A few years ago, investing in virtual real estate seemed somewhat absurd. Today the situation is very different. It’s now possible to buy virtual plots of land in digital worlds like Decentraland (MANA), and with the metaverse looming on the horizon, investors are rushing into it.
Read on to learn more about the Metaverse and how you can invest in virtual real estate so that you can cash in on the potential Metaverse craze early on.
What is the metaverse?
The metaverse is often described as an alternative digital reality that combines virtual reality, augmented reality and extended reality, where human beings will be able to work, play and live digitally.
Metaverse is a term and concept that’s been around for over thirty years, but it wasn’t until recently, after Facebook announced its intention to become a metaverse company, that the idea gained popularity.
As a result, more and more investors are exploring the possibilities of investing in this new space. Buying virtual land in major digital worlds is one such opportunity.
What is virtual land and why do investors buy it?
Real estate is one of the most popular asset classes in the world, and now it exists in the digital world as well.
Virtual lands are intangible goods that exist in virtual worlds. Just like physical land, it is also sold as plots and can be purchased in the currency of the land in question. Today, several virtual worlds allow you to buy real estate. Decentraland is arguably the most popular of these.
In this nascent metaverse, virtual land sells for hundreds of thousands of dollars: last June, land sold for over $ 900,000 in Decentraland. And this is just one example. Given the growing interest in the metaverse, the potential return on investment from virtual land looks promising for savvy cryptocurrency speculators.
Second, investors are able to commission their virtual land and earn income from it : if you own a virtual land, you can hold exclusive events or parties and charge those who want to attend.
For example, American rapper Snoop Dogg threw a party on Sandbox’s non-fungible token (NFT) platform to replenish his actual mansion. Participants were required to have an NFT, which served as a pass and gave them access to the event.
Third, investors can generate regular income from their virtual land: you can build a virtual house using NFTs on your land and rent it out for monthly income. You can also set up an NFT art gallery and rent the space to up-and-coming crypto artists to showcase their work in the metaverse.
How to buy LAND on Decentraland: a step-by-step guide
Decentraland is a blockchain-based virtual reality platform that allows users to purchase land, play games, organize events, and interact with each other in multiple ways.
It is the largest virtual universe in the NFT space that has its own tokens – MANA and LAND. Each LAND plot on Decentraland measures 16 meters by 16 meters and is represented by an NFT. The number of lots on Decentraland is capped at 90,000, which helps create scarcity. Anyone can buy, rent or sell land on Decentraland, either through OpenSea – an NFT marketplace – or through the official Decentraland marketplace.
Now that you know what Decentraland is, here is a step-by-step guide on how you can buy land from Decentraland directly from its marketplace.
Step 1: Go to the Decentraland Marketplace
To get started, you need to go to the Decentraland Marketplace and sign in or register if you haven’t already.
Once logged in, navigate to “Parcels and Estates”. Then click on “Show all”.
Step 2: Select a parcel
The next step is to browse through the available lots and select the one you prefer. The advantage of buying land in Decentraland right in the marketplace is that you can see what neighboring areas are nearby.
Once you have selected your virtual land, click on it to read the details. You will then see the price of the land at MANA, its availability and the name of the owner.
Step 3: Connect your wallet to the Decentraland Marketplace
To complete the purchase, you need to make sure that your wallet is connected to your account, as the land will be sent to your account as an NFT once the purchase is successful and completed.
If you don’t have a wallet, you can download wallets like MetaMask and Trust Wallet . Remember that your wallet must contain enough MANA or Ethereum (ETH) for you to be able to make the purchase.
Also, you need to have a few extra tokens to cover the gas costs.
Step 4: Proceed to confirmation
Once the purchase is complete, you can confirm your LAND on your wallet.
If you are using Trust Wallet, you can do this under the heading “Collections” and under the “NFTs” tab in the MetaMask wallet.
Should you buy virtual real estate in the metaverse?
So far, the virtual real estate market has only known one direction, and it is on the rise. Spurred on by Facebook’s push into the metaverse and the interest of Web 3.0- centric investors in anything related to the metaverse, virtual real estate could become a very lucrative asset class, especially for first-timers.
However, as with any investment, you shouldn’t invest more than you can afford to lose.
While it is undeniable that the virtual real estate market has grown significantly, it is a relatively new market and investors should do their due diligence and do proper research before investing.