Digital real estate is a new frontier for investors to enter and metaverse real estate investing is on the rise. It’s like the wild west, and you might just strike it rich IF you buy the right way. In this article, we’ll go over how to buy digital real estate and why buying digital real estate makes sense; then we’ll discuss where to buy digital land as well as considerations before making your purchase.
What is The Metaverse?
The Metaverse is the virtual reality that exists in the virtual world. It’s a 3D environment, and it’s not controlled by any one entity. The Metaverse is basically like the internet, except it has an additional dimension of depth. You can think of it as an augmented reality: things are happening on top of things happening on top of things… etcetera ad infinitum until you realize that you’re living inside a giant fractal pyramid.
For you to buy digital real estate in The Metaverse you’ll have to first purchase some cryptocurrency (Bitcoin or Ether), which will allow you to buy whatever amount of land or property interests you most! We’ll get to that a little later…
Why Buy Virtual land in The Metaverse
Buy it, build it, profit! The Metaverse presents interesting opportunities to tech-first investors and landlords alike. Because this is the virtual world, you’ll have the freedom to create what you want, when you want, in whatever form you want. This means unlimited possibilities, whether you want to do passive real estate investing, buy for appreciation, landlord virtually, or just say that you own the house next to digital Snoop Dogg. Anything is possible!
Cool Things You Can Do With Digital Real Estate
When we say the possibilities are endless, we aren’t kidding. Here are a few examples:
- Build an online business that serves online readers or Metaverse visitors.
- Host events or parties in your neck of The Metaverse.
- Create games that your friends (or paying consumers) can participate in.
- Design and create unique experiences that wouldn’t exist in the outside world.
- Build a home the exact way you want it, from the foundation to a digital water slide in the back.
- Flip land through the multiple Metaverses by buying, holding, and profiting.
- Buy high-value land and use it to advertise products or services while making some seriously passive income.
Where to Buy Digital Real Estate in The Metaverse
We’ve probably piqued your interest enough at this point, but where can you purchase your plot of pixels? Here are some of the top sites that sell digital land:
Don’t want to sift through each individual Metaverse? Take a look at Metaverse.properties to see multiple listings, from multiple Metaverses, all in one place!
Characteristics of a Quality Metaverse to Buy Digital Land
All Metaverses were not built alike. Some could be cornerstones of how the crypto/digital landscape works, while others may be a short-lived, fad-first type of virtual experiences. Just like regular real estate investors analyze not only properties, but local areas and governments, you too will have to research which Metaverse provides the most stability, and profit, for your future investments. Take a look at these key factors before you choose a virtual world to invest in:
- Real World Utility: Does the Metaverse you’re looking at provide some sort of value for those using it? Does it have proprietary games or tools that solve a real problem? Is there either marketing or financial backing coming from larger companies who have faith in that Metaverse? What makes this digital world better than the rest?
- Growing User Base: Like any social media platform, online video game, or tourist city, population growth is a good thing! The profit you can make on a digital investment relies heavily on how many people want/use the land that you’re looking to buy. So, are you buying into a metaverse with healthy user/population growth?
- Constant Innovation: Nobody wants to keep using the same thing every day. Do the developers behind your investing Metaverse have plans to bring more functionality to the world? Are there respected engineers and innovators working on the project? Do they have a track record of making things progressively better?
If you can check off these three boxes before you invest, there’s a good chance you have a Metaverse worth investing in.
What Makes a Piece of Land in The Metaverse Valuable?
Digital real estate investing isn’t all that different from traditional real estate. What makes a regular rental property valuable will most likely make your Metaverse investment valuable as well. Proximity to amenities, property size, investment opportunity, and more matter when buying any type of real estate-based investment. But the most important factors are these.
Location
The three L’s baby! Location, location, location. Although there won’t be many digital workers renting out your digital house to go to digital work and get a digital paycheck, location still certainly does matter in the Metaverse! You’ll want to be close to high-value properties, between frequented locations, and near geographic treasures other Metaverse visitors want to be around (like a pixel lake!).
Size
Because so much digital real estate investing has to do with advertising, size is everything! The larger your pixel (or group of pixels), the more eye attention you’ll get from visitors making their way onto your Metaverse. Think of your property as a digital billboard!
Scarcity
New York City is very expensive. Want to know why? Too many people, not enough land, and water all over the place! Just like physical real estate, scarcity can be a great data point to count on when investing in the digital world. If your Metaverse rarely has plots of land available or is small, but popular, by design, you can be sure that your land will appreciate as more demand comes to your digital world.
Metaverse Popularity
And just like New York City (again), the popularity of an area increases property value. The more people that want to visit or “live” around your land means the more you can charge for rent, advertising, or your resale price when/if you decide to sell the property. This is a crucial factor to research before you invest, so make sure your Metaverse is a winner!
How to Buy Digital Real Estate In the Metaverse
Digital real estate operates in the blockchain/cryptocurrency world. If you’ve ever bought, sold, or transferred an NFT or cryptocurrency, you should be quite familiar with how the system works, but for those who have never ventured into digital lands before, here are some quick tips:
Get a Digital Wallet
You’ll need a digital wallet to store your Metaverse assets. If you already have a cryptocurrency wallet, simply transfer your funds over to this new account and use it as normal. If you’re a newbie, there are many different ways of getting started with cryptocurrency wallets. You can purchase one online or download an app on your phone that supports crypto assets. Here are some of the top picks:
Buy Crypto
Buying crypto is almost too easy nowadays thanks to sites like Coinbase, Binance, and Gemini. Before you put thousands of dollars into Bitcoin or Ethereum, double-check the popular Metaverse cryptocurrencies. Each Metaverse will have a preferred type of payment, which you can swap your cryptocurrency for on sites like Godex, ChangeNow, and SimpleSwap.
Pick a Metaverse
Hopefully, you’ve taken some time to let our tips from above marinate in your brain. Picking a metaverse isn’t challenging, but it will take some time. Visit the ones we listed above, watch videos, read articles about them, and get to know who is leading the team. Search for a track record of success within the company and see if any celebrities are hopping on the Bandwagon!
Find a Plot of Land
Once you’ve chosen your Metaverse, you can view different plots of land for sale. Again, feel free to reference our above tips as you try and decide which type of digital real estate will be the best bet for your first Metaverse investment!
Place a Bet
Remember, things like NFTs and digital land work on a buyer-seller negotiation type of system, in the same way, physical real estate does. Oftentimes, you can place a bid on the property, but sometimes simply offering a seller’s full price may be enough to automatically transfer the property to you!
Do a Digital Money Dance
You’ve done it! Now you’re 1% robot! Congrats on buying your first piece of digital real estate. Now it’s time to put your money-making strategy to work. Will you use your land for advertising, buy-and-hold appreciation, or will you upload a picture of your cat on your property pixel? The choices are endless!
Considerations Before Purchasing Digital Real Estate
Digital real estate is an exciting new landscape to get in on, but it doesn’t come without its dangers. Before you dip your toe in the digital water, think through these considerations:
- Holding crypto, NFTs, or digital land can be risky. Make sure you safely maintain your physical or digital wallet to ensure your assets.
- Do your due diligence on your wallet to ensure it has state-of-the-art encryption which will allow you, and only you, to access your valuables.
- Get to know cryptocurrency at a basic level before you invest. Knowing how the blockchain works may save you from serious headaches in the future.
- Purchase land on a platform with a history of success. Many companies have great ideas, but very few implement them!
If you’re still unsure or want to learn more before purchasing digital land, take an online metaverse course to help you get started investing in virtual assets!
The Future of Buying Digital Real Estate in The Metaverse
Is digital real estate legit? Fad or future? Who knows! The world of Metaverse real estate investing is exciting, but how ingrained into our society will it get? With all-new AR and VR technology, the digital world could see a renaissance period that could last decades, centuries, or even millennia. If this technology excites you, there’s no better way to get in early than buying your own piece of digital land!
