How To Invest In the Metaverse

Hand reaching for 3D block against dark purple background with other blocks.
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The metaverse is a virtual world that uses social media, augmented reality and virtual reality, to allow people to interact within online communities at a whole new level. But the metaverse is so much more than a virtual playground where people can reconstruct themselves in whatever image they’d like. The metaverse has become ripe with investment opportunities in recent years.

One investor paid $450,000 for a plot of land neighboring a virtual property owned by Snoop Dogg, GOBankingRates.com recently reported. In the same article, it was revealed that Bloomberg Intelligence analysts predict the total value of the metaverse could hit $800 billion by 2024.

If you want to begin learning how to invest in the metaverse, you can consider purchasing many different types of assets, including stock, virtual land, NFTs and cryptocurrency. You can also invest in real-world companies that are building a metaverse presence.

It’s important to note that metaverse investments are not for risk-averse investors. Never spend more than you are willing to lose on speculative investments like cryptocurrency and metaverse land, art or businesses. But if you’re interested in investing in the metaverse, read on as this article will tell you all you need to know.

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What Investments Can You Make in the Metaverse?

The metaverse offers many investment opportunities. Some of the investments you can make in the metaverse include:

  • Virtual land
  • Non-fungible tokens representing art or merchandise
  • Cryptocurrency used in the metaverse, such as MANA or SAND.

Alternatively, you can buy stock for companies that are already investing in metaverse projects. For instance, Samsung has a virtual flagship store in the Decentraland neighborhood of the metaverse, and Nike has another sneaker brand exclusive to the metaverse.

You can also invest in companies that help make the technology to power the metaverse. For instance, NVIDIA is a computer graphics chip company whose products are integral to a seamless metaverse experience for many users. Autodesk and Unity Software are developers with design software used to create the 3D models seen in the metaverse. The value of these companies may rise as the metaverse grows in size, scope and popularity.  

How To Invest in the Metaverse

If you’ve decided its time to take a chance and put some money into metaverse investments, getting started isn’t difficult. Of course, how you take the practical steps to investing in the metaverse depends on what you’re investing in.

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Buying Land in the Metaverse

If you’re buying land in the metaverse, you’ll need to first choose your metaverse platform and login. Two of the key neighborhoods in the metaverse are Sandbox and Decentraland. You can access both of these virtual neighborhoods through their respective websites, choose an avatar and then navigate the world.

You can research real estate in the metaverse just like you can in the real world. While you may visit Zillow or Redfin to compare similar properties and determine if a real estate purchase is a good value, you can use sites like OpenSea.io or NonFungible.com in the metaverse. These sites, like Zillow in the real world, show the sales history of metaverse properties and let you check comps, or compare the values of similar properties, for metaverse land.

When you buy land in the metaverse, you’ll receive a non-fungible token that represents the land you purchased.  

Buying NFTs in the Metaverse

While you receive an NFT to represent your metaverse land, you can also purchase NFTs of metaverse artwork, music and other collectibles. The world-famous art gallery and auction firm, Sotheby’s, runs a digital art gallery in Decentraland, Sotheby’s Metaverse. Here, you can purchase NFTs of digital art. You can also purchase merchandise in the form of NFTs from top brands like Gucci or Adidas.

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If you’re purchasing NFTs in the metaverse, you’ll need to login to the metaverse through the platform or world of your choice, connect your cryptocurrency wallet and make your purchase. You can buy crypto for your metaverse transactions on any one of the top cryptocurrency exchanges.

Investing in Crypto in the Metaverse

To make any purchases in the metaverse, you’re likely to use cryptocurrency. You can purchase MANA, SAND and other metaverse-based cryptos through any of the best cryptocurrency exchanges, including Coinbase.

Buying Stocks in the Metaverse

If you’re purchasing stocks for a company that is highly active in the metaverse, you’d use your stock exchange platform of choice. The metaverse doesn’t have its own version of the stock market or stock indexes like the Dow Jones or S&P 500, per se. Shares of metaverse-based companies are traded on the traditional stock exchanges.

You might also consider an exchange-traded fund with companies that have roles in the metaverse. Some examples include:

  • Roundhill Ball Metaverse ETF
  • Subversive Metaverse ETF
  • ProShares Metaverse Theme ETF

What Is the Best Way To Invest in the Metaverse?

As with deciding on any types of investments, the best way to invest in the metaverse is the one you feel most comfortable with. Many people will get started with stocks or ETFs, as these investments don’t require a metaverse presence and you can use U.S. dollars for your purchase, rather than cryptocurrency.

But if you’re already playing, shopping and interacting in the metaverse, and you’re in a risk-tolerant stage of your financial life, you may want to invest in NFTs, cryptocurrency or virtual land.

Conclusion

If you’re looking to invest in the metaverse, do your research as you would with any other investment. Remember that the metaverse is a new concept and, as such, investments in it may be riskier than investing in tried-and-true ETFs, blue-chip stocks or other asset classes.

You can invest in metaverse-specific NFTs or buy virtual land. However, you can also purchase stocks for companies that are currently investing in the metaverse, including reputable names like Microsoft and Nike.

Whatever your choice, if you are looking to build a diversified portfolio, it might make sense to put some of your money into digital assets in the metaverse.

Information is accurate as of June 27, 2022.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.
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