Digital real estate is available for sale on virtual platforms such as XANA and OpenSea. Both platforms have NFT marketplaces where consumers can purchase digital assets such as music, art, fashion, and now real estate.
For most of us, asset valuation in the digital world is still relatively new. You may be wondering how to buy land in the Metaverse and what utility we can find for intangible real estate.
First, it is important to remember that as the Metaverse evolves, users will create their personalities (like avatars in video games). Just as these avatars need clothes, they need places to visit in the Metaverse. This is where digital property comes into play.
What is NFT’s real estate metaverse?
In real life, we use documents and titles to prove ownership of an asset. In the Metaverse, we use blockchain (ledger) technology to record ownership records as an NFT (non-fungible token). This asset has a unique code and metadata with no equivalent asset. Assets are bought and sold through cryptocurrencies using blockchain technology, which offers incredible transaction security and the impossibility of counterfeiting assets.
When you buy an NFT asset in the Metaverse, you buy a unique asset that belongs only to you. Unlike finished homes available in all regions, your property in the Metaverse is unlike any other. This means that you can develop and use the property as you see fit and are limited only by your imagination.
Why use NFT for real estate?
It’s exciting to imagine that by the end of 2022, real estate in the Metaverse will be worth around $1 billion, but don’t let FOMO (fear of missing out) drive you to make a quick decision. This sector is not as regulated as conventional banking and investing, and some even compare it to the Wild West. As with any investment, do your research before you invest.
More and more entrepreneurs want to add investments that promise passive income to their portfolios. Many are interested in the possibilities offered by the real estate Metaverse, such as renting, selling their creations, and organizing events.
But entrepreneurs are just some of the ones investing in Metaverse real estate. Thanks to its unique buying opportunities, NFT real estate is available to anyone looking for a unique way to generate passive income, host events, and sell merchandise, including businesses, corporations, gamers, investors, athletes, and everyday people.
How to invest in virtual real estate?
Investing in virtual properties follows almost the same process as buying cryptocurrencies. Prepare your investment portfolio and decide how much you are willing to risk to own a virtual property.
Create a digital wallet
Each Metaverse platform works with its currency. For example, Decentraland uses MANA and Sandbox uses SAND. To make virtual purchases in the Metaverse, you must create a digital wallet.
Metaverse’s profit lies in its economy. The value of this currency is independent of the other metaverses. It means that MANA and SAND cannot be used interchangeably between metaverses.
Decide which metaverse platform you want to join
Decide which metaverse platform you want to invest in. The most popular platforms are Decentraland and Sandbox. However, due to their popularity among metaverse enthusiasts, other investors quickly snap up virtual land. If you wait to enter the Metaverse, you may end up with unwanted offers far from where most users congregate. There are other metaverses online, so do your research before you decide.
Access to the NFT market
Each property in the Metaverse is a non-fungible token or NFT. If you want to purchase virtual land, go to the platform’s marketplace. Compare prices and the attractiveness of the location. Also, think about how you will manage the land: will you sell it when it has reached a certain value? Will you rent it to well-known brands? Will you leave it to your children?
Link your portfolio to the platform’s trading platform
Whether you want to buy virtual land on the Decentraland marketplace, Sandbox, or another Metaverse platform, you need to link your wallet to the marketplace to execute your order. Once the link is established, you will receive your purchase in the form of NFT. Reserve additional coins in your wallet to cover the cost of unregistered transactions to ensure a smooth transaction.
Remember that the Metaverse, as exciting as it is, is still uncharted territory. Virtual real estate investing is an extremely new investment that is evolving rapidly.
You could buy digital real estate for a few hundred dollars just a few months ago. In 2021, you’ll need several thousand to get started.
There needs to be more than the history of digital real estate transactions to determine the behavior of the virtual real estate market. Investments in this area are highly speculative, and the market is currently very volatile.
This means that you should continue investing in digital real estate; it just means that there is no modest price or established level of demand for this new asset. So be careful with the money you invest in this new venture.
The Metaverse is an exciting concept that offers impressive solutions to the drawbacks of the modern Internet. The 3D environment allows people to meet and live exciting experiences in the comfort of their own homes. In addition to socializing, the Metaverse also offers the possibility of generating profits through virtual media.
Despite the hype and the influx of virtual real estate investors, there is still much to learn about the viability of the Metaverse. However, the Metaverse is still in development. The technology needed to work with the Metaverse is not available to all users, and developers of metaverse platforms have yet to release more specific measures to protect the privacy and security of their users.