A few years ago investing in digital real estate or virtual real estate, seemed like something out of this world, but today things are very different. Nowadays, you can buy slots of land in digital worlds, such as Decentraland, and gain significant revenue. Investing in digital real estate can be another great source of passive income if you’re looking for new business opportunities.
If you are considering tapping into the digital market, now is the time to invest. Unlike other markets, you can invest in digital real estate without massive risks.
But before seeing how digital real estate can increase your passive income, we need to understand the term digital real estate better.
Digital real estate meaning
Digital real estate is often considered a subset of digital assets. This definition may be vague, but once we’ve established what digital assets are, everything will be more precise. A digital asset refers to anything that exists online and has value. It takes various forms and shapes, but the most common examples of digital assets refer to websites, domain names, social media platforms, apps, etc.
More complex digital assets include cryptocurrency and owning parcels of virtual real estate in the metaverse.
Owning a famous domain name such as Hotels.com is incredibly valuable. It is easy for consumers to remember, which helps it rank high in search engine results. A good ranking in search engine results provides good visibility and generates traffic.
Websites like facebook.com have tons of data in assets attached to them. They are valuable because of the business that runs them.
However, there’s much more to digital real estate than websites and apps. With digital real estate investing, people can purchase digital blocks of real estate that exist in the virtual world. This block of land exists on blockchain technology, a decentralized, distributed ledger that stores the record of ownership of digital assets. Any data stored on a blockchain cannot be altered, making the technology a legitimate disruptor for industries like payments, cybersecurity, and healthcare.
Investing in digital real estate might be a legit source of passive income and could help you gain significant revenue if done correctly.
How to invest in the digital real estate metaverse
While most of us are familiar with the more user-friendly digital real estate investments like creating a blog or starting a youtube channel, only a few understand how investing in the digital real estate metaverse works. Throughout the following paragraphs, we will focus on the metaverse type of investment and the steps to follow to make such a type of investment.
First, we need to understand what metaverse is.
A metaverse is an online 3D space where users can interact with each other and with computer-generated objects and avatars. It is a virtual world that uses the internet as its fundamental network. You can use metaverses for various purposes, including social networking, education, gaming, etc. They can reflect the real world or create entirely new imaginary worlds.
Metaverses offer unique and captivating experiences and are the future of the internet. They are constantly growing and provide countless alternatives for exploration and interaction.
There are multiple ways to access metaverses nowadays, and various platforms offer VR, augmented reality, and extended reality.
Common examples of such platforms are Fortnite, Roblox, Decentraland, and Sandbox. Usually, you can access these worlds through a VR headset, where users can navigate with the help of eye movements, voice, or motion-sensing controllers.
Virtual real estate has already grown into a significant business. For various reasons, companies and superstars like JP Morgan and Snoop Dogg have already purchased virtual land. In the last year, virtual digital real estate has seen significant growth. In less than a year, the price for a plot of land in Decentraland or Sandbox has grown from around $1000 to $13000.
Here are the steps to follow if you’re interested in purchasing a plot of virtual land in the metaverse.
1. Select a platform
Choosing the right platform for your metaverse land is a crucial decision that will impact the success of your investment. Each platform provides a guideline for buying land in the metaverse, so it’s essential to review them before starting.
When choosing the platform, consider your purposes with the land you purchase. Each offers unique features you’ll need to analyze before making a choice.
There are various places where you can buy land parcels on primary and secondary marketplaces, including Decentraland, Sandbox, Axie Infinity, Matrix World, NFT Worlds, and Crypto-Verse.
2. Create your cryptocurrency or NFT wallet
After you have chosen you’re platform, you will need a wallet where you can access your cryptocurrency. There are many wallets available, like Venly, Bitski, and MetaMask. Create a wallet for your crypto that will allow you to purchase the real estate you are interested in. Before creating your wallet, ensure you’ve checked the compatibility with the platform where you want to make your purchase. For example, the cryptocurrency SAND is used for the platform Sandbox, while MANA is used for purchases made in Decentraland.
3. Link your wallet to the metaverse
Each metaverse platform has its signup process. You will have to create an account first, then link your wallet. The process of linking your wallet is not as demanding as you may think. You can install browser extensions and complete the process for you.
4. Buy Crypto and move it to your wallet
You can buy crypto using marketplaces like Binance. Using your Binance account, you can use a credit or debit card to buy the relevant cryptocurrency and transfer it to your wallet. Without completing this step, you won’t be able to complete your purchase.
5. Confirm your purchase
Once you have your cryptocurrency in your digital wallet and you’ve made a decision regarding the plot of land you want to purchase, you can head to the metaverses’ marketplace and bid or buy the land for the asking price. You will have to enter the bid amount if you’re looking to make a bid. If your offer is accepted, you will now be the proud owner of a virtual piece of land. If not, the amount will return to your wallet.
How to obtain profit from virtual land
There are several ways to monetize your virtual land. You can hold to it until its value increases, then sell it for profit. Other users choose to build upon the land a wide range of virtual properties for themselves or other users to utilize. That includes concert venues, clubs, casinos, NFT galleries, stores, etc.
Another option for you to make a profit from your virtual land is advertising. Areas of the metaverse with heavy foot traffic are becoming valuable for advertising purposes. Landowners can rent it to companies to promote their products and services.
The metaverses are created to amplify the experiences we already have online while helping make new ones. Therefore, land in the metaverse is being used to host events and run services.
Metaverses like the Sandbox also encourage users to create and publish mini-games and educational activities that others in the community can take advantage of. It is another great stream of passive income.
While some are still reluctant to invest in something they can touch, feel or taste, plenty of other investors think digital real estate is the future and a great source of passive income. If considering tapping into digital real estate, ensure you have done proper research first. Like any other investment, it has its drawbacks and risks, so a 100% success rate is not guaranteed.
