From Virtual Assets to Digital Economy: A Beginner's Guide to Metaverse and NFT Investment

Have you ever wondered why some people are willing to spend thousands of dollars to buy a piece of virtual land? Why can digital artworks sell for astronomical prices at auctions? The answers are hidden in the world of the metaverse and NFTs.

Imagine a scenario: you purchase a virtual outfit online. Traditionally, this clothing can only be worn in specific games or platforms; but if it is an NFT asset, you can display it in any virtual world that supports that standard. This difference is at the core of how the metaverse coin and NFT ecosystem are changing — shifting from “usage rights” to “ownership.”

Understanding the Metaverse: More Than Just a Game

What is the metaverse? The concept originated from the 1992 novel Snow Crash, depicting a virtual world parallel to reality. Today, it has evolved into a visually rich, fully functional virtual space where people can work, socialize, entertain, and conduct business activities.

Venture capitalist Matthew Ball once said, “The metaverse represents the fourth computing revolution after mainframes, personal computers, and mobile devices.” This statement reveals that the metaverse is not just technological progress but a new paradigm that changes how humans interact.

The foundation enabling the metaverse to operate is the combination of blockchain technology and NFTs (Non-Fungible Tokens). Without these two, virtual assets cannot truly be owned and traded.

NFTs: The Value Foundation of the Metaverse

What is the role of NFTs? Simply put, NFTs are blockchain-based digital assets that provide unique identification and proof of ownership for virtual items. In the metaverse, NFTs are like anti-counterfeit IDs, ensuring the authenticity and scarcity of each asset.

Compared to traditional digital assets, NFTs have decisive advantages:

Feature Traditional Digital Assets NFT Assets
Uniqueness Copyable (photos, music) Each one is unique
Ownership Difficult to prove, often vague Clearly recorded on blockchain
Tradeability Platform-limited, hard to transfer Freely tradable across multiple markets
Modifiability Owners can modify at will Once created, generally immutable
Uses Mainly for consumption Collecting, investing, gaming, and more

What happens if the metaverse lacks NFTs? Virtual real estate could be delisted by platforms at any time, game items might be untradeable, and virtual clothing designs could only be worn by oneself. Asset values would be locked inside servers, with no liquidity.

Market Performance and Risks of Metaverse Coins

In the last crypto bull market, Decentraland (MANA) and The Sandbox became star projects. Data shows that MANA tokens surged by 4,100% in 2021, far exceeding Bitcoin’s growth during the same period. The virtual land prices in The Sandbox skyrocketed from 1,000 to 45,000, surpassing Taipei real estate growth.

However, as the crypto market adjusted, the trend of metaverse coins and related NFTs reversed. The floor prices of The Sandbox and Decentraland continued to decline, and many niche projects even faced zero trading volume and being ignored.

This reflects a harsh reality: the metaverse and crypto markets are highly correlated — prosperity and decline go hand in hand. When overall crypto sentiment is high, capital floods in; when market sentiment wanes, these assets face steep declines.

How to Participate: From Beginner to Trader

For ordinary investors, buying metaverse coins and NFTs is the most direct way to participate. Here are the complete steps:

Step 1: Choose a Trading Platform

OpenSea is the most mainstream NFT marketplace, aggregating projects across various blockchains. Most NFT trading platforms have similar functions, but OpenSea is the most suitable for beginners due to its liquidity.

Step 2: Set Up a Digital Wallet

Install a Web3 wallet like MetaMask (similar to a bank account for crypto assets), and connect it to OpenSea to log in. The first connection requires accepting terms and creating an account, which is free.

Step 3: Deposit Crypto Assets

Purchase Ethereum (ETH) or other supported cryptocurrencies through major exchanges and transfer them into your digital wallet. With sufficient funds, you can start trading.

Step 4: Find and Buy NFTs

Search for your preferred metaverse project or NFT on OpenSea, and complete the purchase step-by-step. If you think the floor price is too high, you can also participate in auctions for potentially lower prices.

Step 5: List or Trade

To sell your NFT, go to your profile, find the asset, and select “Put on Sale.” You can set a fixed price or participate in an auction. You can also accept lower-than-market bids for quick sales.

Three Major Safety Tips

  • Never input your private key on unfamiliar platforms (it’s equivalent to your bank password)
  • Do not use the same password for all accounts
  • Do not trust any “guaranteed profit” NFT airdrop promotions

Investment Advice and Risk Warning

Metaverse investment has a moderate entry barrier but faces unique challenges. Most projects lack liquidity and are prone to being abandoned. For beginners, small-scale testing is the safest approach.

Be cautious: many projects claiming to be part of the metaverse are essentially vaporware, relying solely on market hype. Once the hype subsides, prices can crash. If you lack fundamental understanding of the projects, it’s best to stay away from obscure metaverse coins and NFTs.

Comparison of Metaverse Investment vs Other Investment Methods

Investment Type Capital Threshold Advantages Disadvantages
Metaverse/NFT Varies; well-known projects are expensive Can trade anytime, high volatility Liquidity unstable, hard to short
Crypto Lower, can buy in parts 24/7 trading, supports leverage Varying project quality
Futures/CFDs Low, mini lots available Two-way trading, high leverage Limited profit space
Stocks Higher Strict regulation, most compliant Many restrictions, limited profit potential

Long-term Outlook for the Metaverse

From a technological perspective, virtual reality and artificial intelligence will become the core support of the metaverse. Tech giants like Meta, Microsoft, and Google have already invested heavily, indicating the industry is moving toward maturity.

Economically, virtual economies will continue to expand their share in the global economy, with new business models and industrial chains potentially taking root. As an integral medium of exchange, metaverse coins will see increasing application scenarios as the ecosystem matures.

It is expected that more comprehensive legal frameworks will emerge, lowering entry barriers and curbing malicious activities. Eventually, the metaverse could truly change how people socialize, work, and live.

Frequently Asked Questions

Are the metaverse and NFTs scams?

Mainstream and well-known metaverse projects have real applications and are not purely marketing scams. However, some niche projects carry risks and require careful screening.

Are metaverse investments risky?

All investments carry risks. If you participate blindly in cheap “air projects” without basic knowledge, the risks are significant. But since NFT and metaverse coin trading do not involve leverage, as long as you follow trading discipline and ensure sufficient liquidity, you can relatively calmly enter and exit the market.

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