How To Invest In Web3

Curious about how to invest in Web3?

By now, you’ve heard the term “Web3” used to describe a permissionless and decentralized version of the Internet. Many experts believe that we are currently headed toward Web3, but it will take some time before a transition from Web2 to Web3 is final.

What can you do now to invest in Web3 and reap the benefits of being early to the Web3 ecosystem? Some might suggest that cryptocurrency mining is the best way to profit in Web3, while others might argue that purchasing a Web3 domain name is the right move. 

Of course, there are different ways to approach Web3 investing. Some might opt for a more active Web3 investing strategy, while others might be more interested in purchasing Web3 assets that generate passive income. Read on to learn more about how to invest in Web3, the next Internet iteration.

Invest In Web3 Stocks

What if you want to invest in Web3 but are worried about the volatility of the crypto markets? In this case, it might be best to invest in some of the companies most involved in building the new decentralized Internet. For example, you might invest in companies like Coinbase, Block, or Nvidia.

There are even Metaverse ETFs for those more interested in investing in a particular Web3 theme. Unlike cryptocurrencies, these stocks offer much more security and liquidity, which appeals to more conservative and less risk-tolerant investors. 

Purchase NFTs

Not long ago, NFTs became one of the biggest buzzwords in business and technology. Countless artists joined the NFT craze, whether it was a musician selling their album as an NFT, or a digital artist releasing an NFT collection that ended up gaining traction on social media. Celebrities even bought Bored Apes to become part of the Bored Ape Yacht NFT community. 

Even though the “hype” cycle of NFTs may have died down, the fact remains that more corporations like Starbucks, Disney, and Nike are seriously investing in NFT strategies. If you’re willing to take the time to do due diligence and research NFT collections and markets, you might be able to end up with an impressive NFT collection.

If you’re willing to tolerate a certain amount of risk, this could potentially be a great way to invest in Web3. Remember that buying NFTs requires you to stay on top of NFT news and trends, like how the recent Reddit NFT collection defied the crypto markets.

Join A DAO

If you believe in Web3, you might also believe that the future of organizations is decentralized, beyond just the Internet. Imagine a world where corporations, non-profits, and consortiums exist as decentralized organizations where individuals align around a core mission and vote on allocating resources.

You will likely have to purchase DAO tokens before joining a DAO, but this is a great way to invest in Web3. Besides the fact that your DAO can eventually rake in profits, a DAO can also be a critical way to jumpstart your Web3 journey or network with other like-minded Web3 enthusiasts. 

What will investing in Web3 look like soon?

While we know that there are major trends like DeFi, NFTs, and the metaverse, we are still in the very early stages of Web3. Within the next several years, there may be innovative and exciting ways to invest in Web3 that were not previously possible.

Of course, deciding what investing approach and how much risk you want to take is important. Keep in mind that Web3 can change very drastically and quickly, as we recently saw with the collapse of FTX. If you decide to learn to invest in Web3, remember to consistently stay on top of all Web3 news and trends to keep tabs on your investment.