Recently, the metaverse has been making significant progress by leveraging both virtual and augmented reality. As a result, connecting with people and performing activities like we do in the real world has become quite possible. Everything is possible in the metaverse, from playing games to connecting with people.
And now, the time has come when you can invest in real estate and land in the metaverse. Yes, you read it correctly—many products through which you can buy land.
As per the statistics, big superstars like Snoop Dog and company giants like HSBC, JP Morgan, and PwC have already bought plots of different virtual lands. Most of the early adopters have made good profits, and the most fantastic thing is that everything happens in a legal way and on paper.
Some popular applications like Sand Box and Decentraland are best to use if you want to buy a fraction of the land. After Bitcoin and NFTs, this is the enormous speculation that people are observing to make good money. Moreover, real estate is something that can bring considerable returns in years.
How does Real estate in Metaverse work?
For every piece of real estate property, an NFT is minted just like any other NFT, representing the Piece of Land. As an investor, you can buy those NFTs with either Fiat Currency or the NFTs. Once you have purchased the NFT, the exclusive rights of the property are transferred to you. As an owner, now you have complete rights to flip those for extravagant profit or, like how you purchase the plot and develop a house or rent it, you can perform all these activities on your virtual land.
The only difference is land in Metverse is just a 3D block rather than a physical fraction of land. But take into account the potential of the metaverse lands. This is because once you own the land, you have exclusive rights to host virtual events, build buildings, and open some shops or brands.
How to buy a Real Estate in the Metaverse?
If you are looking to purchase real estate in the metaverse, you need to follow four basic steps.
- Sign Up for the Crypto Currency Exchange
The metaverse’s land can only be bought through cryptocurrencies. Hence, you must deposit and exchange your local funds to buy the required crypto token. However, there are a lot of famous cryptocurrency exchanges, such as Binance, Gemini, KuCoin, etc., where you can quickly learn to buy tokens through their tutorials. Also, all these exchanges are trusted and legit.
While you buy cryptocurrencies, using an encrypted email for making trades and investments is advisable, as this would protect you from phishing attacks and scams.
- Create a Digital Wallet
A digital wallet would store all your cryptocurrency tokens and allow you to conduct trades on different real estate marketplaces. Some popular Cryptocurrency exchanges are MetaMask and Fortmatic, which you can use. Also, many hardware wallets, such as ledger and Trezor hardware wallets, are available in the market. Hardware wallets are expensive, but they are secure because they are not connected to the internet, unlike software wallets.
- Do proper Research and Study the Price of Land
There are millions of platforms available that you can use to purchase real estate. Currently, The Sandbox and Decnetraland are the best platforms where many celebrities like Paris Hilton have bought their lands. Most platforms are inclined toward gamers, but you can also use them to make some suitable investments.
- Open an account on the Real estate or NFT marketplaces to buy land
In most cases, you might need to purchase the land on secondary marketplaces. The most popular NFT marketplace is OpenSea.io, where you can easily connect your digital wallet and buy land from a secondary owner or the first party owner.
The steps to buying land on the Sandbox are the following.
- Open the Sandbox website and click “Sign In.”
- Choose the wallet that you want to connect with to the website.
- Go to the “Buy Land” Option on the website.
- This will redirect to the OpenSea.io Platform.
- There are a lot of filters available so you can sort the land.
- Once selected, click on the NFT.
- YOu will be redirected to the new page, where you can choose “Buy Now to make an Offer.
In this blog, we have discussed the four significant steps that would help you to buy land on any metaverse. There are important things to note down, such as the location being quite crucial in the metaverse, like how it is in the real world.
Landholding next to shopping malls or in the city has more value than the lands on the outskirts of the Sandbox or Decentralnad. But if you want to make an investment and earn some passive income, this could be the best choice, as the virtual world’s lands appreciate much faster.
In a nutshell, Metaverse properties are ultimately fielded at the moment, and they are a highly speculative asset. So Hance, while you make an investment, do proper research and study about the piece of land, as the metaverse market also comes with risks like any other investment class.