How to make a profit in Decentraland, the Metaverse Dragon?

Most participants believe that NFTs are the “hand of cards” where people come together to create a strong community.

Never in history have we been able to form a super cohesive organization across borders and races as we do today. NFTs are a combination of identity and social organization, with no political, racial parameters, or rules set by others (i.e. governments/politicians), great inclusivity, and no one will define you based on how you interact, or how you dress virtually .

Each NFT holder can explain what it means to the community to which they belong, a group with broadly coordinated goals, and this is how a successful NFT roadmap is accomplished.

NFTs are a real-life solution, similar to Ethereum and Bitcoin , but broader and more abstract than both.

So, what about the Metaverse? The Metaverse brings a scene to NFT holders, and a platform for virtual but real-time interaction with the community, and this is where the virtual land comes into play.

People are passionate about property rights…the famous “you have to invest in real estate” (not financial advice) was born out of this idea, and I believe the sense of accomplishment of owning property rights suits most people.

The goal of NFT projects is to secure your ownership of digital assets, and the same applies to digital real estate. I mean, in the immaterial world, you are not a “wage boy” of other people’s property.

The Metaverse market is growing and we are seeing centralized companies like Meta (also known as Facebook) and Roblox tapping into the potential of this industry as well.

Here’s a look at the Metaverse platform leader Decentraland and how users can profit from the platform:

Decentralized

Decentraland is a decentralized virtual reality platform based on the ERC-20 network, a perfect analogy: Decentraland is the “sims” of NFTs.

The platform is regulated by the DAO, so through Communication > Community Proposals > Vote, schedule and complete the roadmap, the Trello website provides a dynamic roadmap based on DAO votes and proposals, which is worth a look.

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Decentraland Avatars

Token

MANA, the platform’s native token, has some great uses, such as: voting on DAO proposals, buying digital items for your avatar, and buying land. You can also stake MANA on Celsius , Gemini and Crypto.com .

The good thing about Decentraland is that the balance sheet is very transparent and the information on the website is very clear.

You can get MANA through CEX (centralized exchange) such as Binance, FTX , Coinbase . Another way is through DEX(Decentralized Exchange) such as UniSwap or SushiSwap .

How to make money on Descentraland?

land

Lands are very valuable digital items in the Metaverse, also known as virtual real estate. Decentraland currently owns 90,601 16 x 16 m [52 ft x 52 ft] parcels.

By purchasing more than 2 parcels of land, you can create an estate so you can start building a larger and larger virtual space.

When you own land or estates, you can start renting them out. Some users create ads on their land to expose themselves to potential lessors. After the first contact and agreement, the tenants set out to create the environment for the landlord and provide what they need to host the event. Some of the following sites offer smart contracts to rent out your property:

  • Metaverse.properties(https://Metaverse.properties/)
  • dclrenting(https://dclrenting.com/)

Doing this allows you to earn passive income without selling the property, and many users choose to rent their properties for galleries or fashion shows.

If you want to trade your land, here are some charts from NFTGo.io:

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Land holders and traders (Source: NFTGo.io)

Holders & Traders shows how many people own and trade land, the active months of November-Dec and January are due to the ATH of the NFT industry and the heavy exposure of Decentraland during these months (well-known brands are starting to do some collaborations with Decentraland) .

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Decentraland holder trends since 2018 (Source: NFTGo.io)

As we saw on Holder Trends, holders have increased over time, and recently a number of “whale wallets” have poured into the project. Spotting whale wallets on the project could be a good thing, suggesting that high-value investors are backing the project.

uB2DawagsVM109QmkggQL.png

Source of holding amount distribution and holding period distribution: (NFTGo.io)

The holding allocation and holding period allocations show how much investors hold their land. 80.4% of holders have held it for more than a year, which means most are not looking for a quick buck. That’s interesting because, in the eyes of investors, it’s a long bet. So if you’re looking to buy virtual land, you should probably hold it for the long term, rather than short-term profit.

trade

Another way to get some income stream is to trade MANA, maybe you should go learn technical analysis to do this and wait for the hot news to come.

However, trading MANA is not the only thing you can do. Since Metaverse items are also NFTs, you can also trade wearables. The chart below depicts the change in volume and market capitalization over a 1-year range. As new wearable products increase over time, so does the market value. On the other hand, volume has remained stable.

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Decentraland, Wearables — Market Cap and Volume. (Source: NFTGo.io)

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Decentraland Wearables – Holding Period Distribution. (Source: NFTGo.io)

As the holding period distribution (above) shows, most holders hold their assets for a year or more. If you are looking to make a quick buck, you may not be able to get the full profit potential of the project and your best bet is to hold for the long term.

content creator

The great thing about Descentraland is that they provide creators with 2 tools, namely:

  • The Builder: The Builder is the best “starter pack” to get into the content creator side of things, the tool makes it as easy as possible with a simple drag and drop editor, with lots of default items to work with.
  • Decentraland SDK: This tool is for advanced developers with coding skills. Here, you need to write code to create your own scenarios, and because of this, imagination is the limit.

It’s worth mentioning that you can use other third-party modeling tools to create your environment.

Once you’ve chosen the tools to use, here are some ways to earn money as a creator:

  • Sell ​​digital items: clothes, avatar accessories. The publishing fee is a fixed cost of $500 per project (paid in MANA).
  • Make mini-games with some wearable items to sell: like souvenirs.

A measure of land value

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Map (Source: Decentraland)

Looking at the map and choosing which land to buy can be a little confusing. There are some metrics to consider when buying a plot:

  • main road or secondary street
  • If it’s near Genesis Plaza (green box), you can see an example on the Land Map
  • Google Trends

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Decentraland, Google Trends

Google Trends is a great way to keep track of trending searches related to this project. If we compare Holders Trends to Google Trends, we see some similarities in people’s interest and the number of buyers and sellers.

Note: The above information is for reference only. Investing in digital assets such as NFTs and cryptocurrencies carries a high level of risk. Please consult a financial advisor before making any investment decision. This article does not provide financial advice and is not responsible for any losses incurred by you investing in digital assets.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-to-make-a-profit-in-decentraland-the-metaverse-dragon/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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