As people spend more time in the virtual world, the importance given to the metaverse increases. Viewed as the next iteration of the Internet, users can interact with each other via digital avatars. Amidst the Web 3.0 revolution, it is the right time to invest in the metaverse. Let us take a look at the different options available for investors.
Investing in publicly traded companies is a safe bet. Investors can buy or sell metaverse stock through exchanges and trading platforms. Traders can put money on stocks of tech giants and gaming conglomerates and earn stable returns. Additionally, investments can be made in firms that are working on Next-Gen technologies like Augmented Reality, Virtual Reality, Artificial Intelligence, 3D, and Cloud Computing. Overall, the return on investment (ROI) depends on factors like the recent financial results, market conditions, and strategic moves made by the corporate companies.
Exchange-Traded Fund (ETF)
It refers to a basket of securities that tracks an underlying index. Generally, investors can purchase shares, bonds, and derivatives from the leading stock exchanges. They can also hire portfolio managers and brokerage firms to monitor the performance of their financial assets. An Exchange Traded Fund (ETF) offers advantages like efficient portfolio diversification, greater liquidity, and lower tax. They can be managed either actively or passively.
Hence, people keen to invest in metaverse can choose either established firms or small scale companies with high potential. They will be exposed to business organizations developing hardware, software, and interchange standards related to the metaverse. Investors can opt for the right ETF after taking into account the assets under management, expense ratio, and the number of holdings.
Virtual plots on platforms like Decentraland, Somnium Space, The Sandbox, Cryptovoxels, and Treeverse are selling for huge prices. Investors need to possess a software or hardware wallet and cryptocurrency for purchasing digital land. They can invest directly through platforms operating in a virtual world or NFT marketplaces. Generally, the value of virtual real estate depends on aspects like location, amenities, and visual appeal. NFT trading platforms also allow investors to filter the digital land-based on status (buy now and on auction), size, quantity (single items and bundles), and type (land and estate).
They have to take part in the auction, make bids for specific parcels, choose the best offer, and pay the required gas fees. Later, the digital wallet processes the transaction and the buyer gets ownership of the virtual property after the transfer of funds.
Buy Non-Fungible Tokens (NFTs)
Undoubtedly, NFTs have boosted the creator economy. Content developers have freedom in pricing, marketing, and monetization. Investors can put their money on artwork, music, trading cards, real estate, fashion accessories, sports merchandise, gaming weapons, domain names, memes, photos, and video clips. Since transactions made through cryptocurrency are irreversible, buyers should verify the authenticity of the artist and the reliability of the NFT marketplace before purchasing a unique crypto collectible. Some of the popular NFT trading platforms are OpenSea, Rarible, SuperRare, Foundation, NBA Top Shot, Nifty Gateway, and Mintable.
English and Dutch are the 2 types of auctions to sell NFTs. The highest bidder gets it in an English auction. Further, the price of the crypto collectible declines over time in a Dutch auction. Hence, buyers can make an offer or purchase the NFT anytime in the listed currency. Apart from getting hold of a rare collectible, investors can support the work of talented creators by purchasing Non-Fungible Tokens (NFTs).
Metaverse Index (MVI)
It tracks the financial performance of companies involved in the metaverse. Generally, a metaverse index provides real-time updates about business firms operating in industries like entertainment, gaming, device manufacturing, technology, sports, and finance. Investors can protect themselves from volatility which is common in the prices of cryptocurrencies and DeFi tokens. The weightage of the constituents in the Metaverse Index (MVI) depends on the market capitalization and liquidity of the decentralized protocol.
Many Web 3.0 projects are launching their reserve currency. Hence, investors can directly purchase assets. Moreover, the digital tokens are backed by an equivalent deposit of stablecoins. The decentralized protocol will mint new tokens. It maintains price parity by issuing new tokens, repurchasing them from the open market, and burning crypto assets. New tokens are available for circulation. Holders of digital tokens can also stake the assets and receive passive income. Automatic rebalancing of the currency’s value safeguards their investments from fluctuation. Are you a Next-Gen investor? Buy some metaverse stock now and pocket hefty returns.