You’d be surprised to know that the virtual real estate market shares more than a few similarities with its real-world counterpart, especially the factors governing pricing. If you are interested in buying virtual real estate or are still unsure about what it means, here’s our comprehensive guide.
What Is the Metaverse?
Simply put, the metaverse is the next generation of the internet. It’s hard to describe it accurately since there is no universally accepted definition. The term was first coined in Snow Crash, a novel by Neal Stephenson, released in 1992. In the book, the metaverse was simply a virtual world inhabited by real-world individuals who might not be in the same physical space as others around them.
The concept was further elaborated upon in Ready Player One, a fantastic novel that was turned into a blockbuster film. Think of the metaverse as a network of 3D simulated worlds connected using virtual and augmented reality technologies. Essentially, instead of accessing the internet via a computer, the metaverse will let you experience it.
Why Buy Virtual Land in the Metaverse?
Two reasons: bragging rights and ROI. There are quite a few virtual real estate projects launching in the metaverse right now. The concept is the same as buying an NFT: you own this digital asset, and since it exists on the blockchain, anyone can verify its authenticity. You can sell your virtual land later on once it appreciates, or you can decide to rent it out (that’s a thing, yes) for parties or exclusive events.
You can also build a virtual house on it and give it up for rent or set up a digital art gallery and allow budding artists to showcase their artwork.
How to Buy Virtual Land in the Metaverse
Now, if you’re interested in buying virtual land in the metaverse, here’s how to go about it.
1. Get a Digital Crypto Wallet
The first step is to get a digital crypto wallet. You can’t buy virtual land using fiat money, so you need first to get a wallet to buy and store your cryptocurrency. Ideally, the wallet you choose should integrate into your browser.
There are several options available to you, such as MetaMask or the Trust Wallet. You can also use the Binance Chain Wallet if you prefer. However, it’s best first to check whether the wallet supports the cryptocurrency that you will use to buy virtual land.
2. Select Your Real Estate Platform
There are several virtual metaverse platforms that you can buy property on. The two most popular options include Decentraland and Sandbox. If you want to buy through a third party, then OpenSea is a great option.
OpenSea is a great idea for first-time buyers as it lets you shop around without constantly switching between platforms. You can compare prices, amenities, and assess the value based on the virtual neighborhood the plot is in.
If you want comprehensive information about where you’re buying your virtual property, it’s best to go with Sandbox or Decentraland. You’ll also get a better understanding about your neighbors this way. For this guide, we’ll be using Decentraland, though the steps are largely similar across all platforms.
3. Browse and Select a Parcel of Land
Now, you just have to browse through different pieces of land that are available and select the one you want to buy. You can see just how far your property is to more famous locations. Prices tend to increase for properties that are in close proximity to popular locations.
Once you select a piece of land that you want to buy, just click on it to see available information. On Decentraland, you can buy virtual real estate using either ETH or MANA. You can view the prices and place a bid, or buy outright. But, before you can buy, you have to connect your wallet to the platform.
4. Connect Your Wallet
To confirm your purchase, you need to connect your wallet to your account. Just click on Jump In and then sign up using your wallet.
Once you sign up and confirm your purchase, your virtual real estate will be sent to your wallet. You will become the official owner of that virtual property, and anyone can verify its authenticity on the blockchain.
It’s important to note that a gas fee is involved, so make sure you have a little bit extra than the amount mentioned on the screen. Or, if you want, you can also make a bid. This gives you some room for negotiation, as owners can decide whether to accept or reject it.
5. Confirm Your Purchase
The purchase will go through as long as you have sufficient funds in your wallet and the price is agreed upon. You can confirm your virtual real estate in your wallet. In case you’re using Trust Wallet, just go to Collectibles. For MetaMask, go to NFTs to get confirmation of your purchase.
Beware of NFT Scams
Metaverse real estate is essentially a NFT. Owing to their meteoric rise, there are quite a few scams out there that you need to be wary of. It’s best to always buy from official, reputable platforms. Also, if a deal seems too good to be true, it probably is.
