The metaverse is a virtual world where people can play games, interact with friends, and even buy virtual real estate using cryptocurrency. This guide will teach you how to buy a piece of land in the metaverse.
What is virtual real estate in the metaverse?
Virtual real estate is land inside of a metaverse project that is represented by a non-fungible token (NFT). In this instance, the NFT is a property deed that proves your ownership of a certain property, similar to purchasing real estate in real life.
Virtual plots of land can be purchased using cryptocurrency (generally the metaverse project’s native token) or, in some cases, fiat money. The value of a piece of land is largely determined by its size, location, and scarcity. Also, the popularity of the metaverse it’s attached to is also very important.
Virtual lands can be used for a variety of different purposes. In most metaverses, they can be used to:
- Build a virtual house on
- Set up and operate an in-game business
- Host events, games, or experiences
- Earn revenue through renting
- Speculate in the virtual land market.
Musicians Deadmau5 and Snoop Dogg are among a number of high-profile celebrities that own land in the metaverse. In December 2021, someone paid $450,000 USD to buy a plot of land next door to Snoop Dogg’s lavish mansion in The Sandbox metaverse. Gucci, Adidas, and Atari have also purchased land in the metaverse.
What is the best metaverse to invest in?
There are a number of quality metaverse platforms out there, however, this guide will focus on the two most popular projects, Decentraland, and The Sandbox.
Decentraland is a vast and exciting virtual world that users can explore and interact with. Users can play games, hang out with friends, and buy virtual land and a range of wearable items, such as clothes.
People can use Decentraland with or without a crypto wallet, however, a wallet is required to purchase Metaverse properties or in-game items. Once a user owns a piece of land, they can develop it using the Decentraland editor. Users can also import 3D models from external software for an extra layer of customisation.
The Sandbox contains virtual worlds where users can build, own, and monetise their creations and in-game experience. The Sandbox gaming platform is made up of three products: Game Maker, which enables anyone to build games for free; VOXEdit, which allows users to create and animate 3D objects; and Marketplace, where users can publish and sell their NFT creations. Owning LAND in The Sandbox allows users to set up games or interactive experiences.
How do I buy land in the metaverse?
Buying virtual real estate in the metaverse is a relatively straightforward process. Some metaverse land can be acquired an NFT marketplace like OpenSea, but generally speaking, land will need to be purchased through the metaverse real estate platform you’re interested in. This section will walk you through the latter process.
Step 1 – Choose a metaverse platform
Before you buy a piece of virtual land, you will need to first decide which metaverse you would like to inhabit. Make sure to spend some time doing research about different metaverse projects and what benefits owning a piece of NFT land will give you. Two of the most popular metaverse projects are The Sandbox and Decentraland.
Step 2 – Create an external wallet
You will also need to set up an external wallet, which will give you access to the cryptocurrencies you own. There are usually mobile and browser-based wallet options, depending on what you prefer. Browser wallets tend to be a bit more stable though.
MetaMask is a popular software wallet that you can use. It supports the Ethereum blockchain and most coins or assets built on top of Ethereum. It’s always a good idea to double-check that the metaverse project’s blockchain supports your wallet of choice.
When you create your external wallet, you will receive a seed phrase. This is a computer-generated password that will be displayed as a string of words. Keep your seed phrase in a safe place as it will be used to recover your wallet and coins if you forget your password. Ideally, you want to write your seed phrase down and store it in a safe place. Do not store it online.
Step 3 – Connect your wallet to your metaverse platform
After you have set up your external wallet, you will need to connect it to the metaverse platform you want to purchase land from. For instance, on The Sandbox, you can do this by clicking the “sign-in” button on the top right of the screen. That will bring up an option to connect your software wallet, such as MetaMask (Figure 1).
Figure 1 – The Sandbox connect wallet screen
Decentraland, on the other hand, gives you two options on the home screen: play as a guest or play using your wallet. Clicking on the wallet option will bring up a similar screen to the previous one (Figure 2).
Figure 2 – Decentraland connect wallet screen
Step 4 – Purchase land using cryptocurrency
In order to purchase metaverse property, you will need one of the accepted currencies in your wallet. An accepted currency is generally the platform’s native currency (for instance SAND on The Sandbox or MANA on Decentraland) or Ether (ETH). It is useful to have both currencies, however, ETH is a universal currency across a number of different metaverse projects. You can buy MANA, SAND, and ETH on most big cryptocurrency exchanges, such as Swyftx.
Once you’ve found a virtual property you want and have enough funds in your crypto wallet, it’s time to buy! The buy page will show you where your land is located, how much it is, and what assets are included in the purchase. We have used an example from The Sandbox below (figure 3), but the layout is similar on other metaverse platforms, such as Decentraland.
Figure 3 – The Sandbox land purchase page
In addition to having enough funds in your wallet to cover the price of the digital land you want, you will need enough ETH to cover the gas fee as well. This is because most metaverses run on the Ethereum network. Land in the metaverse can also be purchased through a virtual real estate firm.
Is buying metaverse land safe?
Buying metaverse land is similar to buying any other NFT, it is a highly speculative investment. Much like social media platforms or memes, it is very difficult to predict what is going to be successful or relevant in a few years’ time. That’s why it is very important to do your own research about the metaverse platform you are interested in before investing in anything.
You should also make sure you are using an official project link to buy your NFT land from or use a reputable third-party marketplace like OpenSea. This will ensure that you are not falling prey to a cryptocurrency scam.
Important To Remember
Buying NFT land is not the only way to be involved with a metaverse project. It might be possible to rent a piece of land, which you will be able to use for the same purposes but at a fraction of the cost. Also, the popularity of tokens like MANA and SAND can be a fantastic option to invest in the metaverse platform itself, rather than a specific piece of land.
Buying virtual land can be a great way to invest in a metaverse project like Decentraland or The Sandbox. Owning land and digital assets in a metaverse can allow users to build houses or businesses, host events, and create games or interactive experiences. It can also allow people to speculate on digital real estate and to earn revenue through renting. Metaverse projects are still new, but they are full of potential. It is likely that the next five or ten years will see even more exciting developments.