5 Ways to Invest in Metaverse in 2022

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5 Ways to Invest in Metaverse in 2022
5 Ways to Invest in Metaverse in 2022

Metaverse is predicted to be one of the fastest growing industries with a compound annual growth rate (CAGR) of 95% through 2028. If you’re wondering how to invest in the Metaverse this year, there are a few ways to get involved.

Investors brace for a lifetime investment as billions of dollars pour into the creation of the digital universe known as the Metaverse.

In Metaverse, you can be whoever you want to be. You can start a career, buy real estate and trade in goods of real value. To start your digital journey, check out this article and learn 5 ways to invest in Metaverse in 2022

5 Ways to Invest in Metaverse in 2022

Those who buy cryptocurrency regularly will have first-hand experience of the metaverse’s growth over the past year, with many projects helping bring this concept into the mainstream.

The five approaches below describe how to invest in the metaverse efficiently – each coming with its own unique benefits for investors:  

  • Metaverse Games
  • Metaverse NFTs
  • Metaverse Crypto 
  • Metaverse Real Estate
  • Metaverse Stocks

1. Metaverse Games

Our pick for the best way to invest in metaverse is through metaverse games or the best metaverse NFT projects. The growth in this area of gaming over the past year has been exponential, driven by high-profile projects like Decentraland and The Sandbox. However, smaller projects are regularly launching that look to capitalize on the success of those that came before.

In a nutshell, metaverse games are precisely what the name implies – gaming platforms based within the metaverse. Many of the best metaverse coins are native to these gaming projects, enabling them to run smoothly. One of the most appealing characteristics of these games is the level of immersion they can offer to gamers.

Those who have seen Steven Spielberg’s ‘Ready Player One’ will have a firm grasp of what metaverse games look like. They feature rich 3D worlds where players create their own avatars and can interact with other players’ avatars. This offers a new way to socialize – one that looks set to become even more prevalent in today’s post-pandemic world.

Some of the most undervalued cryptos are involved in the metaverse gaming niche, with ‘play-to-earn’ (P2E) mechanisms being one of the most appealing factors for gamers. These mechanisms allow gamers to earn rewards (denominated in cryptocurrency) for their in-game actions. Essentially, this means gamers can monetize their gameplay skills in a fun way.

Top 5 Metaverse Games:

2. Metaverse NFTs

Another popular way to invest in metaverse is through NFTs. Some of the best NFTs over the past year has been part of metaverse-based projects due to their valuable characteristics. One main factor that makes NFTs attractive from a metaverse standpoint is that they can provide ‘true’ ownership of in-game assets.

For example, in the Gods Unchained metaverse game, the in-game playing cards are structured as NFTs. This means that all of a player’s cards are genuinely theirs, preventing them from being stolen or altered. In turn, this reduces (or removes) the concept of cheating or hacking from the game.

Another benefit is that in-game items can be easily traded if they are structured as NFTs. One of the coolest NFT projects right now that offers this feature is Battle Infinity, which we also mentioned in the section above. Battle Infinity has a dedicated NFT marketplace within its ecosystem (called Battle Market) that allows players to buy, sell, and trade in-game items.

For example, users can head to the Battle Market and purchase a new outfit for their in-world avatar using IBAT – Battle Infinity’s native token. This is another option for the best way to invest in metaverse since supply and demand factors tend to dictate each NFT’s price. Thus, as the platform’s user base grows, NFTs will naturally become scarcer and more valuable.

Many of the best NFT games (including Battle Infinity) also allow players to purchase plots of virtual land within their world, which are structured as NFTs. We’ll explore this concept later in the guide, but it’s worth being aware of as it highlights the continued importance of NFTs within the metaverse.

Top 5 Metaverse NFTs:

3. Metaverse Crypto

Another approach for how to invest in the metaverse is through metaverse crypto. In a nutshell, metaverse crypto describes the native tokens of metaverse-based projects. These tokens tend to be used for various tasks, such as transactions, staking, and even governance. Let’s look at these in more detail:

  • In-world transactions: Each metaverse’s native token can usually be used to purchase items from the in-world marketplace. For example, users can buy Axie Infinity and use tokens to purchase additional ‘Axies’ for use in-game. This also means sellers are compensated in metaverse crypto – which they can then exchange into another digital currency.
  • Staking: Crypto staking involves ‘locking up’ tokens for a specific period, usually to help boost the platform’s security level. Many metaverse platforms offer their own staking mechanism whereby token holders can generate a yield on their holdings – all whilst benefitting the broader ecosystem.
  • Governance: Finally, many metaverse projects are structured as a decentralized autonomous organization (DAO), meaning that the token holders are the ones who govern the platform. Most of the best crypto DAO projects allow token holders to vote on governance proposals, with those receiving the highest number of votes being the ones that move forward.

The list above is not exhaustive, as metaverse crypto coins can be used in many ways. They also provide an easy way to invest in metaverse since they’re often listed on the best crypto exchanges. As such, investors who aren’t active in a specific metaverse can still gain exposure to its growth by investing in tokens.

Axie Infinity is a prime example of this, as AXS tokens were valued at over $164 in November 2021. Investors who opted to buy Decentraland were also handsomely rewarded when MANA tokens surged over 110% earlier in the year. 

Top 5 Metaverse Cryptocurrencies:

4. Metaverse Real Estate

Metaverse real estate has become one of the most exciting elements within this growing sector, offering a unique take on ownership and renting. Those wondering how to invest in metaverse real estate can do so by participating in metaverse projects that enable users to purchase plots of virtual land.

Decentraland is one of the most prominent projects that offer this functionality since its 3D world comprises roughly 90,000 plots of 16m x 16m land parcels (called LAND). LAND can be purchased using MANA (Decentraland’s native token) or Ethereum and is structured as an NFT.

Much like in real life, specific plots of land are deemed more valuable than others due to their location. Some of the LAND parcels located near Decentraland’s ‘Genesis Plaza’ were even valued at over $13,000 in 2021. Considering these plots are only 16m x 16m, it’s evident that metaverse real estate can be pricey in some circumstances.

According to an article from CNBC, virtual land sales in the metaverse topped $500 million in 2021. Much of this was down to the benefits that owning virtual real estate can offer investors. Not only can investors benefit from value appreciation, driven by increases in the project’s popularity, but they can also generate returns through renting.

Renting works precisely as one might expect, allowing virtual land owners to lease their land to others for a fee. 

Ultimately, those wondering how to invest in metaverse real estate must ensure that the land they buy has inherent value – since this ‘land’ is still just a collection of pixels within a 3D world. However, as many NFT land projects have shown, making smart investments in this area can prove lucrative.

Top 5 Metaverse Real Estate Projects:

5. Metaverse Stocks

Rounding off our discussion of the best ways to invest in the metaverse is metaverse stocks. There is an abundance of metaverse stocks to invest in, which will appeal to investors who prefer to operate in the equity market rather than the crypto market.

The best metaverse stocks may not offer ‘direct’ exposure to the growth of a specific platform but rather exposure to the industry’s growth overall. A great example is Meta Platforms (formerly Facebook) which is now deeply involved in virtual reality (VR) and the expansion of metaverse concepts.

By finding metaverse companies to invest in, it’s easy to diversify a portfolio and not be ‘overexposed’ to one particular project. Nvidia is a popular option, as the company’s chips are now used to power various metaverse projects. Naturally, as the metaverse expands and more projects require Nvidia’s chips, it will help the company’s bottom line and share price.

Some of the most undervalued stocks are involved in the metaverse – with many established firms also looking to experiment with ideas related to virtual worlds. Nike has become a frontrunner in terms of metaverse stocks to invest in, as the company has partnered with the likes of Decentraland and Roblox to boost its presence in this area.

Ultimately, investing in metaverse stocks can be a great way to gain indirect exposure to a specific project but direct exposure to the industry’s growth. Furthermore, buying stocks is often much more beginner-friendly than purchasing crypto, meaning this approach may be more suited to newcomers to the market.

Top 5 Metaverse Stocks:

  • Meta Platforms
  • Nvidia
  • Nike
  • Coinbase
  • Roblox

Conclusion

If you want to invest in the metaverse, do your research like you would any other investment. Remember that the Metaverse is a new concept, so investing in it can be riskier than investing in proven ETFs, blue-chip stocks, or other asset classes.

You can invest in Metaverse-specific NFTs or buy virtual land. However, you can also buy stocks in companies that are currently investing in Metaverse, including well-known names like Microsoft and Nike.

Whatever your choice, if you want to build a diversified portfolio, investing some of your money in digital assets in the metaverse can make sense.