How to Invest in Web3

Do you know how to invest in Web3? It’s the future of internet. With all of the talk about the upcoming Metaverse, you might have also noticed mention of something called Web3. You might be wondering what Web3 is. In fact, you might be wondering what Web 1 and Web 2 are as well! Isn’t the internet just the internet? Well, yes and no! Most people do not refer to the internet as Web2, but that’s what we are currently using. I’ll go into a bit more detail about what Web1 and Web2 are later in the article

What Is Web3?

How to Invest In Web3
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Web3 is the next iteration of the internet as we know it.

Because the Metaverse is also on the way, the two often get used interchangeably.

While the two concepts have a lot of overlap, they are not one in the same.

As investors, we should always be on the lookout for emerging technologies and industries.

It’s how people made fortunes on internet stocks, electric vehicle stocks, and cryptocurrencies. 

Web3 is based on several principles of technology. First, it will be built almost entirely using blockchains. Most people know these as the digital ledgers that cryptocurrencies are built upon.

This is true, but blockchains have other utility as well. Every transaction is publicly viewable so there is no hiding things on the blockchain.

It also permits direct transactions between parties, eliminating the need for third party payment companies or banks. Web3 is looking to instill the principle of ownership.

Content creators would own their intellectual property, rather than companies like Google or Facebook. So know how to invest in Web3?

This is the underlying force that is driving us towards Web3, so let’s take a deeper dive into how this will change the world moving forward.

Well, What is Web1 or Web2?

How to Invest in WEB3
Photo by Markus Spiske on Unsplash

The internet started in Web1, which is dubbed as read-only.

If you recall the early days of the internet, everything was just static and plain on the screen. This is Web1.

If we saw early versions of Web1 websites, we’d think they look and feel archaic. It’s because they are.

Nothing was really clickable or interactive, it was simply text on a screen without hyperlinks. Sounds boring, doesn’t it? A lot of us likely didn’t even have the opportunity to interact in Web1 very much, so there isn’t much comparison to be made.

Web2, is when we introduced read and write formats to web pages. Everything was dynamic and we could actually ‘surf’ the net from domain to domain. Things can happen in real-time in Web2, and sites like Twitter and Instagram are great examples of how the internet has evolved over time.

Web2 is what we are currently using, but it has already started to evolve again. The internet today is very different from the internet we used even five years ago. A lot of this has to do with the availability of online access.

Programmers and developers have more powerful software at their disposal, while mobile internet usage has caused the internet to explode in terms of usage. Do you know how to invest in Web3? Let’s keep reading.

How is the Metaverse Different from Web3?

So what is the Metaverse then? We can think about Web3 as the way the internet will be built, while the Metaverse is how we experience it. The Metaverse will be interactive and digital, and combine all different online worlds together in one place.

Much of the Metaverse will be built upon technologies like augmented reality and virtual reality. Early indications are that using AR/VR headsets will be the truest way to experience things in the Metaverse. 

But the Metaverse will be built upon the tenets of Web3, so the two concepts will forever be linked. The Metaverse will likely be using digital assets like cryptocurrencies as its main source of payments.

Other things that overlap include the ownership of intellectual property and content, so that creators can get paid directly for their work.

There is no doubt the two platforms are different in their development, but the Metaverse and Web3 will co-exist in our next era of the internet. Which is good to know as we learn how to invest in Web3.

How Do I Invest in Web3?

This is an interesting question as the inclusion of blockchain technology allows for a lot more flexibility for assets.

For example, you could invest in some of the Web3 cryptocurrencies that will be used as payment methods.

Cryptos aren’t for everyone, but the ones that are gaining mainstream and institutional adoption are likely going to stick around during Web3.

If cryptos aren’t your thing, then there are plenty of publicly traded companies that are getting involved in Web3.  Let’s take a look at some of the best investments you can make as the world prepares to enter Web3.

How to Invest in Web3: NVIDIA (NASDAQ: NVDA)

What does Nividia have to do with knowing how to invest in Web3? NVIDIA finds itself as the company at the center of nearly every major technology trend for the future. It is one of the leading chip makers in the world, it is involved in gaming, data centers, artificial intelligence, cloud computing, autonomous driving, and the Metaverse, just to name a few.

NVIDIA is even creating its own Metaverse site, the Omniverse, to help creators and companies launch in the Metaverse. NVIDIA has always been a great investment, but given its involvement in upcoming emerging technologies, it will likely be a clear tech leader over the next decade. 

How to Invest in Web3: Apple (NASDAQ: AAPL)

Apple

Apple is poised to be one of the global leaders in the Web3 environment. Why?

First, it has one of the largest hardware ecosystems in the world. Every iPhone, iPad, and Macbook will be creating the Web3 network and making content.

So watch them as you learn how to invest in Web3.

Apple has also expressed a desire to get into digital wallets, and we can expect Apple Pay to be one of the leading ways to pay.

Whether or not it gets the long-awaited upgrade to include cryptocurrencies remains to be seen. Apple is also looking to develop its AR/VR headset and other hardware for when the Metaverse and Web3 launch. 

Meta Platforms (NASDAQ: FB)

Of course, Meta as it is now known is tied to the Metaverse. But Mark Zuckerberg’s company is also expanding into the world of Web3. Meta recently added NFTs and crypto payments to its Instagram platform, opening the door for content creators to get paid directly through the platform for their work.

Meta is also developing headsets through its Oculus subsidiary, and has made moves to leverage its WhatsApp chat platform for payments as well. The company itself might be controversial, but there is no doubting the impact that Meta will have in Web3. 

Block (NYSE: SQ)

Block has been undergoing somewhat of a transformation over the past couple of years. We all remember it as Square, the small business Point of Sale software.

But recently, CEO Jack Dorsey has been making a push to include cryptocurrencies and blockchain technology. Block is developing low-energy, consumer friendly Bitcoin mining technology. It has also already included Bitcoin investing in its popular Cash App platform.

Dorsey has long been a Bitcoin bull and is trying to make Block the center of the new decentralized and digital finance industry. If you believe in Web3 and decentralization, then Block is an excellent bet to make.

Bitcoin (BTC) and Ethereum (ETH)

For the adventurous investors who have a higher risk tolerance, you might just want to invest in cryptos themselves. While we all know the stories of overnight millionaires from Shiba Inu Token, the blue-chip cryptos are still the safest bets.

Bitcoin is still the preferred store of value in the digital world, despite its high energy consumption. Ethereum looks to be the primary blockchain network that most decentralized apps will be built upon.

The two tokens dominate the total market cap of the crypto industry. If you are going to bet on any digital currencies for the future, it should be Bitcoin and EthereumAnd if you know how to invest in Web3, then you know you may be using these coins someday.

When is Web3 Coming?

This is a question that nobody really knows the answer to. In some ways, it already exists as platforms like Instagram roll out these updates. It’s likely not going to be a flip of a switch, but a more gradual evolution over time. It starts with concepts like digital wallets and payments.

We should see a more drastic shift to Web3 elements once the Metaverse hits the mainstream. According to most industry experts, it will be over the next five or ten years that this takes place. 

So we have some time before Web3 is fully implemented. While this usually means we can find these stocks early, most of the major companies involved in Web3 and the Metaverse are the existing big tech companies.

This makes investments in Bitcoin and Ethereum somewhat more appealing for long-term investors. And why they’ll know how to invest in Web3.

How to Invest In Web3 Conclusion

You can also seek out smaller companies that could grow in Web3. The problem with these stocks is that it’s hard to knock off major businesses like Apple or NVIDIA. They just have too much money and too much market share already.

Over the next decade, we’ll be approaching Web3 and we will see more partnerships and companies getting involved. As always, keep your ears out for new investment opportunities.

Web3 is coming and it will be here faster than we think. So make sure you know how to how to invest in Web3 as well as every company you look at. How will you prepare your portfolio for the next generation of the internet? 

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