The Metaverse/metaverse is simply a network of 3D virtual worlds focused on social connection. This world concept has become a new trend among technology fanatics, gamers, and cryptocurrency investors. One fascinating aspect of the Metaverse is that you can own virtual land.
However, the concept of buying virtual land is becoming a new trend, and it is similar to the way we buy land/real estate in the real world. Buying a virtual mansion or land is the next big thing after NFTs, and we may see a surge in this concept very soon.
Nonetheless, if you want to purchase land in the Metaverse and do not know how to go about it, this comprehensive guide will show you how.
What is the Metaverse?
The Metaverse is the next generation of the internet. This concept is difficult to explain because there is no universally accepted definition. However, the word “Metaverse” was derived from a 1992 novel by Neal Stephenson known as Snow Crash. In this novel, the Metaverse is a virtual world occupied by real people who might not be in the same physical space.
A quick look at what Metaverse land is
A Metaverse land, which we can also call a Non-Fungible Token (NFT) land, is a buyable digital space in the Metaverse project. Naturally, a Metaverse project divides its map into smaller areas and sells them in single or multiple land offerings. The NFT holder can purchase virtual land through cryptocurrencies — but some Metaverse projects also accept fiat currencies as a medium of payment.
The Metaverse land offers a 3D experience for the owner to explore. Because these lands are NFTs, it is easy to prove authenticity and ownership since it exists on a blockchain network. Also, the virtual landowner can sell their property through a third-party exchange or the Metaverse project platform.
Why do users buy land in the Metaverse?
There are two major reasons people buy land in the Metaverse: bragging rights and ROI. The concept of owning virtual land is the same as owning NFTs – the asset appreciates later. You can decide to rent the virtual land out for parties or exclusive events if it gets more traffic. You can also sell it if you choose to. Imagine the possibilities:
- It is possible to build a virtual house and give it up for rent or set up a digital art gallery for artists to showcase their works.
- It is essential to know that if you have bought land through an NFT video game, you can receive in-game benefits from the plot.
How to buy land in the Metaverse
Purchasing NFT metaverse land follows the same process as when you buy NFTs. However, all you need is a cryptocurrency wallet and some cryptocurrency to get started. Like other investments, make sure you do diligent research before taking risks.
Step 1: Get a cryptocurrency wallet
Before purchasing a metaverse property, you need to have a cryptocurrency wallet that will give you access to your cryptocurrencies. Ideally, the wallet should integrate into your browser. Using a web-based wallet is easier and better. But you can use a mobile depending on your preference.
During the process of signing up to your wallet, you will receive a string of words known as your seed phrase. Keep it in a safe place – in a place no one has access to except you. The best thing is to write them down and keep them.
Step 2: Choose a Metaverse platform
Before buying any metaverse property, you need to pick a metaverse platform. You need to know several virtual metaverse platforms to buy virtual real estate properties. However, the two most popular ones include Decentraland and Sandbox. Also, you can buy through a third-party platform known as OpenSea. For this guide, we will use Sandbox.
Step 3: Connect your wallet
To confirm your purchase, you need to connect your wallet to your account. It is also essential to know that you will see different plots of virtual land available to bid on in the Sandbox map. You can access some of these properties on the Sandbox marketplace or third-party exchanges like OpenSea.
Next up, click on “Metamask.” We will use Metamask as our wallet.
You will see a display pop-up asking you to connect. Click “Next.” Then click on the “connect” button to connect your Metamask wallet.
Once that is done, Sandbox will ask you to add your email address and create a nickname. Click on “Continue” to finish setting up your account. Then set your password. Click “Sign” on the Metamask signature request to complete your account.
Once you have connected your wallet, you’ll see your account balance and profile picture in the top right of the website.
Step 4: Buy SAND or ETH
Before buying a Meta virtual land or investing in one, you need SAND or ETH tokens in your Metamask wallet. Purchasing ETH is better as most SandBox land sales only accept ETH. You can use your debit card to buy ETH tokens. In this guide, we will use Binance to buy our ETH tokens. Once you have purchased your cryptocurrency, you will need to send it to your cryptocurrency wallet.
However, copy the public address from your crypto wallet, paste it on your Binance account, and click on withdraw. Don’t forget to select the right network on your Binance account to withdraw your ETH to your Metamask wallet.
Step 5: Choose your parcel of land
There are filters in the Sandbox map that help you see the available virtual lands for sale. If most of the lands in the Sandbox map have been purchased, you can easily find more options on OpenSea. Once you have found the land you want to buy on The Sandbox, you can either click on “Bid” to place an offer or buy it for a fixed price by clicking the ETH amount. Once that is done, you will see a pop-up that will allow you to make an offer. Put in the bid amount and click on “Place bid” before confirming the transaction with your Metamask wallet. If the seller rejects your bid or the sale ends, your ETH will be returned to your wallet.
It is essential to know that you can also use OpenSea to make an offer if you do not want to go through the Sandbox.
How to sell your Metaverse land
There are two ways you can sell your Metaverse land. You can sell through the Metaverse project’s marketplace or a secondary marketplace. Only third-party marketplaces can be used for sales on The Sandbox. In a few years, landowners will be able to sell directly through The Sandbox for a 5% transaction fee in SAND.
If you want to auction your virtual land on OpenSea, go to your profile on OpenSea and click on the “Sell” button on your NFT. You will be able to create a fixed price.
How to rent land in the Metaverse
Some projects like The Sandbox allow virtual landowners to rent their properties. However, if you want to rent your virtual property to someone, you need to agree with that person, making the process fairly risky. When you want to rent your property, you should never mistake transferring the ownership of your NFT to the renter.
Tips you should know before buying land in the Metaverse
Before you decide on buying a Metaverse property, it is essential that you follow the best practices, just like in any physical investment. Ensure to use the official project link to buy your NFT land or choose a reputable third-party marketplace. Carefully research the platform you invest in before buying any virtual property. Again, always note that buying is not the only option; you can also rent some land in the future.
The digital real estate ecosystem has become popular due to new advanced technologies in the crypto world. As you can see in this guide, it is easy to buy and sell land in the virtual world. Keep in mind that there are times when the current prices of virtual lands become more expensive than an actual physical real estate investment. Before you decide on investing in NFT Metaverse lands, make sure you consider the risks and beware of scams.
FAQs about Metaverse
Can I buy land in the Metaverse?
You can buy virtual land through The Sandbox. Also, there are large third-party marketplaces where you can buy metaverse real estate. Arguably, the most popular are OpenSea and Non-Fungible.com. Both allow you to see historical property sales and properties currently for sale.
How much does land cost in the Metaverse?
Fortune found that the cheapest plots of Metaverse land are selling for roughly $11,000. The smallest plots of land in popular platforms Decentraland and The Sandbox are 1×1 parcels. Virtual land has become a hot commodity as some parcels sell for millions of dollars.