Remember the world in Ready Player One where the protagonist puts on a VR headset to race flying cars and earn treasures in the "Oasis"? In fact, you already have your own "lite version of the metaverse"!
When you spend a few dollars to buy LINE stickers or use a Bear GIF to react in a family group chat, the essence of these actions is similar to NFT enthusiasts buying virtual land in Decentraland or trading digital art on OpenSea. The only difference is this: you’re paying for "the right to use a game company’s server," while they are buying "digital assets that can be taken to any virtual universe."
The metaverse has been one of the hottest trends in recent years. So, what exactly is the metaverse? What are NFTs? And how can everyday people get involved in investing in the metaverse? This article breaks it all down.
What Is the Metaverse?
The term "metaverse" originated from Neal Stephenson’s 1992 science fiction novel Snow Crash, which described a parallel virtual world where everyone in the real world has a digital avatar. Today, it’s more broadly interpreted as a visually rich virtual space where people can work, play, shop, and socialize—all supported by blockchain technology and NFTs.
Blockchain serves as the foundational technology of the metaverse. Without it, the metaverse as we envision it wouldn’t exist. NFTs, or non-fungible tokens, act as certificates of ownership for digital assets. In the metaverse, NFTs help maintain an efficient and stable economic system.
There are many reasons why investors and markets are excited about the metaverse. As venture capitalist Matthew Ball puts it: "The metaverse represents the fourth wave of computing, following mainframes, PCs, and mobile."
How Are the Metaverse and NFTs Related?
NFTs are unique digital assets based on blockchain technology. In the metaverse, NFTs act as "anti-counterfeit certificates," providing proof of ownership and establishing scarcity for virtual items. Thanks to the tamper-resistant and decentralized nature of blockchain, NFTs enable a relatively open and fair economic structure, allowing users and players to trade assets freely.
A metaverse without NFTs would be like:
⚠️ Buying in-game items that can’t be resold → Value locked inside the game
⚠️ Designing virtual outfits only you can wear → No commercial potential
⚠️ Building a virtual house that the platform can delete → Risk of losing everything
Here’s a comparison between traditional digital assets and NFT-based assets:
| Feature | Traditional Digital Assets | NFT-Based Assets |
|---|---|---|
| Uniqueness | Can be identical copies (e.g., music, images) | Each NFT is unique |
| Ownership | Often unclear and hard to prove | Proven via blockchain |
| Transferability | Often restricted by the platform | Tradable across multiple markets |
| Editability | Can be modified by the owner | Usually immutable once created |
| Copyright | Held by the creator; usage rights vague | Can be set by the creator and managed via smart contracts |
| Uniqueness | Highly reproducible; hard to distinguish | Each has a unique identifier |
| Use Cases | Mainly for consumption (viewing, listening) | Used for collecting, investing, gaming, and more |
How Does the Metaverse Affect Cryptocurrency?
The metaverse and cryptocurrency are deeply interconnected—when one thrives, the other tends to follow. In fact, the metaverse has occasionally led the entire crypto market.
During the last bull market, metaverse projects like Decentraland and The Sandbox attracted enormous attention, with users buying virtual land and driving NFT speculation to new heights. This brought significant capital into the crypto space and lifted the entire market.
For example, MANA token rose by 4,100% during the 2021 bull run, outperforming Bitcoin. The average price of virtual land in The Sandbox surged from $1,000 to $45,000—even outpacing real estate price growth in cities like Taipei.
However, as the crypto market corrected, NFT prices in metaverse projects also declined significantly. Many assets saw their values cut in half, and some lesser-known projects became illiquid or impossible to sell.
Despite short-term volatility, the long-term potential of the metaverse remains strong. It represents a new social and economic model. That said, investors should proceed with caution. Future success will depend on technological innovation, user adoption, and sustainable ecosystem development.
How to Participate in the Metaverse: Buying and Trading NFTs
For most people, creating a metaverse project isn’t feasible. Instead, buying and trading NFTs or project tokens offers a more accessible way to get involved.
During the last bull market, NFT mania led to the emergence of major NFT marketplaces across various blockchain networks. Here’s a simple guide to getting started:
1. Choose a Metaverse Platform
We’ll use OpenSea—one of the most popular NFT marketplaces—as our example. Most platforms function similarly.
2. Set Up a Digital Wallet
You’ll need a crypto wallet like MetaMask to connect to NFT platforms. This allows you to buy, sell, and transfer assets. Once your wallet is set up, go to the OpenSea website, click "Connect Wallet" in the top-right corner, and follow the steps to create your account (no fee required). Make sure your wallet is funded before trading.
3. Acquire Cryptocurrency
You’ll need cryptocurrency like Ethereum (ETH) to make purchases. You can buy crypto on a reputable exchange and transfer it to your wallet.
4. Buy NFTs
Browse available NFTs and follow the prompts to complete your purchase. If you think prices are too high, you can try bidding in auctions—these sometimes offer below-market deals. Auctions are time-based and typically award the asset to the highest bidder.
5. Sell NFTs
To sell an NFT, go to your profile, select the item, and choose "Sell." You can set a fixed price or opt for an auction. Once someone buys it, you’ll receive cryptocurrency in return.
You may also receive offers (often below the current market price). If you need to sell quickly or find the offer reasonable, you can accept it.
3 Safety Rules for Navigating the Metaverse
- Never share your private key with anyone or on unfamiliar platforms (it’s like your bank password!).
- Don’t use the same password for all your metaverse accounts.
- Be skeptical of "guaranteed profit" NFT airdrop promotions.
👉 Explore secure trading platforms
Tips and Considerations for New Metaverse Investors
Metaverse and NFT investing comes with a learning curve and varies in complexity. Since it’s still a niche market, many projects suffer from low liquidity. You might struggle to find buyers when you want to sell. Beginners should start with small amounts.
Another risk is fraudulent projects. Some so-called "metaverse" initiatives have little real utility and are purely speculative. When market enthusiasm fades, their values can collapse. Unless you’re an experienced speculator, it’s best to avoid unknown or obscure projects.
Here’s how metaverse/NFT investing compares to other popular options:
| Investment Type | Capital Needed | Pros | Cons |
|---|---|---|---|
| Metaverse/NFT | Varies; well-known projects are expensive | Tradable 24/7; high volatility | Generally low liquidity; no shorting |
| Cryptocurrency | Low; divisible purchases | 24/7 trading; long/short options; leverage | Many low-quality projects |
| Futures/CFDs | Low; mini contracts available | Leveraged; long/short trading | Limited upside; high risk |
| Stocks | Moderate to high | Strictly regulated; transparent | Limited upside; many restrictions |
What’s the Future of the Metaverse?
Long-term, the metaverse holds promising potential. Major tech companies like Meta (formerly Facebook), Microsoft, and Google are already investing heavily in it.
From a technological standpoint, virtual reality and artificial intelligence (AI) will play crucial roles in shaping the metaverse. Economically, the metaverse is likely to expand the influence and scale of the virtual economy. New products, services, and business models will emerge, bridging the gap between virtual and physical realities. In short, the metaverse could fundamentally change how we live, socialize, and do business.
As for NFTs, we can expect more innovative formats and economic models that align with metaverse development. Regulatory frameworks may also improve, reducing barriers to entry and minimizing fraud.
Frequently Asked Questions
Is the metaverse just a scam?
While scams exist, most mainstream metaverse projects are grounded in real technology and application. The metaverse is widely recognized as a legitimate tech trend, though investors should always exercise caution.
How risky is metaverse investing?
All investments carry risk, and the metaverse is no exception. If you jump into unknown or low-quality projects, you could lose money. That said, since most NFT investing doesn’t involve leverage, you can manage risk with discipline—as long as the market remains liquid.
Do I need technical knowledge to invest?
Not necessarily. Many platforms are user-friendly, and you can start with simple buying and selling. However, understanding blockchain and market trends can help you make better decisions.
Can I make money in the metaverse without buying NFTs?
Yes. Some people earn through play-to-earn games, virtual real estate, or creating digital content. NFTs are just one part of the ecosystem.
How do I know if an NFT is valuable?
Value depends on utility, rarity, creator reputation, and community interest. Research the project, its team, and market sentiment before investing.
What’s the best way to stay safe?
Use reputable platforms, enable two-factor authentication, and never share private keys. Start with small investments until you’re comfortable.