What is the Metaverse and How to Trade it

The metaverse is a collection of interconnected and experiential worlds spanning the digital and physical realms, an emerging multisensory iteration of the Web. They mark the frontiers of the next stage of the Internet’s evolution as tech giants and leaders like Bill Gates often talk about its growing popularity, and the transformative impact it will have on our lives.

Not surprisingly, the growing popularity and potential of the metaverse has prompted investment interest among traders. Furthermore, as the technologies that underpin the metaverse continue to emerge and evolve, there is a wide range of exciting investment opportunities for traders and investors to explore.

Grayscale Investments expects the industry to represent a $1 trillion revenue opportunity across everything from e-commerce and gaming to real estate and entertainment. This has already caught the attention of major companies such as Microsoft, Adobe and Qualcomm, who are investing more to explore the metaverse and stay competitive in the coming years.

The Metaverse made a huge impact in 2021. The uproar created by this futuristic virtual world has been driven by adoption among the big tech companies.

In October 2021, for example, Facebook rebranded itself as Meta, reflecting its interest in metaverses as a virtual world where interactions between humans are made possible through digital avatars. These avatars are controlled by virtual reality (VR) headsets such as the Oculus. Incidentally, sales of the Meta Oculus Quest 2 headset exceeded the sales of Xbox game consoles from Microsoft in 2021, which shows consumers’ interest in interacting with this new technology.

Other tech giants like Apple, Google, and Microsoft are also following in the footsteps of the Meta by developing their own VR headsets. This is a major achievement for the metaverse, since as more tech companies adopt this technology, the chances of the metaverse as a pervasive technology will increase.

Chip giant Nvidia has also put its toes into the metaverse technology with its own chipsets, which have already been deployed to a variety of mainframe computers and servers. Nvidia is one of the best semiconductor stocks in the long run, and it benefits from metaverse applications. While the pending acquisition of ARM Holdings remains unclear, if it materializes, Nvidia will be able to build a comprehensive ecosystem to enhance computing power in applications that support the metaverse.

There are many ways to trade metaverses. Buy related stocks, trade cryptocurrencies, or trade ETFs. These assets can be accessed through a trusted broker such as Plus500. Using the Plus500 platform, traders can learn about a wide range of tools associated with the above-mentioned metaverses. The variety of access points available through Plus500 can also provide a myriad of benefits, including the ability to build a diversified portfolio to meet individual goals and needs.

Plus500 is a global multi-asset financial technology company that provides its clients with opportunities to trade in the thriving metaverse. The FTSE 250 listed company offers a world-class trading platform with access to 2,500 instruments, available on multiple platforms and web browsers. Traders can access optimized trading conditions with tight spreads, no commissions, attractive leverage, and advanced trading tools to limit risk.

One way to trade the metaverse is through related stocks. Plus500 offers Contracts for Difference (CFDs) to leading trading companies, including Facebook (now Meta), Nvidia and Disney, all of which have invested billions in the metaverse technology.

ETFs are another way to access the metaverse. Plus500 offers traders the opportunity to trade the Roundhill Ball Metaverse ETF, an index fund that tracks the performance of the Ball Metaverse index, which includes 40 globally listed companies participating in the metaverse. Traders can also get exposure to this technology through CFDs on cryptocurrencies. Since cryptocurrencies are the main form of currency in virtual worlds, they will also benefit from the metaverse revolution.

In 2022, technology companies such as Apple, Cisco, and Intel, who have also adopted the metaverse technology, are well positioned to reap the benefits of the growing demand for semiconductor chips, processors, and cloud services.

Moreover, non-fungible tokens (NFTs) and decentralized finance (DeFi) have also proven that blockchain technology has unlimited applications. Already, blockchain companies and cryptocurrency exchanges are raising capital to expand into this emerging technology field. Winklevoss’ twin crypto exchange Gemini closed a $400 million capital growth funding round in November 2021, with plans to expand the exchange’s services across multiple scales in 2022.

All in all, the future looks bright for metaverses. GlobalData forecasts reveal that big-cap US stocks will soar in 2022, amid increased investments in technologies including the metaverse, cryptocurrencies, and Web 3.0. Thus, getting involved in the metaverse ecosystem is a step that might be worth making, and trading CFDs on stocks of companies that have adopted this technology, cryptocurrencies, or the Roundhill Ball Metaverse ETF with Plus500, could be the first steps for a trader in this exciting space.

By providing opportunities for traders to learn about emerging technology trends such as the metaverse, Plus500 expands its horizons and delivers on its promise to build new trading products for clients every year. In 2021, the company launched Plus500 Invest, a new stock trading platform that allows traders to trade in a wide range of assets, including ETFs listed on major exchanges. Through this platform, traders can invest in top companies around the world that will delve into the Metaverse.

It was this focus on technology innovation and customer success that drove the company to outstanding operating and financial results during fiscal year 2021. Plus500 recorded annual revenues of approximately $718 million.

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