What Is Web3 (Web 3.0) and How Can One Invest in it?

The internet is in the process of shifting from its second to the third phase. Web 3.0, or simply Web3, is the latest version. Web3 anticipates rapid growth in the coming years, with a focus on concepts such as decentralized technologies, Artificial Intelligent systems, and user-centric content. With enhanced security and utility, many people are wondering “how to invest in Web 3.0” and profit from early growth.

When the global crypto market peaked in 2021, it was worth approximately $2.8 trillion — six times more than the previous year. The instant high adoption of crypto domains such as DeFi and DAOs was the driving force behind this growth. Anyone can create a one-of-a-kind digital asset using NFTs, whereas DeFi can earn up to 100x more than a savings account. Finally, DAOs enable online communities to create billion-dollar treasuries.

When these individual sectors are combined, they compose the underlying message of Web3, which is a trustless, permissionless, and decentralized internet in which users have complete control over their content. You’re probably wondering, “What is Web 3.0?” and “How did it start?” and “How to invest in Web 3.0 and what returns to expect?” Let’s proceed with the first question in order to gain a better understanding of Web3.

The Next Version of the Internet: What Is Web3?

The web’s evolution can be divided into three stages – Web 1.0, Web 2.0, and the latest Web 3.0.

1. Web 1.0
2. Web 2.0
3. And now… Web 3.0

What Is Web 1.0?

The first phase of the development of the World Wide Web, known as Web 1.0, mainly presented data and information in a static manner and was characterized by little user interaction with the information. In Web 1.0, the vast majority of users were content consumers, with very few content creators.

Web 1.0 was created with users looking for information in mind, so users played a predominately passive role in browsing. Because it does not have the visuals, controls, and interactive features that we are accustomed to in the modern Internet era, it is sometimes referred to as “the read-only Web.”

What Is Web 2.0?

An improved version of Web 1.0 is Web 2.0. Web 2.0 was more concerned with participation and contribution than Web 1.0, which primarily focused on reading. Web 2.0, as opposed to Web 1.0, focused on user-generated content, functionality, and interoperability for existing users. Users in the era of Web 2.0 no longer just consume content; they also produce, co-produce, or create content for the web. Blogs, social media, YouTube, and Wikipedia are a few examples of platforms for user-generated content.

What Is Web 3.0?

The future version of the Internet is called Web 3.0. The second phase, known as Web2 as explained above, started in the first decade of this century. We all wish for the internet to be better, and Web 3.0 intends to do just that. Decentralized technologies will be its prime focus. A number of these technology solutions are already in use and are growing in acceptance. NFTs, blockchains, platforms for DeFi “decentralized finance,” and VPNs are just a few mentioned.

Additionally, Web 3.0 will put the user first and give users more control over their data. Users won’t even need to verify transactions in order to access the internet. Those who are ready for the fundamental change can take advantage of its lucrative opportunities.

The term “Web 3.0” or “Web3” was coined by Ethereum co-creator Gavin Wood in 2014. Originally called the “Semantic Web” by the World Wide Web inventor Tim Berners-Lee, Web3 is a Web that is built, run, and owned by its users instead of one that is dominated by big technology companies. It does this by redistributing power from the big tech companies and corporations back to the general public through the use of blockchains, cryptocurrencies, and NFTs.

Creators receive payment for their work, and Web 3.0 developers are compensated with tokens that have real value. Web 3.0 users have the freedom to decide which projects they want to support, and they can get paid for it by becoming Web3 investors.

See Also: How To Make Money With Web3 in 2023

How to Invest In Web3?

A chance to profit while participating in the development of technology exists with Web 3.0 investments. Even so, as Web 3.0 develops, it is impossible to predict which businesses and sectors will be the big winners—just like with any new technology.

A crucial aspect of the investment process is deciding between active and passive investments. Active investing refers to a more hands-on approach where the investor chooses which specific investments to make.

A deeper knowledge of the appreciating asset is needed for this type of investing, along with more time and effort.

Passive investing, in contrast, involves a more hands-off approach from the investor and involves purchasing a variety of assets in the hopes that they will generate a return on investment with little to no effort on their part.

It’s important to recognize the differences and decide for yourself what kind of investor you want to be.

Here are some investment opportunities, though, if you’d like to have a stake in Web 3.0 and perhaps profit from participating:

1. Working In Web3.0
2. Earn Money On Web3.0 By Airdrops
3. Crypto Mining
4. NFTs & Metaverse
5. Web3 Companies and Stocks

1. One of the best investments you’ll ever make in yourself is a job in this field. You’ll have the chance to not only gain firsthand knowledge of this fascinating new sector but also to make a respectable living off of it.

• Join a startup: Startups are always looking for talented people to aid in the development of their companies. If you have the knowledge and expertise that a startup requires, this might be a great choice for you.
• Look for job openings online: There are many sites on the internet and networking sites where start-up companies and organizations in the cryptocurrency industry post job openings.
• Attend crypto events: Meeting individuals from the industry and learning about new employment opportunities can be accomplished by attending crypto events.

2. A few cryptocurrency firms will occasionally hold AirDrops. Tokens for free cryptocurrencies will be distributed at random to member wallets. AirDrops aid in raising awareness of a cryptocurrency asset encouraging more users to sign up. Please make sure to confirm the reliability and security of your AirDrop!

Here are some tips for participating in airdrops:

• Find trustworthy airdrops: The cryptocurrency industry is full of scams, and airdrops are not an exception. Only take part in airdrops from reputable projects, please.
• Join the appropriate Telegram groups: Popular social media platforms like Twitter and Telegram are frequently used by crypto projects. Many groups talk about airdrops, which is a great way to stay informed about the most recent opportunities.
• Be patient: The token distribution process for airdrops could also take several weeks or even months. Don’t count on using airdrops to become wealthy overnight.

You can either keep or sell these tokens after receiving them for a short-term gain. Keep in mind that you typically need to meet certain requirements in order to qualify for the right airdrops.

3. Crypto Mining:

Crypto mining is a method that enables you to gain rewards for confirming transactions on the blockchain, whether it be through Ethereum mining or Bitcoin mining.

Blockchains depend on mining to create new digital assets, and it’s an excellent way to make money. With different computer configurations and little prior knowledge, this process is possible.

In terms of mining, Web 3.0 technology has improved with each version, making it more lucrative than ever. Consider making sure you do your research before investing in this opportunity and that you are aware of the tools required as well as the proper procedures.

Additionally, knowing the different graphic card models and specifically which Nvidia cards to choose will help you optimize your setup for maximum profitability.

4. Investing In NFTs and Metaverse

Non-fungible tokens (NFTs), Web 3.0, and the Metaverse can all work well together despite their differences. Investors can gain exposure to Web 3.0, which is anticipated to support NFTs and Metaverse applications, by indirectly investing in NFTs and Metaverse.

Web 3.0 can be used to support metaverses, the virtual worlds that it will produce. It may take the metaverse ten years or longer to develop, so patience is required.

The fact that the metaverse is still in its infancy and that it is still possible to buy metaverse stocks makes this good news for investors. Purchasing “land” in the Metaverse using NFTs is a more direct method of investing in the metaverse, though this is still experimental.

One of the first components of Web 3.0 is non-fungible tokens or NFTs. NFTs are non-exchangeable data storage units that can be bought, sold, and traded on a blockchain. This indicates that you are the sole owner of the NFT rather than having it under the control of a single entity.

NFTs will be very valuable and useful in Web 3.0 because they are unique and non-replicable items. They can be used as money in the Metaverse, where they can be bought, sold, and traded. The NFTs can also be used for a digital wallet, digital art, gaming, and a lot more things. NFTs provide countless opportunities.

5. Investing in Web 3.0 Companies and Stocks

Naturally, potential investors are also interested in stocks based on this new generation of the internet. Given the increased interest in Web 3.0 and the number of tech firms that are already trading publicly on the market, such as Microsoft, you can gain access to Web 3.0 advancement by purchasing the stock of these firms. Investing in startups creating Web3-related assets or dApps is another option for purchasing stocks of Web3-related businesses.

Read Also: How to Invest in Web3: Navigating Success in the Evolving Landscape

Wrap Up.

The next phase of the internet’s development, known as Web 3.0, is already beginning to take shape.

We can develop a more decentralized and effective internet with blockchain, virtual reality, and machine learning.

The time is now to conduct your research and get involved if you’re considering making an investment in Web3.

Opportunities are now opening up that we have never seen before, and they will continue to improve.

How to Invest in Web3 – FAQs

1. Is Web 3.0 crypto?

No, Web 3.0 represents the next stage of the Internet’s development. With the aid of blockchain technology and smart contracts, it will enable users to read and write content while also fully owning their data and digital assets without depending on third parties.

2. Is Web 3.0 a metaverse?

Web 3.0 is not a metaverse. It all revolves around giving the community control and ownership of the internet. The metaverse, on the other hand, is a shared virtual world where users can create economies, connect with one another, and engage in real-time communication.

3. Is Web 3.0 the future?

Yes, Web3 might be the internet’s next big thing. Web 3.0, or the third phase of the internet, will primarily rely on cryptocurrencies, blockchain technology, and most importantly, the concept of decentralization. Web 3.0 might very well be the way of the future given how blockchain technology is developing and cryptocurrencies are taking off.

Do you think it’s something that you should invest in?

Let me know your thoughts in the comments below.