The virtual world is rising with time, and the concept of Metaverse has been picking up pace over the past few months, especially since the most popular social networking site changed its name to Meta. Mark Zuckerberg, the founder of Facebook, stated that the creation of the Metaverse for him is the idea that he wished to fulfill even before his invention of social networking.
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The concept of the Metaverse is completely a different world. It is becoming more popular than ever in 2022, thanks to the technology that is focused on taking to a new era of online connectedness.
Before we dive deeper into how to buy land in a metaverse, let us first talk about what a Metaverse actually means.
What do you understand about Metaverse Land?
A virtual world environment that only appears digitally is called the Metaverse Land. The virtual version of real-world land is the metaverse, and land in this world can be purchased, sold, and exchanged just like real estate in the form of non-fungible tokens, also called NFTs in short, for digital currencies or perhaps even cash. Like any other good or service, the supply and demand factors affect the price of metaverse land.
The Metaverse is not governed or owned by any state, government, or corporation, in contrast to the actual world. Rather, it is managed to keep up with a global worldwide computer network.
A metaverse’s realm is partitioned into several zones, including plots of free land that users may readily purchase and utilize for a broad range of purposes. Public and private land are the two primary categories of land in the Metaverse. Private land in the virtual world has been handled by businesses and people. The Metaverse Foundation, the company in charge of managing the Metaverse’s growth, is the owner of public land.
Landowners with private property are free to utilize it in whatever they want. They are able to construct everything they can think of, including houses and corporations. They can also trade or sell their land to other private people or businesses.
Each transaction in the virtual land is recorded under public information. Typically, customers can buy a piece of metaverse real estate through the network’s trade, or they can use a separate NFT portal, such as Rarible or OpenSea.
Ownership of Metaverse land is like ownership in the actual world and comes with specific obligations and duties. The virtual landowners have the right to use their land according to their suitability, but they also have an obligation to follow the laws of the Metaverse Foundation.
Steps of buying land in the Metaverse
To buy land in the digital world, the first step is to acquire cryptocurrencies, such as MANA, Ether, or even SAND, in order to purchase virtual world real estate with the potential for appreciation in value.
Currently, these platforms have some of the best-developed and well-organized real-world infrastructures, which new owners are free to alter as they see fit. Land can be purchased directly from owners or investors.
Once you know how to purchase land in the Metaverse, you may search for desirable homes with great potential and enhance the probability of making money.
Like all crypto assets, the transactions involving metaverse land are handled similarly to NFTs. Further, these transactions can be carried out and kept in the digital wallet. In fact, the most well-known wallets, like Metamask and Binance, are trusted by countless individuals with their virtual currencies. Below mentioned is the guide to get started with the process of knowing how to buy land in Metaverse and the benefits and risks associated with Virtual Lands.
1. Choosing a Metaverse Platform
The success of your investment is significantly impacted by the platform you select for your metaverse land. It’s crucial to read through each platform’s instructions on how to purchase land in the Metaverse before making a choice. It all leans on what you want to achieve with your land acquisition, but keep in mind that there are many different possibilities available, each with distinct qualities you’ll have to evaluate to choose the best option for yourself once you’ve learned how to purchase property in the metaverse.
If you are eager to buy pieces of land on both secondary and primary markets, choose any of the platforms from Decentraland, Sandbox, NFT Worlds, Aavegotchi, Axie Infinity, Bit Country, Somnium Space, Matrix World, and Crypto-Verse.
The process to buy land in the metaverse is not easy but these platforms make it easier:
By promising a gradual rise in both population and price on each parcel as it becomes increasingly in-demand as an investment, this new platform aims to put the land back into the spotlight. With little over 116 000 parcels, The Sandbox presently has more than 50% on any platform.
The Ethereum blockchain, a system that makes it possible to create new coins and smart contracts, serves as the foundation for Decentraland. The NFTs (Non-fungible Tokens) label was given to these new coins, each of which stood for a piece of real estate on the decentralized network.
Aavegotchi is an Ethereum-based crypto collectible game in which players may buy and grow Aavegotchis, Non-Fungible Token (NFT) avatars used to explore and interact with Aavegotchi’s digital realm. Each Aavegotchi avatar is a digital collectible with distinct characteristics specified by a rare score.
Users can own and manage each world in the geographically based metaverse known as NFT Worlds. They are founded on on-chain data and resource information. Each player has the ability to create a unique land and collection of features.
A flexible, impulsive, and thrilling environment can be found in the Cryptoverse. When it comes to gaming, customers consider the terms proprietorship, connectivity, flexibility, pleasure, and consistency, but now land can also be bought from the Crypto-verse platform.
The blockchain app Matrix World is the latest contender to join the list and has started selling virtual property plots. The transaction process is straightforward, and since Blockchain technology is being used, all transactions may be completed without the need for a prominent authority. In the 3D version of a fast-paced setting, users can even design their own territory and can also purchase or trade other types of land using a global market, which, if future plans come to fruition, may be integrated into an app.
2. Make a wallet for Cryptocurrencies or Non-Fungible Tokens
To make transactions in most Metaverse, you will need to have a cryptocurrency and a digital wallet that can store virtual money and digital assets. The wallet you use will be defined by the virtual world platform you choose, and then select a digital wallet that can be immediately integrated into your web browser for the best possible experience. MetaMask and Binance Chain Wallet are two of the most popular digital wallets that are used by customers, and it supports the currency of the virtual project in which you intend to invest. Apart from this, Metaverse platforms will indicate which are preferable and how to connect them.
3. Connect to the Metaverse wallet
The registration process differs for each metaverse platform. Before linking your wallet, you must first establish an account. You can install browser extensions to finish the integration for you, which makes the process of connecting your wallet incredibly clear.
4. Purchase cryptocurrency
Cryptocurrency can be bought via online markets like Binance. It is important to make sure to have enough SAND, ETH, or MANA in your wallet to make your desired investment. A credit card or debit card can be used to add the cryptocurrency platform to the Binance account.
5. Choosing Your Own Chunk of Virtual Property
You are prepared to buy your piece of land, and finding a valuable piece of land is now the only obstacle remaining. You have two options if you see one: “Bid” on it or simply pay the price listed.
You must enter the bid amount when you want to place a bid. Enter the desired amount, confirm the transaction, and then await the owner’s approval. You are good to go if your offer is approved. If not, your wallet will receive the money.
Benefits of buying land in the Metaverse
Numerous individuals have complained that some investors are stoking a speculative NFT market as the price of virtual land has risen. However, the hype isn’t solely being generated by price rumors.
Many other users see land in the metaverse as a chance to make money off of virtual items and events that take place there. Some of the money-making trends currently in play range from renting to controlling metaverse territory, including Building Infrastructures, Advertising, Flipping Land, Brokering, and Events and Services.
Several reputable businesses, like PwC, Sotheby’s, JP Morgan, and HSBC, are now utilizing the metaverse as a supplement to legitimate activities, enabling customers to access services and engage with professionals virtually.
Indeed, a diverse group of financial players has begun to investigate new ways of doing business in the metaverse, including digital property financing, metaverse banking, consumer loans, and crypto exchanges.
Risks Involved in buying land in Metaverse
Investing in Metaverse is an intriguing concept, and it is important to understand all the risks while buying land in the virtual world. Below mentioned are the risky factors that need to be considered while investing in Metaverse.
1. No Government Agencies or Banks
Purchasing metaverse land can put your investment on dangerous ground. It’s comparable to investing in cryptocurrency and NFTs. Real-world home ownership can be more challenging than owning virtual land!
There is no regulatory agency or bank that will assist you in getting compensation if anything goes wrong with your property or transactions, and you lose out as a result of an unexpected catastrophic event farther than your control, such as unethical business practices by the other party involved or even legal issues, for example.
This very fact that Government or Judiciary will be of no help to you when you buy or sell your land in the metaverse (or lose it), is one of the reasons to heed caution to this process.
2. Digital Assets Risks
The blockchain system is used to manage cryptocurrencies, which are widely regarded as secure investments. Smart contracts are used during transactions to prevent other users from stealing your valuables.
It is occasionally necessary to be aware that in the future, specific kinds of computers might be capable of hacking into the blockchains and swiping your coins, just as it is possible in traditional markets with virtual currency exchanges if you were to invest a sizeable sum of money in the high-risk world of cryptocurrencies. Again, these threats may or may not come true.
If you bought land in the metaverse and it gets stolen, you will be heartbroken. So the best thing to do is make yourself aware of this risk, and take all the necessary precautions and new security measures from time to time.
3. Demand and Supply
Last but not least, when thinking about the Metaverse, we must not ignore the most important topic of abundance and scarcity. In great part due to its scarcity, real estate continuously increases in value.
Every piece of land is really becoming more valuable due to the expanding population. But when developers start working on building more tangible virtual platforms, it’s just a matter of time and needs.
Furthermore, investors will want to make the most of every chance they have while still being able to profit if they decide to sell. However, there are no restrictions on how much land may be purchased through a single account on the major platforms.
However, there is no assurance that additional accounts won’t be created, and the restrictions may alter in the future. Do your research first, and once you’re informed, move on to the next phase.
Overall, it would not be wrong to say that some investors will invest enthusiastically in the Metaverse even though this virtual space does not seem to be a safe space for investing securely. Hence it is important you know the complete steps and all the risks and benefits involved when buying lands in Metaverse. If you feel I missed something important in this article, please drop a comment below and I will get back to you.