How to Invest in the Metaverse

What is the Metaverse?

The metaverse is a virtual world that uses social media, augmented reality and virtual reality to enable people to interact in online communities on a whole new level. But the metaverse is much more than a virtual playground where people can position themselves in any image they like.

The metaverse as a whole is a concept of an alternative universe where people can digitally model their image and perform various tasks inherent in real life –  shopping, communicating, earning. We can say that the metaverse is an attempt to modify social networks and other digital services, to give them a kind of game form.

The concept of the metaverse is becoming more and more popular every week and is gradually gaining mass character. This is especially noticeable after the rebranding of Facebook – many other brands are also thinking about entering the ecosystem. In recent years, the metaverse has ripened for investment opportunities. Of course, investors see huge opportunities here, as various metaverse tokens, due to increased interest, show exorbitant growth. However, before investing in metaverse projects, you need to pay attention to a number of nuances.

It is important to note that investing in the metaverse is not for risk-averse investors. Also, never spend more than you are willing to lose. But if you're interested in investing in the metaverse, this article will give you a general idea of ​​what the possibilities are.

What Are the Prospects of the Metaverses?

The market capitalization of metaverse tokens is growing steadily and, according to CoinGecko, is $29 billion at the time of writing. The trend is not only capturing investors, but also gamers looking to add value to their time spent playing games; projects of this nature have become extremely popular in developing countries such as the Philippines and Venezuela.

The examples of companies and sectors where metaverses are already used:

  • Art galleries. Sotheby's, for example, opened up the possibility for owners to showcase their digital creations and sell them at auction as NFTs.
  • Business offices. Some companies organize digital offices for themselves, for example, in Decentraland, meet there and discuss their business.
  • Gaming and gambling projects.
  • Advertising. This is a very large area - in digital worlds, you can place billboards advertising your company. It is also possible to supply sponsored content, such as mini-games from third-party developers within the metaverse.
  • Music. Celebrity virtual concerts are nothing new.

At first, the metaverses will develop as a 3D Internet. The function of a guide to the virtual world will be performed by VR / AR headsets – without them it will not be possible to “enter” the virtual space and become its member. Cryptocurrencies will become an integral part of the payment infrastructure in the metaverses, and all assets will become cross-platform and will be presented for the most part in the form of NFTs. The main emphasis will be on the openness of worlds, applications and virtual spaces so that data and assets can be exchanged between platforms – as opposed to closed spaces common today.

The Metaverses have started the battle to create affordable VR/AR headsets for mainstream use. New devices can simply "blow up" the consumer electronics market by analogy with 2007, when Apple introduced the world's first smartphone with a touch screen.

Metaverses will also take the capabilities of consumer and industrial electronics to a new level – we are waiting for more advanced lens and display technologies, faster data and query processing, clearer recognition, higher data transfer rates and lower latency.

The Metaverse is also challenging the telecommunications industry, making investments in network infrastructure and hyperscale data centers an integral part of the new era. The volume of Internet traffic consumed in the world is growing at an average of 30% annually, so even modest use of the Metaverse will lead to more than a 20-fold increase in traffic consumption over the next 10 years. VR/AR technologies, which will soon become available to the masses, are much more sensitive to data transfer delays, response times and loss of image quality, so the metaverses have high hopes for next-generation 5G and 6G networks.

Among the key players in the emerging metaverses, we include VR/AR chip and headset manufacturers, game industry and 3D content developers, cloud platform and cloud service providers, network infrastructure providers, etc. All of them, to one degree or another, will definitely contribute to the creation of virtual worlds.

What Industries Are Associated with the Metaverse?

The development of the metaverse requires several companies to provide external services to provide 3D visualization and experience in a virtual environment in real time.For example, just as the fashion industry needs suppliers and manufacturers of clothing to sell its products, so the metaverse will need energy, communications, or immersion equipment.

The Metaverse relies on 3D experiences in the foreground and blockchain-based decentralized autonomous organization (DAO) in the background. All this requires a huge consumption of energy and design to provide their services. Many outside companies will try to support this.

For the decentralized metaverse to function, multiple users will need to have a stake in it by investing in its cryptocurrency associated with each platform. So for this to work, metaverse companies must rely on investor activity. Since these companies need investments to develop innovative solutions, buying their shares represents a huge opportunity for investors.

Let's take a look at some of the major supporting sectors for the future development of the metaverse.

  • Metaverse interfaces. As the metaverse evolves, more and more different sub-ecosystems will emerge. For example, just as a company needs a website for customers to view, the new metaverses need to have an interface that users can access at any time.
  • 3D design software. The virtual environment needs design and graphics to work just like the real world and normal websites. Companies creating virtual scenery, shops, roads, designer houses and other real estate or digital items will grow.
  • Data storage. The Metaverse will generate massive amounts of data and bandwidth that companies must store. And at the same time, alternatives to centralized data storage will be required. For example, MEMO, a decentralized storage system still in its early stages, is the pioneer of Meta Storage, which offers companies assistance in storing vast amounts of data.
  • Green innovation. In the field of Big Tech, energy consumption is one of the most criticized shortcomings and main problems. Companies that can offer environmentally friendly methods and solutions will be recognized. For example, Meta has committed to zero net emissions by 2030 as it partners with a new wind farm in Altoona, Iowa, USA to generate renewable energy. Metaverse companies will have to find environmentally friendly solutions to keep building their products.
  • Hardware. Immersive hardware products such as VR headsets are likely to take center stage and evolve further with other devices that incorporate the sense of smell or touch to make the virtual experience even more real.
  • Network hardware. High speed broadband access is critical to supporting a fully functional virtual reality world in real time to transfer huge amounts of data. The current Wi-Fi network is unlikely to be able to support it, so for the Metaverse to run smoothly, significant improvements in Wi-Fi network speeds need to be made as the Metaverse evolves.
  • Cybersecurity. As more people use and experience the virtual worlds of the metaverse, their data and identities become vulnerable. Cybersecurity companies will have the opportunity to offer their services.

These are just a few of the many options for industries that will continue to evolve and offer their external services to the metaverse. It also provides a fantastic opportunity for investors to capitalize early on. What's more, you can choose a strategy that suits your investment style, risk appetite, and budget. You can invest in the metaverses either on your own or with the help of professionals from the Metaverse Profit.
What Are Investment Opportunities of the Metaverses?
The Metaverse offers many investment opportunities. Here are some of the investments you can make:

  • Buying a virtual piece of land.
  • Purchase of NFTs representing art or goods.
  • Buying a cryptocurrency used in the metaverse, such as MANA or SAND.
  • Buying shares in companies that invest in metaverse projects.

You can also invest in companies that help create technology for the metaverse. For example, NVIDIA is a company that makes chips for computer graphics, which is an important part of the interaction with the Metaverse for users. Autodesk and Unity Software are the developers of software used to create 3D models visible in the metaverse. The value of these companies could rise as the metaverse grows in size, scope, and popularity. When choosing a suitable project for investment, you should pay attention to the following indicators:

  • Market capitalization of the token. This parameter is much more important than the course, because it best reflects the degree of user confidence. Even if the rate is low, but a large number of people own tokens, this indicates a high demand.
  • Platform functionality. How promising and relevant are the solutions that are used within the metaverse. Whether they are useful for both private users and brands.
  • Duration of work. Although new projects can be very promising, those that have been on the market for some time (a year or two or more) are more reliable.

How to Invest in the Metaverse?

You can invest in metaverse projects in the following ways:

With the help of cryptocurrency exchanges. This is the most popular way at the moment, since it is on the exchanges that the largest selection of promising coins, including rare or new ones. Exchanges also conduct IEO, where the trader has the opportunity to buy new tokens at the lowest possible price, which can grow later. 

Examples of crypto exchanges with Metaverse tokens: Binance, Bybit, OKX,, Huobi, MEXC Global, FTX. In addition, there are decentralized exchanges where you can buy the desired cryptocurrency for stablecoins or other coins. For example: Uniswap, Pancake Swap.

With the help of exchangers. Among the exchangers where you can buy, sell and exchange metaverse cryptocurrencies are Prostocash, 60cek, Xchange, Matbea, ChangeNow, Chagelly. In addition, they provide an opportunity to invest by paying for the purchase directly from a bank card.

With the help of crypto wallets. For example, the ability to purchase certain tokens from a card is available in Trust Wallet, Atomic Wallet.

Wallets that support metaverse project tokens:

For computers – Atomic Wallet, Exodus.

For mobile devices – Trust Wallet, Math Wallet.

For the browser – Metamask, Binance Chain Wallet.

Hardware –Trezor, Ledger. 

And there are many more options: metaverse tokens only in some cases work on their own blockchains, and in most cases they are placed on the blockchains of Ethereum, Binance Smart Chain, etc. It is enough to choose a secure wallet that supports the relevant standards.

At the moment, of course, it is most convenient to use exchanges, due to their wide trading functionality and the availability of popular tokens. In wallets and exchangers, there is less choice, and transactions are slower, and commissions are usually higher.

If you've decided it's time to take a chance and invest a little in the metaverse, it's easy to get started. Of course, how you take the practical steps of investing in the Metaverse depends on what you are investing in.

Buying Land in the Metaverse

If you're buying land in the metaverse, you'll need to select the appropriate platform first. The two key platforms of the metaverse are Sandbox and Decentraland. You can access these virtual areas through their respective websites, select an avatar and then navigate the world. When you buy land in the metaverse, you receive a non-fungible token that represents the land you bought. You can explore real estate in the metaverse just like you would in the real world.

For example, you can visit Zillow or Redfin to compare similar properties and determine if real estate is worth buying. To evaluate virtual real estate in the metaverse, you can use the sites or resources, like Zillow in the real world, show the history of sales in the metaverse, and allow you to check prices or compare the cost of similar assets.

Buying NFTs

While you are buying metaverse land ownership NFTs, you can also buy art, music, and other collectibles NFTs. World-famous art gallery and auction firm Sotheby's operates a digital art gallery in Decentraland, Sotheby's Metaverse. She offers to purchase NFT digital art.

In addition, you can purchase goods in the form of NFTs from leading brands such as Gucci or Adidas. If you are buying NFTs in the Metaverse, you will need to log in to the Metaverse through the appropriate platform, connect your cryptocurrency wallet, and complete the purchase. You can buy cryptocurrency for transactions on any of the leading cryptocurrency exchanges.

Investments in Cryptocurrency

At the moment, of course, it is most convenient to use exchanges, due to their wide trading functionality and the availability of popular tokens. In wallets and exchangers, there is less choice, and transactions are slower, and commissions are usually higher.

To make any purchases in the metaverse, you will most likely use cryptocurrency. You can purchase MANA, SAND and other cryptocurrencies on any of the trusted exchanges.
Buying shares of companies investing in cryptocurrency

If you are buying shares in a company that is very active in the metaverse, you should use your preferred stock exchange platform. The Metaverse does not have its own version of the stock market or stock indices like the Dow Jones or the S&P 500. Shares of Metaverse-based companies trade on traditional stock exchanges.What is the best way to invest in the Metaverse?

As with any type of investment decision, the best way to invest in the Metaverse is the one you are most comfortable with. Many will probably start with stocks or an ETF (tradable exchange-traded fund), since these investments do not require full immersion in the world of the metaverse, and dollars can be used to invest, not cryptocurrencies.

But if you're already playing, shopping, and interacting in the metaverse, and are in a risk-tolerant phase of your financial life, you can invest in NFTs, cryptocurrencies, or virtual land.

Risks of Investing in the Metaverse

Investing in the Metaverse provides an opportunity for good earnings, but also, do not forget about significant risks that can be difficult to control, among them:

State control. This issue is still unresolved, but if the Metaverses gain the same popularity as social networks or digital currencies, government agencies will no longer be able to ignore them. At least for the reason that the influence of the Metaverses on the life of the public will become considerable.

Cyber ​​security and data privacy. In metaverse projects, this issue is of particular importance, since very soon a significant part of human life will move into the digital plane. It is not only about entertainment or sports, but also about the economy, education, etc. If you do not take care of the security of users, hackers can gain control over their data, and then the consequences will be unpredictable.

Lack of energy. The technical processes that keep the metaverse sites running smoothly require a huge amount of energy, and preferably environmentally friendly (that is, "green"). Otherwise, a flurry of criticism may fall on the Metaverse for not being carbon neutral. If this issue is ignored, influential investors may lose interest in this area and stop cooperation.

On the whole, it can be argued that investing in the Metaverse is a matter of great risk, but it must be admitted that the profit margins can be equally large.Conclusion

As many experts emphasize, now metaverse projects that can be invested in are at the very beginning of their journey. And this means that the opportunities will only expand – both for traders / investors, and for gamers or simply interested in modern technologies. In essence, the metaverses that we see now are a new generation of video games – with communication, decentralized virtual markets and their own culture of interaction. The potential of such solutions is almost unlimited, users and developers are just beginning to get used to them.

If you want to invest in the metaverse, do your research just as you would with any other investment. Remember that the metaverse is a new concept, and therefore investing in it 
can be riskier than investing in time-honored ETFs, blue-chip stocks, or other asset classes. 

You can invest in NFTs for the metaverse or buy virtual land. However, you can also buy shares in companies that are currently investing in the metaverse, including established brands such as Microsoft and Nike. Whatever your choice, if you want to build a diversified portfolio, it might make sense to invest some of your money in the digital assets of the metaverse.

There are various ways to invest in the metaverse, and like any other industry, there are risks, pros and cons. Given the newness and rapid growth of the industry, investors should remain cautious and diversify their portfolios to reduce volatility.On the other hand, investors with a high risk appetite could benefit from a new industry that is expected to proliferate in the next few years as a new space and vision for a virtual world for communication, shopping, play, work and play develops.

We do not encourage you to invest in any particular cryptocurrency or NFT. Only you make your investment decisions. However, here is a list of 7 tips to help you better invest in the Metaverse.

Walk before you buy

Do not rush to buy a piece of land. Create an account with an avatar and walk around the world (it's free!). You will be able to understand whether you really want to invest your money in this or that world. If you like it, if you find interest in it, then you can go there with peace of mind.

Invest only what you are willing to lose

Invest money you can afford to lose and never give in to the temptation of debt: that should be your credo. You are never immune from a crash that will destroy your investments and your assets. Therefore, never put all your energy into such risky and speculative investments as the metaverse. Invest wisely.

Start by investing time, not money

You can't invest in something you don't understand. If the world of blockchain is still incomprehensible to you, it may be better to invest your time in understanding this technology in order to understand the market. In the long run, this will only benefit you.

Study the market

If you are planning to invest, study the prices as you would in the real world. Take a few metrics to get the best idea of ​​an asset's fair price and upside potential. Make calculations, each time paying attention to the ratio of costs and benefits.Feel free to invest your time in research before investing your money.

Choose a location first

As in real estate, location is the most important, you should never work on a hunch. You should always think in terms of profitability. Is the piece of land frequently visited? Is it located near a strategically important place? 

Invest at the right time, no FOMO

FOMO stands for Fear of Missing Out, which means compulsive investing out of fear of missing out on an opportunity. It affects all of us, even the most experienced. Do not give in to this fear, carefully weigh your decisions.
What are metaverse projects?

These are some kind of virtual worlds where you can play, chat, have fun and even do business, which many companies have already appreciated. The metaverses have their own tokens that provide almost all the functionality of a particular platform.

Is it worth investing in the metaverse?

Regarding investments, everyone decides for himself, but the direction is really promising. If you invest in the metaverse, then with caution and extremely deliberate, the market is extremely volatile.

What projects are trustworthy?

First of all, those that have been operating for several years or those that have the largest market capitalization. The thoughtfulness of the functionality of the platform and the activity of its development are also important.

What do experts think about the prospects of the sector?

Analysts are extremely positive. The sector is expected to be valued at hundreds of billions of dollars in the coming years.

How to invest in the metaverses and their tokens?

They are mainly traded on crypto exchanges, such as Binance. You can also consider options for exchangers and cryptocurrency wallets.

Where to store Metaverse tokens?

You can use both crypto exchange accounts and offline wallets for storage - the main thing is that the wallet supports the tokens of this standard in which you are going to invest.

Robert Williams


calendar icon 16.03.2023

Blockchain technology expert. Crypto Market Analyst. Private investor.

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