In this article, I will walk through the best strategies to follow while investing in Web3 to get money out of Web3. This beginners guide, for instance, discusses the 10 best ways to invest in Web3 — covering everything from tokens and crypto stocks, to smart portfolios and ETFs.
Many of the investment products discussed in Web3 today are heavily invested in Web3. Outside of cryptocurrency assets, one may choose to invest in Web3 by purchasing shares in companies developing Web3 solutions. Acquiring (buying, earning, or being gifted) tokens from Web3 projects is the most direct route for investing in Web3 technology.
Venture Capital
Money to fund major Web3 efforts is typically raised via public or private initial coin offerings (ICOs), which are sales of cryptocurrency tokens for a project, that may have much greater value in the future should the venture succeed. Venture capital (VC) firms have been keen on providing financing to Web3 projects. Despite the cryptocurrency bust, VCs are supporting Web3 startups in areas such as NFTs and decentralized finance.
Venture capital firm Paradigm raised $2.5B for a fund investing in cryptocurrencies late last year, which was the largest fund at that point in the Web3 space. Web3 investment firm CoinFund raised $300 million in funds during the cryptocurrency markets period of turmoil. In May, A16z announced a $4.5 billion fund for cryptocurrency and blockchain startups.
The good news is, while that indeed happened, funds such as Andreessen Horowitz (a16z) closed their $4.5 billion Crypto Fund, investments continued to pour in from various sectors in the blockchain sector. While data shows signs of slowing down investment flows in the cryptocurrency space, the appetite for helping to create the next generation of blockchains and cryptocurrency products seems still to be strong. Pakman believes that recent declines in the prices of cryptocurrencies have typically provided a more favourable price entry point for VC funds such as the other major funds, but that the shift from Web 2.0 to Web3 is still early.
Unity Technologies and Metaverse
Yes, it seems all but certain that Unity Technologies is going to be an important player in Web3 games. With so many applications already in motion that involve with the Metaverse, there is cause to be optimistic, and have this one on the web3 list of stocks to keep a close eye on.
Yes, Unity Technologies is extremely interested in web3, specifically in the so-called Metaverse. Companies like Nvidia and Unity Software have shown an interest in web3. It is definitely worth paying attention as well to shares from companies like Apple and IBM, who will involve themselves with developing web3 applications.
With this, the Ark Fintech Innovation ETF invests in many companies actively involved with emerging technologies — some of which are likely to play a role in the future of Web3. For instance, a lot of folks have recently bought shares in the Metaverse, even though the platform seems less than perfect in its current state, so knowing what is going on with Web3 companies that you are investing in is crucial. If you are looking to invest in Web3, it is something that you should be looking at because it could unlock an entirely new world of opportunities for you.
NFTs and Web3 Crypto
For those who are looking to invest in Web3, selling NFTs is something that people can consider as a way of making some money. Creating digital representations of real-world assets is a good way to make a little passive income, and it could be a good way to invest in Web3. Cryptostaking platforms provide a great way to earn some passive income and offer different ways to back a Web3 project that you believe in.
You can purchase shares of different Web3 companies via different platforms, as well as invest the shares via Robo-advisors or investing apps. Platforms such as Decentraland are the place to begin to be creative in investing and taking advantage of opportunities offered by the Web3. With platforms like Coinbase, Binance, and the rest of the web3 ecosystem, investing in cryptocurrency is easier than ever.
With the transparent, decentralized nature of Blockchain technology, developers are now building a new wave of innovative applications leveraging the technology; now known as the Web3. Web3 supporters claim it puts the power back in users hands, creating a more open, transparent, and approachable Internet ecosystem.
Is Web3 Crypto The Future?
Web3 is the umbrella term describing the next iteration of the Internet, which builds mostly around Blockchain technologies. Web3 is the next generation from the original Internet, and encompasses a number of emerging and pioneering technologies such as cryptocurrency, blockchain, NFTs (non-fungible tokens), decentralized finance (DeFi), and the metaverse. At the end of the day, Web3 is at this point only a concept which has combined different emerging technologies under one brand name – that is, crypto, blockchain, NFTs, DeFi, metaverse, etc.
In the middle of crypto winter, proponents of Web3 are clinging to that concept. As markets experience turmoil, investors opinions about investing in Web3 are generally lukewarm, with the majority becoming sceptical of its ability to survive a crisis.
So far, Variant has invested throughout Web3 – from decentralized financial (DeFi) protocols such as Cozy Finance, to projects focused on the core infrastructure of blockchains such as Polygon, to consumer applications such as Foundation. A central theme in Variants investments has been platforms focusing on the user experience and ownership, including Decentralized Autonomous Organizations such as PleasrDAO and Friends With Benefits. The new fund will invest in crypto projects and companies focusing on Layer-1 blockchains, Web3 infrastructure, DeFi, NFTs, and games, payments, asset management, exchanges, markets, and decentralized applications, said Pakman. Some examples of web3 companies in the US include Alchemy, a development platform that helps companies create robust decentralized applications; Polygon, a platform to scale and develop Ethereum infrastructure; and Chainlink, a start-up focusing on making it easier for traditional data sources, like APIs, to connect with blockchain technology.
