Meta Crypto Investment: A Beginner's Guide To Getting Started

The metaverse is a virtual world that users can explore using personalised avatars. Cryptocurrencies will likely be the main form of exchange in the metaverse, and metaverse crypto tokens have emerged as a new sub-asset class within the crypto markets. Metaverse crypto is a subset of cryptocurrencies that enable users of blockchain-powered virtual worlds to buy and sell digital assets such as virtual land, real estate, or avatar items. There are several ways to invest in the metaverse, including buying metaverse tokens, purchasing in-game non-fungible tokens (NFTs), buying virtual land in the metaverse, investing in metaverse-associated stocks, or investing in a metaverse index.

Create a crypto wallet

Setting up a crypto wallet is a crucial step in investing in crypto. It allows you to securely store your cryptocurrency and is necessary to buy and sell crypto. There are several types of crypto wallets, each with its own unique features and security protocols. Here are the steps to create a crypto wallet:

Choose the type of wallet that suits your needs:

The most common types of crypto wallets are software wallets, hardware wallets, and custodial wallets. Software wallets are digital wallets that can be downloaded onto your device, such as Exodus, Electrum, and Trust Wallet. Hardware wallets are physical devices that store your crypto offline, like Ledger and Trezor. Custodial wallets, on the other hand, are managed by third-party providers, such as crypto exchanges, and are suitable for beginners.

Select a reliable wallet provider:

Research different wallet options and choose one that suits your needs. Consider factors such as security, fees, the number of supported cryptocurrencies, and customer service. Read reviews, assess their security track record, and ensure they have a strong reputation.

Download the wallet app:

Once you've chosen your wallet provider, download the app to your phone or computer. Make sure to download it from the official app store or the wallet provider's website to avoid any malicious software.

Create an account:

Fill in your basic information, such as your name, email address, and a strong password. Some wallet apps may also require identity verification, where you'll need to submit a government-issued ID and a selfie. It's crucial to keep your login credentials secure.

Set up security measures:

Enable security features such as two-factor authentication and create a recovery or "seed" phrase. A recovery phrase is a random 12- or 24-word phrase that corresponds to your private key. Keep this phrase in a secure location as it will be necessary to retrieve your funds if you lose your login credentials.

Transfer your cryptocurrency:

You can now add crypto to your wallet. You can do this by purchasing cryptocurrency directly through the wallet app or by transferring tokens from another wallet or exchange. Make sure to follow the wallet provider's instructions for a secure transfer.

Creating a crypto wallet is a straightforward process, but it's essential to prioritize security and choose a wallet that suits your needs. Always remember to keep your login credentials and recovery phrases secure to protect your crypto assets.

Open an account on the platform of your choice

Once you have created a crypto wallet, the next step is to open an account on the platform of your choice. This is where you will purchase your metaverse tokens.

The easiest way to buy metaverse tokens is by heading to crypto exchanges such as WazirX, CoinDCX, Coinbase, Kraken, or Uphold. These platforms allow you to buy tokens by depositing US dollars or other fiat currencies using a payment method of your choice. You can also use a peer-to-peer trading platform to buy tokens directly from another individual at an agreed-upon price.

After registering for an account, you will need to complete the exchange's customer onboarding process and verify your identity. This usually involves providing a government-issued ID and proof of address. Once your account is verified, you can fund your trading account using a wire transfer or other accepted payment methods.

It is important to consider the security, fees, supported cryptocurrencies, wallet safety, and storage and custody of the platform before opening an account. Additionally, ensure that the platform supports the metaverse tokens you wish to purchase. For example, to buy Decentraland's MANA tokens, you would need to use a platform that supports this token, such as Coinbase.

Some platforms may also require you to connect your crypto wallet to their smart contract or marketplace. This is necessary if you plan to buy digital assets, such as virtual land or NFTs, directly from the metaverse platform. For instance, if you wish to purchase virtual land in Decentraland, you would need to access the Decentraland marketplace and connect your digital wallet containing the required MANA tokens.

It is worth noting that some metaverse platforms, such as Decentraland and The Sandbox, sell digital assets in the form of NFTs, which can be purchased using their respective tokens. These platforms often have their own account creation and purchase processes, which may differ from traditional crypto exchanges.

Overall, by choosing a reputable platform and carefully considering the factors mentioned above, you can confidently open an account on the platform of your choice to start investing in metaverse crypto.

Buy metaverse tokens

Metaverse tokens are virtual currencies used to make transactions within the virtual worlds. Holders of these tokens can access multiple services and applications inside the metaverse.

Where to Buy Metaverse Tokens

You can buy metaverse tokens on crypto exchanges such as Coinbase, Kraken, or Uphold. Alternatively, you can use peer-to-peer trading platforms or decentralized exchanges (DEXs).

How to Buy Metaverse Tokens

Step 1: Sign up for a crypto exchange and complete the customer onboarding process.

Step 2: Confirm your payment details and choose a payment method to fund your trading account.

Step 3: Select the metaverse token(s) you want to buy, view the current market price, and place an order.

Step 4: Wait for your order to be filled. If you place a market order, your purchase will be completed within seconds and the tokens will appear in your trading account wallet.

Important Considerations

• Metaverse tokens are high-risk and speculative investments. Conduct thorough research before adding them to your crypto portfolio.
• Fees: Choose an exchange with low fees to mitigate the impact on your trading revenues.
• Number and quality of supported cryptocurrencies: Ensure the exchange you choose supports the metaverse tokens you want to purchase.
• Wallet safety: Choose an exchange that provides secure crypto wallets, ideally with added safety features such as withdrawal wallet whitelisting.
• Storage and custody: Select an exchange that holds customer assets in cold storage to mitigate the risk of theft.

Buy in-game non-fungible tokens (NFTs)

To buy in-game non-fungible tokens (NFTs), you can follow these steps:

First, you need to identify which metaverse platform you would like to purchase digital land or NFTs from. Popular options include Decentraland and The Sandbox, but there are several other platforms to choose from. It is important to do your research before investing in any particular metaverse platform.

Next, you will need to create a digital cryptocurrency wallet that is compatible with the blockchain that powers your chosen metaverse platform. This wallet will be used to store your cryptocurrency and NFTs.

Once you have set up your wallet, you can access the marketplace of your chosen metaverse platform and connect your digital wallet to it. Marketplaces are typically found on the metaverse platform's website.

When you are ready to make a purchase, consider the price, location, and future value of the digital land or NFT you are interested in. Keep in mind that the type of token or coin required to make a purchase may vary depending on the metaverse platform. For example, if you wish to purchase digital land in Decentraland, you would need to acquire MANA tokens.

After you have acquired the necessary tokens or coins and funded your digital wallet, you can place a bid or buy the NFT outright. The cost of the NFT will be deducted from your digital wallet, and the NFT will be transferred to your wallet.

It is important to note that investing in the metaverse and NFTs is highly speculative and risky. The metaverse is still in its early stages, and its value proposition is yet to be proven. Always conduct thorough research and consult with a qualified professional before making any financial decisions.

Purchase virtual land

Purchasing Virtual Land in the Metaverse

The metaverse is a digital frontier that has opened up new revenue opportunities for investors, gamers, digital collectors, and developers. While the metaverse is still in its infancy, its potential has attracted major global brands such as Nike and Gucci, who are exploring ways to leverage the metaverse to enhance their customer experiences.

One way to invest in the metaverse is by purchasing virtual land, which is sold as plots or parcels and can be bought, rented, or sold. Here is a step-by-step guide on how to purchase virtual land in Decentraland, one of the most popular metaverse platforms:

Step 1: Choose a Metaverse Platform

Decentraland is a popular option, but there are several other platforms to choose from, including The Sandbox, Cryptovoxels, and Upland. It is important to research the different platforms before making a decision.

Step 2: Create a Cryptocurrency Wallet

To purchase virtual land, you will need to create a digital cryptocurrency wallet that is compatible with the blockchain that powers your chosen metaverse platform. Examples of wallets include MetaMask and Trust Wallet.

Step 3: Fund Your Wallet

Your wallet will need to be funded with the specific tokens or coins accepted by your chosen metaverse platform. For example, to purchase land in Decentraland, you will need MANA tokens, while The Sandbox accepts SAND tokens. You will also need additional tokens to cover the gas fee.

Step 4: Access the Metaverse Marketplace

Most metaverse platforms have marketplaces where users can buy and sell digital land and other collectibles. Go to the marketplace, browse the available land options, and select your preferred parcel.

Step 5: Connect Your Wallet

Connect your funded wallet to the metaverse marketplace. This will allow you to make the purchase and receive the virtual land as a non-fungible token (NFT) in your wallet.

Step 6: Confirm Your Purchase

Once the purchase is complete, you can confirm that the virtual land has been added to your wallet. In Trust Wallet, for example, you can find it under 'Collectibles' and the 'NFTs' tab.

It is important to remember that investing in the metaverse is highly speculative and risky. The value proposition of the metaverse has yet to be proven, and its long-term success is uncertain. Therefore, it is advisable to only invest what you are willing to lose and to conduct thorough research before making any investment decisions.

Frequently asked questions