Thanks to technological advancements, people worldwide have more control over what they do with their money than ever before. People have more opportunities to make money — often their savings — go further through intelligent investments. Web3 is one of the newest investment opportunities that has cropped up, but exactly is it, and should you invest? Here, we will go through everything you need to know so you can decide whether it is a good time to invest in Web3.
Table of Contents
What is Web3?
Before you think about investing in Web3, it is a good idea to understand a little bit about what exactly it is. Web3 is a new form of the Internet that adopts modern technology such as artificial intelligence, augmented reality, blockchain technology, and decentralization across many features of the Internet. Many people are excited about Web3 because it gives users more control over data sharing and usage while reducing the possibility of manipulated data. It can also improve monetization while using the internet so people can make more money more easily.
Thanks to the growing popularity of social media giants such as Facebook and the increase in job opportunities in the Metaverse, many people speculate that Web3 may be the future of the internet and are excited about that future. The idea of Web3 is not to replace the current Internet but instead incorporate new technologies to improve the freedom of Internet users. The main reason this will be possible with Web3 is due to the decentralized nature of the Web3 internet.
How to invest in Web3
It isn’t possible to invest directly in Web3 — it’s a name given to a trend seen in technological advancements. However, investing either passively or actively in different types of businesses and specific companies is possible. If you are more interested in investing actively, you can invest in things like NFTs and cryptocurrencies. If you think you would prefer to be more of a passive investor, you can buy stocks in companies engaging in Web3.
There are also other methods of investing in Web3, including buying into the Initial DEX Offering or the Initial Coin Offering of a cryptocurrency company as well as angel investing. These methods involve investing directly in a company at the beginning of its creation or buying a cryptocurrency before it is officially launched.
A lot of the speculation around the potential of Web3 revolves around narratives and emotions rather than facts, which means you should do proper research before you decide where and what to invest in and determine whether it is the right time for you.
Invest in stocks involved with Web3
If you are looking for an easy way to invest in Web3, stocks are the best option. The most popular companies involved with Web3 are Web2 companies which all have several sources of income. What this means for investors is that if there happens to be a downturn with Web3, these companies will be less affected. Some examples of these types of stocks include Coinbase — a crypto exchange based in America that facilitates the purchase and sale of various cryptocurrencies while also allowing people to convert cryptocurrency to fiat.
Other examples of popular stocks involved with Web3 include Meta (the company that owns Facebook, Instagram, WhatsApp, and others), Twitter, and Apple, which all plan to incorporate new Web3 technologies.
Invest in NFTs
NFTs are a form of unique digital assets that use blockchain technology. These digital assets can’t be copied and can be purchased from marketplaces such as Magic Eden and OpenSea. Many people decide to purchase an NFT and hold them for an extended period with the hope that it will increase in value over time. It is essential to do proper research into different NFTs to decide whether they are a good investment for you or not.
Invest in cryptocurrencies
Investing in cryptocurrencies is another way you can invest in Web3. Cryptocurrency is a form of decentralized digital currency that operates on the blockchain. You can use cryptocurrency to pay for things like services and goods while utilizing it as a way to invest. This is one of the best ways to invest actively in the new form of the internet, Web3.
Conclusion
Web3 is an exciting concept with tremendous potential for the future, making it an attractive investment opportunity, especially in these early days. However, it is vital to do thorough research before investing in any of the options mentioned above to ensure that you have made the right decision.
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