How to buy Metaverse NFTs and make money on it?
Blockchains, the Metaverse, NFTs are inextricably connected, but how exactly? Those things don’t exist without one another. However, to most people, the connection between these notions isn’t as important as their financial potential. As a matter of fact, Metaverse NFTs serve that very purpose – non-fungible tokens form a universal financial model which is perfect for the digital world. In fact, you don’t have to be a major developer or owner of a high-demand web product to make money on NFTs. Everyone can earn a profit, and now we are going to tell you what you need for that.
Start investing in metaverse coins right now with Binance!What is a Metaverse NFT?
Many people think that NFTs and the Metaverse don’t exist separately from each other, and in part that’s true. Because the Metaverse in its current form would be impossible to create without NFTs. We are talking about the tokens that are issued in a single copy and cannot be replaced by an analogue. At the same time, they maintain all the properties of a typical cryptocurrency coin, meaning that you can buy and sell them.
That is the first difference between NFTs and other coins – they have no copies, which means these tokens can serve as a kind of a certificate, a confirmation of ownership. For example, land in the Metaverse is presented with NFTs. A unique token is assigned to each land plot. A token owner owns the land, and as long as they have the token, nobody else can physically lay a claim on this land.
Another example is a ticket to an online concert or a private VR event. It is also reasonable to get such a ticket in the form of a non-fungible token, because it cannot be forged, but can be sold or given to someone else. NFT games are a separate subject, which we will discuss in detail below.
The second property of NFTs is that they are created on the basis of smart contracts. A smart contract suggests performance of certain actions when the predetermined conditions are met. The seller won’t receive the funds until he or she sends the product to the buyer. But the buyer won’t receive the product, until they transfer funds to the seller, either.
The smart contract itself guarantees that the parties will abide by the agreement. No additional warrantors or third parties are required. Apart from that, sellers and buyers don’t have to interact directly – purchase and sale are made on a specialized platform, literally in a couple of clicks.
The third property of NFTs, the one that made them the foundation of the Metaverse, doesn’t separate, but rather unites them with regular coins. They are all built on a blockchain, which means a decentralized system in which decisions are made by validators, an independent group of users, formed on one occasion only to carry out a particular transaction. That’s why transactions are always executed, and nobody can change their terms.
The contents of a smart contract are impossible to change. You cannot change an NFT owner or send the sale item to another buyer in the process of contract performance. Also, as with all blockchains, the rule of accountability and anonymity applies here. All transactions are 100% traceable, and at the same time, it’s impossible to identify who makes and receives payments.
This is how the notions of a blockchain, the Metaverse and NFTs are connected. Non-fungible tokens have become the perfect solution to the way financial interactions are going to take place in the digital world. It’s an all-purpose currency, and the object of financial interest, and the warranty of the sale and purchase contract performance, all at the same time. Naturally, a lot of legal issues occur in connection with this. Currently, NFTs are not regulated by the global financial system or public authorities of any country.
The potential of the Metaverse NFTs is directly linked to the potential of the concept itself. The Metaverse is being built by such titans as Meta (Facebook), Nvidia, Unity, and Microsoft. GUCCI, Louis Vuitton, Nike, Coca-Cola and hundreds of other brands from various industries have opened offices in the digital world. It’s not the future, it is the present. There is no doubt that the Metaverse idea will continue to develop at an increasing pace, with NFTs strengthening their positions along the way.
There are always risks, however. Although NFTs have the basic properties of traditional coins, they are much less dependent on political and economic factors. For example, Bitcoin price plummeted against the global turmoil, while the Metaverse price remained the same. Accordingly, the price of NFTs representing this land did not change. This is the key advantage and the biggest drawback of non-fungible tokens: only their owner creates their value.
Let’s say, you buy an NFT of a popular painting for USD 1,000, but soon you discover that you cannot sell it for the same amount, because the author disappeared from the view and is not as highly regarded as before. A reverse situation is also possible, where the author becomes one of the top painters and the prices of his works spike. By the way, this is one of the effective methods of earning a profit on the Metaverse NFTs, which we will discuss further.
Top 5 use cases of the Metaverse NFTs
We have already partially discussed this issue. Metaverse NFTs can represent practically anything, but in the majority of cases they are of one of five types.
Metaverse land
There are five official platforms, where the Metaverse land is bought and sold. They are Decentraland, The Sandbox, Somnium, Cryptovoxels, and Upland, and they are all regulated by Meta Platforms. As we’ve already mentioned, NFTs and cryptocurrencies are used to buy and sell virtual land.
The land is an NFT; it is non-fungible and there is only one copy of it. Every platform has native tokens for settlements. For example, Decentraland uses MANA. You access the platform, deposit funds in MANA or other cryptocurrency (in this case, the funds will be converted) and buy NFT land. If necessary, you can sell your land and withdraw your money from the platform.
NFT games
This is another area that exists at the ‘intersection’ of the blockchain, Metaverse and NFT notions. Many experts believe it to be even more promising than virtual land (although the land price is currently USD 13,000 per land plot and growing). There are many games that use NFTs. The top ones for earning as of 2023 are Gods Unchained, Axie Infinity, The Sandbox, Alien Worlds, and Embersword.
What is it all about? The thing is that the most valuable in-game items in these games are represented by NFTs. Roughly speaking, the sword for your knight is an NFT. It means it is one of a kind; it cannot be forged and it can be sold. To whom, you will ask. You can sell it to another player, at an auction or to an NPC character. You can use the money from the sale to develop your own character (buy another sword, for example) or you can withdraw it to an external wallet and then convert to traditional currency.
The problem with NFT games is the hundreds of scam projects that allow users to deposit funds to the platform, but not to withdraw them. In addition, many games are still very new or not interesting or not developed enough to show real commercial potential. Therefore, the safest option is to invest only in top projects.
Objects of art
Let’s assume you are an artist and you’ve created a digital painting. What is the best way to sell it? Previously, people posted their works on DevianArt and promoted them on Instagram. Now, it is much more beneficial to transform the painting into an NFT format and exhibit it at a gallery of some exchange or virtual platform. For example, there are many galleries in Decentraland.
You can also buy digital land and build your own art gallery on it. For example, that’s what Bram Vanhaeren did – he has his own gallery called Vegas Arts Village on Decentraland. You can admire his works for free there and buy the one you liked.
This applies not only to paintings. In the Metaverse, NFTs represent books, songs, sculptures, films, anything. An object of art can exist in real life and it is not necessary to digitize it; you can simply create an NFT and sell it.
Digitizing real-world objects
Continuing the subject of transferring real-world objects into Metaverse NFTs, this unique area deserves some attention. The thing is that many companies are currently digitizing physical objects: cars, buildings and even entire cities. Digital avatars are then made into NFTs and sold. Or the owner keeps them.
Digitized buildings are widely used to create unique spaces in the Metaverse. Let’s say you have virtual land and you want to build an entire district you grew up in. You go to Matterport or a similar company and they digitize the objects you require; you buy those objects from them as NFTs and transfer them to your land plot.
This all requires huge investments, but the cost of a well-recreated district will be high, especially if you promote your project, although usually people do something like that just for sentimental reasons.
Single use items
The blockchain, NFTs and the Metaverse are phenomena based on social interaction. People communicate, fall in love, fight, create or destroy something together, or just have fun playing online shooter games. In the digital space, you need objects for these interactions, and we’ve already mentioned a couple of examples above.
Let’s imagine that you are a popular rock band giving a performance in the Metaverse (for example The Sandbox). What is the best way to sell concert tickets? As NFTs, of course! It is simpler, more beneficial and eliminates any possibility of scam.
Also, you can offer drinks at a bar as NFTs. Any single-use object can be a non-fungible token. For example, in addition to equipment and skins in online games, also objects that boost your character’s performance (temporary improvements) are represented as NFTs.
How to choose Metaverse NFTs?
The choice of Metaverse NFTs wholly depends on what tokens you need and for what. We have already mentioned that any digital and real-world object can be represented by an NFT. If you are playing an NFT game, it’s simple – you buy the game items and you need and sell those you don’t or you can earn good money on. The value of such items in this case is usually determined by the level of its influence on the character’s properties or game mechanics.
In all other cases, follow these simple rules:
Buy and sell non-fungible tokens only on official platforms and exchanges, for example Binance (see more information below). Little-known and unpopular platforms websites may turn out to be scams.
Analyze the market and the chosen niche. There is no sense in buying NFT art by an unknown artist who does not promote himself and his works. However, there’s a lot of sense in buying a digitized Notre Dame de Paris if the opportunity presents itself.
Think about prospects. If you are buying a Metaverse NFT to earn a profit, the confirmed value of the token in the future and not now is what’s important. Virtual land is an excellent example. A year ago, the land was priced at USD 1,000, while now it is sold for USD 13,000 per land plot and higher.
Do not be guided by the specifics of the platform. For example, land in Decentraland is sold for MANA. This, however, does not mean that you can earn any other cryptocurrency on it. MANA is easily converted at the current rate at any exchange.
You can also make money on NFTs in the short term, on the trend, but this requires some serious analysis and professional prediction. Stay up to date with the events of the Metaverse and the world of cryptocurrencies.
These recommendations are applicable only in case you want to earn a profit from buying non-fungible tokens. If you are buying something for personal use (for example to build your dream house on your virtual land), follow only the first recommendation and work on reputable platforms.
Ways to earn money on Metaverse NFTs
The majority of people interested in Metaverse NFTs want to earn money. This is a good thing, because despite its cultural significance, the Metaverse has a strong financial basis. It was literally created for those who want to grow their capital. Let’s review the most popular ways to do that.
NFT games
This is the easiest and therefore the most popular option. There are several dozens of promising projects, for example Crypto Space War, developed with support of Binance. The mechanism of making money on gaming projects consists in obtaining valuable NFT items to subsequently sell them.
These games often use real cryptocurrencies for financial transactions. However, even if you are using an in-game currency, it still can be freely converted into real currency and transferred to an external crypto wallet. This way of earning a profit requires time and patience to learn the game mechanics and understand the best way to obtain the most valuable objects. And last, but not least, the game must be popular, so that you have people to sell your items to.
How popular are Metaverse games? Here are a couple of facts for an answer: in April 2020, a Travis Scott concert took place in the Fortnite game, and in January 2023, Ariana Grande performed at this virtual venue.
Metaverse land
We have stated more than once that Metaverse land is also an NFT. Land can be bought and sold or rented out. If some popular object was built on your land, you can sell advertising spaces, which is currently one of dominating trends.
The complexity of this method is that the land in virtual space is rather expensive and will not get cheaper any time soon. This means that you require some serious initial capital. You will need even more, if you plan to build something on your land, because all objects are bought. You can create them on your own, if you have professional knowledge of 3D design and rendering.
Selling rendered and original items
Continuing the topic of the Metaverse land, one more popular earning method must be mentioned. Rendering objects of the real world in the digital space is highly valued, as is creation of original 3D models. These can be successfully sold and resold at specialized platforms.
If you are a designer, sell directly. If you don’t have such skills, but you are experienced in commerce, buy at stock websites and resell for more. The peculiarity of these NFTs is that there is an equal chance of them losing value or becoming more expensive. A rendered image of the Eiffel Tower will not become cheaper. The price of a popular venue or facility will automatically increase.
For example, right now the rendered image of the Hollywood Walk of Fame costs USD 200,000 on decentworld.
Property
We decided to make this a separate category, as the buildings in the Metaverse, which are also NFTs, represent a special class of objects. They are used for different purposes: as exhibition halls, virtual stores, offices, lecture halls. They have practical applications that determine their value.
When Manchester United FC was buying land in Decentraland, the club did not hire designers to “decorate” their platform, but purchased ready-made buildings. This is what businesses that are entering the world of virtual reality often do. If a brand has a nice futuristic office in the Metaverse, it seems more presentable. There is an earning opportunity here, as there are entire exchanges of digital property with a multi-million turnover.
Platforms like decentworld sell not just houses, but entire districts. By the way, this exchange is owned by Swiss Asset Management AG.
Art
This is a wide area with huge opportunities. If you can sing well, you can organize a concert with VIP seats on your land in the Metaverse. The tickets for the concert are sold as NFTs. And if you can paint, we’ve already discussed this, you can open an art gallery and sell your works. If you write books, make clothes, or are involved in any other form of art, your works can be presented as NFTs and sold.
There is one thing you need to understand about earning money on Metaverse NFTs: everything that is popular in the real world is popular in the virtual world. Everything can be bought and sold on digital platforms, which makes the methods of making a profit in the Metaverse not much different from those used in the real world. The only difference is the technology.
Where and how to buy Metaverse NFTs
Metaverse NFTs are sold on dozens of platforms. We have already mentioned the importance of working exclusively with official exchanges to rule out fraud. Now, let’s review the examples of such exchanges, which are also called NFT marketplaces.
Best Metaverse NFT Marketplaces
NFT marketplaces: where to buy NFT tokens?Binance
This is one of the largest financial ecosystems in the world that launched its own NFT marketplace fairly recently, in January 2023. It is a universal platform that sells non-fungible tokens of all types. There are singular NFTs, collections, mystery boxes, items for NFT games. The sale and purchase of tokens runs as a time-limited auction, just like on other similar platforms. Users praise the simplicity and convenience of the exchange, a user-friendly interface and a large selection of NFTs.
OpenSea
It is the largest Metaverse NFT exchange in the world that helped create the Metaverse as we know it. It is a universal peer-to-peer platform that provides users with simple instruments to create, sell and buy NFTs of all types: from virtual real estate to art objects and Web3 domains. The monthly turnover of non-fungible tokens on OpenSea has already exceeded USD 10 million. Many people believe it is the best exchange to buy niche NFTs.
NiftyGateway
It is a specialized platform that offers mainly art. Top artists of our time like Pak and Beeple post their work on it. You can often witness exclusive drops on the platform that cannot be found anywhere else. Over the past year, NiftyGateway has expanded its range somewhat, and now you can buy and sell collections of digital avatars here.
Rarible
This exchange is behind the previous two marketplaces in terms of trading volumes, but has a different advantage. It is a universal platform with the lowest listing and transaction fees. Whether you are selling or buying, Rarible will charge you with the lowest fee in the market. This advantage helps the marketplace to actively gain an audience and secure one of the top positions in the segment.
SuperRare and MakersPlace
We decided to review these platforms together, because they have common features. Firstly, both have high entry threshold, i.e. NFT creators pass a multi-level verification, before they are allowed to post their works.
Secondly, these platforms belong to the elite category. You won’t find simple art works here, only serious paintings. The prices are also entirely different. For example, last year digital artist Mike Winkelmann (Beeple) sold his iconic Everydays: the First 5,000 Days for USD 69 million. And that’s not all of it: the owner of this digital art Pablo Rodriguez-Fraile resold it four months later for 100 times the price.
How to buy Metaverse NFTs?
The majority of top marketplaces have different interfaces, but the same algorithm of buying NFTs. We will use Binance as an example. Once you know how to buy Metaverse NFTs on this platform, you will be able to buy them everywhere.
Step 1. Go to the Binance website. On the top right corner click Register and then follow the instructions.
Step 2. Once you’ve completed registration, you will need to verify your personal information in order to receive full access to the platform’s functionality. To do this, click Verification at the top of the screen. You can choose any type of verification for accessing the NFT marketplace. Follow the instructions; you will need to provide a scanned copy of your identity document (passport or driver’s license).
Step 3. Wait for the verification to be complete. Go to the main menu of your personal profile and deposit funds to your account. You can use all available options, including direct payment with a debit/credit card and transfers from other electronic wallets.
Step 4. In the main menu of the website (top of the screen), you will see NFT. Click on it and you will be redirected to Binance NFT. The platform features three sections: Gaming, Marketplace and Mystery Boxes. The sections differ in types of NFTs you can buy there. Review the sections and the tokens offered in them.
Step 5. Once you decide on the Metaverse NFT you want to buy, click on it. The token’s card will open in a new window with detailed information about it. Take notice of the history of offers. If you are prepared to pay more for the token than the latest offer, click Make Offer. In the next menu specify the amount and confirm your choice; the amount will be locked on your account.
Step 6. In the right corner of the token card you can see when the auction ends. If nobody outbids you before the time runs out, you will get the token for your collection and the money for it will be written off your account. If somebody else makes a higher offer, you will have to outbid it. The standard auction rules apply here.
Step 7. You can buy any number of Metaverse NFTs and sell them here. In order to sell a token, go to your collection, select the NFT you want to sell, click on it and then click Sell. You need to specify the auction period and minimum offer. If nobody buys your token before the auction period expires, your token will be returned to your collection.
Note that the exchange charges a fee for purchase and sale of Metaverse NFTs. You can learn about the commissions and fees in the relevant section of the website or contact customer support of the marketplace (the contacts are available in the footer).
Conclusion
Blockchain, NFT and Metaverse are indeed interrelated notions and that is their main advantage, because the Metaverse is a part of the global informational and economic system. The NFTs of the Metaverse are a given that, in addition to all other things, allow everyone to grow their capital.
The prospects of NFTs are based on the IT industry expecting the digital world to continue developing further. VR and AR will no doubt continue to infiltrate our lives more and more. Major brands and small businesses are buying Metaverse land. Non-fungible tokens complement traditional and digital art, acting as a convenient and safe tool for buying and selling.
Most importantly, this is a public niche. Anybody can register in Decentraland. Everybody has a chance to buy a land plot, obtain a rendered image of their house and place it in a virtual environment. It is also easy to digitize your art (provided that it is not digital to start with), and then post it to a marketplace. It is even easier to buy Metaverse NFTs. And in most cases, the acquirer receives a profit from subsequent sale. That is why non-fungible tokens are a unique phenomenon worth investing in right now.
FAQs
What are Metaverse NFTs?
Metaverse NFTs are non-fungible tokens used in virtual space for various purposes. NFTs can represent digital objects of art, Metaverse land, an item in a game, etc.
How to earn money on Metaverse NFTs?
Let us give you examples. You can buy, sell and rent virtual land, or sell NFT gaming items. If you paint, sing or you are a 3D designer, you have an opportunity to directly monetize your art.
Can you make money on NFT games?
The principle is as follows: the loot (items picked up by a player) and avatars are represented as NFTs. This means that you can buy and sell them. The proceeds remain in the game or are converted into an external cryptocurrency.
What is the best place to buy Metaverse NFTs?
Use only official platforms, for example OpenSea, NiftyGateway, Rarible, SuperRare, MakersPlace and Binance. We recommend Binance because of the ease of registration and low fees.
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Team that worked on the article
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.