Investing in the metaverse might sound like a complex idea. Whereas it is simpler than you thought. Since the advancement of modern technology, financial management generally more accessible.
You no longer have to stack loads of papers containing every transaction’s details. Instead, a web service, mobile app, or software stores all that info.
Moreover, most investors do not show up to trading floors or brokerage firms. Trusted brokers have created web solutions for trading stocks or other financial instruments.
How do those technologies help when investing in the metaverse? The fact remains that the metaverse is an emerging innovation of the 21st century.
Thus, financial technology has created accessible ways of getting a piece of the cake. This article will discuss how to become a stakeholder by investing in the metaverse.
3 Ways of Investing in the metaverse
Stocks present you with an easy way to invest in the metaverse. They represent the ownership of an issuing company. In other words, the more valuable a company is, the more valuable its stock. This rule also applies to the metaverse.
A metaverse stock is a fraction of ownership of the metaverse company. So, buying it means you are betting on the company’s future growth. If the company fails, you have made the wrong decision.
As a result, investing in the metaverse through stocks requires planning and assessment. It would be best if you were sure that a company can succeed in the industry before investing money. Also, the company’s business model should be one that will remain relevant in the future.
Reviewing those facts will help you invest in the right metaverse company. Remember, stocks also yield annual dividends. Hence, it might be best to buy stocks of profitable organizations.
Consider the following metaverse stocks:
- Nvidia Corp: (NVDA)
Nvidia produces chips for gaming, AI, and crypto mining devices. Recently, it overtook Intel Corp. to become the most valuable semiconductor producer. At the same time, Nvidia launched a metaverse platform, Omniverse, in 2021.
The company is currently worth $328 billion by market cap. As a semiconductor maker, Nvidia’s stock is a top consideration for metaverse investors. After all, we need those chips to power virtual and augmented reality devices.
Adding its virtual world, Omniverse, to its products, Nvidia is at the top of the game in the metaverse sector.
- Roblox Corp (RBLX)
Roblox is a gaming platform where users create games for other players. It’s like blockchain-based metaverse platforms but does not feature web 3.0. Roblox has always been a go-to platform for online games and metaverse experiences.
Currently, Roblox has about 54 million active users. This number should grow as the metaverse becomes more critical in people’s lives. Although Roblox is worth $21.7 billion, this doesn’t stop its stock from increasing . All it needs is to evolve along with the metaverse industry.
- Meta Platforms Inc: (META)
Meta was once known as Facebook. But currently bears that name because it is now focused on building the future of virtual worlds. Its metaverse section, Reality Labs, is primarily dedicated to developing metaverse technologies. The metaverse became more popular after Facebook changed its official name to Meta.
Meta’s products span everything related to the metaverse. Its headset, Meta Quest, is the best standalone VR headset available. Besides, Meta’s Horizon Worlds delivers excellent immersive experiences in virtual reality.
The company is at the forefront of developing the metaverse. So, investors can think of Meta when they think of investing in the metaverse.
Despite its cutting-edge products, Reality Labs lost billions of dollars in 2021 and the first half of 2022. Hence, owning Meta’s stocks might not be profitable immediately.
Metaverse Exchange-Traded Funds
Exchange-traded funds (ETFs) are investment products that represent a basket of securities. An ETF holds many stocks, bonds, or currencies and reflects the value of those securities.
Metaverse ETFs allow investors to buy many metaverse stocks at once. They contain the stocks of companies producing metaverse-related hardware and software.
Buyers face limited risks when they invest in the metaverse by purchasing ETFs. Why? If one company fails, others can keep the ETF running. Nonetheless, an ETF will run into a long-term loss if all underlying company fails.
Notably, the metaverse seems to be a booming industry. Prominent financial experts and institutions are optimistic about its future. Accordingly, most metaverse companies and ETFs are poised for growth.
The following are some widespread metaverse ETFs buyers might consider:
1. Fidelity Metaverse ETF
2. Evolve Metaverse ETF
3. Roundhill Ball Metaverse ETF
4. First Trust Indxx Metaverse ETF
5. Betashares Metaverse ETF
Cryptocurrencies and Non-fungible Tokens
Blockchain-based metaverses often create cryptocurrencies and NFTs. On the one hand, the assets serve economic functions in those virtual worlds. On the other hand, they are an accessible way of investing in the metaverse.
For instance, metaverse platforms create and sell virtual lands NFTs. Users who buy those lands can develop and sell them at a higher value. Likewise, in-game cryptocurrencies ease asset exchange within a virtual world.
How does this class of asset benefit metaverse platforms and investors? A metaverse platform might reserve some of its crypto assets to pay for developments. At the same time, investors enjoy the short-term and long-term increase in the value of crypto and NFTs.
Funding a Metaverse Startup
Developers creating new metaverse hardware or software need funds to build their ideas. These startups create opportunities to invest in the metaverse from ground zero.
The beauty of funding a startup is you have the opportunity to own larger shares. Yet, it presents greater risk and burden than investing in established organizations. Startups face more threats of failure and sometimes remain unprofitable for several years.
When investing in the metaverse, ensure your money is in the right spot. I.e., a sector, company, or asset that will grow with the emerging metaverse industry.
Meanwhile, knowing how to invest in the metaverse is just one thing. Another important fact that everyone should learn is why metaverse investments are essential. The following article in this series will discuss that.