Since 2016, Paris Hilton has been investing in crypto, and now she's putting her money where her mouth is by betting big on NFTs and the metaverse.

Paris Hilton believes everything is going digital.

The 40-year-old hotel heiress is placing a large bet on cryptocurrencies, non-fungible tokens (NFTs), and the metaverse.

Hilton, a well-known socialite and media personality with six years of experience in crypto investing, passionately believes in the potential of cryptocurrencies, as stated in an interview with CNBC Make It.

Hilton did not reveal the amount she invested in crypto, but she began investing in both bitcoin and ether in 2016. At that time, one bitcoin was valued at approximately $1,000 and one ether was priced at around $10, according to Coin Metrics data. Currently, they are worth more than $38,000 and $2,640, respectively.

In November, Hilton revealed to The Guardian that she began investing in crypto after befriending the founders of ethereum, the platform that produces ether, the currency used for trading most NFTs. Despite a recent market selloff that saw both bitcoin and ether lose about 50% of their value from their all-time highs in November, Hilton remains optimistic about the future of cryptocurrency.

Hilton predicts that digital currencies will rise again and advises buying the dip at present.

Investing in crypto requires caution, as experts advise against investing solely based on price drops, according to Ivory Johnson, a certified financial planner and founder of Delancey Wealth Management in Washington, D.C., who spoke to CNBC on Monday.

Johnson argued that using crypto assets as stores of value and capitalizing on the growing adoption of cryptocurrencies globally are better reasons for investing in them.

In 2019, Hilton created her first NFT and sold it for charity, winning "Best Charity NFT" at the NFT awards. In April 2021, she launched her own NFT collection, selling one for $1.1 million in ether. Hilton owns more than 150 NFTs.

Origin Protocol has recently welcomed a socialite as an investor and strategic advisor to assist users in creating and selling their own NFTs on the platform.

NFTs have been therapeutic and healing for Hilton, who sees them as the future of art. She notes that in the traditional art world, artists rarely get secondary sales like they often do with NFTs. "I love that it gives power back to the creators," she says.

Her upcoming NFT collection will center on her life story, encompassing both her triumphs and struggles, particularly the alleged abuse she experienced at a Utah boarding school as a teenager, which has significantly impacted her life.

"Now, I've reclaimed my power and am both a businesswoman and a social advocate, utilizing my platform for good and bringing about positive change," she declares.

NFTs and the metaverse are closely linked, with many people looking forward to showcasing their collections in the 3D virtual worlds where they can work, play, and explore. Hilton has been interested in the concept for years, even before Facebook rebranded as Meta and sparked metaverse buzz.

In 2017, she was already developing a platform where people could watch her DJ and hang out.

Paris World, initially launched on Roblox's platform in October, was used by Hilton to host her first metaverse party on New Year's Eve. The virtual gathering was twice the size of the crowd in Times Square that night, according to Hilton. Roblox did not respond to CNBC Make It's request for confirmation.

"The beta opening was amazing, and the possibilities are truly endless," Hilton remarks.

She plans to introduce NFTs in Paris World, establish a new line of digital wearables, and establish a digital fashion brand.

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