How to Invest in the Metaverse in 2022: Your Complete Guide
The metaverse expects to be one of the fastest-growing industries at a compound annual growth rate (CAGR) of 95% until 2028. If you are wondering how to invest in the metaverse this year, there are a few ways to get involved.
With billions of dollars going towards creating the digital universe known as metaverse, investors are gearing up for the investment of a lifetime.
For example, Bored Ape Yacht Club (BAYC) creator Yuga Labs raised over $300 million in a metaverse land sale. The popular metaverse project is blowing up in popularity.
When the BAYC NFTs launched a year ago, you could mint one for around $100. Currently, the lowest price on OpenSea is close to $350,000 or 122 ETH. In other words, almost a 350,000% return in one year. Yet many experts predict this to be the start of a digital revolution.
In the metaverse, you can be who you want. You can start a career, buy property, and trade goods with real value. To begin your digital journey, check out the guide below and learn how to invest in the metaverse today.
How to Invest in Metaverse: Getting Started
The first step to take while investing in the metaverse is to decide what role you want to play. For example, you can be a
- Creator
- Player
- Investor
Each role plays a critical role in the ecosystem. The creators develop virtual reality for players to interact and build in. Then, as more users engage with the community, the more people want to get involved, driving the value up. At the same time, investors provide funds for creators to develop the digital reality, adding new features to promote future growth.
Imagine a future where your work, friends, and assets are all in one place online. Companies like Zoom (Nasdaq: ZM) and Meta Platforms (Nasdaq: FB) give us a glimpse of the future with virtual reality headsets and face-to-face interaction online.
But, the metaverse promises to go beyond even the wildest imagination with immersive experiences and social interaction. Keep reading to learn how to invest in the metaverse on the ground floor.
No. 1 Purchase NFTs
Purchasing NFTs is currently one of the best ways to start investing in the metaverse. After all, with 350,000% returns in one year, BAYC was one of the best investments of 2021.
Yet many other NFT projects have lost significant value during this time. How do you know what project to invest in?
For one thing, the creators play a major role in the project’s success. With this in mind, the BAYC is so successful because the creators continue adding value.
For example, after the initial success, the team released the Bored Ape Kennel Club (BAKC), a trusty sidekick for apes, giving them to BAYC holders for free. Then, they took it a step further with the Mutant Ape Yacht Club (MAYC), a new NFT collection that BAYC holders had first access to mint.
To see how you can invest in NFTs without buying them directly, check out the five best NFT companies in 2022.
No. 2 Buy Cryptocurrency
Investing in cryptocurrency is another way of how to invest in the metaverse. It’s a way to grab your share of the digital reality. After all, many projects use crypto to power their networks, give voting rights, and provide value.
With this in mind, different crypto’s can provide unique forms of value. For instance, here are a few of the most popular metaverse coins and what they are useful for.
- Axie Infinity (AXS): A new Play-to-Earn (P2E) game where players earn AXS tokens. Moreover, players can own, buy, and sell goods they earn in the game.
- Gala Games (GALA): Is another P2E platform powered by Gala tokens. Similarly, players can earn Gala crypto while voicing their opinion on the platform’s roadmap.
The platforms above are changing the way games are played, giving ownership to players through the blockchain. Most importantly, creators and players are engaging to create games people will want to play.
No. 3 Buy Land in the Metaverse
For the investors out there wishing to play a more prominent role in the metaverse, owning a piece of land may fit your style. There are a few ways to go about buying land in the metaverse.
First, you can buy a plot of land through a metaverse platform such as Decentraland (MANA) or The Sandbox (SAND). However, buying land in the metaverse can get expensive, costing several thousand.
Luckily, you can also invest in crypto to earn returns from land in the metaverse. With this in mind, SAND and MANA are two of the most popular crypto choices for owning digital property.
Keep reading to learn how to invest in the Metaverse without crypto.
No. 4 Invest in Metaverse-Related Stocks
Lastly, you can skip the blockchain altogether and buy shares of publicly traded companies to earn a piece of the growth.
With the metaverse still in its early stages of development, businesses are pouring billions in resources to ensure their role in the industry. Several companies are leading the way with state-of-the-art tech and a team of creative geniuses.
Metaverse stock list:
- Nvidia (Nasdaq: NVDA): To create the powerful experiences the metaverse promises, advanced graphics cards, software, and other high-tech parts are needed. With this in mind, Nvidia Omniverse expects to play a critical role, enabling advanced designer capabilities and animation.
- 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 this, Roblox uses an in-game currency called Robux, allowing users to upgrade and buy special abilities.
- Adobe (Nasdaq: ADBE): The creative software provider known for its famous Photoshop is entering the metaverse in a big way. With this in mind, Adobe is expanding its immersive software while partnering with top brands to bring their products to life in the virtual world.
So many other companies, such as Microsoft (Nasdaq: MSFT), are positioning themselves to play a role in the growing Metaverse. In fact, Microsoft buying Activision Blizzard is driven mainly by its ambition to help build the metaverse.
The Secret to How to Invest in Metaverse
Now that you know how to invest in the metaverse, there is something you should know before buying. For one thing, the Metaverse is vast and expected to grow over the next decade rapidly.
But, like any hyper-growth industry, there will be significant winners and losers. To ensure you get the most out of your investment, it’s essential to know the company’s (project’s) roadmap. Not to mention how they plan on raising funds while advancing the project.
For example, a startup can promise to play a major role in the metaverse. But, until you see what the company (creator) is capable of, it can be a risk.
On the other hand, buying proven leaders like Nvidia allows you to earn returns alongside the industry growth. With this in mind, your risk tolerance will play a role in how to invest in the metaverse accordingly.
Buying NFTs offers higher reward potential, but it’s also a risk with many projects losing value. On the other hand, investing in companies powering the metaverse offers growth potential with less risk of going out of style.