Metaverse is a big step towards digitalizing the world by integrating augmented reality (AR), virtual reality (VR), and video. In the virtual universe, users will be able to operate, play and stay linked with their friends who exist in a virtual world through their digital avatars.
NFT metaverse land is a virtual real estate plot defined by a non-fungible token (NFT). You can do many things in the Metaverse, starting from conducting a conference to taking an expedition around the virtual world. There have been a lot of deals happening in the Metaverse, with a record of million-dollar transactions happening every week.
Are you interested in investing in the Metaverse, but you are not aware of the procedure of how to buy land in the Metaverse? Don’t worry; the process is simple and does not take much time. However, before starting with the procedure, let us first understand the Metaverse.
What is the Metaverse?
You can portray Metaverse as the successive generation of the internet. There is no universally accepted definition of Metaverse so far, but this term was first used in a novel by Neal Stephenson, Snow Crash; it was released in 1992. In the novel, Metaverse was just a virtual world possessed by real-world individuals who may not be in the exact physical space as others around them. Later, this concept became even more popular when it was elaborated in another novel, and a movie was made based on it.
Metaverse is a virtual world that enables you to create your own avatars, purchase land, create virtual events, and become the host of the events. In fact, you can also use this land for advertising, socializing, gaming, work, etc. It is a Metaverse real estate where you can invest in land.
But, there is one thing that you should know NFT space is very volatile, making it pretty risky. So, therefore, please do your own analysis before making the final decision.
The Metaverse Real Estate Boom
There was nothing like this concept before 2020, but a drastic change was seen in 2021. But, in 2021, businesses start taking small steps into this virtual world with the hope of approaching and targeting an entirely new audience. In addition, there were unique event platforms presented with NFT-entangled entities.
Big brands such as Facebook, Nike, and Microsoft started entering into metaverse real estate. Within no time, numerous celebrities set their foot in Metaverse to buy virtual land.
After just a couple of months, numerous virtual estate corporations lined up, building more virtual properties. The Sandbox and Decentraland, within no time, earned millions of dollars because of their fantastic property locations. Metaverse was trending all over and was no longer a rumor instead a virtual reality.
The reason why a lot of people are investing here is because of the increased ROI. Today, there are arrays of projects that are lined up for launching in March. Its functionality is similar to NFT where you own the digital asset that is saved on the blockchain, and any individual can check its legitimacy. Whenever you want you can sell it or can also give it for rent for events.
Why should you buy Metaverse land?
Once you know about metaverse land, the next thing that comes to might is what the benefits of buying land in the Metaverse are? The two primary reasons are great ROI and bragging rights. In addition, there are a plethora of virtual real estate projects launching right now in the Metaverse.
If you want, you can also make your own virtual house on it and offer it for rent or put up a digital art gallery and enable other artists to show their artwork. Of course, you can also sell them once their value has gone up, so are you ready to learn how to buy land in the Metaverse?
Also Read: 16 Best free play to earn NFT games
Factors that make Metaverse land valuable
When you plan to buy land in Metaverse, it is essential for you to check up on a few factors as they can help increase the value of your land:
1. Location – This is one of the most significant factors for the value of your land or plot, just like you do in real life. Even in real life, the property you own will be of more value if the area surrounding it is good; the same goes with Metaverse.
It will rely on the game of the Metaverse as well. Let us understand this with the help of an example if your land is closer to some important resources for the game.
Just imagine your land is close to Axie Infinity, where the land close to it will be required for the axes, which means if you have land close to Axie Infinity, you will be earning a handsome amount of money.
The virtual plots or lands that are surrounded by hubs where many people are located within that game will be more expensive as there will be more eyeballs, which means more traffic being run through that sector.
2. Size – The next important factor to analyze is the size, as if you have more extensive land, you will be able to construct more and create a more significant experience within that Metaverse. Obviously, the larger piece of land will have more value than the smaller one. It will provide you with more room for creating more experiences, building more games, larger business, or anything you wish to do on that plot.
3. Scarcity – You should also think of scarcity as a significant aspect as here we will check about both the scarcity and population of the game as they are related to each other.
You need to know that Metaverse has a specific limit on the number of plots on it; they are like NFTs, which will be capped after a particular limit. Therefore, the number is finite, which means after some time, when there will be fewer or no plots, just imagine how expensive the metaverse land will be.
The drawback of buying land in the Metaverse
The major drawback of buying land in Metaverse is that it might not have much demand if you purchase a plot with no or minimal user base. Therefore, you will have to lessen the price of the land to stay competitive, and without any user base, the land has no or very little value. So, be careful and check this aspect before buying land in Metaverse.
How to Buy Land in the Metaverse?
Purchasing land in Metaverse is similar to the buying procedure of any NFT. For getting started, you will require a wallet and some cryptocurrency. Let us see the step-by-step guide on how to buy land in the Metaverse:
1. Select a virtual world – Before selecting a virtual land, you will first have to pick a virtual world—for example, Sandbox or any other Metaverse virtual world.
2. Get a digital crypto wallet – The foremost step is to obtain a digital crypto wallet. It is essential for you to know that you cannot buy land in Metaverse with fiat currency; therefore, you require a wallet for purchasing and storing your crypto. Also, keep in mind that the wallet you select should incorporate into your browser.
Numerous choices are available in the market like Trust Wallet, MetaMask, Binance wallet, etc. But always remember to check if the wallet that you choose supports the crypto you want to use for buying the virtual land or not. When your wallet is formed, you will obtain a seed phrase, which is a series of words. Make sure that you save it in a safe place; prefer saving it offline.
You can opt for a mobile or browser-based wallet, as per your preference. However, it is recommended to use a browser-based wallet, as you will run into fewer problems with it.
3. Select a metaverse platform – Prior to purchasing land in the Metaverse, you will have to select a metaverse platform for making the trade. The platform will vary as per your reason for buying the land. Some of the most popular platforms are Sandbox and Decentraland or you can opt for OpenSea or NonFungible if you want to move forward with a third-party purchase.
Choose the platform carefully as they vary in format, but there are a few things in common that almost every metaverse platform will provide, such as:
- Parcel’s unique coordinates on the Metaverse’s map.
- A hint of where that property is situated in aspect to business districts.
- Asking prices of available properties.
- It will also give you information about some of the well-known nearby sites, virtual mass transit, and roads.
- The platforms will also show you any improvements on the lot in the description.
The metaverse platform provides information on the property’s location and potential users, but you will not get data about the prior sale history.
4. Can also opt for a third-party marketplace – A lot of people choose a third-party marketplace for buying virtual land. Some of the most well-known third-party platforms are OpenSea and NonFungible; both enable you to check the sale history of the property and give you data about the properties that are currently on sale.
They list more than one metaverse platform at once; therefore, you will have an option to select from various platforms or use the information that these sites offer to narrow your decision. A lot of people prefer third-party platforms because they provide users with all the previously mentioned data.
Therefore, you will be able to see –
- Complete transaction history of the property
- History of the neighboring property
This data will help your decision-making as you will be able to compare and analyze if the property is worth the value or not.
5. Purchase with metaverse real estate agents – Although it is one of the least popular ways of buying metaverse land, it is an emerging trend. Yes, metaverse real estate agents do exist, and they aid investors in finding the appropriate metaverse parcels for their everyday projects.
At this time, there is no licensing requirement for the metaverse real estate agents, but they are usually people who are current or former real estate agents of the real world but have a significant interest in Metaverse. You can find them on many platforms where you usually find vet professionals, such as LinkedIn.
They can help you purchase or rent land for your project, making them undoubtedly valuable to investors in metaverse space. However, as of now, there are no government regulations or guidelines regarding who can sell or become a real estate agent in Metaverse.
Therefore, it is recommended to select an agent in your own state or city as you will be able to meet them in person and know them better before starting a business with them.
Also Read: 15 Best Crypto Wallets
6. Connect your wallet to the marketplace – In this case, we are taking Sandbox as an example. On the website of Sandbox, you will be able to buy available plots of land on which you can place the bid. In addition, you will be able to place an offer on some of them directly, whereas, for some plots, it will be done through third-party channels such as OpenSea.
But, before you place the bid, you will have to connect the wallet to the marketplace. On the Sandbox site map, you will be able to see a sign-in button in the top right corner. Next, you need to ensure that your wallet is set to the appropriate blockchain as the project.
After that, you need to click on ‘MetaMask,’ as soon as you click, there will be a pop-up stating you to connect. Click on the Next button. After that, another screen will come up where you need to tap on the ‘Connect‘ button.
Once this is done, now you will have to put in your email address and create a nickname. Finally, click on continue to finish fixing your account; if you want, you can also put a password for using the Sandbox editor.
That is it; just click on the ‘Sign‘ button on the MetaMask signature request for completing your account registration. As soon as you connect your wallet successfully, you will be able to see your account balance and profile picture at the top right side of the website.
7. Purchase SAND or ETH and transfer it to your wallet – If you want to buy Metaverse land, you will have to place a bid or buy through a third party. For doing, you will require either SAND or ETH in your wallet. You can buy them through a debit or credit card with your Binance account or any other account.
After the crypto purchase is completed, you will have to transfer them to your crypto wallet. For this, all you have to do is copy the public address from your crypto wallet and use it as your withdrawal address. If you have crypto in an external exchange account, transmit it to your crypto wallet to get initiated.
8. Browse and select the land – Once all this is done, now is the time to check for the different pieces of land available and their prices. Apart from the metaverse land price, you should review a few other things, such as how far it is from the well-known locations as the prices for such properties increase quickly.
Once you choose the land that you prefer to buy after that, check and see if it is available or not. If it is available, after that, you need to click the ‘Bid’ button for placing an offer or purchasing it for a fixed price by putting the ETH amount.
If you click on ‘Bid‘, it will show you a pop-up that will authorize you to make an offer as per the price. Quote the amount, hit enter on ‘Place Bid,’ and approve the transaction with your wallet. If the seller accepts your offer, the amount will be deducted from your wallet, but if he rejects the bid, the crypto will be returned to your wallet.
You can also opt for the fixed price instead of bidding if you want. For this, you’ll be diverted to OpenSea to finish the transaction. But, you will have to connect your wallet to the marketplace before buying land, or you can use OpenSea to make an offer if you don’t want to do it through the Sandbox.
As the payment gets approved on the blockchain, the purchase will be completed, and the transaction will be recorded in your wallet, which is proof that the digital property is yours.
By reading these steps, you would have got a complete idea of how to buy land in the Metaverse. The process is pretty quick and straightforward, the main point is selecting the right property, but now you know what to look for before making the final decision.
Apart from buying, you should also know how to sell it as maybe in the near future, you might feel like selling it when the prices increase. So here is the procedure of selling your metaverse land.
How to sell land in Metaverse?
There are two ways to trade your NFT land; you can either sell it through the metaverse project’s marketplace or through any secondary marketplace. Third-party can be used for sales with the Sandbox, but it is assumed that in the future, you will be able to trade the land instantly through the Sandbox by paying a 5% transaction fee in SAND.
If you wish to sell your property through OpenSea, all you have to do is just go to your profile, and on your NFT, click on the ‘Sell’ button. By doing this, you will be able to construct a timed auction or fixed price.
How to rent land in Metaverse?
You might want to rent your plot and make regular earnings through it, but how can you do that? Don’t worry; it can be done without much effort. To date, there is no official process for it, but you can do it by making a private arrangement, although the process is slightly risky.
While renting your property, you need to keep in mind that you should never transfer ownership of your NFT to the renter. In fact, you should wait for some official and secure renting procedure to be launched.
Also Read: Minting NFTs: A Complete Step-by-Step Guide
Things to keep in mind before buying virtual land
After understanding how to buy land in the Metaverse, here are a few things that you should keep in mind when investing in NFT land-
- Ensure that you use the official project link for purchasing NFT land or opt for a well-known third-party marketplace
- You should be aware that the land in the Metaverse will become non-existent if the platform you purchased the land from fails or goes offline; therefore, make a purchase from a legit platform.
- Before making the final buying decision, carefully research the platform you wish to invest in, and do not forget to check its fundamentals.
- Keep in mind that buying isn’t the only choice, as you can also rent some land in the future if you require it for any particular occasion or purpose.
- Metaverse is a fickle market for making real estate investments as it is rooted in virtual reality.
- There is high volatility with the cryptocurrencies that are used to make transactions in the property market in the Metaverse. The valuation of crypto is not steady; hence, the valuation of the property you own in the Metaverse flutters proportionally with it.
You should know that metaverse real estate is just like your NFT. Unfortunately, with its growing demand, there has been a rise in scams, which you should be aware of. Therefore, it is always recommended to purchase from a reputable, well-known, and official website.
Top Metaverse Virtual Worlds
If you want to know about some of the leading metaverse virtual worlds that exist today, here are some of the best ones:
It is created on the Ethereum Blockchain; this virtual world is a build-up of digital pieces of real estate: it lets the player buy, play, build them, and they can also create games and monetize virtual experiences. Various big companies have shown interest in it and are buying land on it. The utility token they offer is named SAND; it can be used throughout the Sandbox ecosystem.
There are various distinct experiences and games currently being built in the world of the sandbox Metaverse Game. Everything created here is user-generated content, meaning that individuals and not the company create the games and experiences created in this Metaverse Game.
This game has the highest potential of becoming the top Metaverse that all of us will end up playing. It is because it has partnered with some well-known people and brands like Snoop Dogg, The Walking Dead, The Smurfs, Dead Mouse, Atari, and many more.
It is a 3D virtual world where users can connect and interact with each other, play games, and even create content. Decentraland has its own virtual economy where users can monetize their content and the application they have created. It has caught the eye of one of the biggest tech brands ‘Samsung.’ They recently purchased land here in January.
You can buy plots and digital goods as NFTs by using the MANA cryptocurrency, which is the realm’s native currency, and it uses the Ethereum blockchain. You can also buy MANA from various other platforms such as Binance, Coinbase, or KuCoin and then transfer it to your wallet.
On Decentraland, people can also interact using their digital avatars and access various experiences within the game. Like Sandbox, all the activities and structures built are user-generated, which means that within Decentraland, some developers and builders create these experiences.
You will find both community-led events and an in-game economy in this virtual world. Somnium is an open-source platform that enables users to purchase digital homes, land, buildings, and myriad in-game assets of value. In addition, it has features that will facilitate users to create, script, and monetize environments.
CUBE is its native utility token; with the help of this token, you will be able to buy virtual assets and pay for goods in the Metaverse.
It is one of the most popular and successful games in Metaverse. Axie Infinity is a card game; users can battle different axes that are the game’s characters. As of now, there is no land associated with this game, but very soon, they are about to launch the second part of the game called Lunacia, which will be its actual homeland.
The land will be divided into tokenized plots of land and will act as homes and bases of operations for their axes. The best part is that it will allow the users to participate in their various events, activities, and other gameplay in the world of Lunacia.
But, the good news is that the land is available for sale in the secondary market. They have so far launched five types of land: savannah, arctic, genesis, forest, and mystic. You will be amazed to know that some of their plots are selling for thousands of dollars, so you can also give it a try as it will have a high demand in the future.
What can be done with the virtual land?
In the Sandbox metaverse, the land is the token that symbolizes a digital portion of the platform. Gamers who buy land through Metaverse can occupy the virtual land with games and assets, where players or brands create tokens. So you know who is responsible for generating and assembling user-generated content; they are the investors.
You can trade these assets on multiple platforms as NFTs and are usually used to improve the user’s experience. For example, people who own land can make various gaming scenarios and render them to other players for a small fee or maybe free of charge. Therefore, the first benefit of owning land is developing digital experiences.
You can also rent out your land to people who want to create their own games, host events, or conduct any social event.
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Paying for Real Estate in Metaverse
There are numerous people who have plans to buy virtual land in the Metaverse but cannot do that because of a lack of funds. Are you also facing similar issues? Here is the solution for you: just like in real-life people buy a property with a mortgage, you can do the same thing here.
The first-ever mortgage proposal has been offered by TerraZero Technologies for buying the virtual property. It has a pretty easy functionality, the mortgage provider of the virtual land will retain the ownership of the land NFT till the time loan is repaid, but the ‘deployment rights’ will stay with the borrower only.
This enables the borrower to build structures on their property, conduct events, run internet marketplaces, and host an organization’s internal office. Once the loan is repaid, the virtual land will be transferred to the owner.
This was about how to buy land in the Metaverse and its complete procedure. Its demand is increasing day by day and so are its prices, so you can think of investing in it if you have some spare money. Investing in real estate in Metaverse is a relatively new asset class; therefore, there are numerous elements that are still unexplored.
Investing in Metaverse can be financially risky; therefore, it is advisable to research its advantages and limitations before investing.
Source Reference : https://moneymint.com/how-to-buy-land-in-the-metaverse/