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How To Buy Metaverse Crypto Tokens

Everything you need to know about metaverse crypto

By Neuza ModdPublished 4 months ago 6 min read
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Metaverse crypto tokens have arisen as a new sub-asset class in the crypto markets, enticing investors looking to get in on what may be the next version of the internet. Early-stage versions of the metaverse, such as Decentraland and Sandbox, are driven by cryptocurrencies that serve as virtual currency in these realms. They provide an opportunity for investors to obtain financial exposure to this new and rapidly developing sector.

Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly speculative and dangerous, and markets may be quite volatile. Before making any financial decisions, get the advice of a trained specialist. Investopedia or the author make no suggestion to invest in cryptocurrencies, nor can the accuracy or timeliness of the material be guaranteed.

What Is Metaverse Crypto?

Metaverse crypto is a subset of cryptocurrencies that allow users of blockchain-powered virtual worlds to purchase and trade digital assets including virtual land, real estate, and avatar stuff. However, like with all crypto assets, they are high-risk investments, thus comprehensive study is required before deciding to include metaverse tokens in your crypto portfolio.

While top metaverse tokens like Decentraland's MANA, Sandbox's SAND, and Axie Infinity's AXS saw great price increases in the 2021 crypto bull market, their values crashed along with the rest of the crypto market in 2022, underlining the riskiness of this sub-asset class.

The metaverse has also drawn the attention of large worldwide businesses searching for new ways to promote their brand, reach new customers, and boost customer loyalty. Nike and Gucci, for example, have already taken the plunge, investigating how NFTs may enhance their client experiences. Nike has acquired the NFT fashion business RTFKT with the intention of selling Nike shoes in the metaverse, while Gucci hosted its own Gucci Vault Land in the Sandbox metaverse late last year.

How to Buy Metaverse Crypto

Purchasing metaverse coins on a crypto market is the same as purchasing Bitcoin, Ethereum, or any other digital money. Cryptocurrency exchanges are online trading platforms that allow you to purchase and sell digital currencies for US dollars or other cryptocurrencies, comparable to traditional internet brokers like Fidelity or Charles Schwab.

Step 1: Join a cryptocurrency exchange.

Choose a trustworthy cryptocurrency exchange, such as Coinbase, Kraken, or Uphold, where you may acquire metaverse tokens by depositing US dollars with a payment method that works for you. Create an account and finish the client onboarding procedure for the exchange.

Step 2: Confirm your payment information.

Following that, you must select the payment method you want to utilize to fund your trading account. Wire transfers are commonly allowed by all US-based cryptocurrency exchanges.

Step 3: Choose the metaverse token you wish to purchase, check the current market price, and click "buy."

After funding your account, select the metaverse token(s) you wish to buy, make an order for the quantity you want to buy, and wait for your order to be filled. If you make a market order, your purchase will be processed in seconds, and the tokens will appear in the wallet of your trading account.

Alternative Methods of Purchasing Metaverse Crypto

You could also buy metaverse coins using peer-to-peer trading networks. Unlike centralized cryptocurrency exchanges, where you make an order that is entered into an order book for a certain cryptocurrency pair, a peer-to-peer marketplace allows you to acquire cryptocurrencies directly from another individual using a specified payment method and at an agreed-upon price.

Keep in mind! Furthermore, you might use decentralized exchanges (DEXs) to exchange existing cryptocurrencies for metaverse tokens. Decentralized exchanges need you to connect your crypto wallet to the trading platform's smart contract in order to swap one token for another without creating a trading account or completing a customer verification process.

Types of Cryptocurrency Exchanges

Centralized Exchanges

Centralized crypto exchanges are similar to traditional online brokerages in that traders and investors may buy and sell cryptocurrencies after completing a client onboarding procedure and putting US dollars into their trading accounts.

Decentralized Exchanges

Decentralized crypto exchanges are trading systems in which smart contracts replace a centralized orderbook, allowing crypto traders and investors to exchange tokens simply by linking their crypto wallets. There is no need to verify your identity.

The most persuasive justification for trading on decentralized exchanges is that events like the FTX collapse have no effect on user money since assets are stored in users' wallets, apart from a centralized exchange wallet. As a result, if a decentralized exchange is hacked or the corporation that runs it goes bankrupt, user money are unaffected.

Hybrid Exchanges

Hybrid crypto exchanges combine a centralized orderbook for matching transactions with decentralized token storage to provide crypto traders with the best of both worlds.

What Are the Top Metaverse Coins?

Axie Infinity (AXS)

Axie Infinity is undoubtedly one of the most popular metaverse-esque blockchain games, allowing users to combat their in-game avatars, known as Axies, in numerous virtual territories, with the winners receiving tokens. AXS is the game's governance token, which allows players to influence the game's evolution. It is also utilized as a transactional currency in the game's NFT marketplace.

Decentraland (MANA)

The MANA token from Decentraland is the dominant virtual world's in-platform money, allowing users to deal in the early-stage metaverse. MANA is necessary to purchase anything from virtual property holdings to wearable things.

Sandbox (SAND)

By providing a dynamic virtual environment powered by the SAND token, the Sandbox has been able to draw some of the most prominent artists, influencers, and companies to the metaverse. SAND, like Decentraland's MANA, serves as the in-world money necessary for transactions.

Factors to Consider When Opening a Cryptocurrency Exchange Account

Security: Security is undoubtedly the most critical feature of a reliable cryptocurrency exchange. Choose an exchange that has a great cybersecurity track record and has never been hacked.

costs: Trading and other exchange costs (such as withdrawal fees) can significantly reduce your returns. Choose an exchange with minimal costs to reduce the impact of fees on your trading income.

The number and quality of supported cryptocurrencies: If you want to buy metaverse tokens, be sure the exchange you pick supports the assets you want to buy. While the majority of major exchanges support the top metaverse tokens, some provide greater liquidity than others.

Wallet security: Select an exchange that offers secure crypto wallets, preferably with additional security measures such as withdrawal wallet whitelisting. Address whitelisting is a security feature offered by several cryptocurrency exchanges that restricts bitcoin withdrawals to predetermined "whitelisted" external wallet addresses.

Storage and custody: Ensure that the cryptocurrency exchange you pick keeps the majority, if not all, of its customers' assets in cold storage to reduce the danger of theft of your assets kept on the exchange.

Centralized vs. decentralized: While decentralized exchanges may appear to provide a more safe trading environment, centralized exchanges are often regulated (at least to some extent), giving more client protection than their uncontrolled decentralized equivalents.

How To Earn Crypto in the Metaverse?

Land Sales: Buying and selling virtual land has become one of the most enticing income streams in the metaverse. Some pieces of Land-virtual land offered in Decentraland as NFTs-have sold for hundreds of thousands of dollars.

Providing Services: Just as in the "real" world, metaverse users may earn cryptocurrency by providing services such as promoting companies through virtual advertising space or serving as a virtual tour guide around the metaverse.

Digital Asset Creation: Metaverse users can earn cryptocurrency by developing and selling new digital assets, often in the form of NFTs.

Selling Avatar Accessories: Avatars may be personalized with a variety of products such as clothing and shoes. These may be purchased and sold as NFTs, allowing metaverse users to profit in the metaverse.

Hosting Virtual Events: Hosting virtual events like concerts and art displays has become a popular method to earn money in the metaverse.

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About the Creator

Neuza Modd

Freelance writer

Crypto enthusiast

Investment blogger

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