Ways of making money in the Metaverse
You’ve probably heard of how others are making money from the Metaverse in virtual worlds such as Decentraland, Cryptovoxels, The Sandbox and Somnium Space. Do you want to gain exposure to this up and coming asset class, but don’t know how to get started? Then this is the guide for you. Join us as we explore the various avenues open to you
Before you continue, be sure that you are up to speed with NFTs be reading our Guide and Overview to non-fungible tokens
1. Virtual Land
For most of us, one of the biggest attractions of the Metaverse is the opportunity to own scare digital land in virtual worlds. Thus giving you full discretion to decide the direction and development of the land
There are potentially numerous ways that individuals can profit from this new type of property. Just like more traditional real estate these revenue streams include trading, renting, and developing. Below I will summarize how each of these tactics could be used to generate an income from owning land within a Metaverse
Trading: Perhaps one of the easiest ways to make money from virtual land right now is trading it, simply buying for less than you sell it for. However, trading often requires a large initial investment, a sometimes tedious wait, and most importantly a good eye for bargains. A very good resource for learning to trade digital land is DCL Blogger
Development: If you have the necessary skills or a budget to pay others to do the work for you. You can develop your land into experiences and locations for other citizens of the Metaverse. You can either then sell the developed land or implement an income stream into the idea and collect a regular paycheck. There are already many examples of this including casinos, galleries, games, ad space, and much more
For Development services, MetaZone offers a broad range of easy to deploy pre-built models in Decentraland. And Voxel Architects have you covered for great building services within Cryptovoxels
Rental/Hire: Although presently there is not much demand for it if the Metaverse of choice becomes extremely popular and land prices rise significantly it is thought the land rental and leasing will become a big part of the ecosystem. This will likely include both long and short term as well as one-off rentals for venues hosting events
2. Tokens
As well as the non-fungible tokens within a Metaverse, some of the projects also have their own ethereum based Token. Similar to other cryptocurrencies and digital assets these are fungible assets created on a blockchain and openly traded on both centralized and decentralized exchanges. They can serve various purposes, but are mostly used as a currency for in-world transactions and to reward users
These cryptographic tokens can be an attractive opportunity for those who are either not interested nor have the time to build and develop on land within a Metaverse. Individuals can buy a number of tokens for a Metaverse they believe will be successful and simply hold them with the hope they will increase in value further down the road
This can be seen to be the case when you compare the number of wallets that own land within a metaverse with the number addresses that hold the corresponding token
| Metaverse | Token | Wallets (Token) | Wallets (Land) |
|---|---|---|---|
| Decentraland | MANA | 49,995 | 1,854 |
| The Sandbox | SAND | 7,953 | 4,314 |
| Somnium Space | CUBE | 434 | 428 |
3. Infrastructure
The other way to invest in the Metaverse trend is to create something that others want to use. In an industry that is just getting started,there is a whole host of ways to achieve this. From a simple blog just like this one, a YouTube Channel, all the way through to bespoke programs and applications that can integrate with other Metaverse projects
Taking this route can lead to the most potential upside but is by far the hardest to achieve, requiring much more time, experience, skills, and most likely a little luck. An example of great supporting infrastructure is Metaverse Billboards, who offer over 130 advertising spots throughout the Metaverse
Conclusion
As you can see there are already a range of ways to make money in the Metaverse and in the coming years we are likely to see many more arise. However, it’s important to remember any potential gains will come from the future success and popularity of a particular Metaverse
| Metaverse | Pros | Cons |
|---|---|---|
| Land | More Scarce | Less Liquid, Bigger initial investment |
| Token | More Liquid | Less Scarce |
| Infrastructure | More Potential | Requires time, experience, & dedication |
Visit the Metaverse Directory to discover the best of the Metaverse
Not Investment Advice
The information presented on this page and website is not investment advice and is for informational purposes only. NFT Estate is not registered or qualified to offer financial advice. Remember these projects were created first and foremost as games and digital experiences and not as investment vehicles. As with any asset, investing in virtual land and property could result in a complete loss of investment. Always carry out your own research and due diligence before making any purchases or investments
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