How to Invest in the Metaverse: A Beginner’s Guide

If you’ve heard of the metaverse, you may know that individuals and companies buy land, hold events, set up businesses, and create non-fungible tokens (NFTs). Citi predicts the metaverse will reach a $13 trillion valuation by 2030, and investors are investing during the early stages in hopes of riding the wave of metaverse success [1]. 

What is metaverse technology?

The metaverse is currently a series of digital worlds that operate using virtual reality (VR) and augmented reality (AR). It is designed for people to navigate the world, play games, socialize, and create avatars in a way that presents itself as ‘real’ and immersive.   

With the use of technologies such as artificial intelligence (AI), developers can make these virtual worlds feel more real and even create sensations that we would feel in our real world by taking part in certain events and experiences. 

How does the metaverse affect blockchain and crypto?

The metaverse, blockchain, and crypto go hand in hand. The metaverse is a virtual world, and crypto is a digital currency, so metaverse investments are largely completed through cryptocurrency and stored on the blockchain. The metaverse is community-focused, and blockchain is decentralized and very difficult to alter maliciously, putting the power in the hands of the people. Ownership of anything within the metaverse is encrypted on the blockchain, which is like a ledger to permanently record transactions. This includes real estate and NFTs. 

How to invest in the metaverse

Investment within the metaverse is largely done in the form of NFTs. An NFT can be anything from a piece of digital art to a file of music to a digital outfit for your avatar. Investment in metaverse real estate is becoming popular and is also a form of NFT recorded on the blockchain. Here's a look at the steps to start investing in the metaverse.

1. Create a crypto wallet.

To invest in the metaverse through purchasing an NFT, you’ll first need to open a crypto wallet. A crypto wallet is a digital storehouse for your digital currency to keep it safe and available. The type of wallet you open depends on what you purchase and on which platform, as they use different cryptocurrencies. Different NFT marketplaces are compatible with different crypto wallets, so you'll choose the type of wallet that aligns with the marketplaces you want to use. 

Read more: How Does Cryptocurrency Work? A Beginner's Guide

2. Open an account on the platform of your choice.

Once you have your crypto wallet set up, head to the platform of your choice to connect your wallet to the marketplace and purchase an NFT. There are various NFT marketplaces to choose from depending on your interests, from curated to mass market and even some for niche purchases. 

Marketplaces such as OpenSea and Rarible are mass marketplaces where anyone can buy or sell NFTs. Platforms like Foundation and Nifty Gateway are curated, which means the platform vets NFT artists before allowing them to sell to ensure a high standard. A marketplace might also invite an NFT artist to join.

If you are looking for an NFT that falls under a particular category, such as real estate, you will find dedicated platforms and worlds, such as Decentraland and The Sandbox.

3. Choose the NFT you wish to buy.

When you’ve found an NFT to invest in, you can purchase it using your crypto wallet, and your transaction is stored on the blockchain, signaling ownership. At a later date, you might choose to sell your NFT the same way you bought it. 

Invest in the metaverse indirectly.

In addition to the obvious ways of investing in the metaverse, such as buying NFTs and digital real estate, you can invest in the metaverse indirectly in several ways. 

• Exchange-traded funds (ETFs): ETFs are not new, but metaverse ETFs are. Similar to mutual funds, ETFs are a way of pooling investments, which are managed by a broker. Metaverse ETFs have become more popular over the past year.

• Metaverse stocks: Investing in metaverse stocks is a way to get your slice of the metaverse action. You can choose from a variety of companies representing different aspects of the metaverse, from technology stocks to gaming stocks to companies building platforms. 

• Metaverse index (MVI): The metaverse index tracks the performance of a group of metaverse assets and their stock prices, much like the Nasdaq 100 does, but focuses solely on metaverse trends, allowing you to select your chosen investment. 

Other ways to invest in the metaverse

If you have an interest in investing in the metaverse, but in a less obvious nature, you can invest in companies involved in the metaverse and technology essential to the metaverse. Some examples include:

• 3D creation software

• Artificial intelligence 

• 3D Printing

• Augmented reality

• Facial recognition

• Haptics

• Immersive hardware

• Mixed reality

• Motion capture

• Security

• Virtual reality

• Voice recognition

Skills every metaverse investor needs

Certain skills are helpful for you to acquire or improve on when becoming a metaverse investor. These range from technical abilities to transferable skills generally needed in sales, finance, and investment outside the metaverse. 

Technical skills

• An understanding of cryptocurrency and blockchain

• Technical analysis

• Business acumen

• An understanding of the metaverse

• An understanding of your NFT market

• An understanding of investing

Workplace skills

• Risk management

• Self-discipline

• Time management 

• Flexibility

• Decision making 

Courses and certifications

Consider metaverse investment courses and certifications to strengthen your knowledge in cryptocurrency and decentralized finance.

Courses

• Virtual Reality Specialization: University of London

• Financial Markets: Yale

• Decentralized Finance (DeFi) Primitives: Duke University

• Blockchain Revolution Specialization: INSEAD

Certifications

• Certified Metaverse Expert: Blockchain Council

• Online Degree in Cryptocurrency and Trading: Blockchain Council 

Learn more about investing in the metaverse

If you're ready to learn more about investing in the metaverse and have a background in investing and finance, understanding metaverse technologies is a great place to start. Learn about virtual reality, for example, and get a solid grounding on blockchain and how it works through online courses on Coursera. If investing is new to you, it might be worth starting with a course on the fundamentals of investing. Upon completing either program, gain a shareable certificate to include in your resume, CV, or LinkedIn profile.