Web3 is the third and next phase of the Global Web (WWW). Focusing on decentralisation and inclusion, Web3 includes emerging technologies such as blockchain, DeFi, AI, DePIN, Metaverse. It also incorporates new concepts such as gamification. Web3 investment methods offer various opportunities to benefit from these rapidly developing next-generation internet technologies. Read on to learn how you can invest in Web3 and the technological narratives with the greatest potential. Also, learn about the risks you need to consider before you get started. Increase your financial freedom and become a pioneer in the digital world by investing in the internet of the future with investment methods!
What is Web3 ?
Web3 is an evolving concept related to the next generation of the Internet. Web1 was the first stage that started in the 1990s and covered the early days of the Internet. Back then there were 56k modems, clunky personal computers and read-only websites. Web2 is the current phase that started in the 2010s and introduced user-generated content. took internet access to the next level. It included Fibre Optic installations and 4G connections via smartphones. It also supported the rise of social media and cloud networks. The next phase, Web3, will consist of innovative technologies and concepts. For example, blockchain technology aims to be at the centre of Web3. This technology enables transparency, distributed control and global transactions. Blockchain works in conjunction with other technological advances such as artificial intelligence (AI) and machine learning.
Web3 also covers the trillion-dollar banking sector and enables everyday financial services to reach the masses. This covers decentralised finance (DeFi) products such as lending, borrowing and trading. It also increases interest in Metaverse, non-fungible tokens (NFTs) and play-to-win (P2E) games. Each subsector of Web3 offers an exciting change to the current internet environment, which is largely controlled by centralised entities. A simple example of Web3 is decentralised internet services through independent nodes. This means that anyone can share data usage and earn tokenised rewards. Another Web3 example is decentralised social media. On these platforms, posts and opinions cannot be censored or manipulated by Big Tech companies. There is also the Internet of Things (IoT), which allows every application to be seamlessly connected. This can include things like smart cities, wearables, augmented reality (AR) glasses, driverless cars and home security systems.
Web3 investment methods – Buy Web3 Cryptocurrencies
We have already mentioned that blockchain technology and smart contracts are the biggest beneficiaries of the Web3 era. Each blockchain network has its own native coin. For example, the Bitcoin blockchain is backed by BTC. Some blockchains have altcoins created by smart contracts. For example, Ethereum’s native coin is ETH, but the blockchain also hosts thousands of ERC-20 tokens, with each token representing an individual project. Therefore, when starting to invest in Web3, it is a good idea to build a portfolio of coins and tokens.
Diversify into VR, AR and Metaverse Ecosystems
The Web3 era aims to provide immersive experiences involving virtual (VR) and augmented reality (AR) systems. While devices such as Meta Quest and Apple Vision Pro will be available in July 2024, this technology will reach new heights in the coming years. According to Precedence Research, the VR/AR market was worth $6.78 billion in 2022, and the industry is expected to generate $124.5 billion in revenue by 2032, reaching a compound annual growth rate (CAGR) of 35.6%.
Invest in AI Crypto Projects
AI (artificial intelligence) should also be considered. AI is one of the fastest growing and most innovative technology areas. It is expected to take over many, perhaps most, tasks in the coming years. Financial experts believe that AI investments can generate significant returns. The easiest way to enter this market is to invest in quality AI crypto projects. Thanks to Web3 investment methods, you can take your place in the internet ecosystem of the future by investing in AI projects. There are many options that offer a different product or service in the AI sector.
Play and Invest in Games with P2E Rewards
In the Web3 era, gamification will make a big impact, especially in games that adopt the P2E (play-to-win) concept. In the current Web2 environment, games are controlled by centralised developers. Many games allow players to purchase in-game assets and additional content. For example, the popular mobile game Candy Crush Saga allows players to advance to the next level for a fee, and players can also purchase power-ups and extra lives. Similarly, FIFA games running on PlayStation, Xbox and PC allow users to purchase player packs and virtual coins. However, as with all traditional games, players do not own the digital goods they purchase. They also cannot sell or trade their purchases outside of the relevant ecosystem.
Web3 investment methods – Invest in NFTs and Real World Asset Tokens
NFTs and other Real World Asset (RWA) tokens also offer a significant investment opportunity. Unlike traditional crypto assets such as Bitcoin and Ethereum, each NFT is unique. This means that NFTs can represent tangible or intangible unique items. For example, NFTs can be used to break down the property investment process. This makes property investments more accessible and inclusive. Consider a property in London sold for $600,000. This property can be divided into 600 units, each backed by a unique NFT.
Best Web3 Investment Tools
Decentralised Finance Platforms (DeFi): Allows you to invest in DeFi products such as lending, borrowing, staking and yield farming. These platforms are ideal for generating returns on unused funds.
Crypto Exchanges: You will need to use a crypto exchange when trading Web3 coins. The best crypto exchanges include MEXC and Binance. You can also consider decentralised exchanges when investing in new projects. For example, platforms such as Uniswap or PancakeSwap can be used.
NFT Marketplaces: These are tools that allow you to buy and sell NFTs in various categories. Some NFT marketplaces have an auction system, which allows you to bid within your Web3 budget.
Pre-Sales: Crypto pre-sales allow traders to purchase tokens before they start trading on exchanges. Pre-sales offer the opportunity to invest at small valuations. However, the risks are also higher, as projects are usually in the development phase.
Wallets: You will need crypto wallets to store your digital investments. This includes cryptocurrencies and NFTs. Wallets also allow you to send and receive digital assets. Choose a wallet of your own, which gives you full control over your investments.
Can you invest in Web3?
Yes, this is possible with Web3 investment methods. You can invest in Web3 digital assets such as blockchain ecosystems, cryptocurrencies and NFTs. Also, decentralised physical infrastructure networks are included in these investment options. In addition, companies actively involved in Web3 products and services are also among the investment options.
How can I start investing in Web3?
Many investors are building Web3 portfolios that include cryptocurrencies from exchanges and NFTs from decentralised marketplaces. You can also invest in Web3 shares and ETFs through traditional brokers.
Is Web3 profitable?
Although Web3 is still an emerging and unproven market, it has unprecedented growth potential. For example, AI and DePIN coins have made significant gains.
What are the best Web3 investment methods for beginners?
Web3 stocks and ETFs are the most suitable for beginners. Because these assets can be traded on regulated brokerage platforms. Focus on companies operating in high-growth markets such as AI, machine learning, blockchain and GPU.