Crypto Investing
22 Mar 2022

Want to Invest in the Metaverse? Here’s What You Should Know

Ananda Banerjee

Metaverses intrigue many of us. There is the larger-than-life appearance, the ability to make inanimate things come to life, and a universe designed to treat everyone alike. But above all, the financial freedom and investment opportunities it brings excite us the most.

If you are intrigued, too, and want to learn more about them, join us as we dive deep into a world of metaverse-centric investment ideas, options, and resources.

Key Takeaways

  • Metaverse investment ideas comprise DeFi tools, NFTs, DAOs, real estate, adverts, and games.
  • GALA, SAND, and MANA are the native tokens of some of the leading metaverse projects.
  • You might consider investing in governance-heavy tokens to increase your metaverse visibility.
  • Global companies like NVIDIA, Mete Platforms, and Roblox are improving metaverse adoption in a traditional sense.

Investment Options in the Metaverse

Contrary to popular opinion, investing in the metaverse isn’t just about cryptos like GALA, MANA, and SAND. Metaverses have much more to offer than these tokens which drive their very existence.

Yes, tokens do have an important role to play, and they are arguably the easiest way to enter a metaverse. But, as a buyer, you might want to look for a few more choices. Some opportunities you might want to consider when in a metaverse include NFTs, DeFi, DAOs, real estate, adverts, and games.

  • Non-Fungible Tokens (NFTs): As a fascinating virtual space, metaverses are usually full of artistic resources and supplies—some of which might even be the masterpieces of the future—stored as NFTs. Investing in these NFTs is also a good way to get started in any virtual realm.
  • DeFi: With JPMorgan opening a branch in Decentraland and HSBC exploring The Sandbox, and possibly kickstarting an era of metaverse lending, it is only a matter of time before DeFi offerings, like staking for passive income in the virtual space, become available.
  • DAOs: Decentralized Autonomous Organizations (DAOs)—companies on the blockchain—are gaining much traction in 2022. Investing your time and efforts on relevant DAOs could work wonders for you; when you do so, they give you access to platform voting rights, which means you get to have a say in the future of that metaverse. 
  • Real estate: Getting hold of some virtual land in a virtual world is not delusional anymore. Many have already done so, and that is exactly what the likes of PwC and Snoop Dogg have in common. The company doled out close to $10,000 on a plot on The Sandbox, and the rapper owns 122 plots across the same metaverse. Would you consider this option, too?
  • Advertise in the metaverse: With consumer behavior changing every day, it is only a matter of time before brands take to booking hoardings across metaverses to promote their products. Nike is already doing so with its one-of-a-kind metaverse studio, which was established way back in June 2021, and if you use it to promote your business now, you could be one of the firsts too.
  • Play-to-earn games: GameFi is changing the way we all look at metaverses. Gaming is rapidly driving metaverse adoption by bringing people together. Putting your money into key game-playing assets, especially in metaverses like Axie Infinity, therefore comes with a lot of reward-specific options.
  • Set up shop: Setting up shop in a metaverse may have seemed far-fetched a short while ago. Not any more, with utility-driven NFTs coming into the picture. Brands are now considering setting up metaverse shops to display their products and promote sales across capacities. McDonald’s’ recent foray into the metaverse with a virtual restaurant experience and NFTs only validates the concept further.

Fact Check: OneRare, an Indian food startup built on Polygon metaverse is exploring the commercial aspect of the virtual world. The company plans to offer NFTs, gaming, virtual reality and even real food…all rolled into one era-defining experience.

Recommended reads:

Using Crypto Assets for Metaverse Transactions

How to invest in the Metaverse

While you may now see why we think the metaverse surely has a lot more going on than just the cryptos, transacting within the metaverse—to pay for advertising space, land, in-game essentials, NFTs, and more—requires relevant coinage. That’s where cryptos come into the picture.

Here are our top picks to lead you into investor-friendly metaverses:

GALA

Not many tokens have gained over 700% year-on-year like GALA did. The native token of a hugely popular gaming metaverse called Gala Games, the GALA token has been making several heads turn. With a market cap of close to $1.6 billion and a global rank of 60, GALA looks like nothing short of a crypto marvel.

Gala Chart

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive and should not be considered financial advice. Please Do Your Own Research (DYOR).

MANA

The native token of the Decentraland metaverse, MANA does have quite a fan following. At the 32nd spot when it comes to global rankings, MANA boasts of a market cap of over $4 billion. Also, the token has been up by almost 170% over the past year.

Mana Chart

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive and should not be considered financial advice. Please DYOR.

SAND

Following Decentraland closely in terms of metaverse supremacy is The Sandbox with its native token SAND placed at the 37th spot and a market cap of almost $3.5 billion. Not to mention, SAND gained almost 500% over the past year, despite the market correction.

sand chart

Source: Trading View

Disclaimer: Insights mentioned are time-sensitive and should not be considered financial advice. Please DYOR.

Related Reads

While these are some of the popular tokens in the metaverse if you have a penchant for choice, other equally well-liked projects are: the Axie Infinity, Chiliz, Enjin Coin, and the Theta Network.

A Step-by-Step Guide To Investing in the Metaverse

Some steps you can follow to get started with investing in the metaverse are listed below. We hope that this will help you make the entire experience seamless and relevant to your requirements.

  • Identify a platform: There are several metaverse platforms on offer. It is important to read and learn all about them and pick one that aligns with your long-term preferences before you make any commitments.
  • Follow the Metaverse Index: This Index comes paired with a crypto wallet and is like a basket of metaverse tokens; referring to it will help you determine the popularity of top ecosystem-specific tokens.
  • Choose a wallet: Regardless of how you plan on exploring the metaverse, you will need to keep a crypto wallet. You can either opt for a centralized exchange or consider investing in a more secure hardware wallet, or mobile wallet.
  • Assess growth metrics: Now that you have selected a metaverse to invest in, read more about the relevant projects before going any further. Once you have a fair idea about all the metaverse-specific developments (like NFT marketplaces being built or lands being sold) you can use your wallet to explore the same commercially.
  • Purchase voting-heavy cryptos: Over time, metaverses are expected to grow into full-fledged realities. With decentralized setups harping on transparent voting and governance, it is simply a matter of time before tokens with voting power and relevance begin to attract greater user attention. The AXS token, relevant to the Axie Infinity marketplace, is an example of one such token that has a role to play in staking and governance, make sure you do the research before putting in any money.
  • Invest in relevant NFTs: Every metaverse is unique. And so are the digital entities stored within. Therefore, if you want to position yourself ahead of others when it comes to metaverse investing, you might consider looking at the ecosystem-relevant NFTs—especially the ones with restricted supply.

If you have still not considered the numerous aspects of Metaverse for investing, following the steps mentioned above should set you in the right direction.

Global Assets to offer a Flavor of Metaverse

Global Assets That Offer a Flavor of the Metaverse

Still unsure about decentralized crypto assets? Well, you can still invest in the metaverse via the traditional path—picking up real-time use cases and identifying assets that are facilitating innovation.

Here are some of the metaverse-related use cases that impact the real world as well, to help you make the right choice:

  • 3D software modules design the perfect virtual realm.
  • High-speed internet facilitates greater lending lighting speeds and supports ultra-fast participation.
  • Security solutions safeguard the financial interests and anonymity of metaverse participants.
  • Semiconductors help users keep up with the increasing power requirements.

Keeping these use cases in mind, some of the well-known global assets that can help you invest in the metaverse in a more traditional manner are listed below:

  • Meta Platforms (previously Facebook)
  • NVIDIA
  • Roblox

Wrap-Up: Why Investing in the Metaverse is Hotter Than You Might Think

Over time, the metaverse is expected to work as a bridge between the real world and the virtual ecosystems. With Web 3.0 coming of age, metaverses will also speed up global adoption, by making everything around visually consumable.

The time to get into a metaverse of your choice is now, even if being late doesn’t kill your chances. Starting early will help you grab the first few seats to comprehensive investment opportunities.

And of course, you can always pick your area of expertise related to the metaverse (which can go beyond basic token trading) and get started right away with CoinSwitch.

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

writer

Ananda Banerjee

Content Writer

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