In the past few years, major business organizations have been competing to build the new frontier of user interface and establish their dominant presence in the Metaverse, the virtual ecosystem. When it comes to the evolution of the internet, the Metaverse concept is probably the most significant step up until now.
The idea of the Metaverse revolves around the concept of a 3D, virtual domain where the users interact and relate to each other. The area is more or less like a virtual replica of the earth, without physical restrictions.
Even though the concept is still in its infancy, it is already fetching the attention of several big players in the business. Significant investors in the sector are making an increased amount of investment in the metaverse universe. If we look at the long-term inclinations, it is likely that in the coming years, this system is going to become a behemoth.
Let's look at how you can invest in the metaverse universe.
Metaverse in a nutshell
In 1992, author Neal Stephenson painted a sci-fi concept of astounding accuracy, which he named 'metaverse' Little did he know that this term that he coined would soon leave the fictional realm and would attract investors and businesses from across the globe.
Put in simple terms; the 'metaverse' is an online portal where users can find a virtually simulated environment similar to the real world. The users can interact with each other from across the globe without any physical barrier.
This virtual reality world is presented in three dimensions. Here the users are connected to the ecosystem using their avatars. VR headsets allow these users to interact with each other in different virtual worlds. Each of these virtual worlds together makes up the Metaverse. People can sell or purchase lands and assets with digital currency or fiat money.
Metaverse investing for beginners
The best part about Metaverse is that irrespective of financial status, anyone can invest in Metaverse and earn from the platform. Several mainstream business organizations and blockchain companies are building on this infant technology.
Before starting to invest in the Metaverse, you must know that investing in the Metaverse is not limited to just the purchase of crypto assets. You can find several publicly traded companies on the platform. These companies belong to diverse sectors or industries. You can find organizations from real estate, entertainment industries, video games, and several other sectors.
Even though the concept of the Metaverse is still in its infancy, several big players across the globe are showing an increased interest in this area. Various leading platforms offer excellent opportunities to purchase and invest in the metaverse ecosystem. Some prominent platforms include Decentraland, The Sandbox, HyperVerse, Nakamoto, Bloktopia, Cryptovoxels, etc.
Buying metaverse stocks
Metaverse is still in its early stage. So the investment in this sector must be considered speculative. However, if you are someone who wishes to get on board during the initial stage, a few investments have different risk ratios. Unlike the real world, in the metaverse universe, you wouldn't face any limitations in making investments. To add, anyone can purchase cryptocurrencies or NFTs (Non-fungible tokens).
Industries or technology companies related to the Metaverse are a great way of earning profit. Currently, the total value of all platforms in the metaverse space is around $118 billion. According to a report by Statista, this worth might increase by 39% in the coming seven years.
Purchasing stocks of Metaverse is quite easy as all you need is a digital wallet and the ability to take part in a coin exchange. While different platforms have their own sets of regulations while signing up for an exchange, the process is primarily easy once you get all your personal ID information verified.
Given below is a list of six common methods by which you can invest in the Metaverse:
The top 7 metaverse stocks to buy
With several metaverse stocks captivating the interests of all significant players in the financial world, tracking all these stocks can be quite overwhelming. In this section, we have highlighted the seven most promising metaverse stocks you can pay attention to and invest in.
The first company to come up with the Metaverse as a concept as we understand it today was Meta Platforms (NASDAQ: FB), formerly known as Facebook. Meta made its first significant investment in virtual reality in 2010. It acquired Oculus VR, the pioneer of VR headsets, in a deal of $2 billion.
A significant portion of Meta's revenue is still generated via ad marketing on its social media platforms- Facebook and Instagram. However, in 2021, Facebook decided to change its name to Meta. It also announced its plans to focus on the development of the Metaverse.
Compared to any other VR company, Meta has generated more revenue through sales from the Oculus VR headsets. To add to it, Meta is displaying heavy investments in creating several immersive software applications and anything that contributes to the growth of Metaverse. The sole force of the company is not Metaverse. Thus the stocks of Meta prove to be an excellent option for investors who are more averse to risks.
It is no secret that Microsoft has been a titan in the tech space for several years. Since it added the video game company Xbox to its portfolio, its adaptation to the metaverse ecosystem has been much smoother.
To add, it can integrate the Metaverse into all ranges of its products like Microsoft Teams, a product to facilitate virtual meetings in schools and workplaces. Microsoft has successfully managed to corner the market in a professional setting and on the gaming fronts. This makes it one of the most popular stocks to watch for. Microsoft also launched its virtual reality headset in 2016, with the name HoloLens. However, it hasn't been able to hit the expected returns.
Microsoft acquired Activision Blizzard, the owner of the popular gaming franchises Call of Duty and Candy Crush Saga, at $68.7 billion. With this deal, Microsoft has placed itself quite ahead in the race to dominate the future of the online gaming industry. As of July 2022, Microsoft's market capitalization is $2.063 trillion.
Roblox is one of the most famous gaming platforms among younger children, with over 50% of its user base comprising those aged 13 or below. The platform accounts for 11.8 billion hours of user engagement.
This platform exploits the Metaverse tech, and its plans to become a giant platform in the Metaverse industry is already thriving. From across the globe, several children interact on the metaverse ecosystem via Roblox without having to leave their homes physically. The platform plans to retain these users as they grow up.
Apart from offering a gaming experience to its users, Roblox also acts as a platform that enables developers to create their games and upload them for other users to play. With this feature, this Roblox has become a unique 3D platform that allows its users worldwide to play games, connect, and interact with each other without any physical barrier.
Unity Software Inc. (NYSE: U), an American multinational video game software company, was founded in Denmark in 2004. Presently, it is based in San Francisco, California. Unity Software indulges in offering solutions to developers in their game production process for 2D and 3D platforms. The company offers solutions for developers for the game production process for both 2D and 3D platforms.
The company leads in the sector of 3D software development in the metaverse space. Metaverse requires ample content, and as per Unity's estimation, a whopping half of the 3D content on the metaverse platform has been produced with Unity's software. Considering all this, it is safe to say that Unity is the market leader and possesses a unique value proposition.
Another company that can be a top pick to cash in on 3D content creation is Nvidia (NASDAQ: NVDA). NVIDIA is a tech giant specializing in creating graphics processing units (GPUs). Nvidia manufactures integrated circuits needed for electronic game consoles and personal computers (PCs).
In recent years, Nvidia has been taking a keen interest in virtual reality and creating various metaverse-based products. With the help of these products, the users can develop a virtual 3D model of the physical world.
The company introduced the beta release of Omniverse in 2020. It tagged Omniverse as the platform to connect the Metaverse into a shared virtual space. Although the product has been made available generally since late 2021, it has already been downloaded and used by tens of thousands of content creators across the globe.
Matterport (NASDAQ: MTTR) is the platform that provides its users with 3D spatial mapping technology. This technology helps scan real-world locations for its augmented and virtual reality applications. The platform then uploads these scanned locations to its cloud servers, and users worldwide can access it through subscriptions.
These subscriptions account for more than 70% of Matterport's sales. The company gets the rest of its earnings through its product businesses. Since it is the first company to enter the Metaverse with this niche and has been succeeding, it gives it an edge over others. It could turn into a much larger business over time and can attract fantastic offers from other techs or real estate firms that have their inclination towards the metaverse industry.
The year 2020 was nothing less than astonishing for the business. The sector witnessed a growth in its sales by 87%, going up to $85.9 million. However, since that time, the growth rate has crumbled considerably. However, even now, it is expected to generate a healthy $125 million to $135 million in sales by the end of this year. This would account for around a 12% to 21% growth rate.
Plus, this would allow the sector to convert more of its free users to the premium (paid) ones, generating great future results.
We all know how Alphabet's (NASDAQ: GOOGL, NASDAQ: GOOG) Google has been a dominant player in the internet world for the past few decades. Even today, it is the gateway for the majority of the users of the internet world. With its dominance and influence, it is safe to assume that if the Metaverse is the 3D internet, Google would be a major player. Apart from this, Alphabet is also effectively penetrating into the businesses related to augmented reality and virtual reality. This would further help it expand its scope in the metaverse ecosystem.
In 2020, it acquired North, the market for smart glasses that would enhance the virtual reality potential. Under the project Iris, Alphabet is set to build a VR headset that would have the potential to compete with the Oculus Qwest 2 headset of Meta. Another achievement consists of Project Starline of 2021. With this project, the company efficiently combines the software and hardware competencies to create a 'pane of glass' that would serve as a 3D display.
Investing in metaverse cryptocurrencies
One of the ways to earn profit in the Metaverse is by investing in the metaverse currency. Most metaverse companies tend to have their digital currency or use an existing cryptocurrency.
One of the reasons behind the development of cryptocurrencies was to move people from the real to the virtual world. With the help of digital currency in the virtual economy, people can have borderless transitions and interactions. This was not feasible with the help of fiat currencies. We can take Decentraland as an example. It is a virtual browser-based third-dimensional platform that features games like Genesis City. Decentraland has successfully hosted several virtual events by significant brands like Adidas and D&G.
Participants of the Metaverse can use cryptocurrencies like MANA on Ethereum to purchase or sell plots or lands in this virtual universe. These virtual lands and plots serve as good investment options. However, users must note that these prices can be highly volatile, making it a comparatively riskier investment strategy.
The Theta blockchain, the first one to market the CDN (content delivery network), is another great example. This company has its cryptocurrency called THETA. Users can purchase its cryptocurrency as a means of investment in the Metaverse. Purchasing crypto assets is one of the simplest ways of investing in the metaverse industry.
Investing directly in the Metaverse
Making a direct investment in the meta world is another effective way of investing in the Metaverse. It works similarly to purchasing a piece of land in the real world. Just like in the real world, you can purchase or rent land in the Metaverse. You can also 'live' in it with the help of your 'avatar'. You can purchase or rent this digital space or land with the help of cryptocurrencies or, sometimes, even with fiat money.
The metaverse ecosystem offers an optimized third-dimensional experience to its users. The assets in the metaverse universe are in the form of NFTs (non-fungible tokens), and thus the users can easily claim their ownership. One of the several benefits of purchasing land in the Metaverse is that apart from being the virtual land owner, you can also put your property on rent or sell your property with the help of an exchange or directly via the metaverse platform.
Generally, you will need cryptocurrencies to purchase land in the Metaverse. Some commonly used cryptocurrencies in the Metaverse are SAND, Ethereum, MANA, etc. So the first step towards purchasing these virtual lands is to own these currencies.
Metaverse ETFs as an alternate option
Another trending investment opportunity in the metaverse realm is the ETF. ETFs or the Exchange Traded Funds act like a basket of securities you can trade on the stock market. These offer various kinds of funds that an experienced fund manager trades.
ETFs are, in a way, similar to usual mutual funds. Both of them feature a group of stocks that are organized into a single asset offering optimum returns. However, one major difference between the two is that an experienced manager trades to preserve and attain maximum market value in the case of ETF.
ETF can be seen as a combination of traditional shares and mutual funds characteristics. Like mutual funds, ETF is a collection of securities across companies. However, you can trade ETFs as a bundle on the stock market, just like shares.
Across the Metaverse realm, you can find several metaverses ETFs. Some of the Metaverse ETFs you can invest in include eToro Metaverse Life Smart Portfolio, Roundhill Ball Metaverse ETF, The Simplify Volt Fintech Disruption ETF, ProShares Metaverse ETF, Evolve Metaverse ETF, Subversive Metaverse ETF, etc.
The Future of the Metaverse looks bright
The Metaverse is a recent development and is still in its infancy. However, it is already attracting several investors and businesses across the globe. Several data, analyses, and reports suggest that the Metaverse has a high potential for growth, development, and profit.
The Metaverse offers endless possibilities for investors and individuals looking for potential investment opportunities. No industry doesn't come into the ambit of the metaverse phase. Let's say you are someone with a keen interest in real estate. How does the idea of purchasing land or a house next to that of Snoop Dogg sound to you?
One of the most significant features of the Metaverse, making it an emerging virtual world, is its diversification. There is hardly any industry that the Metaverse doesn't have the potential to affect. From purchasing designer clothes to buying ETFs, from the gaming industry to the real estate industry, the Metaverse covers it all. Undoubtedly, the emergence of the Metaverse is one of the most interesting aspects of the tech we have come across.
There are numerous ways by which you can invest in the realm of the Metaverse. You can purchase the metaverse stocks which are on the boom and make waves like Meta, Roblox, Microsoft, Unity, etc. You can also purchase the metaverse cryptocurrencies to invest in the Metaverse. Several industries in the metaverse ecosystem tend to have their digital currency or use existing cryptocurrencies. You can also opt for investing in the Metaverse ETFs or the Exchange Traded Funds.
Apart from this, you can make direct investments in the metaverse realm by purchasing or renting land, property, or assets in the Metaverse. The process is more or less similar to making purchases in the real world. You can purchase, rent, or even 'live' in these virtual houses and land spaces. After claiming ownership of the land, you can even rent it to make profits. You'd generally need cryptocurrencies to purchase or rent land in the Metaverse.
Even though the Metaverse is still in its growing stage, the potential for its growth in the coming years is imminent. Even in its initial stage, the Metaverse attracts the interest of several investors, crypto enthusiasts, and business organizations across the globe. Crypto analysts and organizations believe the Metaverse will be an emerging technology in the coming years.
While there are certain risks and uncertainty, the potential for growth and gains outweigh these risks by a wide margin. So if you are considering investing in the metaverse industry, irrespective of whether you are a beginner or an influential player in the crypto world, the metaverse industry would surely be a great investment.
There are several methods by which you can invest in the metaverse realm. You can choose to purchase the metaverse cryptocurrencies, the assets, or the Metaverse. In the metaverse world, you can purchase land, a house, a shopping complex, or other properties. You can purchase metaverse stocks like Meta, Microsoft, Unity, Roblox, etc. You can even invest in the Metaverse by investing in the Metaverse ETFs or the Exchange Traded Funds.
While deciding on the type of investment, the best way to invest in the Metaverse would be the way you feel the most comfortable. While getting started with Metaverse investments, most people tend to choose to invest in stocks or ETFs. This is because, in these investments, you don't need the presence of the Metaverse. Instead of cryptocurrencies, you can use US dollars for purchases.
However, if you are someone already acquainted with the Metaverse and are playing, shopping, and interacting in the ecosystem, you might want to invest in NFTs, cryptocurrencies, and virtual lands.
If you plan to make any purchase in the Metaverse, you are most likely to use cryptocurrencies. You can choose any metaverse-based cryptocurrency, like MANA, SAND, etc. You can purchase these currencies via cryptocurrency exchanges like Coinbase.
With the help of the stock exchange platform of your choice, you can purchase the stocks of companies that are highly active in the Metaverse ecosystem. Apart from these, you can also opt for an exchange-traded fund with companies with roles in the Metaverse. For instance:
Yes, several companies are working on the metaverse initiatives, whose stocks you can invest in. Such companies include Roblox (RBLX), NVIDIA (NVDA), Microsoft (MSFT), etc.
You can purchase stocks of companies working in the metaverse realms. Since the Metaverse is still in its growing stage, it would be best that you invest in the stocks of the bigger companies that are already thriving in the realm, and their growth will only be boosted in the future. You can think of investing in companies like Meta, Unity, Nvidia, Cloudfare, Roblox, etc. You can purchase the stocks of these companies on the traditional stock exchange platform of your choice.