The metaverse is your very own digital reality, where you have the capacity to play games, watch, shop, buy, sell and do pretty much whatever it is you enjoy.
It’s why buying metaverse land can be a very worthwhile investment – but as with any land investment, you need to make sure you aren’t caught out overpaying for a plot that won’t add value over time.
With that in mind, here are some important tips for you to consider before buying land in the metaverse
Choose wisely: Don’t assume that metaverse land buying is a safe bet, it isn’t. Do your research, and make sure the metaverse project is backed by reputable companies, and that the team is experienced. They’ll also need lots of resources because metaverses are incredibly complex and expensive to build, so keep your eyes wide open for projects that seem too good to be true. If you’re just starting out, stick with some of the more established projects like The Sandbox, Decentraland, and Wilder World etc.
Get there early: Ensure you follow recently launched projects and get involved in the community. Often, land sales for metaverse projects offer ‘presale’ discounts for loyal community members. Alternatively, if the project is very popular, just getting whitelisted to purchase at the sale price will still ensure you’re getting it 5-10x cheaper than everyone else.
Location isn’t always important: Many will pay a premium for metaverse land that’s close to a certain landmark or zone – but make sure you research each platform because if you can teleport from place to place, location isn’t as important as the potential to develop on your land, or gain other utilities. If there’s no discernible advantage for being ‘close’ to an area, then get floor-priced land instead, it’ll likely be undervalued in the long run.
Buy when the market is down: Like any asset, metaverse land will depreciate in a poor market, which could be the ideal time to buy at a discount, as investors look for liquidity. If you play clever, you can bag a bargain with some strategic bids on marketplaces like OpenSea, which brings me, fittingly, to my next tip:
Place some bids on NFT marketplaces: You might be surprised at how many ‘low’ offers are accepted, often below the original asking price, for metaverse land on Opensea.
Sellers may be motivated by the need for some quick cash, or the market sentiment can spook them. If that’s the case, look for premium land that’s above floor price, and bid around that floor price. This could mean that sellers may be tempted and won’t consider it a bad offer, even though their plot is more desirable, or has greater utility.