How to Invest in Esports? Esports aka Electronic Sports is gaming at a competitive level where professional gamers from different teams face each other and compete in a tournament. This is same as watching your favorite football team competing against another team, but in this case, the players are sitting in front of a PC and competing virtually through video games. Esport events are highly sponsored and have a price pool of millions of dollars. Some of the most popular esports titles are Counter-Strike: Global Offensive (CSGO), DOTA, League of Legends (LOL), Fortnite, and Call of Duty.
Esports is a rising industry and people are getting more interested in it every day. Compared to a decade earlier, when the concept of esports was pretty much alien and non-existent, esports are now gaining high recognition and popularity. Now it has taken the form of industry. Therefore, investing in esports can be quite profitable. Let’s look into some of the ways how this can be done.
Investing in Esports Stock
If you want to invest in esports, investing in esports stocks is the most profitable. There are many stocks that are growing and you can make a decent amount of money by investing in it. If you want to buy esport shares, you need to buy it via an esport broker. A broker is a firm or an organization that is authorized to buy and sell stock, and other forms of securities. It links up an investor with a stock market allowing him to trade seamlessly. Now let’s get to know the process in detail.
- Choosing the right broker: This is the first step because you need the best broker that is suitable for your investments. Before choosing a broker, you need to consider what will not only get you the best broker, but also benefit you in the long run. You need to know about the brokerage firm’s transaction fee, sign up bonuses, deposit and withdrawal flexibility, customer fees, fees and service charges, and other policies that you find important. Once you look into these details of individual brokers, you will be able to find the most convenient one.
- Opening a Brokerage Account: Every broker requires you to open a brokerage account, otherwise you won’t be able to buy or trade stocks. Thus, it’s important to open an account. Opening an account can be a lengthy process, as the brokers might require many documents for verifying and security purposes. However, after providing all the necessary documents, your account will be verified and you will be able to start trading right away. Another thing you need to do is transfer funds into your account by your preferred payment method.
- Buying Stocks: After you transfer a sufficient amount of funds to your account, you will be able to buy stocks using that fund. Before buying a stock, you need to pick the right stock which will be profitable. For this, you need to do some research on the stock. You can take a look at the company’s annual report. The annual report is a company’s biggest performance indicator, so you will be able to tell how profitable this company can be. Pick the share that will still be profitable after paying the brokerage fee. After you find a company that you find fit for investing in, you can buy a number of shares depending on your capital and preference.
- Building a portfolio: When it comes to investing in stocks, there’s always the possibility of risks which are not foreseeable. Therefore, you need to build a portfolio and optimize it accordingly so that you can minimize the risk. It is always recommended to invest in different stocks, instead of just one.
Best Esport Stocks
There are thousands of options when it comes to esports stocks, thus it can get a little confusing if you wish to invest in a esports stock. Hence, we made a list of some of the best stocks that you can consider investing in.
- Activision Blizzard: Investing in video game developing companies can be quite profitable as video games are intellectual property, and popular developers make millions from a single video game. Activation Blizzard is one of the most popular video game developers that makes games for PC and console. Activision Blizzard has a market capitalization of $45 billion. They are known for developing the most successful first-person shooter game in the history, known as the Call of Duty franchise. They also developed Overwatch which is a very popular esports title.
- Electronic Arts (EA): EA is another behemoth in the video game industry that is currently ranked #2 in Europe and NA in terms of market capitalization. They developed some of the most popular games for PC, consoles, and even phones. EA is known for the FIFA and NFS franchise which was very successful and still is with its new release every year. EA sports also developed Apex Legends which is a very popular esports title.
- Razer: Razer is the most popular brand when it comes to high-end gaming gears. Razer DeathAdder is one of the most popular gaming mice throughout the world. They are also famous for their Razer BlackWidow mechanical keyboards and Razer Kraken headphones. Razer sponsors 18 esport teams all around the world including Evil Genuises, vitality, and Gen G. Razer, which has a market capitalization of $1.4 billion and their stocks are growing every year.
- Tencent: Tencent is a Chinese company which is apparently the biggest gaming company for its groundbreaking revenue. They have a market capitalization of $441.2 billion and they have ownerships in some of the biggest gaming companies in the world including 100% of Riot Games and 48.4% of Epic Games.
As you can tell, esports has much more potential and has not reached its peak yet. It’s just the beginning of something huge. If you are an investor, this is a field where you might want to invest in Esports to gain a large amount of profit.