With all the recent hype around virtual worlds, many investors are wondering how to invest in Metaverse in 2023. The rise of blockchain technologies and rising interest in immersive gamified experiences indicate the massive growth potential within the industry in the coming years.
The projected revenue for the global market of Metaverse is predicted to reach $54.95 billion by the end of 2023. Additionally, it is anticipated that the value of Metaverse will increase to $800 billion by 2028. As such, many investors are looking for ways to get involved and potentially profit from this emerging market.
This article will explore the best ways to invest in the Metaverse in 2023, covering options such as metaverse tokens, investing in startups, buying virtual real estate, and more. By the end of this article, you will better understand how to invest in the Metaverse and benefit from its growth in the years to come. It is essential to understand that this article does not offer any financial advice. We strongly recommend conducting your research before investing in this exciting space.
How Profitable Is the Metaverse?
The Metaverse is an emerging industry that has garnered significant attention recently. People hail it as the future of the internet, where they can interact in a virtual world, and businesses can provide products and services in a new and exciting way. However, the question remains, how profitable is the Metaverse?
There have been several instances of NFTs sold for millions of dollars; for example, the Merge was sold to 29,983 people for over $91.8 million. Several brands have also released their NFT collections; for example, Adidas’s “Into the Metaverse” collection sold out within minutes, netting over $22 million.
Prices for Metaverse land also increased by over 500% in 2022 after Facebook announced rebranding itself to “Meta.” The prices experienced a significant boom; however, towards the end of 2022, we started to see a decline in land sales – which could be due to the recent crypto bear market and the overall global economic situation.
It is also important to note that in the most recent quarter, Meta’s Reality Laboratories (the division that houses the company’s virtual reality (VR) and metaverse (Metaverse) units) recorded an operating loss of billions. While this may seem like a significant loss, it’s important to remember that the metaverse industry is still developing, and there is potential for growth and profitability in the future.
6 Ways To Invest in Metaverse
In this section, we’ll discuss some of the best ways to put your money to work in the Metaverse, including stocking up on metaverse tokens, virtual real estate, or simply backing the firms shaping the future of the Metaverse.
1. Metaverse Games
Investing in metaverse games is a popular way to gain exposure to the metaverse industry. Metaverse games are virtual games that take place in a shared digital space, allowing players to interact with each other. These games can be accessed from anywhere and are becoming increasingly popular as more people look for ways to connect and socialize online.
Here is how to invest in metaverse games:
Purchasing In-Game Assets
Like traditional video games, players can purchase in-game assets in metaverse games. These assets can include virtual real estate, weapons, and skins for avatars. Investing in these assets is a way to gain exposure to the metaverse game industry and profit from the game’s growth. These assets can be resold on the game’s marketplace or secondary marketplaces like OpenSea.
Purchasing Game Tokens.
Tokens are a type of currency in several metaverse games that can be used in-game or traded on cryptocurrency exchanges. These tokens can be bought and held as an investment. Holding onto these tokens provides several benefits, such as voting rights.
Participating In Initial Game Offerings (IGOs)
Like initial coin offerings (ICOs) in the cryptocurrency world, IGOs are a way for game developers to raise game funds. Investors can participate in IGOs by purchasing tokens or virtual assets before a game launches.
How To Invest In Metaverse Games:
- Step 1: Set up your virtual wallet by creating one on websites such as MetaMask.io. The process is extremely simple, and you will be provided with “keys” that you have to keep secure. Make sure you store them in a safe place.
- Step 2: Purchase the required cryptocurrency through a centralized exchange such as Binance. Each Metaverse platform has its own cryptocurrency, so make sure to verify which one you need.
- Step 3: You can now purchase in-game assets and participate in IGOS, and you can also resell your collection on the platform’s marketplace. Listing on secondary marketplaces such as OpenSea is also a good option for selling your NFTs.
2. Metaverse NFTs
NFTs are becoming an increasingly popular way to invest in the metaverse industry. Non-fungible tokens are indivisible digital assets that can be traced back to their original owners and verified by the blockchain. In the Metaverse, NFTs may stand in for anything from virtual land to digital artwork to virtual gaming goods.
One way to invest in NFTs is to purchase them on various marketplaces. OpenSea, Nifty Gateway, and SuperRare are a few of the most well-known NFT markets. Investing in NFTs can be a way to gain exposure to the metaverse industry and potentially profit from the market’s growth.
Another way to invest in NFTs is to participate in NFT drops. Drops of NFTs are rare and highly sought by collectors. Participating in NFT drops can offer the potential for significant returns if the NFTs become highly valued.
Virtual land is another exciting option for investors, as these parcels are minted as NFTs, and the buyer has complete ownership.
Best NFTs to invest in 2023
World of Women
World of Women began as a project with 10,000 PFPs on OpenSea. Yam Karkai, a WoW artist and co-founder, designed these PFPs with 200 hand-drawn graphic elements. The goal of the project and its developer was to foster a healthy and varied community and to inspire women to explore possibilities in the Web3 ecosystem.
The World of Women (WoW) has a significant presence in the NFT sector and is a community success story. Initially created to give a place for women in a crypto-dominated industry, WoW has evolved into a well-known brand in the Web3 domain via several ambitious media endeavors.
World of Women (WOW) is an NFT collection with a floor price of $2,195.33 and a 24-hour sales volume of 22.1 ETH. There are 10,000 NFTs with a market value of $21,953,285 held by 5,606 distinct owners.
Gary Vee produced VeeFriends, a collection of NFTs that includes 268 hand-drawn characters based on human characteristics he admires. The NFTs offer one-of-a-kind cartoon animals, bugs, and people with different backgrounds and characteristics. They are divided into three types: access, gift, and admittance, each providing different advantages to holders.
The floor price of VeeFriends (VFT) is $6,926, and the 24-hour sales volume is 38.61 ETH. There are 10,255 NFTs in circulation, with 5,129 distinct owners and a total market value of $59,879,075.28.
Bored Ape Yacht Club (BAYC)
Bored Ape Yacht Club (BAYC) is a collection of 10,000 one-of-a-kind digital assets called Bored Apes. These NFTs reside on the Ethereum blockchain and serve as membership cards for exclusive holder gatherings. The first perk of owning a Bored Ape NFT is access to unique members-only features, the first of which is THE BATHROOM, a graffiti board where members may collaborate.
Bored Ape Yacht Club (BAYC) is an NFT collection with a current price floor of $105,234.24 and a 24-hour sales volume of 1232.58 ETH. There are 9,998 Bored Ape NFTs in circulation, with 5,801 unique owners. The collection’s total market capitalization is $1,052,131,963.18.
The creators generated a collection of 10,000 unique characters known as CryptoPunks. Anyone with an Ethereum wallet could have initially obtained them for free, but they were immediately claimed. Now, the only way to acquire them is through the integrated marketplace on the blockchain.
CryptoPunks (PUNK) is a non-fungible token with a price floor of $115,759.42 and a 24-hour sales volume of 1640.0 ETH. The collection contains 9998 NFTs, 3649 individual owners, and a market cap of $1,157,362,697.96.
Decentraland Land NFTs
Like tangible land in the real world, each land parcel in Decentraland is represented by a non-fungible token (NFT), mainly an ERC-721 token, which assures its uniqueness and prohibits fraud or copying. Anybody may buy, sell, or rent these NFTs on the official Decentraland Marketplace or Opensea on a peer-to-peer basis.
The Ethereum blockchain records all transactions to provide irrefutable evidence of ownership. Each Decentraland land token corresponds to a specific location on the Decentraland map. Its unique coordinates dictate its location and value, particularly its closeness to prominent areas such as highways and plazas.
These land parcels make up Decentraland (LAND). Decentraland (LAND) now has a price floor of $1,425.30 and a 24-hour sales volume of 7.43 ETH. There are currently 98,016 NFTs in circulation, owned by 7,863 individual owners, with a total market capitalization of $139,702,156.99.
How To Purchase Non-Fungible Tokens (NFTs):
NFTs are unique digital assets that represent ownership of a specific virtual item or artwork. In the metaverse, NFTs serve as currencies to purchase land and other virtual assets as well as collectibles.
- Step 1: Set up your digital wallet. Opening a digital wallet is very easy; you can go to Metamask.io and create an account through their website. Remember to keep your keys safe and not share them with anyone.
- Step 2: Obtain the required cryptocurrency. It is important to remember that most platforms have their own cryptocurrency, such as ETH for OpenSea. You can purchase the required amount for the NFT (keeping in mind gas fees as well) through different crypto exchanges such as Binance..
- Step 3: Head to the platform, link your wallet and select the NFT to begin the minting process. The NFT will be transferred to your wallet after being minted.
Platforms such as Rarible and OpenSea provide a vast range of NFTs to choose from, making it easier for you to find the perfect addition to your digital collection.
3. Metaverse Stocks
Investing in stocks of companies currently involved in the development of Metaverse technology is another excellent way to invest in the Metaverse. Here are a few of the best Metaverse stocks to invest in, according to our research:
This eCommerce giant’s incredible technological capabilities are helping provide cloud computing capabilities to different Metaverses to power virtual worlds. The company has created solutions that enable the creation of digital twins of real-life elements, which can map entire cities and more! Currently, the stock price is $97.71, with a market cap of $1 trillion. Investing in this company is relatively safe since its income is not solely dependent on its Metaverse-related solutions.
Undoubtedly, Apple is one of the most forward-thinking companies in the world, with a track record of producing incredible products. They are currently leading the AR revolution through their “Reality Kit” and AR-compatible smartphones. They are also rumored to be working on an AR/VR headset that may release later this year. The market currently prices its stock at $157.40 with a $2.49 trillion market cap.
Roblox boasts the highest daily active user count out of all other Metaverse platforms, with over 61.5 million daily active users. The platform provides several interactive environments for users to socialize, interact and play. The stock is currently priced at $43.36 with a market valuation of $26.24B.
Qualcomm is the market leader for semiconductor chip patents and applications across many leading industries. Its chips are being utilized in XR headsets, making it a potentially significant contributor to the development of the Metaverse. Currently, the stock price is $121.82, and it has a market cap of $135.83 billion.
Meta Platforms (FB)
Formerly known as Facebook, this social media giant is at the forefront of VR technology, with MetaQuest2 leading the revolution. The company is undertaking several initiatives to contribute to the Metaverse, such as haptic feedback gloves, the development of their Metaverse Horizon Worlds, and much more. The stock is currently priced at $197.81 and has a market cap of $512.85B.
How To Invest In Metaverse Stocks:
- Step 1: Choose a brokerage firm. To invest in metaverse stocks, you need to open a brokerage account with a reputable brokerage firm. Look for a brokerage firm that offers commission-free trades, an intuitive platform, and research tools to help you analyze potential investments.
- Step 2: Research metaverse companies. Identify companies that are involved in the development of the metaverse. Research each company’s business model, financial performance, management team, and growth prospects. Some of the popular metaverse companies include Meta, Microsoft, NVIDIA, Roblox, Unity Software, etc.
- Step 3: Evaluate the stocks. Once you have identified metaverse stocks that you want to invest in, evaluate each stock to determine its potential return on investment. Look at metrics such as price-to-earnings ratio, price-to-sales ratio, and revenue growth to determine if the stock is undervalued or overvalued.
- Step 4: Place your trade. After you have evaluated the metaverse stocks, place your trade through your brokerage account. Choose the number of shares you want to buy and the price you are willing to pay for each share.
It is very important to conduct thorough research before investing in stocks, and choosing a reliable broker is essential. Some reliable brokers include Fidelity, Interactive Brokers, Merrill Edge, and more.
4. Metaverse Real Estate
Investment in Metaverse real estate is growing more appealing as the Metaverse becomes more widely used. Like in the real world, owning virtual land can be a lucrative investment, especially as more people enter the Metaverse. As mentioned, these prices will increase by over 500% in 2022.
In the Metaverse, virtual land is purchased using cryptocurrency and can be developed and customized just like real-world property. Landowners can create buildings, attractions, and other virtual experiences on their land, attracting visitors and generating income.
For example, Decentraland is a famous Metaverse real estate website that lets users purchase and own property plots in a decentralized environment. In Decentraland, the land is purchased using the cryptocurrency MANA, and users can create custom experiences on their land, from virtual storefronts to live music events.
Another platform gaining popularity is The Sandbox, which allows users to own and develop virtual real estate using SAND tokens. The Sandbox also offers various creation tools, allowing landowners to build and develop virtual properties using a drag-and-drop interface. The largest recorded sale on Sandbox was for $4.3 million by Republic Realm.
In addition to these platforms, several other Metaverse real estate investment opportunities are emerging, on Metaverses such as Somnium Space, Cryptovoxels, and Upland.
How To Purchase Metaverse Real Estate:
- Step 1: Pick a digital wallet that can integrate into your web browser and supports the virtual project currency you wish to invest in, such as MetaMask or Binance Chain Wallet.
- Step 2: On popular exchanges like Binance, Coinbase, or KuCoin, purchase the in-platform currency of your selected metaverse, such as $MANA, $SAND, or $ETH.
- Step 3: Evaluate many metaverse choices, such as Decentraland and Sandbox, to select the perfect virtual land project for you. Examine specifics such as price, size, market demand, and more.
- Step 4: After you have picked your piece of land, proceed to the metaverse’s marketplace to make a purchase. Some users also list their land for sale on marketplaces such as OpenSea, but it is always safer to purchase directly on the platform itself. After you complete your purchase, the NFT will be added to your wallet as the new owner. You may keep your property, develop it or sell it for profit.
5. Metaverse ETFs
Metaverse ETFs are exchange-traded funds that invest in firms engaged in the Metaverse’s development. These ETFs enable investors to diversify their portfolios by investing in a group of firms rather than just one. This approach is less risky than investing in a single stock.
Here are some examples of Metaverse ETFs:
Roundhill Ball Metaverse ETF
Launched in 2021, this ETF invests in companies developing the Metaverse. Some of the top holdings include NVIDIA, Apple, and Roblox. This ETF has gained popularity among investors seeking to invest in the Metaverse industry. It is currently priced at $8.90 with a net asset value of $411.21 million.
Evolve Metaverse ETF
The Evolve Metaverse ETF (MESH) actively manages an ETF that offers investors exposure to companies that develop and implement virtual and augmented reality technologies. The fund seeks to capitalize on the growing virtual and augmented reality trend in areas such as gaming, e-commerce, and social media. The current price is $5.77, with 8.701 million in net assets.
Global X Metaverse ETF:
This ETF invests in companies involved in the Metaverse, including virtual and augmented reality, gaming, and social media. This ETF offers investors exposure to companies that are leading the Metaverse revolution. It is currently priced at $21.84 with $2.06 million in net asset value.
How To Invest in ETFs:
- Step 1: Open a brokerage account. Compare the features and platforms of online brokers that offer commission-free stock and ETF trades. If you’re not experienced with investing, look for a broker that provides a wide selection of instructional services.
- Step 2: Choose your first ETFs. Passively managed ETFs, such as Roundhill Ball Metaverse, are generally the best option for beginners because they are less expensive than actively managed funds and are among the cheapest in the industry.
- Step 3: Now your work is done, and ETFs will do the rest. Remember that ETFs are intended to be low-maintenance investments. Avoid checking your portfolio too frequently and reacting emotionally to market movements. Allow your ETFs to produce excellent investment growth over long periods of time. Overtrading is the primary reason that the average fund investor underperforms the market over time.
6. Metaverse Cryptocurrencies
Metaverse cryptocurrencies are digital currencies designed to be used within the Metaverse. Each major platform has its native cryptocurrencies that you can use to buy virtual land, assets, and other goods and services within the Metaverse ecosystem.
Here are some examples of `Metaverse cryptocurrencies:
With Decentraland, people may create their virtual content and apps, interact with those made by others, and make money. The MANA token is the primary currency for buying, selling, and trading virtual real estate and other in-world goods and services.
The Sandbox (SAND)
The Sandbox provides a decentralized virtual environment for those interested in creating games, interacting with others, and making money from their creations. The SAND token is used for buying and selling virtual land, game assets, and other in-world items.
Enjin Coin (ENJ)
Enjin Coin is a cryptocurrency that powers the Enjin ecosystem, a platform that allows developers to create, manage, and integrate blockchain-based gaming assets. The ENJ token is used for buying and selling gaming items and other digital assets within the Enjin ecosystem.
Axie Infinity (AXS)
Axie Infinity is a blockchain-based game where players may gather, breed, and combat Axies. The AXS token is used for virtual transactions, governance, and earning rewards within the game.
Gala is a gaming and entertainment platform that creates a decentralized environment using blockchain technology. The GALA token is used to buy and sell virtual assets, participate in governance, and earn rewards within the Gala ecosystem.
Investing in Metaverse cryptocurrencies can be risky due to their volatile nature, but they can also offer potentially high returns for investors willing to take the risk.
How To Purchase Metaverse Tokens:
- Step 1: Register with a reliable crypto exchange such as Coinbase, Kraken, or Uphold that enables you to deposit U.S. dollars using a payment method of your choosing. Finish the customer onboarding procedure.
- Step 2: Choose your preferred payment method to fund your trading account and verify your payment details. Wire transfers are commonly accepted by all U.S.-based crypto exchanges.
- Step 3: Choose the metaverse token you want to buy, check the current market price, and click the “buy” button. Place an order for the desired number of tokens, and wait for the order to be executed. A market order will be completed in seconds, and the tokens will appear in the wallet of your trading account.
Holding onto these tokens provides various benefits, such as voting perks, appreciation in value, and more.
Are There Other Ways to Make Money In Metaverse?
Since this exciting space is evolving exponentially, there are several other ways to make money in the Metaverse:
Rent Away Your Metaverse Property
In the Metaverse, having virtual land in a favorable location might be a desirable asset. You may rent your space to companies and people searching for prominent venues to showcase their goods, artwork, and services. The location and accessibility will determine the value of the rent to popular locations. You may earn money by renting out your metaverse assets on in-game and secondary markets.
Create an Internet Store
Setting up virtual storefronts in the Metaverse allows businesses to engage with their intended audience. Companies may profit by enabling consumers to buy digital accessories and physical things from these marketplaces. Since the Metaverse is the future, it is the ideal location to establish a presence where people will be most engaged.
Try Games to Earn Money
Playing metaverse games may be both entertaining and lucrative. Axie Infinity, for example, rewards players depending on their success in the game. You can earn profits by completing tasks and winning contests.
Take Part in Concerts
Concerts have grown in popularity among metaverse users, and anyone may earn money by organizing or participating in a metaverse concert. Marshmello, Justin Bieber, and David Guetta have all performed on metaverse platforms.
Run an E-Commerce Business
Offering services and goods to individuals in the Metaverse may be profitable. You have complete control over your virtual company, including where you market it, how you charge people, and what customer service you give. Operating an e-commerce business in the Metaverse may provide limitless opportunities for development and profit.
- The metaverse industry is an emerging industry that has gained significant attention in recent years.
- Investing in metaverse games, buying virtual real estate, and investing in companies leading the charge in the metaverse industry are some of the best ways to profit from the Metaverse.
- Metaverse NFTs are also becoming an increasingly popular way to invest in the metaverse industry.
- Popular Metaverse platforms include Decentraland, Upland, Roblox, The Sandbox, and Axie Infinity.
- Metaverse real estate experienced a tremendous boom in 2022, and it is expected to be a thriving market in the years to come.
- Virtual land can be purchased, developed, and customized like real-world property, potentially generating income.
- Metaverse ETFs, such as Roundhill Ball Metaverse ETF, Defiance Next Gen Metaverse ETF, and Global X Metaverse ETF, offer investors the opportunity to invest in a basket of companies involved in the development of the Metaverse industry.
- Metaverse cryptocurrencies, such as Decentraland (MANA), The Sandbox (SAND), Enjin Coin (ENJ), Axie Infinity (AXS), and Gala (GALA), are digital currencies designed to be used within the Metaverse ecosystem.
Final Verdict on Metaverse Investing
In summary, the Metaverse is a rapidly evolving and exciting space that has the potential to revolutionize the way we interact with technology and one another. Furthermore, there are several ways for investors to invest in the Metaverse, including stocks, ETFs, cryptocurrencies, and real estate. Therefore, investors have the potential to benefit significantly in the future.
Yet, like with any new technology, there are dangers and uncertainties when investing in the Metaverse. It is critical to undertake extensive research to evaluate the risks and possible benefits and invest intelligently. Ultimately, the Metaverse is a promising investment opportunity for individuals willing to learn about and investigate the possibilities of this developing technology.
Q: What are the risks of investing in the Metaverse?
A: Investing in the Metaverse carries risks similar to investing in any emerging technology, such as volatility, lack of regulation, and uncertainty about future adoption and use. It’s important to do your research and invest wisely.
Q: What kind of returns can I expect from investing in the Metaverse?
A: There is no guaranteed return on investment in the Metaverse, but some early investors have seen significant gains as Metaverse platforms and assets have gained popularity.
Q: What is the role of cryptocurrency in the Metaverse?
A: Many proclaimed Metaverse platforms rely heavily on cryptocurrency as blockchain technology powers many of its assets, and transactions require the use of cryptocurrency.
This post from Metaverse Insider aims to give information and provide access to information to investors to help them make their own decisions and is not meant to be interpreted as investment advice.
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