Photo from Sandstorm Media Inc.
Originally Posted On: https://sandstorm.co/how-to-buy-your-first-virtual-land/
In the early 90s, the internet was new to the public, and only a few people were able to access it. Today, according to research, about 65% of the world’s population has access to the internet.
The metaverse can be likened to the future internet, which is young at present, but might see mass adoption in the near future. What is the metaverse? It is simply a generic name for the collection of virtual worlds, whether they are built on the blockchain or not.
Virtual worlds are made of pieces of virtual land, where users can build virtual houses or games. Each virtual world has a native token that serves as a medium of exchange within the ecosystem.
At present, there are several metaverse platforms. Yet, these virtual worlds are not interoperable. With growing technology, avatars will soon be able to travel or “teleport” through different virtual worlds.
Why buy virtual land?
As the metaverse and its audience continue to grow, there will be massive demand for virtual land. It is similar to physical real estate, which tends to appreciate in value.
In 2017, parcels of land on Decentraland were as low as $20. Four years later, a parcel of land cost between $6000 and $100,000. As a result, virtual land is expected to grow exponentially soon.
Likewise, significant investments from popular brands will add substantial value to virtual real estate and the metaverse industry.
Consider the following investments:
- JP Morgan owns a virtual lounge on parcels of land in the Decentraland metaverse.
- Dubai’s VARA, Samsung, and Republic Realm have purchased pieces of land on The Sandbox.
- Binance and FTX own virtual lands on Portals.
- Snoop Dogg owns 122 parcels of virtual land on The Sandbox, and a fan paid $450,000 to be his next-door neighbor.
Virtual lands on blockchain-based metaverses are NFTs that you can develop and resell later.
Where can you buy virtual land?
There are a few things to consider before buying virtual land on a metaverse platform. The price of a piece of land depends on its location in the virtual world, the level of demand within the platform, and the level of popularity of the virtual world itself.
While some land parcels on The Sandbox sell for well over $100,000, the general floor price of virtual land on The Sandbox is $3,000. In comparison, the minimum cost of land parcels on Somnium Space and Crypto Voxels is 0.4 ETH ($600).
When choosing the platform to buy a piece of land, you should consider the size of its community. If the in-game economy of a metaverse platform will survive long-term hurdles, the amount of people exploring the platform is essential.
In addition, you might as well consider the primary activity of a virtual world before acquiring its land. Some metaverse platforms are mainly play-to-earn games, while others feature fantasy worlds, virtual education, and all the activities that a virtual world can offer.
The following are blockchain-based metaverse platforms where you can buy land parcels:
- Decentraland
- Axie Infinity
- The sandbox
- Somnium space
- Crypto Voxels
- Worldwide Webb
- NFT worlds
- Substrata
- Bloktopia
- NetVRK
- Phantom galaxies
- Mirandus, etc.
How to buy your first virtual land
Now that you have considered the purpose of buying virtual land, here are the steps to acquiring it.
Select the virtual space
Earlier, this article mentioned that the metaverse platform you choose would depend on the purpose of acquiring the land parcel. Remember to do some research on the platform regarding the price of land, its community, and the credibility of its developers.
Get a crypto wallet
It would be best if you set up a cryptocurrency wallet that allows you to connect with web 3.0 DApps. Also, ensure that your wallet supports the blockchain network of the land NFT, or it will enable you to configure other networks. More so, you might need to own the native token of the metaverse platform.
Link your wallet to an NFT marketplace
Some virtual worlds have internal marketplaces where you can buy land with the platform’s native token. However, secondary marketplaces allow you to purchase lands using your debit card or crypto assets.
Fund your wallet
Fund your wallet with essential crypto assets for acquiring LAND on exchanges such as Coinbase, Binance, and Kraken. Meanwhile, native tokens of some metaverses are only available on decentralized exchanges such as Uniswap or Pancakeswap.
Nevertheless, ensure you have enough crypto to fund a bidding process and complete payment.
Make payment
Each metaverse platform has a map that shows its landscape. On the map, you can select available parcels of land or bid for purchased land.
After completing a payment, the transaction will be registered on the blockchain, and your land (in the form of an NFT) will be available in your wallet. Blockchain transactions are permanent and irreversible. Accordingly, make sure you are actually ready to buy a virtual land before authorizing the transaction.
Conclusion
Virtual land investors can develop, rent out, lease, or sell a piece of LAND for a higher price. Despite the expectation that virtual land will grow in value, cryptocurrencies and NFTs are volatile and high-risk assets.
Therefore, it would be best not to invest your entire portfolio in virtual lands. Additionally, when buying virtual land on Opensea or other NFT markets, ensure you buy a verified collection, not a scam NFT.
As this article has shown, buying a piece of virtual land in the metaverse is a straightforward process. To learn more about the LAND structure of a virtual world, consult the project’s whitepaper.
