Brad Moon is a tech industry veteran who contributes to a range of publications including Forbes, InvestorPlace and MSN Money and is an original member of the award-winning GeekDad blog. Over the past decade, he has also written about technology for Wired, Gizmodo, Shaw Media, About.com, The Winnipeg Free Press and others. This online world, where users can interact with each other and the world around them, launched in 2003 and still boasts hundreds of thousands of users. Second Life even was name-dropped by The Office, when it turned out that Dwight Schrute’s Second Life alter ego was also a paper salesman named Dwight – but he could fly. It’s already here; Meta is merely trying to take the metaverse to the next level. Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
This includes investing and making money, and just like in the real world, one of the most popular ways to do this will be investing in property. The first step would be to decide on which metaverse platform you want to buy land on, which depends on various factors —price, land size, and the seller. If you don’t have a specific platform in mind, doing some prior research on which suits your aim best is a solid idea. For example, large accounting firms PwC and Prager Metis have already acquired land in the Sandbox’s metaverse to offer their services and advise clients virtually. Other concepts, such as digital billboards for advertising, provide new marketing opportunities for brands and service providers. It mirrors real life, but it isn’t restricted by the rules of the real world.
Metaverse crypto is a sub-set of cryptocurrencies that enable users of blockchain-powered virtual worlds to buy and sell digital assets, such as virtual land, real estate, or avatar items. Like all crypto assets, however, they are high-risk investments, which means conducting thorough research is essential before making the decision to add metaverse tokens into your crypto portfolio. Decentraland is one of the largest decentralized metaverse platforms, established in 2017, where there are 90,601 individual plots of virtual land.
Once you get a wallet, you will need to exchange U.S. dollars (or whatever currency you’re using) for a cryptocurrency. You can easily buy Ether, the most commonly used crypto for land purchases, in the MetaMask Google Chrome extension using your debit or credit card. MetaMask will direct you to the crypto exchanges Wyre or Transak to complete the purchase. Keep in mind that both Wyre and Transak charge a processing fee for converting U.S. dollars to Ether (or other types of cryptocurrencies). On most platforms, plots of “land” are represented by X and Y coordinates on a map that makes up the entirety of a metaverse world.
Although the metaverse doesn’t yet have Realtors to sell virtual real estate, the process isn’t that much different. There’s almost a taste of irony calling Metaverse land digital real estate, but essentially that’s what it is at the core of it. Metaverse land refers to plots of “land” on Metaverse platforms that are in limited supply (much like property in the real world). On the other hand, if you don’t trust yourself, or you want to do something much bigger than one person can reasonably research, finding a metaverse real estate agent can really put your goals within reach. Either way, keep in mind that buying metaverse real estate is just like buying real-world real estate, and you need to keep the big picture and longer timelines in mind.
Step-by-step process to buying land on OpenSea
I’ve researched a few early investors who have already purchased virtual land in their favorite metaverse. But I believe that right now, it is more about staying informed and aware that this exciting new technology is coming — and it will likely be here to stay. We are quickly heading towards the age of the metaverse – connected, persistent virtual realities where we will live digital lives alongside our real lives. Increasingly we will use these spaces to work, play, socialize and learn – anything we can do in the real world will have a “digital twin” in the metaverse that we can interact with without leaving our homes.
With high-end retailers such as Rolex testing the waters by implementing NFT technology to verify authenticity, numerous other industries, including real estate, could eventually begin using it as well. It’s only a matter of time before using NFTs for authentification becomes the norm, and growth is only dependent on how fast industries can adapt and adopt the hack-proof technology to prevent fraudulent activities. The native currency on Somnium Space is CUBES, and land tokens are known as LAND. Another key element of the business potential of The Sandbox is that it offers employment opportunities, something that was central to its vision of the project. So now you know the ins and outs of how to assess an opportunity in the Metaverse, and you’ve set up your MetaMask wallet – let’s get to grips with the ins and outs of the main projects, so you can decide which one might be right for you.
What You Need to Open a Cryptocurrency Exchange Account
Alternatively, you can head to your chosen metaverse platform, in this case, the Sandbox, and purchase virtual land NFTs from there. You can purchase land on an NFT marketplace like OpenSea and search for land NFTs of a specific metaverse, or alternatively, head straight to a specific metaverse platform, such as Decentraland Marketplace, and buy the land NFT directly. On one side, there are centralized metaverse platforms how to invest in metaverse such as Roblox or Niantic, or Meta-owned Horizon Worlds; others are decentralized blockchain and crypto-based metaverse platforms like The Sandbox, Decentraland, or Somnium. Decentraland’s MANA token is the leading virtual world’s in-platform currency, which enables users to transact in the early-stage metaverse. From buying parcels of virtual land to buying wearable items, MANA is required to make it happen.
- Virtual reality is a key element of this platform, making it ideal for building digital games and immersive experiences, which is likely to be a stand out element for the developers who choose this platform.
- As the CEO of a proptech firm and a technology enthusiast, I get to see firsthand how real estate professionals around the world continue to develop new platforms and methods to engage potential clients.
- If the price of land increases on the platform where you bought your plot, you could also resell your land on OpenSea.
- There are numerous metaverses today, but most of them are glitchy or have little consumer confidence in terms of potential growth.
- Many are considering the options available through metaverse real estate such as renting, flipping, selling their own creations and hosting events.
This may not be a problem now but could be an issue to bear in mind if you are thinking about making large, long-term investments. This is perhaps the big question – particularly if you are thinking about putting up big money! Buying virtual land is certainly a high-risk investment, just like buying into cryptocurrencies and NFTs. Owning a plot of virtual land means you get the right to build anything you want on that property. You could build revenue-generating services like casinos, clubs, stores, or event spaces, where you could either hold events, rent the space out for events, or rent it out to someone else to build on it to earn passive income. In the real world, corporations, retail firms, or other commercial institutions invest in real estate to make a profit, but some people wish to purchase property to become homeowners.
Centralized vs decentralized metaverse
Although a complete metaverse is in the future, users can find plenty to do now with a minimum investment to start. Metaverse tokens are virtual currencies used to make transactions within the virtual worlds. Holders of these tokens can access multiple services and applications inside the metaverse. Some tokens can provide special in-game abilities, while others can represent unique items, like clothing for virtual avatars or community membership.
Once you have crypto in your wallet you can begin scouting properties on different platforms. The Sandbox and Decentraland both sell land directly, but on the Sandbox land is released by the company in waves, the most recent of which was on Dec. 2. Because of high demand, these waves often sell out in seconds, said Ryan Baue, cofounder https://www.xcritical.in/ of MetaMetric Solutions. It’s critical to remember that real estate metaverses and NFTs are still in their infancy. There’s so much room for improvement and innovation that predicting what’s next could easily make us overwhelmed. It may appear to be a “futuristic” universe today, but I’m not convinced we’re that far away.
How do NFTs hurt the environment?
But the price of land could also drop if fewer people interact with a particular platform, or the price of a certain cryptocurrency drops. As the CEO of a proptech firm and a technology enthusiast, I get to see firsthand how real estate professionals around the world continue to develop new platforms and methods to engage potential clients. With the emergence of the metaverse, NFTs and virtual/augmented reality through smartphones, the next few years will be fascinating as technology revolutionizes the way we find and even own a home. The metaverse is a relatively new and expanding collection of virtual worlds where users can do many of the activities in the physical world. For example, users can attend concerts, visit family and friends, shop, and play games alone or with others.
Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors. Next, you need to choose the payment method you want to use to fund your trading account. Wire transfers are typically accepted by all U.S.-based crypto exchanges. To purchase metaverse real estate, you need to follow these four steps. This technology has the potential to change how all goods are protected from fraud and forgery — including the real estate market — as owner authenticity is unable to be duplicated, which makes your purchase highly unique and secure. All LAND parcels on Somnium Space is sold through OpenSea, and can be purchased using ETHor Somnium CUBES.
Buy with the help of an emerging trend: the metaverse real estate agent
Many metaverses rely on blockchain and gamified DeFi mechanics to ensure a functional internal economy. Digital assets power value exchange in a metaverse, where they can be easily spent on in-world products and services and earned through different means, from the buying and selling of assets to content creation and rent. In most cases, you can buy metaverse land on an NFT marketplace like OpenSea by searching for land NFTs of a specific metaverse platform, or alternatively, you can head straight to a specific metaverse platform, such as Decentraland Marketplace.
The metaverse as the platform envisioned by Mark Zuckerberg and others is not going to simply arrive one day. Instead of a launch, expect the metaverse to evolve from existing and future services. The real world is still there, but many people prefer to spend as much time as possible in the metaverse. To open an account on a cryptocurrency exchange, there are certain requirements. The metaverse has also attracted major global brands looking at new avenues to build their brand, reach new customers, and increase customer loyalty. Nike and Gucci, for example, have already taken the leap, exploring ways that NFTs could add to their customer experiences.
The unsold land can be viewed by using the interactive map on the Somnium platform. From here, you can click on properties you’re interested in to find out about details and price. Somnium Space has an interesting way of tackling the supply of space available.