Web3 is a new way to go digital. Web2 provides the control of your data to the companies, but with Web3, you are in control of your data.
Since blockchain works as a digital ledger, therefore no organization can secretly share your data without your acknowledgement.
Web3 is still evolving. It has marked a shift from a centralized authority to a decentralized network of online governance, trading, and communication.
It provides thrilling opportunities both for investors and consumers.
The financial transactions on Web3 systems are conducted on the blockchain with smart contracts while the financial rewards are available to all the contributors.
Although there are no assurances for which brand or project will win big as Web3 will unfold, we are providing you with broad areas of investment opportunities for those who want to join Web3.
How To Invest In Web3?
The different ways in which you can invest in Web3 include the following:
1. Cryptocurrency Investment
Cryptocurrencies are generally considered to be the ‘financing arm’ of Web3 and therefore one of the best investment options in Web3.
The different ways in which cryptocurrencies can help you make Web3 investments are listed as follows:
Buy And Sell
The first step of investing in cryptocurrencies is to buy them at low prices and then sell them when the price soars.
Currencies like Ethereum and Bitcoin may be high priced, therefore the newcomers can begin their crypto investment with the new upcoming currencies like Solana.
Apart from this, investing in stable coins like Tether can also be considered as a great option for investment.
Since Tether is linked to the USD, its price will rise with the rise in the price of USD and it can be used wherever required.
Mining Of Cryptocurrencies
Mining of cryptocurrencies can be considered as another way of investing in cryptocurrencies. If you know programming, then you can invest your time in mining crypto like Bitcoin. It does not require any extraordinary skills, just a basic knowledge will be sufficient.
Apart from this, you can rent out cloud mining services or can join mining pools by allotting your hardware to communities that mine crypto.
Short Selling
You can also check for quick market efficiencies among cryptocurrencies to make profits, in case you have both liquidity and time.
Purchase the cryptocurrencies when the price is comparatively low and sell them immediately as the price increases.
Alternatively, you can sell the cryptocurrency at the current price if you think the price is going to fall and then buy it again when the price falls slightly.
With Day trading and short selling you can earn nifty profits. This is a feasible investment as the cryptocurrencies go through periods of prosperity and depression frequently.
Staking Crypto
Staking of the crypto is one more efficient way of making Web3 investments through cryptocurrencies and making profits.
With this, you can gain just by holding onto your cryptocurrency and depositing it into a staking pool.
Staking pools are for providing proof of stake. They efficiently validate blockchains. You will receive profits if a block is assessed on a blockchain with the help of your token.
For those who are unaware of blockchain technology, staking is like a term deposit where you receive the principal amount along with the interest at the end of the term.
2. Non-fungible Tokens (NFTs)
An NFT is an encrypted documentation which acts as an ownership proof for a particular file of digital art. Each NFT is unique and cannot be divided. It can be replicated by anyone.
It is a certificate of authenticity which is encoded in the blockchain. It encodes and traces the history of the digital file with which it is linked.
Investing in NFTs provides a better safety margin than cryptocurrencies, as cryptocurrencies are just numbers on the screen while the former has a sort of aesthetic beauty to them.
NFTs are the initial building blocks of Web3 and they will have huge utility in Web3. You can make Web3 investments with NFTs in the following ways:
Digital Arts
You can purchase and trade in Non-fungible tokens. It is considered to be an efficient strategy for making Web3 investments. Purchasing the digital arts is regarded to be the primary means in this case.
The prestige of the artist and the current bid of art determines the great drivers of art prices as per the machine learning research. Therefore, you first need to find a prestigious artist.
You can search for prestigious artists by viewing their artworks on Discord or Reddit, you can also see their associated studios.
To check the bidding prices of the artworks of different artists, you can go to OpenSea or other such marketplaces.
Choose those artists whose artwork portrays a value increment pattern in the past few years.
Along with digital arts, collectible NFTs also include videos, music, and trading cards. Therefore, these can also be regarded as Non-fungible token based Web3 investment possibilities.
Metaverse
Investing in Metaverse is another method for investing in Web3 with NFTs. Web3 will create new worlds and Metaverse is such a description that will encompass them all.
Metaverse will create an alternative universe that will resemble ours’. It will combine various technologies like virtual reality, social media, artificial intelligence, and augmented reality to create entire new worlds.
It will be somewhat similar to the captivating, high-technology online gaming world.
Renowned companies are already organizing to make their marks in the Metaverse space.
Social media leader Facebook, which is regarded as the pioneer of social media, has also expressed its move on this changing trend by transforming its official enterprise title to “Meta Platforms”.
Investing in businesses like Meta cannot be considered as an authentic play on the Metaverse because of their distinct individuality.
That’s why, purchasing land directly in the metaverse will be a better strategy. But here also the location matters, the worth of your parcel of land will be more if it is close to an area of high traffic.
Certainly at this time, buying land in the Metaverse may have unpredictable or risky consequences. Only time will tell the future of such an investment.
3. Companies Working With Web3
The risk exposure of directly investing into Web3 can be mitigated by finding such companies which can do that for us.
You can directly invest in Web3 companies through stock exchanges. You can also use their services or buy their NFTs as a Web3 investment.
There is a difference between companies that are trying to get into Web3 and the pure Web3 companies. The former can make money even without Web3 technology.
On the other hand, a pure Web3 company’s business model is dependent on blockchain and people’s belief on its uniqueness.
The companies’ business model will fail, in case people’s belief on the blockchain fails.
Investment In Companies Working With Web3
There are numerous organizations that are operating with Web3, by investing in these businesses you can acquire a portion of Web3.
You can try investing in Fashion brands like Adidas, Nike, Gucci, etc. Along with this, the Technology companies like Samsung, Meta, etc.
Are also decent choices for making investment in the latest Web version. Along with this, you can also consider brands like Taco Bell, Coca-Cola, etc for taking part in Web3.0.
Besides, there are NFTs like CryptoPunks, OpenSea, Bored Ape Club, etc. and Metaverses like Axie Infinite, Sandbox, and Decentraland, that can also be considered for Web3 investment.
Before deciding to invest in any of these brands, you should necessarily conduct a careful research regarding their future potentials and the corresponding consequences so that you may not have to regret your decision later.
Also Read:
- Is NFT Art a Good Investment?
- Will The Metaverse Be Successful?
- Best NFT Metaverse Games
- How to Buy Shiba Land in Metaverse?
Conclusion
Many futurists, developers, and investors are enthusiastic about the unfolding of Web3, but its future is highly speculative.
Web3 offers an entirely new world of investment opportunities. Cryptocurrencies, NFTs, and direct investment in the metaverse can be good options for beginning with the Web3 ecosystem.
Investing in Web3 in the above-mentioned ways can prove to be profitable but there are several risks involved as the concept of Web3 is still in the growing stage and so the future remains uncertain.
However, with the right research and wise investment decisions, you can have good profits from Web3.