If you are looking to make money from virtual real estate on Decentraland you have come to the right place.
Decentraland is the world's first Ethereum powered virtual reality social platform that allows users to buy plots of land which they can then monetize through apps, decentralized games, tokenization, etc.
The platform is totally decentralized so once you’ve purchased your plot there are no limits to what you can build on it, be it a fully functioning casino or an amusement park that you can charge visitors to interact with.
The project has been in the works since 2017 and the highly anticipated platform finally launched on February 20th, 2020. In the first 10 days alone over $1 million worth of virtual land was bought and traded.
Just like in the real-world land valuations are based on where your property is located on the map. Virtual land for sale close to the city center, major projects, and roads is highly sought after for it's rarity and commands a higher price than land situated further away.
Decentraland Map Overview
This is a zoomed-out overview of the Decentraland map.
The green spaces represent the areas in which you can buy, sell, or develop the land.
The black lines are the roads that can generate a fair amount of foot traffic.
The blue area represents large projects that are under construction
The white squares known as Genisis Plazas are exhibition halls where events take place.
How to Buy Virtual Land
Virtual land can be purchased through OpenSea's Decentraland Market Place
Should you wish to purchase land on MinedHash’s Decentraland Marketplace you get the option of transacting in Decentraland’s very own cryptocurrency MANA, ETH, or the Stablecoins DAI and USDC.
Is Virtual Land Profitable?
It most certainly is with two main types of investment strategies emerging. The first and most common being to buy early, build on it, and wait for the value of the land to appreciate. The second strategy which we will look to focus on next is profiting from short-term trading of virtual land known as flipping.
Buying and selling virtual land is highly speculative and can be extremely risky, however, there are a number of principals you can apply to reduce risk and maximize profits.
Seven Principals for Making Money from Virtual Real-Estate.
You should apply due diligence to find the best deals on the market.
You are going to want to sell land cheaper than your competitors so getting in at the right price is imperative.
Look for the cheapest plots of land in each area as these in theory should be the easiest to flip.
Analyze the price history and ownership of the land you are interested in and the neighboring plots to gain a more accurate valuation.
Large blocks of land are rare so look to buy adjacent slots and combine them together to increase profits
Aim to buy in bulk as that’s where the best deals are.
If you manage to acquire a large estate, reach out to blockchain projects to see if they are interested in acquiring the land directly from you.
For the latest NFT Marketplaces:
A good video explaining Decentraland
While Decentraland and the notion of virtual real-estate are still in its infancy, enthusiasts and investors alike have already spotted the huge potential that exists in the up and coming virtual real estate marketplace. Virtual reality is advancing at a rapid pace and should Decentraland gain widespread adaption, virtual land looks set to lead the next property market boom.