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Can I invest in the metaverse? yes 6 ways

Discover the opportunities, from conventional stock options to high-risk, high-reward real estate

Image credit: Pexels, Rodnae

The Metaverse is now a multi-million dollar investment opportunity, and throughout 2021, mention of the term increased exponentially during board meetings and earnings calls, and investors are taking note.

The Metaverse has also transformed the economy in two ways: firstly, by providing an alternative investment instrument through the blockchain, and secondly, by opening up new asset classes. All of this translates into a bullish environment with moderate to high risk appetite.

Can you invest in the metaverse?

The answer is a resounding yes. The metaverse refers to a decentralized, immersive universe powered by 3D visualizations and experiences on the front end and a blockchain-based governance system (often known as a decentralized autonomous organization, or DAO) on the back end.

This means that for a decentralized metaverse to work, multiple users must participate in its operations by investing in their native cryptocurrency token, which is intrinsically linked to the architecture of the platform.

In short, the functioning and success of a metaverse depends on investment activity. All the major metaverse platforms today have their own cryptocurrency tokens to invest in, which are in high demand.

How can you invest in the metaverse? 6 options to explore

The good news is that metaverse investments are democratic in nature. Anyone can buy crypto assets or a share of cryptocurrencies without a minimum entry threshold.

Unlike real-world economies, there are no geographical barriers and you can invest in metaverse crypto in any region. This could be a great money-making opportunity for those residing in places without a mature stock or capital market of their own. There are six options when it comes to investing in the metaverse.

Buy metaverse cryptocurrency

Difficulty level: very easy

Buying cryptocurrencies is one of the easiest ways to invest in the metaverse. All you need is a digital wallet to hold crypto-tokens and the ability to participate in a coin exchange.

Different countries may have their own rules for participating in the exchange, such as identity verification and know-your-customer (KYC) verification. However, they are usually fairly straightforward and there are very few barriers to entry.

Some of the top investors in metaverse crypto are found on almost every exchange, such as MANA from Decentraland, SAND from The Sandbox, BLOK from Bloktopia, and AXS from Axie Infinity. As metaverse platforms mature, the value of their respective tokens often increases.

Acquiring land from the metaverse

Difficulty level: easy to moderate

Buying land is the next best way to invest in the Metaverse, as it has the same purchase requirements as cryptocurrencies. Once the user has a digital wallet, they can select a pop-up platform from the metaverse, explore its layout and available parcels, zero in on the parcel they want, and make a purchase.

The process is relatively simple, but carries more risk than investments in cryptocurrencies, as the value of the virtual land depends on a number of unpredictable factors, such as the pace of development of adjacent parcels. However, it is one of the most popular investment methods, and analysts believe that the market could reach $1 billion this year.

Rent or buy prefab buildings from the metaverse

Difficulty level: high

Instead of buying land, you can also directly buy prefabricated structures that you can directly put into use. For example, a person or business could purchase a virtual storefront and then use that space to display 3D digital replicas of their real-world offerings in the metaverse.

This investment method applies to a wide range of sectors, from retail to arts and entertainment services. However, there are significant barriers to entry, as the minimum investment threshold is quite high. You have to buy a moderately large space to really generate value in the metaverse using this method.

Buy Metaverse Stocks

Difficulty level: moderate

Buying shares in a metaverse company is one of the easiest ways to invest in the technology, as it does not require a person to handle cryptocurrencies or open a digital wallet. However, this investment option is moderately difficult, as metaverse stock options are primarily intended for serious investors.

The value of cryptocurrencies fluctuates drastically and it is possible to make a good profit in the short term. However, metaverse stocks work like any other company and can be traded on a traditional stock exchange.

Some of the main stocks in this segment are Meta Platforms Inc. (FB), Electronic Arts (EA), Roblox Corp. (RBLX), and Nvidia (NVDA).

Invest in a Metaverse ETF

Difficulty level: high

A metaverse Exchange Traded Fund (ETF) is an emerging investment vehicle that allows you to buy a collection of stocks that are dynamically traded by a specialized fund manager.

ETFs are similar to mutual funds in that they bundle a set of similar or thematically organized stocks into a single asset that provides relatively predictable returns. However, they differ in that there is a dedicated fund manager who actively trades the ETF and ensures that it maintains its optimal market value.

Several metaverse ETFs have emerged in the last 12 months, such as the Roundhill Ball Metaverse ETF, the Subversive Metaverse ETF, and the ProShares Metaverse Theme ETF. However, the difficulty is high, since most ETFs have a minimum investment threshold of up to $1,000 and it is advisable to have previous experience in the stock market.

Create, buy and sell NFTs

Difficulty level: varies from easy to hard

The last, and possibly the most flexible, way to invest in the metaverse is through non-fungible tokens (NFTs). You can create 3D objects and put them up for sale on markets in the metaverse, which is a technically difficult process. Or, you can just buy NFTs and sell them for a profit, which is a simpler approach.

Although this list is not exhaustive, there are many investment opportunities in the metaverse, ranging from conventional stock options to high-risk, high-reward real estate.