If you are looking to invest in Web3, a technology built around concepts like decentralization and the blockchain, you're on the right track. In fact, the new internet could open a whole new world of financial opportunities.
Investing in the Web3 Universe may provide an excellent means of earning in the future, but understanding the risks involved is crucial.
For those individuals that find the Web3 industry to be intriguing, there are several ways you can either trade in or invest in Web3 companies. Keep reading to discover them.
Perhaps the most direct path into a Web3 investment is buying and selling cryptocurrency. (sometimes also called Web3 Tokens).
Aim to acquire a well-diversified portfolio, even if it may be hard to decide the ones that are worthy to invest in.
Here's our tip: if one specific web3 project is getting traction over others, it may be a good idea to invest in that tokens homegrown.
The landscape surrounding cryptos and blockchains, generally, aka the Web3, has given rise to many companies, which have stocks that can be appealing to traders as well as investors.
Some companies working in the field, like Microsoft, are already trading on the public markets, and it is possible to get in on the web3 development world by investing in their shares. In addition, you may invest in startups that are creating web3-related products and solutions.
The Web3 space includes companies working in:
Another investment method is betting on projects or on blockchains that will create good platforms for upcoming Web3 apps.
Investing in funds could also be considered a good choice for getting exposed to the Web3 world, especially if you do not have time or resources to research. These funds may be run passively or actively, but they promise to spread your investments across a large number of web3 projects across the globe. They usually invest in both startups and established companies.
You can purchase shares of different Web3 companies via different platforms, and invest in stocks via Robo-advisors or investing apps. To find web3 stocks worth investing in, you can use FinViz, a stock screening tool, or Crunchbase, where you can search for Blockchain companies by their IPO status.
For instance, stocks like Web3 stock and ETFs can be invested in on eToro with only a $10 minimum trading requirement, and no fees. Many Web3s companies will have their own tokens or cryptocurrencies that can be purchased via Initial Coin Offerings (ICOs) and cryptocurrency trading platforms. For example, with platforms such as Coinbase, Binance, and the rest of the web3 ecosystem, investing in cryptocurrencies is easier than ever.
Decentraland is another interesting platform. There you can begin getting creative with your investments and capitalize on the opportunities offered by Web3.
If you're looking for smaller, upcoming, Web3-decentralized Apps, have a look at tools such as DappRadar, CoinMarketCap, and DeFi Llama.
Another option to consider in evaluating how to invest in Web3 cryptocurrency is buying virtual land inside of an existing, popular metaverse project. Another option to consider when evaluating how to buy Web3 tokens is to invest in metaverse cryptocurrency coins such as MANA and SAND.
If an individual can manage the volatility in Web3 stocks, then they could be a worthwhile investment -- however, they might not be an ideal investment for someone who does not have the capacity to absorb temporary financial losses.
