Direct and indirect investments in the metaverse are both possible. Investing in the metaverse can be done in three ways. The first is to purchase metaverse tokens such as SAND or MANA.

The metaverse era is here. A virtual world where humans can connect without the constraints of physical geography in the internet’s future.

These virtual settings may be the next big investment opportunity, according to estimations from analysts.

This technology can transform everything from online shopping to social media to even real estate, even if the metaverse is still in its infancy. As the number of people using these virtual worlds grows, so does the number of businesses looking to cash in on the trend.

Because of its ambitious goal of creating the metaverse, Facebook, for example, has renamed itself “Meta” (FB). The company plans to invest billions in its ambition to build the metaverse

It is our goal to provide you with a basic understanding of the metaverse and how it can be used to your advantage.

What Is The Metaverse

It has been a few decades since the internet was invented, but it has completely changed the way we perceive the world. It is, however, likely that the next generation of technology will be more immersive.

It is possible to create virtual environments thanks to advances in computing power, better internet connectivity, artificial intelligence, and machine learning. This type of setting aims to make participants feel as if they’re present even while they’re not.

Companies like Meta claim to enable users to “perform almost everything that you can think” through the use of holograms powered by virtual reality sets or other devices, as Meta CEO Mark Zuckerberg described in a video.

Shortly, people will be able to use avatars to teleport to virtual environments where they may do anything from work to play to shopping to exercise to learn. Incorporating complex visuals like a beach in Hawaii, users can also reproduce aspects of their real-life decor, such as their business or house. Meta describes the idealization of virtual reality as a result of combining the imaginary with the actual.

Zuckerberg explains that in the metaverse, “you will have a shared sense of space and not simply be looking at a grid of faces on a screen” when in a conference. In virtual worlds, there is a unified experience. For example, a teacher could use augmented reality to take students to ancient Rome or the depths of the Amazon rainforest.

Investing In Metaverse: Its Market Potential

Virtual worlds aren’t a new phenomenon. Virtual reality spaces have been used for years by companies like Nintendo, Decentraland, The Sandbox, and Roblox (RBLX). Millions of people use these services every day. There is a lot at risk for huge tech companies as they try to merge the various communities into a single metaverse. They also want to get a piece of the billions of money at risk by pursuing this goal.

Global revenue from virtual gaming alone might reach $400 billion by 2025 from $180 billion now, according to investment firm Grayscale, a growth of 122%.

And a slew of large corporations is now getting involved. For the first time last year, the art gallery revealed that its NFT sales had surpassed $100 million and began operating Sotheby’s Metaverse, a new virtual gallery in Decentraland where visitors can explore available digital artwork. Nike announced in December 2021 that it will acquire RTFKT, a virtual sneaker startup, to expand its digital footprint.

There have been fashion presentations hosted in the metaverse by other high-end fashion brands such as Givenchy, Gucci, and Dolce & Gabbana.

The metaverse has hosted virtual concerts by music stars like Ariana Grande and Lil Nas X, drawing millions of admirers from all over the world. Real estate investments are becoming more accessible thanks to the metaverse economy.

In other cases, investors have paid millions of dollars for “digital land” on metaverse sites like The Sandbox, where they hope to reside close to celebrities like musician Snoop Dogg.

Categories Of Metaverse Value Chain

Experience

The metaverse will revolutionize our online experiences, especially in games, social networks, E-sports, online purchases (clothing, real estate, etc.), “live” events around music, sports, etc. by dematerializing physical space, distance, and objects.
Alphabet, Amazon, Disney, Microsoft, Nike, Sea Ltd, Sony, Take-Two, and Tencent are among the companies operating in this sector.

Creator Economy

For content creators, this category encompasses all the technology resources they need to create the user experiences they desire. The ability to create content on some sites, such as Roblox, does not require any coding experience.

For this concept to grow on a much bigger scale, the metaverse should allow the usage of particular tools such as geographical mapping, 3D graphics, NFTs, etc. Autodesk, Dassault Systèmes, Matterport, Facebook (Meta Platforms), Nintendo, Roblox, and Unity Software are just a few of the listed companies that could play a key role.

Human Interface

Here we’re talking about the tools and hardware (both software and hardware) that make it possible to connect the virtual and physical worlds, as well as the people in them. Examples include 3D glasses, “smart” audio gear, networked watches and jewelry, neurological implants, smartphone apps, and haptic devices. Amazon, Apple, and Alphabet, as well as Microsoft and Meta Platforms, fall into this category (Facebook).

Companies like AMD, Nvidia, Qualcomm, and TSMC, among others, have a strong foothold in the semiconductor market. Digital Reality, Equinix, and Global X Cybersecurity are just a few of the more specialist businesses.

Discovery

On one hand, we’re talking about tools that let people find and share information about specific experiences (like search engines and applications), and on the other, we’re talking about tools that deliver generalized marketing messages that aren’t necessarily tied to a specific search (notifications, visual ads, etc.). Among the companies already operating in this space are Alphabet, Apple, and Facebook (Meta).

Infrastructure

Data centers, cloud computing, and semiconductors are all included in this broad category.

How To Invest In Metaverse And Make Money

Investing in metaverse can be achieved directly or indirectly, depending on your access to the required tools.

Direct Investment Into The Metaverse

The major three (3) ways in which you can invest in the metaverse are:

1. Buy metaverse tokens
   2. Buy in-game NFTs
   3. Buy virtual land in the metaverse

Steps On How To Directly Invest In The Metaverse

Step A: Create a crypto wallet
A wallet full of cash is required for every purchase, exactly like with actual goods. To invest in the metaverse, you’ll need a cryptocurrency wallet and some cryptocurrency to put in it.

Completing the KYC (know your customer) procedures will let you validate your wallet and confirm your identity.

Step B: Open an account on your preferred platform

1. Buy metaverse token: if you have a currency-loaded wallet, you can buy these tokens straight through cryptocurrency exchanges like WazirX or CoinDCX. Decentraland’s MANA, Sandbox’s SAND, and Axie’s AXS are the most sought-after metaverse tokens.
2. Buy in-game NFTs/own virtual land: connecting your crypto wallet to your gaming account is required before you can make transactions. Axie Infinity has characters and land plots, whereas Decentraland allows you to buy and sell artistic creations.

If you want to access all NFTs in one spot, you can sign up for an account with OpenSea.

Step C: Select your preferred NTF to buy and make payment
You’ll notice that NFTs don’t have a predetermined selling price on any of the listed sites. To own the NFT, one must place a bid and beat out all other bidders. The wallet you generated and loaded with bitcoin in Step A is then used to swiftly pay for the NFT.

You must keep in mind that purchasing from a primary market (Decentraland, Axie Infinity, Sandbox, etc.) or a secondary market has advantages and disadvantages (OpenSea, etc.). On the primary market, NFT will always have a higher resale value than an NFT on the secondary market.

However, determining its genuine value in the primary market is more difficult For this reason, comparing NFT prices on the secondary market is easier than comparing them one at a time on the primary market.

Indirect Investment Into The Metaverse

Metaverse can be invested into through the following ways:

Invest In Metaverse Index (MVI)

The metaverse index, like stock market indices, captures the trends in entertainment, business, and gaming that are shifting to the virtual universe like a stock market index. The current price is $225.86. Because of the MVI, purchasing metaverse tokens is less risky because the volatility has been much reduced Using the MVI as a guide, you can see how the best-performing metaverse tokens are trending.

Much more is to come in the metaverse as it continues to grow and expand. There is a major shift from the physical to the virtual world taking place right now. Research thoroughly before making any large investments, even if the possibility is enormous.

Buy Metaverse-Associated Stocks

Metaverse-associated equities are those belonging to companies that are actively participating in the creation of the metaverse. Organizations could be involved in the development of VR eyewear, networking, or 3D rendering software, for example. Apple, Facebook, NVIDIA, Roblox, and Unity are some of the most popular stock options. Metaverse ETFs and brokerages both offer ways to invest in these stocks (Exchange Traded Funds).

Conclusion

If you’re interested in thematic investing, you’ll need to choose between large and small-cap stocks that are more or less directly related, as well as pure-play stocks that tend to be a lot more volatile but also more sensitive.

This is a high-risk, high-reward investment opportunity.