With the rise of Web3, many beginner investors will want to learn how to invest in Web3.
Throughout this guide, we detail how to invest in Web3 for beginners, explain the ins and outs of Web3, and provide a few examples of solid Web3 assets and the best platforms to buy them. Let’s get started.
The History of the Internet
We had stand-alone networks as early as the 1970s, with APRANET (1969) the first ever networking site. A world wide web was not a possibility until the early 1990s.
The Internet we know today is very much different from the Internet, known as Web1, which was launched in early 1991 by the computer scientist, Tim Berners Lee. There were very few content creators, mainly developers, and the Web1 Internet was everything but a read-only information source consisting of static pages.
The development of Web2 paved the way for social media apps and e-commerce sites that allowed ordinary users to become content creators without having to require any technical knowledge of the Internet. Like Web1, Web2 has had and continues to go through a constant evolution.
The need for Web3
This tremendous growth of the Web2 internet and the lucrative features it offers to its users has not been without a trade-off.
Whenever we sign up with any major content provider, such as Google, we are supposed to surrender a lot of sensitive data about ourselves.
This data is then sold to marketers who in turn target us with personalized ads. They get to have every information about us. Even worse, when server and database breaches occur, everything is then made public!
To counter these adverse impacts, the idea of Web3 emerged.
The term was originally coined by Gavin Woods, co-founder of Ethereum (ETH) and founder of Polkadot (DOT) in 2014. Gavin referred to Web3 as a “decentralized online ecosystem based on blockchain.”
Best Brokers to invest in Web3 – Our Picks
Here we have compiled a list of the best brokers to invest in Web3. These 3 brokers are OUR EXCLUSIVE PICKS which we strongly recommend to our readers if they are looking forward to investing in Web3.
Capital.com – Secure Broker for CFD Trading
Capital.com is a secure and reliable broker platform that incorporates industry-level features for its users. It features a remarkably simple yet elegant user interface that is ideal for both beginners and professional traders alike.
Capital.com features a humungous 6500+ markets that you can make a move on. From indices to commodities, from cryptocurrencies to shares and currency pairs, everything is available on the platform for you!
Do take note that Capital.com is not available for US citizens. However, there is an equally great alternative for you: eToro! See below.
eToro – Popular Broker with Social Trading Features
For those not having access to Capital.com, eToro presents itself as a great alternative. Through its social investing platform, eToro quickly soared in public popularity. It’s a tool that allows beginner traders to copy the moves of other professional traders.
eToro is best suited for cryptocurrency, ETF, and stock trading. This broker platform charges no fees at all on ETFs and Stocks. A mere 1% is charged for cryptocurrencies though.
eToro is an all-rounder for traders seeking to trade multiple assets at once.
Fidelity Investments – Massively Popular Broker with Huge Range of Assets
As an overall best broker, Fidelity Investments is our best recommendation.
While other brokers may take up the stage light for one or two of the remarkable features of their platforms, Fidelity is our stage light snatcher for being the OVERALL best broker.
Fidelity Investments take pride in offering commission-free stock, ETF, and options trading while not selling order flow. It features high reliable execution quality with an average execution speed of 0.07 seconds for 85% of the total orders!
Moreover, Fidelity Investments also provides fractional share trading for over 7,000 U.S. ETFs and Stocks.
What is Web3? – A Closer Look
Web3 development can mainly be categorized into 3 main areas:
- Networks Decentralization
- Blockchain Technology
- User-Centered Development
Now let us see what these are in brief detail.
For instance, Google has a wide deployment of networks worldwide, and whatever happens within the networks, passes through the central server of Google so it can monitor and decide what is permissible to publish and what is not. This type of setup is an example of network centralization. Google has control over everything. It may decide to hide something from the public as part of some political or personal propaganda, for example.
In decentralized networks, there is no presence of a single server through which every piece of information has to pass through. Every node (computer) connected in a decentralized network has a copy of the full configuration of the network. It makes for a “trustless environment” as everyone can see what is happening and nothing goes unnoticed.
In a banking scenario, neither we know what transactions are taking place nor do we have the right to check the transactions records without the permission of any high-profile government authority. This is because modern banks are centralized by nature and have control over what transaction is made publicly known and what transactions take place behind the public eye.
Web3 integrates blockchain technology in its infrastructure. And what is blockchain? It is a digital public ledger of distributive nature.
What I mean by ‘distributive ledger’ is that all of the computers managing the blockchain tech have a copy of this ledger and every transaction that takes place is recorded in real-time on all of these ledgers. So, everyone knows what transactions are taking place.
Because of its public nature, everyone can access it. Because of so many distributive ledgers in place having the same records updating in real-time, it’s impossible to alter, remove or add any transaction in any one ledger without others noticing it. This renders for a fool-proof transaction security system.
How much annually can you earn by running a successful blog or an e-commerce site on the modern internet? Maybe $1 million, $10 million, or even perhaps $100 million. And even if it is above $100 million, then how many can among you do that? The numbers surely decrease as the amount increase.
And as of today, this wealth has been largely concentrated on a few Tech Giants leaving others with all but meager sums of money in comparison.
By breaking the traditional dominance of these Tech Giants, Web3 seeks to provide equal opportunity to every user.
As a Web3 user, you will have complete control over your work and services and can have direct clients without any third-party intervention.
Because of the features mentioned above, Web3 has become the talk of every town and investors are looking for ways to invest in Web stocks. Let’s move on to how to invest in Web3.
How to invest in Web3?
In this section, we have compiled a list of several ways that you can utilize to gain exposure to Web3 and benefit from its high-profit rewards.
Investing in Web3 Infrastructure
Sooner than later, today’s Web2 is going to transition into Web3. Many content creators, applications, and facilities will emerge in a secure, decentralized, and transparent way.
Undoubtedly, all of them would require a blockchain-based Web3 platform to render their services. Patientory, Elliptic, and Passfort are some of the blockchain-based companies working on a decentralized infrastructure for the new web.
Investing in startups and companies building this infrastructure and providing the required blockchain-based platform for users promises high-yielding returns.
Investing in Web3 Services/Applications
When Web3 is fully functional, there would be inevitably a huge demand for Web3 accessible browsers.
Similarly, on the social media side, there would be a need for social platform sites for people to connect and interact with but in a decentralized and transparent way.
Brave, Opera Crypto, and Osiris are some of the browsers that can provide secure access to Web3. On the other hand, the metaverse is a great social platform perfectly suited for Web3.
You can safely invest in startups and companies working on these services and applications and secure yourself a worthy return on your investment here.
Investing in Centralized Companies embracing the Web3
It might be a bit difficult for new companies and startups to rise in value if the already centralized tech giants embrace the Web3 concept.
With their authority already established, it will only increase in the future if they adopt the Web3 model completely.
Microsoft and IBM are two such examples of centralized giants embracing Web3 Technology.
Many Web3 companies, such as Polkadot, offer their cryptocurrencies as their company shares.
Cryptocurrencies are like digital shares. If any Web3 company’s value increases and you own their cryptocurrencies, then sure, you can sell them at a higher rate and get high yield returns on your crypto investment.
DOT, SIA, LINK, FIL, BIT, KSM, and FLUX are some of the Web3 cryptocurrencies that you can look upon to invest in if you want to be a part of Web3.
Best Web3 Projects to invest in
Let us have a look at some of the interesting Web3 Projects.
Polkadot (DOT): DOT is one of the top cryptocurrencies in the crypto realm. It has a market capitalization of a little over $7 billion at the time of writing this article and is currently trading at $6.32. Its founder, Gavin Woods, was the first person who gave the idea of a decentralized internet: Web3.
Filecoin (FIL): What if I tell you that you can earn cryptos by just renting your hard drive storage space? Unbelievable, right? I also thought the same before I get to know the FIL decentralized storage network. By being a storage provider on the Filecoin Network, you will earn transaction fees and tokens in FIL cryptocurrency. FIL has a market capitalization of $1.6 billion at the time of writing this article and is currently trading at $5.61.
Brave Browser: Brave (BAT) is a well-known privacy-orientated browser, developed by Brave Software, Inc., that has adopted the Solana Blockchain as a default for dApp support. Moreover, it offers you to earn free BAT cryptocurrency if you opt-in to view private ads that do not track you at all. Brave is a great choice if you treasure privacy, have a passion to earn cryptos, and want to dive into Web3.
Axie Infinity: Axie Infinity (AXS) is a Web3 application developed by Sky Mavis and designed around the play-and-earn model. It is built upon the Ronin Network, an Ethereum-linked sidechain. Axie Infinity creates an in-game real economy where users initially buy an NFT-based Axie Avatar to start the game with. In the game, users breed, purchase, battle, and trade avatars to earn Ethereum-based cryptocurrencies. Sound interesting right?
How to invest in Web3 – Exchanges and Brokers
Before we dive into the list of Web3 exchanges and Web3 brokers, it is better to take a look at what each term refers to.
Although their meanings are similar, and they essentially offer the same thing: the trading of assets; exchanges and brokers do not mean the same thing.
Exchanges are platforms that offer users to buy and sell tradeable assets directly from each other without any third-party present. Users usually go through a long registration process before they are allowed to trade.
Exchanges have stricter KYC (Know Your Customer) policies in place and are vigorously regulated. However, they charge low transaction fees.
A broker is simply an organization that deals in the buying and selling of tradeable assets on behalf of its clients. Brokers usually offer simpler registration processes and typically provide more leverage than exchanges.
However, brokers charge higher transaction as well as commission fees. In contrast to exchanges, they are not as such highly regulated.
Top Crypto Exchanges and Web3 Stocks
Here are 4 stock/crypto reviews we have compiled for our valuable readers:
Meta Platforms Inc – Well-Known Company that Helped to Pioneer the Metaverse
Meta Platforms Inc, simply known as Meta, is one of the Big Five American Information Technological companies. It was formerly known as Facebook, Inc.
Giving in to the metaverse frenzy, the Facebook Company, founded by Mark Zuckerberg in 2004, changed its name to ‘Meta’ to reflect its ever-growing interest in the metaverse. Meta is one of the leading metaverse projects alongside Roblox, Decentraland, and Axie Infinity.
The Meta’s metaverse is designed to contain all of the company’s products and services in a 3D online virtual world where users will be able to immerse themselves completely in a never-before-experienced way.
The current stock price for Meta Platforms Inc., on a 1-day chart, at the time of writing this article is $135.68 per stock as seen below:
Binance – The World’s Most Popular Crypto Exchange
Binance was founded by Changpeng Zhao back in 2017.
Binance offers two distinct interface layouts for its users to trade their crypto assets. One has a simple interface layout perfectly suited for beginners, while the other is more orientated for professional traders having access to professional tools.
A prominent feature of Binance is very low fees, almost dropping to near 0%. As far as its accessibility is concerned, Binance is available in about 198 countries worldwide.
The current crypto stock price for the Binance cryptocurrency BNB, on a 1-day chart, at the time of writing this article is $282.61 per crypto as seen below:
Roblox Corp – Web3-Centric Games Company
Developed by the Roblox Corporation, Roblox is an online game for game development. Using the programming language Lua, users can create free games for others to play as well as can play games from other users.
Just like Meta, giving in to the metaverse frenzy, Roblox is now one of the leading metaverse projects where users create games in a 3D virtual online world and earn real money from in-game accessories.
Roblox also hosts online virtual events in its metaverse, with Gucci Garden and Nikeland recently held. Not long ago, Walmart also joined the party in Roblox’s metaverse.
The current stock price for Roblox Corp, on a 1-day chart, at the time of writing this article is $35.84 per stock as seen below:
Coinbase – The Best Crypto Exchange for Beginners
Coinbase was founded by Brian Armstrong and Fred Ehrsam back in 2012.
Instead of having two interfaces, Coinbase offers two different versions of its services. One is dedicated to the simple buying and selling of cryptocurrencies, while the pro version, Coinbase Pro, is tailored for professional traders having access to advanced tools.
A prominent feature of Coinbase is that it allows for a wide range of payment methods with different fee rates based on the geographical region of the users. Coinbase also allows its users higher buying limits and charges average fees on transactions.
The current stock price for Coinbase Global Inc, on a 1-day chart, at the time of writing this article is $64.49 per stock as seen below:
Is Web3 a Good Investment?
For active investors serious about investing in the Web3 internet, having critical information about it is mandatory for making informed decisions in the Web3 space.
It is a highly volatile market with many quick ups and downs so having enough knowledge about the underlying technology becomes all the more important.
Hailing as the future of the internet, Web3 is all but a very lucrative option for a good investment option. All that one needs is a keen eye for picking up potential high-rewarding Web3 projects as well as those firms building up the Web3 infrastructure.
Since Web3 has upset many centralized Tech Giants of today’s world, the near-future world run by Web3 is going to create a new wave of winners and losers.
Web3 holds the potential for life-changing returns to who those who can stomach the risk and take the bold initiative forward.
How to Buy Polkadot (DOT) Cryptocurrency
Polkadot is our number 1 Web3 stock. With the Polkadot project, Gavin Woods aims to combine a global network of computers to create a blockchain platform on which users can operate their own blockchains.
Here is how you can buy and invest in Polkadot (DOT) cryptocurrency.
Step 1 – Register with the Exchange or Broker
Your number one step should be to choose a crypto exchange or broker that offers DOT cryptocurrency. For this, we would recommend you register with Binance Exchange.
Go to binance.com and you will see this homepage screen in front of you.
And now click on the Register button. Now let us take you through a step-by-step guide!
Step 2 – Verify Account
For anyone wanting to buy crypto with fiat, verifying an account with an exchange is unavoidable. Thankfully the process can be quite fast and requires only a photo ID (passport, driving license) as well as proof of address (utility bill, bank statement).
Step 3 – Deposit Funds
After verifying our account, our next step should be to deposit funds into our Binance crypto wallet using our fiat currency. We can also transfer cryptos if we have them in some other crypto exchange or some other crypto wallet.
Since most of us use fiat currency to buy cryptos, we will cover this section on how to transfer fiat currency in your Binance crypto wallet. The steps are as follows.
Click on the ‘Buy Crypto’ button and go to the bank deposit. You will be redirected to the screen below.
Select your currency and payment method. NOTE that Bank Transfer charges NO FEES at all. If you have the access to it, use this to avoid any deduction fees!
This popup message will appear and will tell you the receiver’s name MUST be ‘Binance’. Do make sure of it.
You will see this column on the right side of your screen. Copy the Reference Code and paste it exactly into the reference field of your bank transfer!
Step 4 – Buy DOT cryptocurrency
After money has been transferred into your account, head over to the Trade section of your Binance screen. Type in the name “DOT” and select the appropriate pair.
Now you can buy your DOT cryptocurrency asset by selecting the amount and clicking on the green Buy DOT label button.
This article is not investment advice from us. This article is best suited as an information source only.
Every investment is risky and no matter how good chances may favor your direction, there is always a possibility of the market moving against you.
The buying and selling of Web3 stocks should be done with caution and only after you know what you are buying.
There are several ways to invest in Web3. You can start with investing in companies actively developing the Web3 infrastructure or Web3 applications/services. You can also buy Web3 cryptocurrencies.
Powered by blockchain technology, Web3 is a decentralized way of transmitting, storing, and interacting with data with no central authority in place. Why care? Web3 seeks to break down the ever-increasing control centralization from the Big Tech Companies to ordinary users.
These are our go-to best Web3 stocks:
Web3 Cryptos – DOT, LINK, FIL, and BIT
Web3 Applications – Axie Infinity
Web3 Services – Brave Browser