is already deep into using Augmented Reality in its offerings.
  • Alphabet: Google’s parent company is also starting to focus on the metaverse. 
  • Microsoft: The software giant is already testing the adoption of Metaverse features across its ecosystem of products and platforms.
  • Unity Software: A leading developer of real-time 3D visuals, which are highly demanded in the Metaverse.
  • Shopify: The giant eCommerce platform with over a million businesses has started investing in AR shopping, a concept where shoppers try things virtually before purchasing.
  • Qualcomm: Qualcomm is investing heavily in Extended Realty (XR), including purchasing an XR lab. 

Which One is Right for You?

So, which Metaverse investment strategy is right for you?

If you’re interested in getting started with Metaverse but not keen to get so deeply involved, then the indirect option is the best place to begin. 

But if you are obsessed with the Metaverse and have some time to dive deep and build something directly, the second option is worth a try. 

Whichever route you choose, remember that the potential rewards are huge and the future is waiting for you. Investing in the Metaverse is a smart move for anyone looking to get in on the ground floor of the next big thing.

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