How to Invest in Web3 in 2023 to Gain Immense Benefits?
The growth of Web3 technology in recent years has struck most people in awe, as it was largely unknown before that. Remarkably, this decade has seen the evolution of Web3 at spectacular levels, with the markets soaring highly across the years. Hence, more people are starting to invest in Web3 as the new year begins with some bang. There are many direct and indirect ways one can start investing in Web3 technology, and options will only grow with time. Here, our experts stack the top investment options Web3 has for you this year that can help you yield high gains.
Before Everything, A Refresher on Web3
Web3, or Web 3.0, however, you may call it, is the new iteration of the internet that focuses on decentralized operations on user data without the involvement of centralized entities and intermediaries. While Web1 was Read-only and Web2 was Read-Write-Share, Web3 calls for Read-Write-Own, a novel model empowering end users more than ever.
Talking in commoner terms, Web3 is essentially an extension of Web2, as most Web2 applications will upgrade to Web3 via back-end modifications, and the impact will be silent yet significant in the long run. The domain has been alive for over a decade, although it gained widespread attention recently.
Top Options to Invest in Web3 Right Now!
Purchase Web3 Tokens
Indeed a popular and the easiest option to invest in Web3 is to buy tokens of Web3 projects. There are a lot of projects releasing their virtual tender at the moment, and it takes a fair amount of research before pouring in money. You can also invest in the coins of established projects, should you have enough monetary resources. People can invest in both user-end and back-end projects relatively easily.
Trade Web3 Stocks
While not entirely a Web3-native option, buying stocks of firms investing heavily in Web3 (since most Web3-native companies never put their shares on the stock market) can be a safe bet. This can include companies investing in software and hardware development related to the domain and brands planning to delve into Web3 using their current presence. That being said, the stock market is subject to regulations, and investments are subject to risk.
Create a Portfolio of Web3 Stocks and
A lesser-known tactic when it comes to Web3 investing is to manage portfolios with a mixture of Web3 stocks and cryptocurrencies. While still nascent, the technique will be helpful when Web3 technology becomes mainstream and more investors start to create valuable portfolios. There are several professional providers of these services at the moment who can offer beneficial ideas and assistance for aspiring investors wanting to try out Web3 investments.
ETFs (Exchange-Traded Funds)
Irrespective of being institutional or retail investors, anyone can now invest in Web3 exchange-traded funds (ETFs), with many players ploying their services in the area. It is basically purchasing and selling stocks through an exchange platform. ETFs’ fluctuating nature resonates well with Web3 advancements that pan out often. Such investments can be valuable in the long term, as the internet leans more towards decentralization.
Purchase NFTs with Value
Perhaps a valuable asset class in the Web3 realm (at least for a proportion of the community), non-fungible tokens have been garnering prominence in the virtual space. While collectors have embraced NFTs with utmost interest, investors have seen the speculative potential they bring with them. The 2021 NFT boom showed how much these tokens could be driven based on speculations, although utility stands in a great position at the end of the day.
Decentralized Finance (DeFi)
Decentralized finance (DeFi) has been in the limelight for quite some time, irrespective of market conditions. Almost all operations possible in the conventional financial markets are now possible in DeFi, creating numerous options for investors to put their money in. Staking, yield farming, swapping, flash loaning, lending, and borrowing are popular operations in the Web3 world. The emergence of Web3 will only strengthen DeFi as more investors continue to get in.
Staking as an Investment
Staking cryptocurrency is a valuable option to invest in Web3 for anyone. It is based on the operation of people locking their crypto tokens in a investment pool to earn interest as passive income, similar to the traditional savings bank account. The process has evolved from solely being a financial one, as it is increasingly found across platforms with native tokens, irrespective of the domain.
Invest in Metaverse Land
Another technique in usage since the 2021 NFT boom is investing in metaverse plots can be crucial for one to yield benefits in different ways. These plots are in many ways similar to physical land, as they can be sold, rented, fractionalized, and placed as collateral for obtaining crypto loans. Platforms such as Decentraland, The Sandbox, and Otherside have become popular virtual real estate destinations for Web3 investors in the 2020s.
Obtain Crypto Loans
While borrowing might not sound like a piece of good investment advice, loaning by placing crypto collaterals can do more good. The nature of Web3 to exclude intermediaries (hence lengthy processes) enable quick loan sanctions that can add to an investor’s holdings. The speculation comes into play for long-term investors, as their holding value could increase when the market hits the bull run.
IoT as an Investment
While the internet of things (IoT) might not seem like a chance to invest in Web3, it indeed is, as IoT-enabled devices will play a huge role in making Web3 accessible to all. Investing in stocks and ETFs related to IoT and related domains such as artificial intelligence and extended reality could especially benefit investors in the long run as incredible innovations come out almost every day.
Hence, we have seen the top opportunities to invest in Web3 in 2023, and yes, starting a venture based on the domain can be a great investment too. If you have a business idea in your mind, you’re in the right place! Contact our experts now to have a discussion on how to put forth your ideas into a reliable Web3 application.