Top ways how to invest in Metaverse

Metaverse proponents claim that the new virtual world will be the next generation internet. Today, we spend many hours on the web, and in the future, we will do the same, but in a digital environment.

Some of the biggest enterprises invest in developing their versions of the metaverse. Logically, investors are interested in hopping on board and getting profit out of something that promises to become great and commonly used in the future.

Consider reading our article if you’re interested in making a good investment. You will learn how to invest in metaverse since there is more than one valuable option.

What is metaverse?

Before you learn how to invest in metaverse, let’s figure out what the metaverse is. The metaverse is an umbrella term that describes a wide range of future virtual worlds. Many developers invest in creating a metaverse; most likely, every metaverse will be different.

However, most experts agree that the metaverse is a virtual world. Users can immerse themselves in this world and interact with objects and other people within the digital environment. Some digital worlds would be accessible through VR headsets or AR glasses. Other metaverses won’t require these devices.

Regardless of how the metaverse will look, it seems to be a good investing opportunity. So, now let’s figure out how to invest in metaverse, and what options are the best.

Investing in metaverse stocks

The least volatile and risky option for investors is investing in the stock. It’s also easy since users aren’t required to create crypto wallets or sign up for a specific crypto exchange. If you’re familiar with investing in stocks, then buying metaverse stock on the market won’t be new to you since the mechanism is identical.

Potential investors must research the company developing the metaverse. If they find their ideas interesting and believe in the success of their metaverse, then investors can buy this company’s stocks.

Note: investing in metaverse stock isn’t a 100% risk-free option. Company shares fluctuate in value the same as stocks of other companies. However, investing in stock is better and safer compared to other investment options.

Best metaverse stocks

Now let’s check some companies that invest in developing the metaverse. Ensure to check every company before making an investment decision. Here’s the list of companies to check:

  • Roblox. Most gamers know that Roblox is an online game platform that enables users to create their games or play games created by others. Roblox is considered to have elements of the metaverse. The company has been growing rapidly since its launch in 2006.
  • Meta Platforms Inc. Mark Zuckerberg experienced his desire to start working on the metaverse a few years ago. He even changed the name of Facebook Inc, so today, it’s Meta. Moreover, Meta has released a digital reality platform Horizon Worlds. Additionally, the company released the Oculus Quest 2 VR headset, which contributed to the popularity of Horizon Worlds since it’s how users access the platform.
  • Microsoft. This tech giant is planning to release a platform called Mesh. Its aim is to make Microsoft Teams more advanced. Instead of traditional conference calls, users will be able to collaborate in a holographic 3D environment.
  • Boeing. The company wants to use the metaverse to improve the company’s production capabilities. The aim is to create a digital environment where human employees, computers, and AI communicate easily globally.

There are other interesting projects and startups you can check out. But be careful and invest in reliable companies.

Top ways how to invest in Metaverse

Understanding metaverse land

Several companies already have accessible elements of the metaverse. For instance, Minecraft enables users to own property and build anything they like. Moreover, platforms like The Sandbox and Decentraland have created digital environments where users can buy virtual land in the form of NFTs. So, users buy an NFT that proves their ownership of certain property.

Once the land is purchased, the owner can use the property. Users can sell, buy, or even rent the land. For example, a Japanese video game maker purchased some land in Decentraland and created a crypto casino. Users can gamble or place bets using the native ERC20-based Atari digital token.

So, investing in metaverse land may be an interesting investment opportunity. Investors can buy virtual land and then rent, for example, to advertisement companies. The land may increase in value, so the investor could sell it in the future. However, it’s a risky investment option.

Metaverse crypto

Some types of metaverse will be centralized. For example, Meta’s project seems to go down the centralization road. However, some projects are built thanks to blockchain technology.

If the metaverse is blockchain-based, it will be powered by fungible cryptocurrency tokens. Unlike non-fungible tokens (NFTs), fungible coins can be mutually exchanged. Metaverse users will use these tokens to purchase objects within the virtual land, just like they buy things in real life with fiat currency.

Moreover, some metaverse cryptocurrencies allow their holders to vote on decisions regarding the metaverse platform. For example, these decisions may relate to the development of new features, how to distribute resources, etc.

Typically, if the value of digital assets increases, then so does the value of their associated tokens. This leads to the conclusion that it may be wise to invest in these metaverse tokens.

Moreover, some platforms burn tokens that were used to purchase digital assets within the metaverse. For example, Decentraland burns MANA tokens used by people to buy digital objects. As a result, there are fewer tokens in circulation, so the value of the remaining tokens increases.

Top Metaverse Tokens

As described in the previous section of the article, metaverse cryptocurrency may gradually increase in value, which makes it a good investment opportunity. However, investing in crypto is always a big risk. Check out the list of metaverse cryptos, but do not invest more than you are willing to lose. The list goes as follows:

  • Enjin Coin, ENJ token.
  • Decentraland, MANA token.
  • Axie Infinity, AXS token.
  • The Sandbox, SAND token.

Note: if you are interested in investing in metaverse cryptocurrency, you should be ready to keep an eye on new projects. As time goes by, developers launch new projects. So, keep looking for up-and-coming startups to find hidden gems!

Metaverse Exchange-Traded Fund (ETF)

Another way to invest in the metaverse is through metaverse exchange-traded funds (ETF). An exchange-traded fund combines aspects of traditional stocks and mutual funds. An ETF is a pooled investment fund, like a mutual fund. It offers an investor interest in a professionally managed and diversified portfolio.

However, ETF shares trade like traditional stocks on stock exchanges. The stock is bought or sold by a trader during the trading day and gets income through fluctuating prices. This investment opportunity is ideal for those who want to invest in metaverse stock but don’t want to invest in single stocks only.

Another reason to choose ETF is diversification. The good news is that you can find metaverse ETFs and invest in them. Your best options to consider are as follows:

  • eToro Metaverse Life Smart Portfolio.
  • Fount Metaverse ETF.
  • ProShares Metaverse ETF.
  • Horizons Global Metaverse Index ETF.

Note: ETFs that are actively managed require more expenses than passively-managed index ETFs. If a manager of the portfolio actively engages in trades, it costs more money due to transaction fees. Before choosing what ETF shares to purchase, read the information about this ETF. You can request a prospectus that describes the ETF.

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About author

Arseny Kudrin

Publicist, trader

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