The Era of Virtual Assets Is Coming: A Complete Guide from Concept to Practice of NFT and the Metaverse

Do you remember the sci-fi movie depicting a VR world? The protagonist wears glasses to freely roam and trade treasures in a virtual space. Actually, this is no longer a distant future—the Metaverse is quietly changing our perception of digital assets.

Have you ever paid for LINE stickers? Or spent money on skins in a game? These seemingly ordinary consumption behaviors are typical of traditional virtual assets. But there is a key difference: ordinary users buy the “usage rights of game servers,” while NFT players purchase “digital assets that truly belong to themselves and can be freely circulated”. This is why the Metaverse and NFTs are attracting crazy attention from capital and markets.

From Virtual Space to Economic System: What Is the Essence of the Metaverse?

Metaverse originated from a 1992 sci-fi novel, describing a virtual world parallel to reality. Everyone has their own digital avatar, working, entertaining, shopping, and socializing within this space.

But now, the definition of the Metaverse has evolved to be broader—it is a visually rich virtual ecosystem supported by blockchain technology and NFTs. Matthew Ball once called it “the fourth wave of computing after mainframe, personal computing, and mobile computing.” This metaphor fully illustrates the industry’s assessment of its strategic value.

Simply put, without blockchain and NFTs, there is no true Metaverse.

NFT: The Infrastructure of the Metaverse Economy

NFT (Non-Fungible Token) is based on blockchain technology, assigning a unique “identity card” to each virtual asset. In the Metaverse, it is this kind of identity verification mechanism that makes virtual assets possess real ownership and trading value.

Imagine what a Metaverse without NFTs would look like:

⚠️ Game treasures cannot be traded → Your effort and money can only be locked on the platform’s server
⚠️ Virtual designs go unclaimed → Creativity can only be appreciated by oneself, unable to be commercialized or monetized
⚠️ Assets can be deleted at any time → Hard-earned properties and collectibles may become worthless if the platform delists them

This is the fundamental difference between NFTs and traditional digital assets:

The Interaction Cycle Between the Metaverse and the Crypto Market

The relationship between the Metaverse and cryptocurrencies can be described as “mutually dependent”—the popularity of Metaverse projects often drives the entire crypto market upward, while bear markets ruthlessly destroy virtual asset prices.

In the 2021 bull market, Decentraland and The Sandbox, two major Metaverse platforms, sparked a rush to buy virtual land. MANA tokens surged by 4,100%, far outperforming Bitcoin during the same period; The Sandbox’s virtual land prices jumped from 1,000 to 45,000, surpassing Taipei’s real estate market.

However, after the market peaked and corrected, the floor prices of these “prime locations” kept falling. Many niche projects have become abandoned, with holders facing the awkward situation of “no buyers.” This reminds us: investing in the Metaverse may seem full of opportunities, but the risks are not to be underestimated.

Nevertheless, from a long-term perspective, the Metaverse still has development potential. Tech giants like Meta, Microsoft, and Google are investing heavily, with virtual reality and artificial intelligence becoming core driving forces. New business models are incubating.

Practical Guide: How to Start Investing in NFTs

For ordinary investors, creating a Metaverse project is too difficult. The most feasible way is to directly buy and trade NFT assets or project tokens. Here are the basic steps:

Step 1: Choose an NFT Trading Platform

Currently, there are several mainstream NFT trading platforms. Regardless of which one you choose, their basic functions and gameplay are similar—browsing, bidding, trading, managing assets.

Step 2: Set Up a Self-Custody Wallet

You need to prepare a self-custody digital wallet to connect to the trading platform. Common options include well-known self-custody wallets, mainly used for:

• Connecting to NFT trading platforms
• Executing buy/sell, transfer transactions
• Managing and displaying your virtual assets

When first connecting, you usually need to create an account and accept the terms (generally no fee).

Step 3: Deposit Cryptocurrency

Purchasing NFTs requires cryptocurrency as payment, usually Ethereum (ETH). You can buy ETH through a digital asset exchange and transfer it into your wallet. Choosing a reputable and well-regarded exchange is crucial.

Step 4: Select and Buy NFTs

Browse projects of interest on the trading platform, read project descriptions and creator backgrounds. When buying, there are two options:

• Direct purchase: buy at the current market price (floor price)
• Bid: place a lower bid than the floor price and wait for the seller to accept (sometimes you can snag a bargain)

Step 5: Sell Your NFTs

If you want to cash out, find your collection in your profile, choose to list for sale. There are two modes:

• Fixed price listing: set a price and wait for buyers
• Auction: set a time and starting price, highest bidder wins

Fill in detailed info, list it, and after successful sale, you will receive the corresponding digital currency.

3 “Forbidden Zones” You Must Know Before Entering the Metaverse

• Never enter your private key on unfamiliar platforms → Your private key is like a bank password; leaking it means losing all assets
• Do not use the same password across multiple platforms → A single breach can lead to total collapse
• Beware of “guaranteed profit” NFT airdrop ads → These are almost all scams

Investment Tips for Beginners

The Metaverse/NFT field is still relatively niche, with many projects facing liquidity issues—difficult to sell or find buyers. Therefore, it is recommended to start with small funds to test the waters.

More importantly, beware of fraud risks. Some projects claiming to be part of the Metaverse have no real application or implementation, relying solely on hype. Once market enthusiasm wanes, prices will plummet. If you don’t understand a project well, it’s best to stay away.

Comparison of Metaverse Investment with Other Assets

Imagination Space for the Future of the Metaverse

In the long run, the Metaverse represents a new form of human social and economic activity. Virtual reality, artificial intelligence, and other technologies will become core supports, with the virtual economy’s share continuously increasing. New business models and industry chains have the potential to truly land, creating deep integration between virtual and real.

In short, the Metaverse has the potential to change how people live, socialize, and participate in the economy. During this process, legal frameworks will gradually improve, lowering entry barriers and reducing malicious behaviors.

Common Questions & Answers

Q: Are the Metaverse and NFTs scams?

A: While risks cannot be completely avoided, mainstream and well-known Metaverse projects will not abandon real-world application. These projects often have genuine technological innovation and ecosystem development, rather than pure marketing hype.

Q: How big are the risks of participating in Metaverse investments?

A: Risks do exist. If you blindly invest in projects that seem cheap but are essentially empty, losses can be severe. But since NFT investments do not involve leverage, with good trading discipline and stop-loss awareness, you can still flexibly enter and exit within liquidity limits.