A comprehensive guide to investing in metavers: what is it, how to proceed and how to manage the different risks associated with metavers and cryptocurrency?
Things to know to get the most out of this guide:
- Discover what Metaverse is and what are the main Metaversi projects.
- Learn how to invest in the Metaverse through the purchase of virtual land, cryptos of the MetaVerse, etc.
Things to know before commenting on this guide:
The virtual universes referred to as “metaverse” or metavers are growing at an ultra-fast pace. In 2021, for example, NFTs, one of the flagship technologies associated with the metaverse, recorded worldwide sales of US$16 billion, compared with US$232 million in 2020, an increase of 21,350%.
The Metaverse Market was worth approximately $83.9 billion in 2023 and it will be probably worth $5 trillion by 2030. And it’s not just NFTs in the metaverse! There’s virtual land, cryptos, etc.
But what is this universe called the Metaverse, which is getting so much attention around all over the world? How do you buy lands in the Metaverse? What else can you buy there, and how to invest in the metaverse? Find out the answers in this guide, which explains in detail how to buy in the crypto metaverse, metaverse investments, where to buy and much more.
What is the metaverse?
The generic term “metaverse” comes from the contraction of the terms meta, used for “beyond”, and universe, used for “universe”. A metaverse is a virtual universe shared by several people via digital devices. Users of this space can operate virtual objects or interact with each other. We use the term “generic” because the Metaverse is not a single, distinct, identifiable entity.
There are many different Metavers. Thus, all spaces that enable real-time interaction with virtual elements are Metaverses. Each of them, like Decentraland or Sandbox, establishes its own rules and functional framework. The various worlds can then be linked together for specific activities (games, virtual events, etc.).
One of the advantages of the Metaverse, and the reason for its (at least partial) success, is its flexibility. This virtual world is not set in stone, but can be modified and evolved almost at the will of its users. To achieve this, it relies not only on VR (virtual reality), but also on AR (augmented reality), AI (artificial intelligence) and Blockchain.
Thanks to virtual reality equipment (VR headsets, VR glasses, etc.), users can join the Metaverse and exploit the functions of augmented reality to superimpose the virtual on the real. AI provides the possibilities for personalization, while the Blockchain hosts the transactions that take place.
Working in this way, the metaverse offers almost infinite possibilities:
- you can play,
- attend or give performances,
- organize events,
And of course, each Metaverse activity can host one or more users, interconnected by this virtual world.
What can you buy in the metaverse?
People wishing to earn money can buy assets/objects in the Metaverse to resell later. Of course, these purchases can simply be made as part of an activity, without an investment objective. It is also possible to purchase assets that are not directly located in the Metaverse, but are linked to this technology.
Buying lands in the Metaverse
About the metaverse investing process, you can buy plots of land in the virtual worlds that make up the Metaverse. When you buy land in a metaverse, it is represented by non-fungible tokens (NFTs). NFTs refer to unique tokens, each of which has its own signature and cannot replace another.
Users who purchase land use it as they would in real life. They use them to build various infrastructures and houses in the metaverse, thanks to additional NFT representing the other elements required for such a project. They can, of course, resell the land or any application for which it has been used.
Buying NFTs in Metavers
Non-fungible tokens or NFTs represent the form that real-world goods take in Metavers. NFTs are used to reproduce a plot of land or other real estate, as well as objects such as shoes, cars, clothes, style or musical instruments. These are created via specialized platforms such as Rarible or OpenSea. NFTs are purchased in the metaverse using cryptocurrencies.
Buy Metaverse cryptocurrencies
To buy plots, virtual objects and various other NFTs, you need a currency! As the crypto and Metaverse sectors are intimately linked by the Blockchain, it’s the cryptos that enable transactions to be carried out in the metaverse. Virtual world, digital currency!
Some Metaverse projects use standard cryptos such as Ethereum or Bitcoin. But most have their own crypto (AXS from Axie Infinity, ILV from Illuvium, SAND from The Sandbox, etc.). So if you decide to buy cryptos from the Metaverse as an investment, you can get these cryptos. You can also simply obtain these cryptos to optimize your experience in the virtual universe.
Buying Metaverse stocks
Metaverse stocks are shares in companies that develop metavers, or whose activities are related to metavers (graphics card design, VR equipment, etc.). Examples include Meta shares (formerly Facebook), Roblox shares and Adobe shares.
Buy Metaverse ETFs
Metaverse ETFs are funds that replicate the performance of an index, and therefore of one or more Metaverse assets making up that index. One of the best-known examples is the Franklin Metaverse UCIS ETF. As with equities, you can buy Metaverse ETFs via trading platforms or investment companies.
But why and how invest in metaverse?
The Metaverse offers so many possibilities; and at present, we only know a tiny fraction of them: entertainment, professional missions, investment, training, etc. When it comes to investment, there are a number of options, each more or less relevant.
What are the advantages of the Metaverse as an investment target?
When you choose to invest in the Metaverse, by varying the options for purchasing virtual assets or objects, you can take advantage of the multiple possibilities offered by this technology. Whether for gaming, working or simulating outdoor activities, the Metaverse provides impressive resources. Apart from this first, somewhat obvious factual advantage, we can also mention the financial benefits of investing in the meta universe.
If you’re an existing investor and become a Metaverse investor, you diversify your portfolio. In this way, you optimize the overall return on your investments, while readjusting the level of risk. Even for beginners, an investment in the Metaverse can offer an interesting diversification solution, with a view to future investments in more traditional assets such as real estate or passbook savings.
Still on the financial front, by taking a close look at the Metaverse itself, you can tap into the growth potential of this neo-industry. The metaverse is attracting more and more enthusiasts: established artists, new creators, investors, gamers, users and more. In fact, Grand View Research predicts that the Metaverse market will reach US$678 billion by 2030.
The Metaverse enables previously unknown creators to build up a community that discovers their talent and supports their creativity. Even amateurs, unaware of their artistic talents, are exploring them in depth thanks to the Metaverse. Projects set up to defend humanitarian causes can use these virtual universes as potential new channels for funding and showcasing their ideas.
By looking at metaveste companies to invest in, you’re helping to support noble causes. At the same time, you’re potentially helping to build a better, fairer world.
Is this investment risk-free?
There’s no point beating about the bush on the subject: investing in the Metaverse can be risky. For most investment portfolios linked to the Metaverse, you need to bear in mind the exposure of your capital, as with any other financial investment.
Whether you’ve chosen to buy a Metaverse parcel, buy a Metaverse share or simply buy Metaverse cryptos, you’re dealing with volatile assets. Markets fluctuate and there’s no guarantee of profits. You could even lose all or part of your capital.
The novelty of this technology is also a point of risk to consider. Will Metaverse projects actually last over time? Will they grow as predicted in the years to come? Could regulations limit the possibilities offered by these virtual worlds? Uncertainties remain! Proceed with caution.
How can I buy lands in the metaverse?
As virtual parcels created in the form of NFTs, and endowed with a signature that makes them unique, Metaverse lands can be rented, bought, sold and so on. Land exchanges in the Metaverse take place either directly within the virtual worlds, or on specialized platforms.
For example, you can buy plots in the Metaverse via Solana, Polygon, Ethereum and so on. It all depends on the network used to create the platform. To buy real estate in a given Metaverse, you need to own addresses on said network, via wallets.
Once you’ve identified the plot you want to buy, make sure you have the required amount of crypto available. Then link your wallet to the platform, or directly transfer the crypto amount corresponding to the price of the land. You can buy plots from the Metaverse through various projects.
- Axie Infinity: this Metaverse project is one of the most popular. It features a game of collectibles, involving the breeding of digital creatures known as Axies. To buy land in Lunacia, Axie Infinity’s virtual territory, you need Axie Infinity Crypto (AXS).
- The Sandbox: The Sandbox’s main objective is to design games and conduct original gaming experiences. The Sandbox’s LANDS are accessible via OpenSea, a major NFT selling/buying platform. You buy them with the crypto SAND.
- CryptoVoxels: here, you’re dealing with colorful virtual worlds designed on a minimalist scale. The concept unfolds by converting pixels into 3D. Available for purchase on the project’s official website or on OpenSea, CryptoVoxels terrains are called PARCELS. They can be purchased with Ethereum (ETH).
- Decentraland: having also seen its popularity grow considerably between 2021 and 2022, the Decentraland project is based on a virtual game reproducing the world in 3D. Built on Ethereum, the Decentraland platform has its own Decentraland cryptocurrency (MANA).
How can I buy metaverse cryptos and NFTs?
In the metaverse, cryptocurrencies and NFTs occupy a central place. While NFTs constitute the form of existence of any object in these digital universes, they can also serve as an element of exchange. As for cryptos, they are of course used to buy in the Metaverse. Discover below some information to help you buy Metaverse-related cryptos.
Create an account
Start by visiting a platform offering Metaverse NFTs and cryptos for sale. While platforms like Nifty Gateway and OpenSea specialize solely in NFTs, Binance, OKX and Crypto.com offer both cryptos and NFTs.
Once you’ve chosen the platform offering the Metaverse cryptos or NFTs you’re looking for, create an account. Then confirm your identity by providing the requested documents.
Deposit funds on your new account
Make a deposit by bank transfer or credit card, depending on the means accepted by the platform.
Buy NFTs or cryptos from the Metaverse
After depositing funds in your account, you can trade a purchased Metaverse crypto. You can also store the crypto or NFT, for future resale.
The alternative: buy NFTs on a Metaverse platform
If you’d like to buy NFTs to immerse yourself in a virtual universe, simply register on the Metaverse platform of your choice. Next, link your wallet (in which you hold or will buy cryptos) to the platform. Finally, browse the NFT store integrated into the platform to buy virtual land, virtual concert tickets or other NFTs.
Examples of Metaverse tokens
Given their uniqueness, it’s hard to pick out any NFTs to recommend specifically for investing in the Metaverse. Among non-fungible tokens in the broadest sense, NFTs from the artist Beeple, the Bored Ape Yacht Club collection and the Sorare game are popular. But here, we’re only interested in cryptos from the Metaverse. Here are 10 examples of promising Metaverse cryptos.
- Decentraland (MANA) ;
- The Sandbox (SAND) ;
- Axie Infinity (AXS) ;
- Illuvium (ILV) ;
- Ziliqa (ZIL) ;
- Internet Computer (ICP) ;
- MAGIC (MAGIC) ;
- MOBOX (MBOX) ;
- Cocos-BCX (COCOS) ;
- Aavegotchi (GHST).
How can I buy ETFs and metaverse shares?
Metaverse lands, apartments and items can be purchased via virtual world platforms. As for Metaverse NFTs or Metaverse cryptos, you’ll get them on the same platforms, or via exchanges or NFT platforms.
So what about Metaverse shares and ETFs? You need to go to trading or investment platforms. They act as points of contact with brokers like eToro, the intermediaries between the markets and retail investors.
- Number 1 copy trading platform
- Integrated social network for traders
- Trading cryptocurrency CFDs
Start by choosing the broker you want to invest with in the Metaverse. eToro, Fortuneo, Avatrade and Degiro are among the most reliable broker platforms. Register on your chosen broker’s platform, then validate your account by providing the requested documents. You’ll usually need to provide proof of identity and address. Then deposit funds into your account.
In addition to bank transfers and credit cards, most platforms accept online payment services such as Skrill, Neteller, PayPal, POLi or Klarna. Then search for a stock or ETF, and place a buy or sell order (after analysis). Make sure you set up your order correctly (execution price, exit levels, etc.). Finally, monitor your position and revise your strategy if necessary.
Potentially interesting Metaverse shares include those of:
- Meta Platforms (META) ;
- Snapchat (SNAP) ;
- Adobe (ADBE) ;
- Microsoft (MSFT) ;
- NvidiaCorps (NVDA).
On the ETF side, you can invest in:
- iShares Metaverse UCITS ETF USD (Acc) ;
- ETF Roundhill Ball Metaverse (NYSEArca : META) ;
- L&G Metaverse ESG Exclusions UCITS ETF USD Accumulating.
The best metaverse projects to invest in today
The growth of the Metaverse is unquestionable. And it’s likely to continue for many years to come, since there are still so many possibilities to explore. So, if you’re an investor at heart, you may want to take a look at Metaverse projects with recognized potential. As we always do with our guides, here is a selection of carefully chosen Metaverse projects.
The Axie Infinity virtual world revolves around a game of fighting and collecting virtual animals called Axies. Inspired by the Pokémon universe, this virtual world exploits the Ethereum Blockchain to guarantee the rarity of Axies. Blockchain technology also secures ownership rights, as Axies are non-reproducible NFTs. In addition to the AXS cryptocurrency, the Axie Infinity universe incorporates the Smooth Love Potion rewards system. The latter is powered by the Smooth Love Potion (SLP) crypto. Axie Infinity has an average daily players from a high of 2.7 million to approximately 250,000.
With Star Atlas, we remain in a gaming universe, but this time with the addition of DeFi (decentralized finance) principles. Star Atlas is a strategy game set in space. Players must travel through virtual galaxies, conquering, trading and so on.
The Star Atlas metaverse uses the Solana blockchain, renowned for its security and excellent transaction processing speed. The universe includes the ATLAS and POLIS tokens. These enable the acquisition of game-related NFTs via a marketplace. Launched only in 2022, Star Atlas already boasts a community of more than 200,000 players.
Decentraland is almost on a par with Axie Infinity and The Sandbox: it’s hard to talk about the Metaverse without mentioning them. One of the first platforms to offer services on the Metaverse, Decentraland specializes in Metaverse real estate.
Its virtual world has around 18,000 daily users and 300,000 active users per month. Users can buy and sell virtual plots of land, build on them and more. In parallel, Decentraland allows users to create original content in NFT, via a dedicated section (Builder). The crypto associated with Decentraland is MANA.
With almost 500,000 subscribers in total, including an average of 30,000 active players per month, The Sandbox is based on digital imaging techniques. This metaverse makes it possible to design a personalized virtual world, using 3D pixels known as voxels. On land available for purchase in The Sandbox universe, users can create unique games. They can also simply choose to add value to their land or other assets, via the dedicated marketplace. The Sandbox crypto (SAND) is used to carry out transactions.
Battle Infinity / IBAT Premier League
In the Battle Infinity metaverse currently in development, users will be able to build their own sports teams, made up of virtual versions of real players. Each player-user has his or her own avatar, and can compete against other users from all over the world in a Battle Arena. Clothing, sports equipment and other accessories are included in the universe in the form of NFTs.
Players can then personalize their avatar as they wish. IBAT tokens fuel transactions in the Battle Infinity universe, but the system also distributes them as rewards. Crypto staking, as well as NFT buy/sell offers, also generate earnings in the IBAT Premier League universe.
With the arrival of the Metaverse, the play-to-earn mechanism was born and expanded rapidly. Virtual universes such as Illuvium are perfect examples of this. As in many other metavers, land (in the form of NFT) can be acquired on Illuvium. But beyond these assets, Illuvium users/players have as their primary objective the hunt for Illuvials, with a view to collecting them, reselling them and so on.
Notre conclusion sur les NFT
The Metaverse is no longer an entity of a science fiction film or a futuristic novel: it is already a reality. Whether through play-to-earn games, remote service platforms or virtual work environments, meta universes are now part of our reality. As an investor, called for resilience and adaptability, should we not take advantage of the opportunities that arise?
Everyone has the opportunity to buy lands in the Metaverse, to build a virtual house, decorated with decorative objects in NFT, to participate in virtual shows, to play, to collect rare virtual objects, etc. So there is leisure in the Metaverse, education, health, but also financial gains. NFTs, art objects and other virtual objects may constitute investment assets in the Metaverse. The same applies to cryptocurrencies derived from these virtual universes, and to shares and ETFs of companies involved in the sector.
Much remains unknown about the contribution of Metaverse to the strengthening of the global economy. But in any case, these virtual universes are already an integral part of our real world. All you have to do is train yourself on the Metaverse and perform precise analyses. In this way, you decide, in full knowledge of the facts, whether to invest in it or not. In any case, be careful.