One of the most concise and precise definitions of the metaverse is: “This is a fantastic digital world in which anything can exist.” Actually, this is true, in the virtual world it is possible to implement any idea. To interact with digital reality, the user creates an avatar that can do everything the same as in ordinary life: communicate with friends, work, study, go shopping and parties, etc. The most exciting ideas were often the first to be voiced by science fiction writers. The same happened with the metaverses. In 1992, Neil Stevenson’s novel Avalanche was published, in which the world of the distant future was described, united by a three-dimensional public virtual reality. Later, the term was borrowed by IT companies, and then the trend spread to the crypto industry. Users received simple and convenient tools for monetizing game achievements.
How the metaverse works
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Metaverses serve as a kind of bridge between the virtual and real world. The user creates his own avatar and uses special technological devices for a more complete immersion in augmented reality. Eventually it will be possible to mix real and virtual life. Behind the creation of metaverses are individuals or companies. The loudest, but not the only project of this kind is Meta from Facebook.
Best metaverse projects to invest in
Metaverse coins can be accumulated, bought and sold, just like you sell, for example, BNB to USDT. The metaverse segment looks promising and investments in such projects can be very profitable. Of course, you need to choose a project very carefully and in no case invest all the money in it.
ApeCoin
Leading the market in terms of market performance is ApeCoin, a meta-currency linked to the Bored Ape NFT ecosystem, which owns an iconic collection of over 10,000 digital monkeys. The APE token operates on the Ethereum blockchain and is an ERC-20 standard. Its launch took place by distribution to the owners of the yacht clubs Bored Ape and Mutant Ape Yacht Club. This cryptocurrency is designed for entertainment, games and WEB3 technologies, and also uses a decentralized governance system (DAO). In addition, this token is also used as an asset for NFT games and land acquisition. before investing in APE, it should be taken into account that the community is not completely independent. The project has a special council of main investors.
Decentraland (MANA)
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It is a decentralized multiplayer game that has created a free market economy based on blockchain technology. In the world of Decentraland, native token MANA (ERC20 standard) is used for calculations. For MANA, you can buy virtual land plots and everything you need for their arrangement and development. The number of NFT lands that can be sold and bought on marketplaces is limited. You can buy them on OpenSea and Rarible. It is also important that the players are completely free to act and independently determine the desired direction of development of their property. Another plus is that the project attracts the attention of brands and influencers.
The Sandbox
Decentralized gaming platform The Sandbox is reminiscent of the popular Minecraft game. The main mission of the project is to introduce blockchain into regular games and provide players with the opportunity to monetize their experience. The SAND platform token runs on the Ethereum blockchain). It performs several functions, including providing access to the platform, purchasing in-game items, decentralized governance, and staking. The project has investments from global companies and partnerships with major brands in the cryptocurrency industry.
Axie Infinity
On this gaming platform, users breed Axie pets and then fight among themselves or sell them for profit. These pets resemble Pokémon and are randomly generated. Each such animal initially has a unique set of skills. The AXS token is used to manage the platform. AXS is rewarded as you play, is needed to participate in platform governance votes, create user-generated content, and more.
Illuvium
The online game Illuvium uses the Ethereum blockchain technology and combines elements of an open world exploration game and a PvP combat game. The game world is fully three-dimensional and populated by more than 100 unique characters – Illuvials. The ILV token functions in this world. It is used to reward players for their achievements in the game and gives them the right to access and control the Illuvium DAO. Coins can be invested in the income farming program and receive additional profit.
Where to buy and store metaverse coins
Metaverse coins are traded on many major Cryptocurrency exchanges, including Binance, Bybit, OKX, MEXC Global. The buying algorithm is no different from the usual swap XRP to BNB. Some of the coins that you plan to use for active trading can be stored on an exchange wallet. However, if you own a large amount and your plans include long-term storage, it is better to withdraw them to an offline wallet. When choosing a wallet, make sure that it supports the blockchain tokens on which the game world operates.
Investing Strategies and Diversification in the Metaverse Space
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Investing in the metaverse presents unique opportunities and challenges due to its rapidly evolving nature and potential for growth. As with any investment, having a well-thought-out strategy and diversification plan is crucial for mitigating risks and maximizing returns. Here are some key considerations for investing in the metaverse space: Understand the Market: Familiarize yourself with different metaverse projects, their goals, underlying technologies, and their potential for adoption and growth. Stay updated on industry trends, regulatory developments, and advancements in virtual reality (VR), augmented reality (AR), blockchain, and other related fields. Long-Term Approach: The metaverse is still in its early stages, and its full potential is yet to be realized. Adopting a long-term investment approach allows you to capture the potential value appreciation over time. Consider investing in projects that demonstrate a clear long-term vision, have a strong team, and are well-positioned to adapt to changing market dynamics. Diversification: Allocate your investments across different metaverse projects and sectors to reduce risk exposure. Diversification can include investing in VR/AR platforms, social metaverse experiences, gaming-centric projects, blockchain-integrated metaverses, and other relevant segments. Due Diligence: Conduct thorough due diligence before investing in any metaverse project. Evaluate the team’s expertise, their track record, and the project’s viability. Assess factors such as technology scalability, user adoption potential, revenue models, competitive advantages, and the project’s alignment with emerging trends in the metaverse space. Risk Assessment: Understand the risks associated with metaverse investments. Consider factors such as technological risks, regulatory challenges, market competition, and potential shifts in user preferences. Evaluate the project’s risk management strategies and how they address these concerns. Be prepared for volatility and be cautious of projects with unrealistic promises or questionable business models. Investment Size and Risk Management: Determine an appropriate investment size based on your risk tolerance and overall investment portfolio. Metaverse investments can be high-risk, high-reward opportunities, so consider allocating a portion of your portfolio specifically for these investments. Set realistic expectations and establish stop-loss orders or exit strategies to manage potential losses.
