Metaverse expects to be one of the fastest growing industries with a compound annual growth rate (CAGR) of 95% until 2028. If you are wondering how to invest in Metaverse this year, there are many ways to get involved.
With billions of dollars poured into creating the digital universe known as Metaverse, investors are ready for the investment of their lives.
E.g, Bored Ape Yacht Club (BAYC) Creator Yuga Labs has raised over $ 300 million in metaverse land sales. The popular metaverse project is exploding in popularity.
When BAYC NFTs were launched a year ago, you could create one for around $ 100. Currently, the lowest price on OpenSea is close to $ 350,000 or 122 ETH. In other words, almost a yield of 350,000% in a year. Yet many experts predict that this will be the start of a digital revolution.
In the meta-verse, you can be whoever you want. You can start a career, buy real estate and trade goods with real value. To start your digital journey, check out the guide below and learn how to invest in the meta-verse today.
The first step to take when investing in the meta-verse is to decide what role you want to play. For example, you can be one
Each role plays a crucial role in the ecosystem. The creators develop virtual reality that players can interact with and integrate into. Then, the more users engage with the community, the more people want to get involved, which adds value. At the same time, investors provide financing to creators to expand the digital reality and add new features to drive future growth.
Imagine a future where your work, your friends and your assets are gathered in one place online. Businesses like Zoom (Nasdaq: ZM) and Metaplatforms (Nasdaq: FB) gives us a glimpse of the future with virtual reality headsets and face-to-face interaction online.
But Metaverse promises to go beyond the wildest imagination with immersive experiences and social interaction. Keep reading to find out how to invest in the metaverse on the ground floor.
# 1 Buy NFT
Buying NFTs is currently one of the best ways to start investing in the meta-verse. After all, with a 350,000% return in one year, BAYC was one of the best investments of 2021.
Yet many other NFT projects lost significant value during this time. How do you know which project to invest in?
On the one hand, the creators play a major role in the success of the project. With that in mind, BAYC is so successful because creators continue to add value.
For example, after initial success, the team released Bored Monkeys Kennel Club (BAKC), a loyal companion for monkeys that gives them to BAYC holders for free. Then they moved on Mutant Monkey Yacht Club (MAYC), a new NFT collection that BAYC holders had access to for the first time.
To see how you can invest in NFTs without buying them directly, check out the top five NFT companies in 2022.
No. 2 Buy cryptocurrency
Investing in cryptocurrency is another way of investing in the metaverse. It’s a way to capture your share of digital reality. After all, many projects use crypto to power their networks, provide voting rights, and provide value.
With this in mind, different cryptos can provide unique forms of value. Here, for example, are some of the most popular metaverse coins and what they are used for.
- Axie Infinity (AXS): A new Play-to-Earn (P2E) game where players earn AXS tokens. In addition, players can own, buy and sell items that they earn in the game.
- bug games (GALA): Is another P2E platform powered by Gala tokens. Similarly, players can win the Crypto Gala while expressing their opinion on the platform’s roadmap.
The above platforms change the way games are played, and provide ownership to players via blockchain. More importantly, creators and players are committed to creating games that people want to play.
# 3 Buy land in Metaverset
For investors who want to play a bigger role in the meta-verse, owning land may suit your style. There are several ways to buy land in the metaverse.
First, you can buy land through a metaverse platform such as Decentralized (MANA) or Sandboxes (TRUE). However, buying land in Metaverse can be expensive, and it costs several thousand dollars.
Fortunately, you can also invest in crypto to make money in the countries of the metaverse. With that in mind, SAND and MANA are two of the most popular cryptocurrencies to own digital property.
Keep reading to learn how to invest in Metaverse without crypto.
# 4 Invest in stocks related to the metaverse
Finally, you can skip the blockchain altogether and buy shares in listed companies to earn some of the growth.
With the meta-verse still in its early stages of development, companies are pouring billions into resources to secure their role in the industry. Several companies are leaders with cutting-edge technology and a team of creative geniuses.
Metaverse stock list:
- Nvidia (Nasdaq: NVDA): To create the powerful experiences that Metaverse promises, advanced graphics cards, software, and other high-tech elements are required. With that in mind, Nvidia Omniverse expects to play a crucial role, enabling advanced design and animation features.
- Roblox (NYSE: RBLX): A pure-play investment, Roblox is one of the most popular metaverse stocks. The company’s 3D world allows users to play, interact and explore. On top of that, Roblox uses an in-game currency called Robux, which allows users to upgrade and purchase special abilities.
- Adobe (Nasdaq: ADBE): The creative software provider known for its famous Photoshop enters the meta-verse with a bang. With this in mind, Adobe is expanding its immersive software as they partner with top brands to bring their products to life in the virtual world.
So many other companies, such as Microsoft (Nasdaq: MSFT), is positioning itself to play a role in the growing Metaverse. In fact, Microsoft’s acquisition of Activision Blizzard is primarily driven by its ambition to help build the meta-verse.
The secret behind investing in the meta-verse
Now that you know how to invest in Metaverse, there is something you need to know before you buy. First, the metaverse is huge and is expected to grow rapidly over the next decade.
But like any hyper-growth industry, there will be significant winners and losers. To ensure that you get the most out of your investment, it is important to know the business plan (project) roadmap. Not to mention how they plan to raise funds while pushing the project forward.
For example, a startup may promise to play a major role in the meta-verse. But until you see what the company (the creator) is capable of, it can be a risk.
On the other hand, buying proven leaders like Nvidia allows you to earn returns as the industry grows. With that in mind, your risk tolerance will play a role in how you invest in Metaverse accordingly.
Buying NFT offers a higher reward potential, but it is also a risk with many projects losing value. On the other hand, investing in metaverse companies offers the potential for growth with less risk of going out of fashion.
Pete Johnson is an experienced financial writer and content creator specializing in stock and derivatives research. He has over ten years of experience in personal investing. Digging through Forms 10-K and finding hidden treasures is his favorite pastime. When Pete is not doing stock research or writing, you can find him enjoying the outdoors or coaching.