Want to jump straight to the answer? You can buy metaverse real estate with ETH from Gemini!
In November 2021, the company formerly known as Facebook shocked everyone when it announced a name change to Meta. This change was to show their support for the Metaverse, which is the concept of an immersive digital life online. This change caused a spike in popularity for already established Metaverse projects, such as The Sandbox (SAND) and Decentraland (MANA). However, many still have questions surrounding the metaverse, such as what it is and how to purchase real estate in these virtual worlds.
What Is The Metaverse?
The metaverse is a term used to describe a potential shift in how we interact with technology. Right now, we use text, emails and calls to communicate. Metaverse developers are hoping to change these current methods of communication by creating a virtual world in which humans can interact in a more natural way.
The term itself is extremely broad. On 1 end, it can mean online games, such as Fortnite or Call of Duty. These games allow users to interact online in virtual worlds. While these online games have become extremely popular, another form of the metaverse is that of open-world games with digital economies.
The Sandbox and Decentraland are both metaverse projects that combine typical online games with cryptocurrency and digital economies. These projects have their own virtual worlds where players can interact with each other and buy and sell goods. Many believe that these types of projects could be the future of communication.
Users can talk with their friends using virtual avatars and play a variety of games. They also incorporate virtual reality to provide a much more immersive experience.
In these games, users purchase virtual land where they can build anything they want. This can range from drawings to playable games. These designs are represented in the form of non-fungible tokens (NFTs). Since NFTs store encrypted information on the blockchain, they allow anyone to own in-game digital assets. Users can buy and sell these digital assets that are represented by NFTs.
The Sandbox and Decentraland have also incorporated their own cryptocurrencies into their games to create a more seamless transaction process.
SAND and MANA are both used to power their respective metaverses. They can be used in multiple situations.
The primary use of these tokens is to buy and sell NFTs in the virtual worlds. On Decentraland, you can sell an NFT and receive MANA. You can also use MANA to buy others’ land.
Another use for these tokens is that of governance. Users who own SAND or MANA can vote on new proposals in a decentralized autonomous organization (DAO). This gives the users of a project a say in where it will go in the future. However, the developers often own a large portion of the supply, so the voting system is somewhat flawed. Either way, it still gives the community a say in how the project will operate.
How To Buy Real Estate In The Metaverse
Now that you have an understanding of the metaverse and the tokens that power the virtual worlds, you may be interested in purchasing your own share of these assets.
In these metaverse projects, real estate is the most popular way to gain access to the features they offer. Owning metaverse real estate often allows users to create and build their own designs. Most real estate options are divided into neighborhoods and are stored in the form of NFTs.
- Open an account with a cryptocurrency exchange.
The first step to purchasing real estate in a metaverse is to open an account on a crypto trading platform. You will need a platform that supports ETH, which most do. However, a few platforms in particular stand out due to their ease of use, security and low fees.
Coinbase, eToro and Gemini are all great options for those looking to purchase ETH. It is very easy to open and account and users can typically begin trading within 24 hours. After you have a verified account, you can connect your bank to fund the account.
If you want to purchase The Sandbox, Gemini is your best option. Gemini is one of the few exchanges that supports SAND tokens.
- Buy Ether and send it to an Ethereum wallet.
Once you have a funded account, the next step is to purchase Ethereum (ETH). You specifically need ETH because most metaverse projects operate on the Ethereum network, so it gives you the most options. You will also need to send ETH to a wallet, as NFTs are available through decentralized finance (DeFi) marketplaces that require wallets.
On your funded account, search for ETH and enter in the amount you would like to purchase. Execute the trade, and your ETH balance can be found in your portfolio.
Next, you will have to send your ETH to a wallet. To do this, find the Ethereum wallet address. This can be found in your wallet and is typically a long string of letters and numbers. Ethereum addresses should start with 0x.
Find the “Send” feature under your ETH position on the trading platform and enter in the wallet address. It is best to send a small amount first to verify that you have the correct address. Once you have verified that the address is correct, send as much as you would like to the wallet.
We will have more on picking out a wallet later on.
- Connect your wallet to OpenSea.
OpenSea is a platform that supports the buying and selling of NFTs. On the website, you can connect your wallet. This allows OpenSea to facilitate transactions as they have access to your wallet.
- Make your purchase.
Once you have a wallet with ETH and have connected it to OpenSea, find a metaverse project you like and search it on OpenSea. As of right now, the 2 most popular are The Sandbox and Decentraland.
On the project’s page, you will find a variety of different plots of land available for sale. Find 1 you like and either buy it or place a bid. Once the transaction has been confirmed, you will own the real estate and it will be connected to your wallet.
You can then navigate to the metaverse’s website and connect your wallet. Your real estate will then be yours in the game.
Where To Store NFTs Safely
With some spending millions on metaverse real estate, it is important to have a safe place to store your precious assets. There are many wallets out there, but 2 in particular stand out.
Best NFT Software Wallet: Ledger
Hardware wallets use physical devices to store the private keys needed to send crypto. Without the physical device, crypto is locked in your wallet. This is often regarded as the safest way to store crypto.
Ledger offers industry-leading hardware wallets at an affordable price. The Nano S is designed for beginners and only has necessary features. The Nano X supports ease of use, with features such as bluetooth connectivity and larger screen.
Ledger is known for providing reliable and efficient security for crypto.
Best Software Wallet: ZenGo
Software wallets store the private keys on the internet. While this is not as safe as hardware wallets, ZenGo takes a variety of measures to keep your assets safe.
ZenGo uses 3-factor authentication to protect your investments. This includes a key on your computer, 1 on their servers and biometric authentication. All 3 combine to create an extremely safe wallet.
In addition to the security, ZenGo is also very easy to use. It has a sleek mobile app that makes crypto trading efficient.
Is Metaverse Land a Good Investment?
As of right now, metaverse land is extremely speculative. This is due to its novelty, as it has only been around for a few years. At any time, the in-game markets could crash and your real estate would be worthless.
However, the idea of the metaverse has been given legitimacy due to Meta’s focus on the idea. If they continue to promote the idea and bring attention to the projects, then prices could continue to rise.
If Meta releases their Metaverse and it is much more popular than the existing projects, the price of current metaverse land could fall. If users shift towards Meta’s project, then the current metaverse real estate may lose its primary use cases and competitive edge.
Again, metaverse land is very risky and mostly speculative. The deciding factor will be how Meta handles their project and any implications this may have.
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