The global market for Web3 is expected to grow to around a staggering $176 billion by 2025. That’s a 700% increase compared to 2020. Web3 is still in its early stages of development, representing a lot of growth potential.
Thus, investing in Web3 means investing in an industry that is at its beginning, potentially having a stake in future businesses. If you haven’t figured out how to be a part of the future of the Internet, let’s find out our top 5 best Web3 Investment ideas in the current times.
After careful consideration, we have concluded that purchasing appropriate crypto tokens is the best approach to investing in Web3. After all, blockchain technology and cryptocurrencies are poised to play pivotal roles in the coming Web3 revolution. Choosing which tokens to invest in is probably the most difficult portion.
In this respect, diversifying among a number of projects that are likely to influence the next generation of the internet is a solid strategy. As the most valued and widely recognized cryptocurrency in the world, Bitcoin is a good place to begin.
How to invest in web3 through cryptocurrencies?
So, how would you go about putting money into digital currencies? Let’s find out some of the strategies Web3 investors often applied:
#1. Buying low and selling high
As a cryptocurrency, its value rises as the US dollar appreciates in relation to the currency you’re buying with, and you can spend it however you like. You should invest when you believe the price is cheap and sell when you anticipate a rapid price increase. On the other hand, you may try the opposite. If you anticipate a price drop, now is the time to sell and prepare to repurchase at a lower price. As a result, you make a nice profit. Due to the unpredictable nature of cryptocurrency prices, this investment strategy is only recommended for those with a high-risk tolerance.
Crypto mining, like Bitcoin mining, is another way to put your time to use in the cryptocurrency market. Mining can be as simple as copying and pasting code into an integrated development environment (IDE) without much mental effort.
#3. Crypto staking
With crypto staking, you can get paid to just store your cryptocurrency. Staking is similar to making a term deposit and receiving interest and your original deposit back at the end of the period. If your token is selected to validate a block on a blockchain, you will be compensated. This is because proof of stake is a more energy-efficient way to validate blockchains.
At present days, you can buy shares of companies investing in Web3 on the public market. It’s important to keep in mind, though, that no “pure” Web3 companies are traded on public markets (that is, 100% investing in Web3 technologies). On the other hand, stockholders will need to select companies that are actively investigating Web technologies in addition to their primary business model.
Best Web3 Stocks to invest
Not sure where to put your money in? For reference, here are my 3 recommended companies that have all received widespread backing from the cryptocurrency community (of course, I strongly suggest you do your own research and make your own choices as well):
It’s tough to picture Web3 without Apple playing a major role. While the nature of the stock market includes the prices to be varied all the time, Apple stock, however, has been the standard-bearer for this investment strategy in many respects.
Apple has contributed to some of the most fascinating technological developments of the past few decades. Historically, it has also ranked among the world’s most successful businesses. In addition, since it was the first firm to reach a valuation of $1 trillion, and since 67% of American households have at least one Apple device, it’s easy to see why.
The company has been around since 1911, and its computers are still widely recognized as the best in their field. With a history spanning over a century, IBM has consistently ranked as one of the industry’s top players.
When discussing the tech industry, it would be unthinkable not to bring up IBM shares. IBM is among the world’s most valuable firms, among competitors like Microsoft, Amazon, and Google. Both the company’s past and future goals make it an exciting investment opportunity. IBM’s dedication to AI research and the development of analytical tools during recent ages, it’s conceivable that these efforts will eventually lead to huge growth in Web3.
The company Coinbase was launched in 2012 by Brian Armstrong, a former developer for Airbnb. Coinbase is a publicly traded corporation with shares that can be bought and sold like any other. Even if Coinbase stock has dropped in recent months, the growing popularity of cryptocurrencies is a major factor in the company’s success.
At present, Coinbase has quickly gained popularity among crypto traders and became a major hub for the industry in the years that followed. Millions of people owe their introduction to cryptography to it. As of the year 2020, Coinbase has annual revenue of over $1 billion.
Digital artwork (NFT)
For the uninitiated, digital artwork is an NFT, the digital assets created atop the blockchain network, just like Bitcoin and Ethereum. The main distinction, though, is that NFTs cannot be exchanged for other currencies. This implies that every NFT is unique. According to the forecast, NFTs will bring in over $25 billion in revenue in 2021. Much of this was predicated on intangible commodities like digital artwork and virtual property. Thus, buying digital art is one of the steps to contribute to your efforts toward the future of the Internet.
Metaverse real estate investments are yet another Web3 way to use NFTs for financial gain. The real-world analogy is that location is everything. There are already huge investors in well-known metaverses, but if you find a promising new metaverse and put money into it at an early stage, you may eventually see a healthy return on your investment.
One way to invest in Web3 through the metaverse is projecting advertising income into the future. The goal of many businesses is to find advertising space in the metaverse that will attract as much attention to their goods as a Facebook ad.
When deciding where and how much to put money into Web3.0, the DeFi market should not be ignored. DeFi is a new approach to finance: people shouldn’t have to go through an intermediary, like a bank or credit union, in order to gain access to basic forms of financial services. When investing in DeFi, the platforms let investors earn a healthy return without any reliance on a central bank or other centralized institution.
With DeFi Swap, you may earn 75% yearly on your DeFi Coin. Investors can instantly convert between different types of Web3 tokens with only the click of a button, without the need of setting up an account. Furthermore, DeFi Swap will be releasing a yield farming platform, which will provide investors with the opportunity to earn passive income through participation in liquidity pools. Investors stand to gain a portion of the Defi Swap exchange’s transaction costs merely by making the market liquid. The developers of Defi Swap, a platform for trading in NFTs, are also planning to launch a knowledge hub and other decentralized products and services.
This article presents the top five Web3 investment options that you may wish to consider for your Web3 contribution. If you wish to hear about additional methods that we haven’t covered yet, please leave a comment and let us know.