What began as a way to interact and socialize in the digital world has become a booming opportunity for earning profit. What we are talking about here is the metaverse, an amalgamation of augmented reality (AR), virtual reality, (VR), artificial intelligence (AI), and blockchain.
The metaverse is an interconnected, virtual universe with immersive and interactive environments. You can socialize, work, play, and even trade digital assets here. It functions similarly to the real world, the only difference being that it is digital.
Like the real world, you can own (or buy or sell) land and real estate in the metaverse.
And no we are not kidding.
Metaverse real estate is a real thing and quite a profitable one at that. In fact, huge corporations like Samsung, JP Morgan, HSBC, PwC, and even famous American artist Snoop Dog have invested in metaverse real estate.
In 2020, the average price for the smallest plot of virtual land available on Decentraland or the Sandbox, two of the biggest metaverse platforms, was less than $1,000. Two years later, the average price skyrocketed to around $13,000. Reports indicate that the real estate metaverse market was valued at approximately $1.14 billion in 2022
However, the next year, the prices for virtual estate plummeted drastically. Even then, this market is projected to experience significant growth, expanding fifteenfold by 2030 to reach a staggering $15.69 billion.
The metaverse is becoming an increasingly popular space for individuals and businesses alike.
So, if you are planning to try your luck at the metaverse real estate, but have no idea how to begin, we have got you covered.
In this article, we will provide a step-by-step guide on how to buy land in the metaverse. Let’s begin.
10 Best Metaverse Virtual Worlds to Watch in 2024
How to buy land in the Metaverse?
To buy land, you need to have a Metaverse account first. Roblox, NVIDIA Omniverse, The Sandbox, Decentraland, and Axie Infinity are some of the leading metaverse platforms. You can sign up for any of these. Now, creating an account is pretty straightforward, but monetary transactions can prove to be somewhat tricky if you are a newbie at these digital innovations.
To transact in the metaverse you need to use digital currencies, blockchain technology, and virtual goods. To engage in commerce, you need a digital wallet to act as a secure storage space for cryptocurrencies or other virtual assets. These wallets can be specific to certain platforms, such as Roblox or Decentraland, or general-purpose wallets like MetaMask that operate on blockchain networks like Ethereum.
To purchase land on these platforms, you can make transactions directly through their respective marketplaces. However, the ownership and sale of metaverse land are recorded using NFTs (non-fungible tokens).
Top 10 Best Metaverse Virtual Worlds with Land NFTs in 2024
Now, that we have cleared the intricacies of transacting in the metaverse, let’s get into the how.
Step 1: Visit the marketplace
The first step you need to take is to visit popular metaverse property marketplaces like Decentraland, Axie Infinity, or Sandbox. Create an account and log in. These platforms host virtual real estate for sale. Each marketplace has its unique interface, but they are generally user-friendly and designed for browsing.
Step 2: Browse and Compare Virtual Land
Scroll through the available digital plots of land. Compare features, and locations (yes, virtual land has prime spots too!). Treat your metaverse real estate as how would treat your “real” real estate. Do not buy virtual land simply for the sake of it, especially if you are buying for profit. Some parcels may be in highly sought-after areas near virtual landmarks, which can make them pricier. Most importantly, find something in your budget. The digital assets ecosystem is extremely volatile. No one can predict when the value of these digital assets might plummet. So think carefully before spending an inordinate amount on buying virtual real estate.
Step 3: Choose Your Plot and Check the Details
Once you have found a plot you like, click on it to read all the details including size, features, proximity to other properties, or virtual spaces. Remember, every metaverse platform has its own ecosystem, so they usually require their own cryptocurrency for transactions. For example, Decentraland uses MANA, and Sandbox uses SAND. Also, try to look into the platform’s future development plans. A plot near a planned “virtual mall” or gaming hub might become more valuable over time. So, do your research.
Step 4: Link Your Digital Wallet
To make your purchase, you will need a compatible digital wallet. One of the most popular digital wallets available is MetaMask as it supports most metaverse platforms. Create your account in any digital wallet of your choice and connect your wallet to your chosen platform. If you have dealt with cryptocurrencies, then all is good and well. However, if you have not, then you will have to use your actual currency (USD, Euro, Yen, etc.) to purchase cryptocurrency. Make sure your wallet is set up and ready to go before browsing. Also, never lose your digital wallet password because if it is lost, you will not be able to recover your account.
Step 5: Fund Your Wallet with the Right Crypto
Now, load your wallet with the cryptocurrency accepted by the platform. For example, if you are buying on Sandbox, purchase SAND tokens from an exchange like Binance or Coinbase. Then, transfer your crypto into your MetaMask wallet. Always check the platform’s guide for supported wallets and cryptocurrencies. Make sure to double-check the wallet address when transferring funds. It is a small detail, but getting it wrong can mean losing your hard-earned money.
Step 6: Purchase Your Digital Land
When your wallet is loaded and linked, go back to the property you selected and hit the “Buy” button. The platform will process the transaction, and the land ownership will be transferred to you.
Step 7: Check Your New Digital Property
After the transaction, your virtual land will be stored as an NFT in your wallet. Open the “NFTs” tab in MetaMask (or whichever wallet you use) to view your land. This NFT acts as your digital deed and is the proof of your ownership.
How to create a digital Metaverse Avatar? Easy Steps to Follow
Additional Tips
Here are our two cents on purchasing Metaverse real estate:
- Always do your diligent research. Look into the platform’s credibility and user base. Go for established platforms like Decentraland and Sandbox with active communities and ongoing development.
- Depending on where you live, profits from buying and selling virtual land might be taxable. Plus, transaction fees (known as gas fees) on blockchains can vary.
- Try to treat virtual land as an investment. Consider what the platform has in store for the future. Will it host events, grow its user base, or partner with big brands?
The Bottom Line
Do your research when it comes to buying anything on the metaverse. If you are thinking of spending a heavy chunk on metaverse real estate, make sure to carefully consider the potential return on investment and long-term growth prospects of the virtual land you are interested in.
Investing in the metaverse is pretty risky, just like cryptocurrencies and NFTs. The marketplace is deregulated at present. So there is a chance that you might get ripped off or scammed if you are not careful.
Also, every transaction is carried out via cryptocurrencies in the form of NFTs, so there is also the risk of losing your digital wallet. We cannot emphasize this enough, but always, always, remember the password for your digital wallet. You can always write it down in your personal diary (try not to lose it, though).
Lastly, the market is pretty volatile. Take Bitcoin, for example. Recently, it reached an all-time high of nearly $100,000 because of the U.S. presidential elections. Before that, it was on the verge of crashing. Our point is that no one can predict with certainty how the market will behave, so it is important to stay informed and be prepared for sudden changes.
