Metaverse Investment – as we all know metaverse investment is an opportunity to vensure good returns as metaverse is a rapidly growing new industry, and there are many opportunities for you as an investor to make good returns in it.
But with any new investment, there are also risks involved. This guide will teach you how to invest in the metaverse safely and wisely, and how to maximize your chances of success.
How you can get good returns on Metaverse Investment?
Table of contents
What is Metaverse?
Firstly, Metaverse is a network of 3D virtual worlds focused on social connection. Basically, the Metaverse is a virtual environment. Further, in which people, and avatars in metaverse terms can connect, interact and transact.
Additionally, this convergence of the digital and physical world stems from the Greek meta, meaning beyond or after, and verse short for the universe.
What are the Two main Forms of Metaverse?
- Virtual Reality – Firstly, it provides an artificial reality typically via a VR headset. Secondly, it takes over a user’s field of vision to provide an immersive experience.
Further, Immersive experiences include audio and positional tracking of the body to enable the movement of body parts. For instance, hands, interact with the virtual environment.
2. Augmented Reality – Chiefly, it is less immersive than VR. Additionally, it adds virtual overlays on top of the real world via a lens of some type.
Further, users can still interact with their real-world surroundings. AR examples include a smartphone using the Waze app. The host can see a user’s location and guess their intentions simply put.
Top Metaverse Investors
Firstly, there are many different types of businesses that have or will have a stake in the metaverse.
Thereby, providing indirect investors ample opportunity to get in on the action.
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Steps to follow To get Good Returns on Metaverse Investment?
There are 2 primary ways to invest in the Metaverse.
a.Indirectly, by purchasing stocks of companies or Exchange Traded Funds (ETFs) that invest in the metaverse or
b. Secondly, directly by buying properties and assets inside the metaverse.
Here are 4 categories to keep an eye on, along with some of the prominent companies that belong to each simply put.
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4 Categories to Invest in?- Metaverse Investment
1. Technology platforms
Firstly, Tech Giants including Alphabet, Amazon, Linden Labs, creator of the first immersive virtual platform Second Life; Meta, and Microsoft are investing heavily in creating their own metaverse platforms.
Secondly, Alphabet, Google’s parent company is pouring millions of dollars into the development of web3.
Similarly, Meta, the social media giant has developed and launched Meta Horizon worlds, billed as a virtual, immersive social universe.
Further, Microsoft launched Azure Digital Twins, offering its users an opportunity to create a digital representation of real-world things.
2. Gaming Platforms
Firstly, these have been at the forefront of the metaverse, attracting legions of loyal fans even before the metaverse gained currency by offering immersive gaming experiences.
Secondly, gaming platform like Activision Blizzard has been active in the gaming industry for more than a decade. Further, it has successfully, monetized the platform.
Additionally, Roblox operates an online entertainment platform, which lets users make friends, as well as exchange experiences.
Further, the Owner of the gaming platform WeChat, Tencent, has a stake in gaming through its subsidiary Epic Games.
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3. Chip manufactures
Firstly, conventional wisdom has it that chipmakers stand to benefit from the development of the metaverse.
Given the massive amounts of computing power required to support immersive digital experiences.
Secondly, it’s an open question about which chipmakers will come out on top.
a.Nvidia is aggressively investing in the metaverse using its flagship product Nvidia Omniverse. Mainly, a platform that enables real-time acceleration of complex 3D workflows and new ways to visualize, stimulate, and code.
b.Similarly, Qualcomm launched a $100 million metaverse fund earlier this year to target strategic investments in mixed-reality companies and developers.
Further, it plans to become the leader in metaverse hardware for immersive experiences, such as VR headsets, AR glasses, and holographic projectors.
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Chiefly, these two companies are all-in on developing the enabling software of the metaverse.
a.Autodesk – provides 3D design engineering and entertainment software and services. This company’s foray into the metaverse includes virtual, augmented, and extended reality platforms such as Civil 3D, Fusion 360, and 3ds Max to explain.
b.Unity software – Secondly, it started as a video game software development company. Additionally, now it operates an interactive 3D content platform that invests heavily in the metaverse.
5. Exchange Traded Funds
Firstly an ETF is a collection of securities that can be bought and sold through brokerage firms on a stock exchange.
Further, a few forward-learning ETFs offer investors exposures to the metaverse such as ;
- ProShares Metaverse ETF
- Roundhill Ball Metaverse ETF and
- Subversive Metaverse ETF
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Metaverse Investment – Investing Directly in the Metaverse
Buying virtual land requires choosing a metaverse platform and building an account there. Two of the most popular are Sandbox and Decentraland to put it simply.
Further, Sandbox is a decentralized gaming metaverse built on Ethereum where players may purchase or rent simulated homes.
Additionally, Decentraland also uses the Ethereum blockchain to power its virtual environment. Further, in Decentraland, customers can develop, explore, and profit from their generated content.
Rent Your Virtual Property
Firstly, you can always rent your virtual land or virtual building in Metaverse. Especially, to content creators, artists, gamers, etc.
Chiefly, they can make use of this space to put up their events or concerts to reach out to a whole new level of the audience.
Putting Advertisements on Virtual Billboards
Chiefly, the Metaverse world has proper real-world like roads, traffic, and people. In such a virtual world you will also find virtual billboards.
This can further, be a great way to advertise your services and product to the audience out there.
Renting out Office Space to MNCs
Firstly, MNCs are always looking for ways to assemble their employees. Additionally, Metaverse provides a great solution for it.
Chiefly, you can rent out your Metaverse property to MNCs who want office space in this virtual world.
Essentially, you need to remember that such MNCs do exist who want to expand their reach into a virtual workspace. So that thereby, they can earn a living in their physical world.
Giving Shops on Rent in Metaverse
Firstly, the retail industry has an important presence in the world of Metaverse. Additionally, you will find that lots of brands there, will require ample space for their shops and retail locations in the metaverse world.
Sell Your Events tickets in Metaverse World
Since there are no physical bodies as we find at an amusement park or any other event, a virtual event in Metaverse can be fun for people to join.
Additionally, you need to have such an event where you can generate tickets to enter it. Further, you can make it seem like a fun event that people should not miss at all.
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Risks of Investing in the Metaverse
Firstly, the metaverse is an evolving universe, and users must be aware of the risks involved in investing in it.
a.Cryptocurrencies come with investment risks.
Since, cryptos are relatively new concepts compared to traditional stocks, bonds, or tangible assets like real estate, there is a lack of regulation and oversight, creating a lack of stability in the market.
b.Market hype can lead to aggressive investments.
The dot-com bust of the early 2000s was fueled primarily by overhype of the internet and excessive speculative investment in internet-first companies.
c.NFT purchases and ownership come with risks
Simply, anyone on the internet can create an NFT out of anything, so there is a lot of risk for creators and purchasers of NFTs tied to digital assets.
For instance, a creator could have spent time collecting a prized digital asset and think they can sell it for a profit, and the market tanks.
Firstly, the metaverse is arguably the next evolution in social and commercial technologies.
Secondly, with the birth of the Internet and its mass adoption in the 1990s; nobody can predict what will become of the metaverse in the years ahead.
Additionally, what technological innovations it will bring or how high it might impact the day-to-day functioning of society and commerce?
Chiefly, as an investor, proceed with caution if metaverse growth follows a similar trajectory to that of the Internet of potential use cases as well as investment opportunities quickly overwhelmed the available resources and capital.
for instance, Fidelity Metaverse ETF (NYSEARCA: FMET – Get Rating) rose 0.6% during trading.
The stock traded as high as $22.67 and last traded at $22.67. Approximately 2,180 shares changed hands during mid-day trading, a decline of 48% from the average daily volume of 4,166 shares.
The stock had previously closed at $22.54.