How To Invest In Esports

How To Invest In Esports

For the majority of people, esports or electronic sports is a foreign concept. The present generation of young adults and kids spectate video games and it is popular amongst them. There are sports, live media, entertainment, and other esports that have become mainstream and gain viewership currently. eSports began gaining popularity and is anticipated to reach 560 million viewership with a revenue forecast to 2.96 billion dollars in 2021. With increasing technology, eSports has entered into a critical new phase.

ESports-What is it?

ESports is a competitive form of video gaming where different competitor teams come face to face in a tournament. Gamers are well known with eSports games like call of duty, counter-strike, Fortnite, Madden NFL, and others. The games are seen on streaming services such as Twitch and YouTube. Fans from all over the globe watch gamers and favorite teams compete in real-time.

How does eSports generate revenue?

A sports team earns major revenue through its ticket sales. Traditional clubs for sports charge courtside and halfway line tickets. However, eSports are different. The teams of eSports do not have stadiums. They come with gaming houses all over the world. 95 percent of revenue is generated is gathered from sponsorship deals. Teams and players also make money through regular salaries, streaming, and prizes.

Let's take an example. A twitch streamer earns 5k dollars each month who has 2k subscribers. They can monetize their twitch streaming with ads. eSports teams are making millions of dollars each year. The average eSports salary is about 60k dollars. Gaming publishers help teams to associate with game developers and tournament organizers.

How to invest in eSports?

To invest in eSports, learning the various kinds of eSports stocks is the first step.

Top eSports stocks are as below:

Publicly Traded eSports- Investment in publicly traded stocks is in the first place.

Leading players include:

  • TTWO: Take-Two Interactive Software
  • ATVI- Activision Blizzard
  • EA- Electronic Arts
  • NTES-NetEase
  • LOGI-Logitech
  • TCHEY-Tencent Holdings

All these companies are various roles within eSports. For instance, TTWO is a gaming publisher and developer.

 

NVIDIA- This is a GPU specialization Chipmaker Company in which most of the gamers invest.

 

Activision Blizzard-It is a gaming publisher renowned for overwatch, an online game.

Steps involved in investing in eSports

1. Open a brokerage account

Open a brokerage account with a broker online and permit you to stock trading and additional financial instruments. You can open this account from home. This process takes a few minutes. After an initial deposit, you can start trading stocks, CDs, ETFs, forex, mutual funds, bonds, and others. The firm is a mediator between investments and you. It is best to have a cash account as a beginner.

Select the right firm for a brokerage that offers:

  • Appropriate customer service
  • Decent fees and costs
  • Higher payout
  • Withdrawal and deposit options
  • Intro bonus
  • Smart platform for trading
  • Low cost for commissions
  • Investment guidance and education tools
  • Research in stock trading

 

2. Buying the stocks related to eSports

Post fund transfer you can pick stocks and do trading. Start with familiar companies first. Look into a yearly report of a company, to begin with, to understand their performance. The brokerage firms provide analytical tools that assist in evaluating a company. You can use SEC filing, call transcripts, current news, and earning updates to assess a company. Start small and then gradually add in more shares. Execute a trade between the two types of order-Limit order and Market order.

3. Optimize the portfolio

Using the right tools and evaluating your eSports stocks will help you to make the right decisions. Be mindful of the fees of the broker too. Accept the fact that each investor has a rough patch at times owing to varying market prices and trends. Taking mindful decisions and consistent knowledge of current stocks can help you make the right stock investment decision.

4. ETF's- exchange-traded funds: 

You can trade your eSports stocks and make money. There are plenty of options in the eSports market for trading.

Conclusion

Esports comprises of competitive gaming with consoles and computers. When two or more gamers compete in online battles, a winner is announced based on their acquired points. These gaming battles are streamed through online streaming services like YouTube or Twitch. This results in investment in eSports to earn revenue through the gaming battles. You can invest in eSports primarily through eSports stocks, ETF-exchange trade funds, tournaments, and streaming. Through sufficient research and the right broker, you can invest in eSports and get good returns.