How to invest in the metaverse: all the opportunities of the virtual world
What is the metaverse? Why is everyone talking about it even if we live in a time of crisis of digital networks? Today, investing in the metaverse is considered by many analysts as a valid opportunity to diversify your portfolio, as growth is estimated to reach 30 trillion dollars in a short time.
This word refers to a virtual world , developed on blockchain networks, through which you can live experiences similar to real ones, using an avatar. Then you can interact with other users , buy properties, land, play , create objects and make purchases.
The metaverse, however, is also something more, given that a series of technologies have developed around it, necessary to allow you to live this experience. From online platforms to tools such as 3D glasses to payment systems. A world connected mostly to platforms aimed at gaming, but its spread is becoming increasingly popular even outside of gaming.
For example, the Bored Ape platform in 24 hours sold $ 2.5 million worth of land. Are you willing to invest in the metaverse? Well, the first thing to do is to understand what the different investment opportunities are, which we will analyze in the next lines.
What to invest in the metaverse
| Type of investment | Specific |
| 1. Actions | Nvidia, Meta, Autodesk, Shopify, Fastly, Roblox, Unity Software, Amazon, Microsoft |
| 2. Cryptocurrencies | Mana, Sand, Axs |
| 3. ETF | HANetf ETC Group Global Metavers, Roundhill Ball Metavers |
| 4. Thematic funds | MetaverseLife, InTheGame |
| 5. Buildings and land | Land |
| 6. NFT | Objects, digital works of art, images, music, texts |
The focus on the world of the metaverse is recent, as it connects to Facebook and the development of virtual reality that led to the evolution of the Meta system . However, the idea of the virtual world has existed for years. As early as 1992, the metaverse was mentioned in Neal Stephenson 's science fiction books .
At that time there were no technologies to develop this virtual world and the metaverse theory seemed just the umpteenth thought of a visionary. Today, thanks to the web, the development of blockchain networks and the presence of innovative transaction systems such as cryptocurrencies, there are several opportunities to invest in the metaverse. In fact, you will be able to operate on the shares of companies that have focused on the technology necessary for this sector.
You will have the opportunity to trade cryptocurrencies with those connected to the metaverse platforms or invest in thematic or specific funds. Furthermore, if you have some liquidity, you will also have the possibility to buy and sell real estate and land. Finally, you can focus on a new trend of the moment, considered the future of cryptocurrencies: NFTs.
1. Investing in the metaverse: shares
The world of the metaverse encompasses a number of companies that have developed the technologies necessary to live the virtual experience. Just consider hardware and software, the development of equipment such as virtual glasses, or systems that reveal body and hand movements.
A sector that, as stated by Bloomberg, by 2024 will be able to reach a turnover of over 800 billion dollars . As you can guess, some of the companies that are part of the hi-tech sector and listed on the NASDAQ are connected to the metaverse .
So if you want to invest in the virtual universe you can do it with:
- stock trading : you will keep the securities in your portfolio by reselling them when their price is high;
- CFD trading: you can use contracts for difference and invest with a minimum capital by opening a buy or sell position on an asset.
In both cases you will have to choose to register with one of the best brokers present online . In this way you will have at your disposal a web platform that will allow you to have the real-time quotation of the assets, evaluate the market news, study the charts and analyze the best time to open a position for your type of portfolio.
If you want to know what are the most sought after actions in the virtual universe, we invite you to read our guide on the 9 best titles on the metaverse . Below we will analyze the most interesting ones, that is:
- Amazon;
- Roblox;
- Nvidia.
Amazon
The focus of the Amazon company (AMZN) towards the metaverse is part of this company's policy to diversify its business activities. Furthermore, each project aims to create a user experience with the increasingly integrated platform, making any operation simple.
In particular, attention was paid to the development of VR technologies , or virtual reality , with the development of specific tools to make virtual and real reality increasingly integrated. In this perspective, the cloud reality has also been boosted, through the AWS system (Amazing Web Service) and an AWS Quest role-playing game.
Through it you will have to face virtual challenges that will allow you to understand how the cloud interface works and all possible applications. Even if after the split of the Amazon shares the stock has undergone a slight inflection, thanks to the situation of uncertainty in the market, investing in this asset is an opportunity to consider.
Roblox
The development of the metaverse is for now mainly connected to the gaming world . In fact, there are more and more games that offer you the opportunity to experience an increasingly integrated reality with the real one, creating virtual worlds, facing challenges and even earning..
The Roblox platform fits perfectly among the opportunities to invest in the metaverse. In fact, you will have access to a universe that has its own internal token, which is a coin that you will get for the activities you will carry out.
You will be able to:
- play;
- create virtual environments;
- interact with other users;
- make presentations.
Roblox shares have made headlines over the past year, dropping from $ 140 and reaching today's value of around $ 35. A price considered by many to be below their value and therefore quite interesting.
Nvidia
The development of high-tech software and hardware were two fundamental elements to allow the creation of virtual worlds. So if you want to invest in the metaverse among the shares that you can add to your portfolio are those of the company Nvidia (NVDA) .
In recent months, due to the scarcity of raw materials and the increase in inflation , the share price has contracted, attracting the attention of a growing number of investors.
2. Investing in the metaverse: cryptocurrencies
To invest in cryptocurrencies linked to the metaverse , you will need to register with an exchange such as Coinbase or Binance , or a broker through which to buy cryptocurrencies such as eToro .
Let's consider the best tokens on the net today:
- Decentraland (MANA);
- The Sandbox (Sand);
- Axie Infinity (Axie).
They are three platforms developed on the metaverse thanks to the Ethereum blockchain . This means that you will be able to carry out transactions that will be validated on a decentralized network, offering you maximum security and using cryptocurrencies as an exchange tool.
For example, in Decentraland you will have the MANA token available, through which you can make purchases, or receive rewards. In The Sandbox there is the Sand cryptocurrency, while in Axie Infinity you will have the AXS coin available.
Each token has an independent quote , as well as being used within the virtual world. The platforms are developed on a gaming system , that is, you can create your own character, the avatar, and face challenges. In addition, you will have land that you can buy and resell (as well as improve it), organize virtual events and rent a specific space.
67% of eToro CFD users lose money
3. Investing in the metaverse: ETFs
Another opportunity to invest in the metaverse is to use an ETF. This acronym identifies Exchange Traded Funds , index-linked investment funds that replicate the performance of an underlying asset. This means that when you buy a potion in this fund, it will replicate the price of another asset.
ETFs are considered anti-inflation assets . This is thanks to the fact that their performance is given by the average of the titles present within them. This way you will get a constant yield. Furthermore, they are passively managed . This means that the management company will only be able to invest in assets that refer to the characteristics of the fund itself.
There are two types of ETFs in the metaverse sector :
- HANetf ETC Group Global Metavers;
- Roundhill Ball Metavers.
1) HANetf ETC Group Global Metavers
It is a fund with a size of 4 billion and based on a physical replication. This means that you are going to invest in the entire basket of stocks that make up the underlying asset. In particular, you will refer to the Solactive ETC index , also listed on the Italian Stock Exchange and composed of the main companies operating in the multiverse sector.
2) Roundhill Ball Metavers
This ETF offers you an attractive return of 9% per annum and with a competitive cost of 0.59%. It synthetically replicates the performance of the Ball Metaverse index composed of companies such as Apple, Microsoft and Amazon. This means that only a few of the stocks in this index have been chosen that will make up the fund..
4. Where to invest in the metaverse: Thematic funds
As you have read, the opportunities to invest in the metaverse are different. In any case, you will have to carefully evaluate what the assets are and choose the right time to invest. All operations that require some time and a basic understanding of the market.
With the broker eToro , however, you will have the opportunity to operate on the metaverse safely and right away. This is possible thanks to an automatic trading technology , namely the functions:
- 1. CopyTrader;
- 2. CopyPortafolio.
In the first case, you will have the possibility to choose a Popular Investor from a list on the platform . This figure is an experienced trader who will allow you to literally copy his investments on the metaverse.
The other option is that of the CopyPortafolio . In this case, you will have the opportunity to invest your money in a purpose-built fund , created specifically by eToro and made up of a number of companies operating in the metaverse sector. The minimum amount to invest is € 500 and your money will be managed by a team of experts in order to achieve the goal you have set for yourself.
Here are the CopyPortafolios created for the metaverse sector:
- MetaverseLife;
- InTheGame.
1 – MetaverseLife
It is a portfolio composed of a percentage equal to 86.93% in shares operating in the metaverse sector and the remaining 13.07 %% in cryptocurrencies . The assets have been chosen to offer you a product with a high return, but limited risk. In the following table we have reported the main allocations of the securities present.
| Title | Percentage |
| Roblox | 22.15% |
| Sand | 14.02% |
| Where | 13.91% |
| Meta | 8.26% |
| Enj | 6.48% |
| Coin | 4.05% |
| Snap | 2.52% |
| Nvidia | 1.93% |
| Amazon | 1.30% |
| Google Alphabet | 1.05% |
| Apple | 0.99% |
| Other | 5.11% |
2 – InTheGame
The game is among the realities that have allowed the world of the metaverse to develop. You will then be able to invest in a number of companies that specialize in this sector. Also in this case the minimum investment is 500 €.
The allocation foresees a 36% split equally between Amazoni , Microsoft , Nvidia and Apple shares , while 71% is made up of shares of hi-tech companies, but with a lower capitalization. By investing with this system you could get a return that is between 8% and 25% per annum.
5. How to buy land in the metaverse
The term metaverse is now associated with a new sector of the real estate market, that of virtual land . They are defined with the word LAND and are present in all major platforms: Decentraland, Axie Infinity and The Sandbox.
A well-defined space is identified, which will have a value that varies according to where it is placed and what is on it. This way you can build, or enrich it with objects by increasing the price.
To invest in land in the metaverse you will need to:
- have a wallet with cryptocurrencies;
- sign up for a platform such as Decentraland, Axie Infinity or The Sandbox;
- purchase the token of the single platform;
- choose the most suitable land.
The cost of a land can vary. In fact, you can invest a sum between € 12,000 up to figures that have also reached € 4 million on The Sandbox platform.
6. What can be bought in the metaverse: NFT
We close our guide on how to invest in the metaverse by talking about NFTs (non fungible tokens) . You may have heard this term several times, which identifies a particular type of digitized asset , considered non-replicable (non-fungible).
This means that, when it is created, it will be a unique and unrepeatable product. This allows it to acquire a certain value. For example, the most expensive NFTs come in at over $ 91 million. They can be digital objects, drawings, music, text files or even particular game avatars.
There are several ways to obtain an NFT:
- you can buy them on the marketplace of the individual platforms;
- you will have the chance to get them as a reward if you win a challenge or a quest of the games;
- you can exchange them for other cryptocurrencies.
How much does it cost to invest in the metaverse?
| Typology | Cost |
| Actions | From € 50 onwards |
| Cryptocurrencies | Minimum capital 50 € |
| ETF | They provide for a cost ranging from 0.4% to 0.59% per annum |
| Thematic funds | 500€ |
| Land | From € 12,000 to over € 4 million |
| NFT | From € 5 to over one million euros |
The cost of an investment in the metaverse varies according to the type of business you are going to do. Before investing, you will therefore need to evaluate what budget you have. For example, if you have limited liquidity, it may be useful to operate mainly on stocks and cryptocurrencies, or on the eToro CopyPortafolio.
Instead, if you want to operate in the medium and long term, the most suitable option is to invest in ETFs, but also in thematic funds . Finally, if you have high liquidity, you will be able to buy land and NFTs.
Is it worth investing in the metaverse?
The answer to this question is not simple. You must consider that the metaverse is something new and even today there is not a single universe, but we work on independent and isolated platforms from each other. While this is a fact, the interest of investors is high. The example is the purchase and sale of land which is now the subject of an alternative real estate market .
Spaces are built and created that are rented or made more and more unique and interesting, and then resold. Therefore, the game has moved on to an increasingly integrated system through which to obtain an income with variable sums.
This is demonstrated by the data, which have seen an exponential growth in investments even in the crisis phase of the market in the middle of the pandemic. Furthermore, the metaverse sector does not appear to have been affected by the crashes in stock exchanges and cryptocurrencies in recent months.
Some analysts speculate a sure growth in the coming years , but some uncertainty remains about the different applications of this ecosystem. For this reason, every time you decide to invest, carefully evaluate which assets are most suitable for your portfolio and choose only the best and authorized broker or exchange platforms available online.
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