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The tech world comes with so many updates that it is hard even for tech nerds to keep up with everything that changes in the industry. These days, users have to be familiar with concepts such as blockchain, AI, machine learning, tens of thousands of cryptocurrencies and crypto projects, and, last but not least, the transition to Web3.
And while all the new concepts are indeed intriguing and can steal the spotlight at any time, Web3 may be the vastest topic of them all. Considering the features and the updates Web3 brings along, this is the concept needed to change almost everything in the online space.
And for Web3 to succeed, users can always invest in Web3 in various ways. Thus, let’s see what Web3 is and how you can invest in this concept to make the next generation of the internet available for worldwide users.
What Is Web3?
The term “Web3” was first coined by Dr. Gavin Wood, a co-founder of Ethereum. Web3 aims to build upon the foundations laid by the previous generations of the internet – Web1 and Web2.
Web1 (1990-2004), commonly referred to as the static web, was characterized by read-only interactions, where users could only consume the information delivered by developers. Web2 (2004-now), which came into prominence with the rise of social media, introduced read-write capabilities, enabling users to create and share content. However, these 2 iterations had a fundamental flaw: the internet was and is somewhat controlled by some tech giants. A central authority has the power to control and own data provided by users, even personal information.
Thus, the idea that Tim Berners-Lee had in 1989 when he created the World Wide Web is still far from becoming part of reality, as the inventor of the WWW aimed to create decentralized protocols that allowed users to share information from wherever they might be.
Web3, on the other hand, is set to transcend these limitations by incorporating read-write-own functionality. Powered by blockchain technology, Web3 enables actual ownership of digital assets, data, and identities. This introduces a new paradigm where users have complete control over their personal information.
At its core, Web3 brings the concepts of a decentralized web and ownership. Decentralization eliminates the need for intermediaries, granting users direct peer-to-peer (P2P) interactions and allowing for trustless transactions. Web3 operates on the foundation of blockchain networks, employing smart contracts that automatically execute agreed-upon terms when certain conditions are met.
Why and How to Invest in Web3?
Web3 is still a new concept. And while there are many companies that started developing various projects in order to accelerate the transition from Web2 to Web3, such companies do need the support of worldwide investors in order to succeed.
So, let’s see how you can invest in Web3 and what are some of the best ways to help the industry move forward.
1. Web3 Stocks
Web3 stocks are not too different from simple, usual stocks. The main difference between the 2 is that Web3 stocks are stocks of companies involved in developing Web3 features. Web3 stocks can be bought from major stock exchanges, such as NASDAQ. So, the Web3 stock market is similar, if not even the same as the traditional stock market.
Best Web3 Stocks
Apple
Apple is the largest tech company in the world by revenue. Founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, the tech giant is constantly developing new technologies and improving existing concepts to contribute to Web3’s infrastructure layer. At the moment, Apple has a stock price of around $174;
Coinbase
As the 2nd largest cryptocurrency exchange on the market, Coinbase offers plenty of helpful features available almost worldwide. Coinbase allows users to buy, sell, and trade crypto on 2 platforms: Coinbase Simple Trade and Coinbase Advanced Trade (formerly known as Coinbase Pro or GDAX). Recently, Coinbase developed Base, a low-cost, developer-friendly Ethereum L2 built to introduce users to the Web3 space. Currently, the stock price for Coinbase stands around $80;
Nvidia
Nvidia has been well-known for its high-quality products ever since 1993 when it was launched. Nvidia’s contribution to Web3 started with a deep learning center developed by the company. According to Nvidia, deep learning is a subcategory of AI (Artificial Intelligence) and machine learning that uses multi-layered artificial neural networks to deal with various processes in the online space. At the moment, Nvidia has a stock price of approximately $455;
Samsung
As one of the tech giants and probably the largest tech company in South Korea, Samsung has recently partnered with TRON (TRX), which is one of the most popular crypto projects at the moment and the 10th cryptocurrency by market cap. Samsung has a stock price of approximately 71,700 KRW ($55);
AMD (Advanced Micro Devices)
Although Advanced Micro Devices started as a semiconductor company that manufactured computer processors, it is now a strong pillar in the development of Web3. Currently, AMD is working to provide various AI products, improving the concept and introducing increasingly more users to the world of artificial intelligence. The stock price of AMD is approximately $107 at the moment of writing;
Meta Platforms
While Meta Platforms is well known for its social media platforms such as Facebook, Instagram, or WhatsApp, the company highly contributes to building the metaverse, a great part of the tech era we are living in. This way, Meta Platforms made its way among the most popular Web3 companies. Meta currently has a stock price of around $305.
You should research the stocks available before choosing your go-to, as there are numerous stocks that have a constant increase in their value. For instance, other Web3 stocks worth considering include Unity Technologies (also known as Unity Software), IBM, TE Connectivity, and Cloudflare. You can also seek investment advice if you are just a beginner in the field.
However, always keep in mind that there still is a certain level of market instability. So, whenever you make an investment, also consider potential negative events, even though they are less likely to happen.
2. Web3 ETFs
Exchange-traded funds (ETFs) are another great way of investing in Web3. Basically, Web3 ETFs are just like regular ETFs; only they follow Web3 companies. Besides, ETFs can help investors diversify their investment portfolios.
ETFs can hold multiple assets, meaning that once you invest in an ETF, you will hold stocks from multiple companies. And this is one of the key advantages of Web3 ETFs. Investing in exchange-traded funds is more convenient and simpler. Instead of researching and selecting individual Web3 assets, investors can invest in a single ETF, gaining exposure to the broader Web3 ecosystem.
Some of the most popular Web3 ETFs at the moment include BLCN (NASDAQ), BLOK (NYSEARCA), Simplify Volt Web3 ETF (NYSEARCA: WIII), and Greyscale’s “ETH” ETF.
3. Invest in Crypto Projects
If you ask a crypto enthusiast “How to invest in Web3”, their answer will most likely be: invest in cryptocurrencies. And they are not entirely wrong, as investing in crypto, NFTs, and other crypto-related projects can help the Web3 industry.
DeFi
Decentralized Finance (DeFi) is a technology that uses distributed ledgers to improve financial processes.
If you want to invest in Web3 through DeFi, you can start staking crypto, for instance. Staking is a process you can find in every PoS (Proof-of-Stake) ecosystem. Ethereum (ETH) is the largest PoS cryptocurrency. Other popular PoS cryptocurrencies include Binance (BNB), Cardano (ADA), Polkadot (DOT), Avalanche (AVAX), Cosmos (ATOM), Aptops (APT), and many more.
Furthermore, you can try to lend your crypto by accessing crypto lending platforms such as AAVE. AAVE is a liquidity protocol that allows you to lend crypto in order to earn interest.
NFTs
Non-fungible tokens (NFTs) are unique digital assets built based on cryptography. NFTs are stored on blockchains and have unique identification codes to be distinguished from one another.
Over time, non-fungible tokens have become extremely popular, some of them being sold for surprising amounts of crypto. The most expensive NFT was sold in December 2021 for $91.8 million. The digital artwork is called The Merge and was created by Pak, one of the most popular NFT artists. The Merge features 3 white masses on a black background. The 3 masses increase or decrease based on how much mass investors acquire.
Crypto Coins and Tokens
You can also invest in various crypto coins or tokens. This may be the most straightforward way to invest in Web3. You can simply sign up on a crypto exchange, thoroughly research the cryptocurrencies available, and start building your investment plan and your digital assets portfolio.
Some of the best and largest cryptocurrency exchanges at the moment include Binance, Coinbase, Kraken, KuCoin, Bybit, OKX, Bitstamp, and Gate.io. However, keep in mind that not all crypto exchanges might be available in your area. Furthermore, you may want to consider if you need a crypto exchange that is available on mobile phones or you are available to trade crypto on a desktop platform only. Thus, it is important to research the platforms before creating an account.
FAQ
How to make money on Web3?
There are multiple ways to make money on Web3, but some of the most popular might be investing in crypto projects, Web3 stocks, or Web3 ETFs.
How to invest in Web3 stocks?
To invest in Web3 stocks, you need to research the stocks available and choose a stock exchange that offers those stocks.
Is Investing in Web 3.0 Safe?
It is extremely important to perform your own research before starting to invest in Web3. As long as you know how to keep your funds and information protected from malware activity, investing in Web3 can be safe.
Can You Invest Directly in Web 3.0?
No, you cannot invest directly in Web3. What you can do to invest in Web3 is to find an investment option that allows you to invest in companies that are involved in the development of Web3.
Final Thoughts
Web3 is one of the most popular concepts at the moment. Being the 3rd generation of the internet, Web3 will provide a decentralized, trustless, and permissionless space to worldwide users.
If you aim to invest in Web3, keep in mind that you cannot directly invest in it. However, some of the best ways to invest in Web3 include buying and trading crypto, investing in NFTs, Web3 ETFs, Web3 stocks, DeFi projects, and many more.
