From Virtual Assets to Investment Opportunities: An In-Depth Understanding of NFT and Metaverse Ecosystems

Have you ever purchased digital content online that you couldn’t resell? Or spent a lot of money on skins in a game that can only be used on that platform? These everyday experiences actually reflect the core issues of the traditional digital world—lack of true ownership proof. The emergence of blockchain technology is changing all of this.

What exactly is the Metaverse?

The concept of the Metaverse didn’t come out of nowhere; it originates from the 1992 science fiction novel Snow Crash, which describes a virtual world parallel to reality. But in today’s technological context, the Metaverse has evolved into a broader concept: a multi-dimensional virtual ecosystem integrating visuals, social interactions, economy, and more.

In this system, people can work, entertain, shop, and socialize—these seemingly simple activities are actually built on blockchain and NFT technologies. Venture capitalist Matthew Ball once said that the importance of the Metaverse can be summarized as: “The Metaverse represents the fourth wave of computing, following mainframe, personal computing, and mobile computing.” This is not just hype, but a profound insight into a paradigm shift in computing.

How do NFTs become the “identity verification system” of the Metaverse?

NFTs (Non-Fungible Tokens) are the infrastructure of the Metaverse world. Simply put, NFTs are digital assets based on blockchain technology that assign a unique identity and proof of ownership to every item in the virtual world.

Imagine what a Metaverse without NFTs would look like:

• The virtual property you painstakingly built in a game could be deleted at any time due to platform decisions—assets wiped out
• Virtual clothing created by designers can only be worn by oneself and cannot be commercialized
• Purchased virtual items cannot be resold on other platforms, with their value forever locked on a single server

NFTs change all that. Through the tamper-proof nature of blockchain, each NFT asset becomes a truly portable, tradable, and verifiable digital ownership.

The fundamental difference between traditional digital assets and NFT assets

The symbiotic relationship between the cryptocurrency market and the Metaverse

The Metaverse and the crypto market have a typical “mutual prosperity and mutual loss” dynamic relationship. This was especially evident during past bull markets.

In the market boom of 2021, projects like Decentraland and The Sandbox sparked a frenzy of buying virtual land. The MANA token surged by an astonishing 4,100%, far outperforming BTC during the same period; meanwhile, the average price of virtual land in The Sandbox skyrocketed from 1,000 to 45,000, surpassing Taipei real estate data from the same period. This wave of enthusiasm attracted massive capital inflows, boosting the entire crypto market.

However, when the market peaked and declined, Metaverse assets bore the brunt. The floor prices of Decentraland and The Sandbox continued to hit new lows, and trading volumes of many NFT projects dropped to zero. This fully demonstrates that Metaverse investment is closely linked to the overall crypto market cycle.

Starting from zero: How to enter Metaverse investment?

For ordinary investors, the most practical way to participate in the Metaverse is to buy and trade NFT assets or related project tokens. Although this process involves multiple steps, the overall flow is relatively standardized.

Step 1: Choose an NFT trading platform

Mainstream NFT platforms have similar features and gameplay. OpenSea is currently the most widely used, supporting NFT trading across multiple blockchains.

Step 2: Set up a digital wallet

Before trading, you need to prepare a digital wallet. MetaMask (the fox wallet) is the most common choice. Its main function is to connect to trading platforms and execute buying, selling, and transferring operations.

The connection process is simple: log in to the platform’s official website → click “Connect Wallet” in the top right corner → follow the prompts to create an account (usually no account opening fee). Note that the first connection will require accepting relevant terms.

Step 3: Purchase cryptocurrencies and deposit

Buy digital assets like Ethereum(ETH) from major crypto exchanges, then transfer them into your wallet address. Having sufficient funds is necessary for subsequent transactions.

Step 4: Buy NFTs of interest

Enter the platform, select the target NFT project, and complete the purchase according to system prompts. If you think the current floor price is too high, you can choose to bid in an auction—bidding prices are usually below the floor price, offering a chance to snag a bargain. But be aware that if your bid is significantly lower than the actual value of the asset, it will be difficult to win.

Step 5: Resell NFTs

After holding NFTs, you can list your assets on the market, set a price or participate in auctions. Find your owned NFTs in your profile, select the listing option, and choose to list directly or auction. Once the price and duration are set, you can earn digital currency once someone makes a purchase.

Platforms usually display OFFER quotes, which are often below the market floor price. If you need to sell quickly or think the quote is reasonable, you can accept the offer to complete the transaction.

Three must-know safety tips for entering the virtual world

• Tip 1: Never input your private key on unfamiliar platforms — Your private key is equivalent to a bank password; once leaked, your assets are completely out of control
• Tip 2: Avoid reusing the same password — Setting different passwords for different platforms is a basic security habit
• Tip 3: Beware of “guaranteed profit” NFT airdrop ads — No investment can guarantee returns; such ads are often phishing traps

Real-world challenges faced by Metaverse investment

After the enthusiasm wanes, participants need to view this market more calmly.

Lack of liquidity is the main challenge. Since Metaverse/NFT investments are still niche, most projects face liquidity issues, and investors may encounter situations where there are no buyers or difficulty in selling. This means that even if the assets you hold are worth a lot in theory, you may not be able to liquidate quickly.

Fraudulent projects are common risks. Many projects claiming to be part of the Metaverse are essentially worthless, purely hype and emotional trading. Once market enthusiasm dissipates, their prices will plummet sharply.

Beginners should be cautious. For new entrants, using small amounts of capital to learn is wiser. If you lack strong market judgment, it’s best to stay away from projects you are unfamiliar with or lack reputation.

Comparison of Metaverse/NFT investment with other investment methods

Long-term outlook: the future direction of the Metaverse

From an industry investment perspective, the continued involvement of tech giants like Meta (formerly Facebook), Microsoft, and Google indicates that the Metaverse is not a fleeting hype but a recognized development direction by mainstream capital.

Technologically, virtual reality and artificial intelligence will become key supports for the Metaverse. Economically, the share and influence of virtual economies in the overall economy will further expand. As technology matures and application scenarios diversify, new business models and industrial chains will truly take shape, bridging virtual and real worlds.

In short, the Metaverse has the potential to change people’s lifestyles, social modes, and economic operations.

For the NFT field, more diverse application models are expected to emerge in the future. Meanwhile, relevant laws and regulations are also likely to be established and improved, further lowering entry barriers, regulating market order, and reducing malicious behaviors.

Common questions about the Metaverse and NFTs

Q: Are the Metaverse and NFTs really scams?

While there are indeed fraudulent activities in this field, mainstream and well-known Metaverse projects usually have substantial real-world applications and are not purely marketing or scams. As a development trend recognized by mainstream capital, the Metaverse mainly represents genuine technological innovation.

Q: How risky is investing in the Metaverse?

All investments carry risks. If you lack understanding of the basic concepts and participate impulsively in projects that seem cheap but are essentially air, the risk is significant. However, since Metaverse/NFT investments do not involve leverage, maintaining good trading discipline and ensuring liquidity can allow investors to enter and exit freely.