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Metaverse crypto is one of the newest and most innovative types of investment opportunities.
It’s so new, in fact, that many investors have no idea what it is.
So what’s so advantageous about it?
Is it something that you should put your hard-earned money into?
In this article, we’ll discuss the basic mechanics of metaverse crypto, explain its advantages and disadvantages, discuss how you can get started investing in metaverse crypto, and more.
If you’re ready to learn everything about metaverse crypto, let’s get started!
What is Metaverse Crypto?
Metaverse crypto, sometimes called metaverse ETP, is a virtual currency that’s tied to a metaverse.
Of course, this doesn’t simplify anything if you don’t know what a metaverse is.
So what is the metaverse?
The metaverse is a virtual world, where users can create a custom avatar to explore the digital space. As they do so, they can:
- interact with other users
- play games, and
- even modify the environment (such as buying and building on virtual land)
Most metaverses have a virtual currency that’s used for in-game transactions. For example, suppose you want to buy a plot of virtual land from another user. You would use the virtual currency to pay that person for the virtual plot.
That’s where metaverse crypto comes in. A lot of metaverses allow users to monetize their in-game earnings by selling them on a cryptocurrency exchange. At this point, it isn’t really in-game money at all — it’s a real-world investment.
This technology doesn’t just benefit users financially; by tying in-game transactions to the blockchain, ownership becomes:
- easy to track
Advantages of Metaverse Crypto
So, what are the benefits of metaverse crypto? Here are some of the great things about this new digital asset:
More power to the blockchain
Blockchain technology was originally developed for cryptocurrency. Bitcoin, Ethereum, and other virtual currencies are stored in a public record, which is secured by the efforts of crypto miners throughout the world.
More recently, people have started using the blockchain to record transactions. Virtual ownership rights, are known as non-fungible tokens (NFTs).
Metaverse crypto can be used to buy digital assets, which are stored as NFTs. This gives it real value, because it’s backed by demand.
Brands are moving into the metaverse as a new way to interact with customers. This means they’re going to have to use metaverse crypto at some point during those activities.
If a particular platform gets very popular, there’s going to be more demand from brands. If you own the cryptocurrency used on that platform, your investment can potentially be worth more.
A New Virtual Economy
The metaverse is becoming a parallel economy, which exists alongside our real-world economy. Over the past couple of years, high-profile artists have made millions of dollars selling NFTs of their work.
Now, imagine the value of a similar piece of art in the metaverse. In the metaverse, ownership means actual ownership. You could buy a virtual painting and a virtual plot of land, put a wall around the painting, and charge admission.
Disadvantages of Metaverse Crypto
No investment is perfect, and metaverse crypto is no different. Here are some disadvantages to consider before you invest:
A limited user base
Metaverse platforms are growing at a furious pace, but there’s a limit to that growth. Many of these platforms require VR headsets and other expensive electronics. Most people throughout the world simply can’t afford that kind of gear.
Along the same lines, even the most basic platforms require reliable high-speed internet.
Like social media, metaverse platforms have access to a lot of your personal information. From a user’s perspective, this is an obvious issue.
But it’s also a concern for metaverse crypto investors. If a platform gets hacked, people may stop using it, and the crypto used by that platform could lose value.
How to Buy Metaverse Crypto in 4 Steps
So, how do you invest in metaverse crypto? Here are four simple steps.
Step #1: Choose a Cryptocurrency Exchange
A cryptocurrency exchange is a platform for buying and selling cryptocurrency. Coinbase is the most popular choice for beginners, but other popular choices include:
- Cash App
Different platforms charge different fees and allow you to trade different cryptocurrencies. If you’re dead set on a particular metaverse crypto, make sure it’s available on your chosen platform before you sign up.
Also, ensure that you understand that particular coin’s advantages and disadvantages.
Step #2: Set Up Your Account
To set up your account, you’ll have to provide a bank account number, along with some personal info like your name and email address.
Step #3: Deposit Your Money
Next, use your bank account or debit card to deposit money in your exchange account. You’ll need to have cash in your account in order to start making purchases.
Step #4: Buy Metaverse Crypto
Now, buy whatever metaverse crypto you want! Keep in mind that without a crypto wallet, you’ll only be able to sell or trade this crypto on your exchange, not on any other exchanges.
If you want to move your currency from one exchange to another, you’ll need to set up a crypto wallet. Crypto wallets act a lot like a physical wallet. Just like physical wallets allow you to move money in real life, a crypto wallet carries your coins across exchanges.
Some crypto wallets can be cloud-based “software” wallets, which can be accessed from anywhere. Others are physical “hardware” wallets that look like little USB drives. These can only be accessed when the drive has been inserted.
The 5 Top Metaverse Crypto
As promised, here is our top five metaverse crypto list, to help you find the best metaverse crypto.
Metaverse Crypto #1: Axie Infinity (AXS)
Axie Infinity is one of the most popular metaverse platforms. As of November 2021, it has over a million active daily users. That same month, there were five million active users in total.
Metaverse Crypto #2: Decentraland (MANA)
Decentraland is a virtual environment where players can buy parcels of virtual LAND. The virtual currency is MANA. Over 1.8 billion MANA are in circulation, with a total supply of 2.2 billion.
Metaverse Crypto #3: The Sandbox (SAND)
The Sandbox (SAND), was one of the early market leaders in metaverse crypto. On March 16th, 2022, HSBC announced a partnership with The Sandbox. This opens the door for all of HSBCs brands to promote themselves on the platform.
Metaverse Crypto #4: Enjin Coin (ENJ)
Enjin Coin is used on Enjin’s in-game marketplace, where users trade their virtual creations. It’s built on the Ethereum blockchain, one of the most secure blockchains in existence.
Metaverse Crypto #5: High Street (HIGH)
High Street is a play-to-earn platform where gamers earn metaverse crypto by completing in-game tasks. Users can also craft and trade in-game items using the HIGH cryptocurrency.
The Bottom Line: Metaverse Crypto
As you can see, metaverse crypto is more straightforward than you might think. And while this is a novel type of investment, it can be a great investment opportunity.
But before you put your hard-earned money on the line, ensure that you understand the foundations of cryptocurrency. If you have questions on this topic, you can find answers in our Beginner’s Guide to Cryptocurrency.