How to invest in Web3
When Web1 came into the limelight, people would have probably thought it was the peak of the internet. Then Web2 came with even better offers. Web2 brought an expansion of social media and mobile data, as opposed to “Web1,” which was strictly ‘read-only.’ Internet users could not contribute whatsoever. It was simply one-way traffic. Web3 brought about many things happening at once; cryptocurrency, blockchain technology, non-fungible tokens, decentralized finance (DeFi), and even the metaverse. These cutting-edge innovations are still strange to a lot of people who are barely recently gaining knowledge of what Web3 is. This is why in this article, we will look at how to invest in Web3.
This will give you keen knowledge of what area of Web3 can not only preserve your money but also bring in bountiful profits. Before then, let’s start from the beginning.
What is Web3?
For us to have a full understanding of what Web3 is all about, let’s get to the origin. We’d begin our research from Web1 to 2, and then 3.
Web1 is often called the static web or read-only web. It was the original internet that emerged in the 1990s. Since only HTML, URL, and HTTP were used in its production, this read-only version was not “user-friendly.”
Moreover, read-only access to Web1 is currently unavailable. Since no algorithms were utilized, no one will be able to alter or add to the data. In the early days of the internet, when it was known as Web1, the only truly interactive features were email and news websites.
Most website owners are the authoritative author of all content, and visitors cannot contribute. This was greatly disturbing because there was a lot of misinformation during that era.
Unlike Web1, which was just read-only, Web2 embraced a two-way conversation. It enabled reading and writing, which gave it the name, Read-write. This upgrade of the world wide web was first proposed in 2005, giving rise to altered internet behavior.
Also, because of Web2, browsing the web is now a lot more fun. Users can now edit the website’s material as they see fit. The proliferation of mobile apps, video games, and social media has accelerated the spread of Web2’s innovations.
Moreover, the Web2 architecture is client-server based, so when you visit a website, you request a remote data repository. This company-owned and -operated server houses all of the information that must be present to run a functional website.
This world wide web version embraced the third feature, “to own.” It comprises both the read and write features present in Web2 with a unique, never seen feature, “own” to its characteristics. It is often referred to as the Semantic web.
In addition, Web3 is widely regarded as the Internet’s third iteration because of its emphasis on public accessibility, decentralization, and independence from corporate “trust” and permission. The third generation of the World Wide Web is based on decentralized protocols that encourage user participation in the development and maintenance of online content. Additionally, they have the option of partially owning the website.
Furthermore, Web3’s power lies in empowering users to take creative control of their lives. Like blockchain, Web3 will function as a decentralized network of computers communicating directly with one another. For these reasons many experts recommended to invest in Web3 at an early stage.
Numerous existing technologies can form the basis of Web3. Some of the technologies that might form the backbone of a decentralized internet include blockchains like Chainlink (LINK), Helium (HNT), and Ethereum (ETH) and data repositories like the InterPlanetary File System (IPFS).
Moreover, thousands of dApps, open-source applications, are now operational on a blockchain network. Native tokens used within these decentralized applications (dApps) contribute to a growth in token value. As a result, users who own these cryptocurrencies can take part in the network and benefit from it.
Now that we’ve gotten that out, let’s look at how to invest in Web3. It’s time to gain business opportunities from this new era network.
How to Invest in Web3
There are several benefits tied to Web3. What areas, then, can you invest in? Let’s check 7 strong investment opportunities we have put together for you
- Web3 Tokens
- Web3 TLDs and Domains
- Crypto loans
- Web3 stock
- Crypto staking
Web3 tokens compensate for computing, bandwidth, storage, identity, hosting, etc. As cryptocurrency and Web3 expand rapidly, developers are constantly striving to make them more robust in terms of scalability, security, and efficacy. There is a lot of comparison between Web3 and cryptocurrencies because they both want to be decentralized and provide everyone with the same opportunities.
You can look for a successful Web3 project and be involved in their token. So, as the business experiences growth, so would your investment.
NFTs (Non-fungible tokens) was established to protect ownership and a sense of scarcity for digital files. An artist may keep the copyright for themselves, sell it to the buyer, or set a proportion of secondary sales that the owner may make, just as they would with a real work of art.
As an investor, you can do in-depth research on thriving NFT projects that will yield higher profits during a resell. Then, you can purchase them at the seller’s rate and resell them later at a much higher price when you have observed the market and gotten a whip of scarcity.
Web3 and blockchain technology has the potential to completely alter the international financial lending industry because of decentralization and autonomy. Compared to the traditional loan system, you know, it requires processing by centralized institutions like banks. This usually involves a thorough application process, including a credit check and financial documentation from the potential borrower.
If you can invest in such a platform, you can put your crypto for lending while you earn passively from it.
When deciding where to put your money in Web 3.0, don’t forget about the booming DeFi market. Decentralization is the central idea behind DeFi, a new finance approach. This means that basic financial services, including banking and credit, should be accessible to the public without the intervention of a monopolizing authority.
This is another means of earning via Web3 investments.
The stock market is the hub for investment and stealthily finds its way into the Web3 network. First, you must find an exchange where you can monitor the crypto market. Some of the networks include Coinbase, Binance, etc. Then, get actual knowledge on how trading on the crypto stock works on your preferred exchange channel.
If you want to know what the future holds for the Internet, go no further than the metaverse. For this reason, choosing a strategy incorporating multiple tactics would be prudent.
Metaverse holds many investment opportunities, from managing metaverse portfolios to buying actual lands on metaverse. These are investment opportunities you can do in-depth research on and explore.
It is important to Web3’s future and has been a focal point for several crypto-start-ups. Blockchain networks that employ a proof-of-staking consensus process are closely linked to the concept of crypto staking.
In addition, Investors are incentivized to store their crypto tokens within the blockchain, which would help ensure the network’s integrity. As a result, the return for the investors would increase. However, things have changed in the staking industry, and other sites offer better returns.
This is another resourceful investment opportunity in the Web3 network.
Freename TLDs and Domains
Have you been wondering how you can earn passively via owning TLD and Domain? You should get to know Freename. We reward our users by opening a profit-sharing license every time other users register their Web3 domain on their minted Web3 TLD. This is a reward system for their domain registration price and effort. Interesting right? Check out more now on freename.io.
How to invest in Web3 might just be the next level investment opportunity to earn both active and passive income, on which earning passively is much more important. Several emerging technologies will still give rise to better investment opportunities in the foreseeable future. These technologies include NFTs, DeFi, metaverse, blockchain, crypto, and much more. There’s a lot you can earn from Web3. Ensure you DYOR (Do-Your-Own-Research) before trying out any.
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