Historically, most people’s investment portfolios have included an outsized portion of assets. Most of that reality, if not all of it, has been “actual,” but the fashionable land investor may additionally consider something more abstract: virtual land. Building a portfolio of virtual properties is also the next big thing for investors who aren’t scared to stake their money on cutting-edge technology.
A Metaverse NFT Land: What is it?
A metaverse project is a collection of digital space plots that can be bought. Like in the real world, non-fungible tokens (NFT), which are used to buy virtual land, can be used for various things. You can use this metaverse real estate in say, Decentraland to move around, make money, start businesses, and more. Such a project will typically cut up its map into small parcels of land and offer those parcels for sale. Most projects accept cryptocurrency as payment; few accept fiat money.
The area is utilized to give its owner a 3D virtual experience and to let guests explore it. The best thing about owning virtual land is how simple it is to convey authenticity and ownership. Even in the secondary market, these lands can be sold utilizing an NFT marketplace.
Why would someone invest in property in the metaverse?
Facebook changed its name to Meta after the social media giant proclaimed its intention to participate in this virtual reality. Real estate in the metaverse, virtual reality, and augmented reality have all seen a sharp rise in interest. However, purchasing land in the virtual real estate market could seem like a strange investment.
They are particularly intriguing to investors for two reasons.
- Just like in the real world, there is a limited supply of virtual property. Acquiring virtual real estate entitles you to a particular plot of land in a metaverse environment that you can use for various purposes, such as promoting a business or creating rental buildings or interactive platforms that charge access.
- Every fraction of the metaverse property is unique and is conserved by a non-fungible token (NFT). An NFT is a deed or evidence of ownership for something physical (or digital) that can be uniquely recognized. Your NFT establishes your ownership of virtual land and enables you to transfer it to a different party. Additionally, it acts like a digital act from the twenty-first century and automatically documents every property transaction, doing away with the need for title work.
The process for buying land is the same as for buying any NFT. A wallet and some cryptocurrencies are needed to get started. Let’s look at the detailed instructions for purchasing land in the Metaverse:
Pick a virtual world
Before choosing a virtual land, you must first select a virtual world, such as Sandbox or another Metaverse virtual world.
Read more about: How To Build The Metaverse Virtual World?
Get a cryptocurrency digital wallet
Getting a digital cryptocurrency wallet is the first step. You must be aware that fiat money cannot be used to purchase land in the Metaverse; as a result, you need a wallet to buy and store your cryptocurrency.
Remember that your wallet should work with your browser as well.
Choose a platform
Before buying land virtually, you must choose a metaverse platform to conduct the trade on. Depending on why you are purchasing the land, the platform will change. Popular platforms include Sandbox and Decentraland, or if you wish to proceed with a third-party purchase, you can choose OpenSea or NonFungible.
You can also choose a third-party marketplace
For purchasing virtual land, many people go with this option. OpenSea and NonFungible are two of the most well-known third-party services; both let you look up a property’s sales history and provide information on properties that are currently for sale.
Your wallet needs to be connected to the market
You can submit a bid on available land plots on the Sandbox website to purchase them. Additionally, you will be able to make an offer on some of them directly, while others require the use of intermediary services like OpenSea.
Transfer SAND or ETH to your wallet after purchasing
You will need to bid or purchase through a third party if you want to purchase Metaverse land. You must have either SAND or ETH in your wallet to perform. You can buy or acquire ETH or SAND using your Binance account or any other account or through credit and debit cards.
Look through and choose the land
When everything is finished, it’s time to research the various plots of virtual land offered and their costs. In addition to the cost of the metaverse land, you need to consider a few other factors, such as the distance from famous sites, as the cost of such properties rises quickly.
Check to see if the land is still available after you’ve decided which one you want to purchase. If available, you must click the “Bid” button to submit a bid or make a fixed-price purchase by entering the appropriate amount of ETH.
The sum will be taken out of your wallet if the seller accepts your offer, but the cryptocurrency will be returned to your wallet if he refuses it.
How may land be sold in Metaverse?
You have two options for selling your NFT land: either through the metaverse project’s marketplace or any secondary market. However, it’s projected that within the future, you’ll be able to instantly swap land through the Sandbox by paying a 5% transaction fee in SAND, although the Sandbox now permits the utilization of third parties for sales.
Simply attend your profile and choose the “Sell” option on your NFT if you want to sell your property through OpenSea. You’ll be able to create a timed auction or fixed price by doing this.
Factors that increase the value of virtual land
You must consider a few things if you intend to purchase land because they can raise the value of your property:
Like in real life, location is one of the most important variables affecting the value of your land or plot. In the Metaverse, as in real life, if the neighborhood is desirable, your property will be worth more.
You should also consider scarcity to be an important factor, as we’ll see in this section when we examine the game’s population and scarcity one another.
You should be aware that Metaverse has a cap on the number of plots; similar to NFTs, this cap will be reached after a certain number of plots. Since there are only a finite amount of plots available, just imagine how expensive virtual land will be when there are fewer or no plots available in the future.
Size is the next crucial element to consider, as having larger land will allow you to build more and create a more significant experience within that Metaverse. The larger parcel of property will be worth more than the smaller one. You will have more space to expand your adventures, make more games, grow your business, or do whatever else you want on that plot.
Before purchasing metaverse real estate on a platform, remember to review the principles of the metaverse cryptosystem. Here, purchasing and selling NFT land is easy. However, there are situations where the cost exceeds the cost of a real piece of land.