Investing in the Metaverse: A Guide for Beginners

The digital investing space is about to get a whole lot bigger.

The Metaverse is fast becoming a reality and countless investors are gearing up for it.

But what the heck is a metaverse, and how can you make money off it?

Don’t feel bad if you know little or nothing about digital investing, such as cryptocurrency.

This new venue of investing hasn’t been around for long, nor has it been relevant until the past couple of years.

Yet the digital asset space has grown so much in those years.

In late December 2021, Bloomberg reported that the market capitalization for all crypto assets had reached around $2.3 trillion.

However, in January 2022, the crypto market took a major hit after a mass sell-off wiped $500 billion from the asset class.

You’re probably wondering whether investing in the Metaverse will be just as volatile as crypto, right?

Now is the time to learn how to invest in the metaverse before it gets too crowded.

Here is your metaverse investment guide.

What Is the Metaverse?

Imagine the reality around you was changed into a virtual one—that’s the metaverse.

The idea around the metaverse is basic: take the fun things we do as individuals or in a group and bring them to the internet.

In some ways, this has already been around for a while.

Virtual reality (VR) gaming has existed for some time, giving people the chance to “be in the game” instead of watching/playing.

The metaverse has taken this concept to the next level.

This new universe allows you to interact with others in the metaverse using devices like your smartphone, PC, or VR headset.

You can go for a run, drive a car, go shopping and more, all inside this new virtual reality.

The catch is you’ll have to pay for “upgrades,” like clothing and accessories.

But you’ll also likely be able to sell digital services and products within the metaverse.

That’s why companies like Facebook (now known as Meta) have placed so much focus on the metaverse going forward.

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Investors Are Paying Millions For Virtual Real Estate

One of the strongest selling points about virtual reality is that you’re not constrained to the rules and limitations of the real world.

Yet, people in the metaverse are already dropping millions of dollars on digital real estate.

Why would they spend such large sums on real estate that doesn’t physically exist? Proximity.

We all know the real estate market is about location, and in the metaverse it is no different.

In fact, one investor recently paid $450,000 to be Snoop Dogg’s neighbor in a virtual world called the Sandbox.

People want to be where the action is—even if it’s in a virtual world.

Investors are buying up spaces where others congregate—likely in hopes to sell it for more later, when the space has appreciated in value.

But like all digital assets, the metaverse is highly volatile.

An investment in digital real estate carries the same risk as investing in cryptocurrency.

The Metaverse-Inspired NFT Game That Rewards Players with Crypto

So once you’re in the metaverse, what can you do?

Play games that can earn you crypto, of course!

Elvantis—a decentralized cross-chain application that runs on multiple blockchains—has developed an interactive game that allows players to earn NFTs (non-fungible tokens) and trade them for cryptocurrency.

The game is based on completing mini-games to earn rarer items and upgraded features.

These items and upgrades make it easier to attain higher crypto rewards.

Essentially, this game is intended to be a fun way for investors to grow their NFTs and give them a new way to access and earn crypto.

Depending on the success of this game, other companies may follow suit.

No doubt Meta will be developing a similar style game for its audience as well.

The Metaverse & Crypto

You can shop, buy and sell services, and play video games in the metaverse—but how will you pay?

In the metaverse, just as in real life, nothing is free.

If you want to buy clothes for your avatar, you’ll need to buy cryptocurrency.

At this point, if you haven’t bought crypto, the ride might end here for you.

But those who already own crypto now have a whole new space dedicated to the digital asset.

Red Pill or Blue Pill?

So, what will it be—blue pill (stay out of the metaverse) or red pill (invest in the metaverse)?

It depends on what kind of investor you are.

Do you enjoy keeping up with the times, or would you rather stick to your principles about investing?

Even people within the crypto and metaverse industry seem to be at odds with advocating investment.

The reality is that digital assets are extremely volatile, and that doesn’t seem to be changing any time soon.

But just like with small-cap investing, the rewards can sometimes outweigh the risks.

The only way to know for sure is to continue learning as much as you can about the metaverse.

How Can You Invest in the Metaverse?

There are several avenues for investing in the metaverse that don’t involve investing directly into it.

Several major tech companies, including Microsoft, Meta, Amazon, and more are pushing themselves into the metaverse.

They’re all betting big on the metaverse expanding, so if you’ve already invested in any of these large-caps, you can benefit.

You could also look into computer graphics companies who will surely be getting a huge bump from metaverse demand.

The most common investment in the metaverse continues to be cryptocurrencies and NFTs.

There are plenty of cryptocurrencies available with varying valuations.

But if you’re looking for a small-cap metaverse stock worth playing—we got one for you.

Matterport (Nasdaq: MTTR)

This small company has a market cap of about $3.2 billion and describes itself as a 3D spatial data technology company.

Their focus is on indexing the built world through a variety of services.

So what makes this company special?

Their offerings separate them from other companies in the metaverse trying to grow in the metaverse.

Read more about their slate of offerings here.

Stay In the know with Dear Retail Investors

Ready to start investing in the metaverse? You should read more about it first—and we’re your go-to source for all things investing. Dear Retail Investors has created a community of like-minded investors to help guide you through the market. Joining our community is an easy way to always be in the know about the next trend.

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