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How to Invest in the Metaverse: Everything You Need to Know 2021

In addition to Facebook’s rebranding, the metaverse is becoming more and more popular every week. The metaverse token market has seen tremendous growth lately due to increased investor interest. Various metaverse tokens have shown enormous growth in recent weeks. Nevertheless, before you learn how to invest in the metaverse, you must consider a number of factors. Let’s discuss them now!

The metaverse is the concept of an alternative universe where users can digitally perform various tasks inherent in real life — to shop, communicate, make money. We can say that the metaverse is an attempt to modify social networks and other digital services by giving them a game form. That’s why today, many gamers are wondering how to invest money in the metaverse!

How Much to Invest in the Metaverse: What Do Analysts Think?

The market cap of metaverse tokens is growing steadily and is equal to $29 billion at the time of writing, according to CoinGecko. The trend is capturing investors and gamers who want to add value to the time spent on playing NFT games. Thus, projects of this kind have become extremely popular in developing countries like the Philippines and Venezuela.

How much to invest in the metaverse? Well, the crypto investment company Grayscale released a report for November 2021, where it examined the dynamics and prospects of the field. In particular, there are examples of companies and sectors where the metaverse concept is already in use. Let’s consider them in detail!

  • Art Galleries. For example, Sotheby’s opened the door for owners to showcase their digital creations and auction them off as NFTs.
  • Business offices. Some companies set up digital offices, for example, in Decentraland, meet there and discuss their business issues.
  • Game and gambling projects.
  • Advertising. It is a very large-scale area since you can deploy billboards advertising your company in metaverses. It is also possible to promote sponsored content such as minigames from third-party developers within the metaverse.
  • Music. Celebrity virtual concerts are no longer news.

Another investment company, Ark Invest, represented by CEO Katie Wood, believes that the metaverse will become a multibillion-dollar market:

It’s a big idea that will probably infiltrate, just like technology is, every sector in ways that we cannot even imagine right now.

How to Invest in the Metaverse Games: How to Choose a Reliable Project?

Before we find out how to invest in the metaverse games, it’s necessary to learn how to choose the most promising project for making investments. Well, many experts are interested in the future trend of the metaverse. For example, Domination Finance co-founder Michael Zimbalist is convinced that every investor should start developing the sector with Axie Infinity and Decentraland.

Decentraland Marketplace

Axie Infinity is the first P2E game to really hit the market, and Decentraland has been in the industry for several years now and has become known as the best digital real estate platform. An $AXS token is the leader among the metaverse tokens by market cap, which is $7.6 billion.

Zimbalist also suggests paying attention to UFO Gaming, which strives to take the best of what Axie Infinity and Decentraland offer, combining gaming, social, and economic aspects.

So, how to invest in the metaverse games? Well, when choosing a suitable project for investment, you should pay attention to the following indicators:

  • Token’s market cap. This parameter is much more important than the rate because it best shows the degree of user confidence. Even if the rate is low, but a large number of people own tokens — this indicates high demand.
  • Platform’s functionality shows how promising and relevant are the solutions used within the metaverse.
  • Activity duration. Although new projects can be very promising still, those platforms that have been on the market for some time (a year or two or more) are more reliable.

How to Invest Money in the Metaverse: Best Metaverses to Know

How to invest money in the metaverse? What metaverses are the most promising ones? Well, in addition to the above-mentioned Axie Infinity ($AXS), Decentraland ($MANA), and UFO Gaming ($UFO), the following highly demanded and capitalized meta-projects can be distinguished:

The category of metaverse tokens usually includes assets from game projects and those that help develop the industry. For example, Enjin is a platform that helps to implement NFT technologies into apps and develop new game projects. Such tokens also play a crucial role and deserve attention.

How to Buy Metaverse Tokens?

So, how to invest in the metaverse tokens? There are two main ways how you can do it. Let’s consider them in detail!

  • Cryptocurrency exchanges. This is the most popular method since most crypto exchanges offer the largest selection of promising coins, including rare or new ones. Exchanges also conduct IEOs, where a trader has the opportunity to buy new tokens at the lowest possible price, which can grow later. Here are examples of crypto exchanges with metaverse tokens: Binance, Bybit, KuCoin, OKEX, Huobi, FTX. In addition, there are decentralized exchanges where you can buy the required cryptocurrency for stablecoins or other coins — for example, Uniswap or Pancake Swap.
  • Crypto wallets. For example, you can purchase specific tokens using a card with Trust Wallet, or Atomic Wallet.

Currently, it is most convenient to use crypto exchanges due to their wide trading functionality and the availability of popular tokens. Crypto wallets offer less choice, slower operations, and higher fees.

Conclusion

As many experts emphasize, now metaverse projects are at the very beginning of the path. This means that the opportunities will only expand for traders, investors, and gamers. In fact, today’s metaverses are a new generation of video games — with communication, decentralized marketplaces, and their own specifics. The potential of such projects is almost limitless, and users and developers are just starting to master them.

At the same time, how much to invest in the metaverse is up to you! Still, one should never forget the golden rule: Never invest money that you can’t afford to lose!

 

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