Change is a constant phenomenon that affects how the world works. Since the beginning of time, there has been an evolution from traditional to digital technology.
For example, the past generations could only make fire stones, use horses for transportation, and communicate through messengers. However, in today’s world, we have technology that allows us to send and receive money at our convenience.
Interestingly, crypto adoption has been influenced by the internet. As a result, blockchain technologies thrive as this innovation relies heavily on the internet and the world wide web.
Therefore, this article will take you on a ride on what you need to know about the internet and how to invest in Web 3.0.
What Is Web 3.0?
We cannot address Web 3 without understanding the history of the internet and how Web 1.0 and Web 2.0 created the framework for us to send and receive data and information effectively.
The first version of the world wide web was established in the 1980s with fewer functions than what is currently available. For example, websites were solely for read-only purposes as it was impossible to exchange information. In addition, many Web 1.0 platforms were written in simple programming languages like HTML and PHP.
What distinguishes Web 2.0 from Web 1.0 is the ability of websites to interact with their users. Email and social media are examples of how we have been able to communicate with one another. However, one of its problems is decentralisation, which is why Web 3.0 is the future internet.
Web 3.0 stands out from other versions because it gives power back to individuals. How does this happen? Most blockchains and cryptocurrencies are integrated into Web 3.0 to ensure decentralisation. Additionally, this new internet version utilises machine learning and artificial intelligence to provide users with decentralised applications and advanced services.
Why You Should Care About Web 3.0
The benefits of Web 3.0 compared to other versions are overwhelming. For example, if you want to register on a streaming platform like Spotify, you must log in with a third-party platform like your Google Gmail. Additionally, you can only subscribe successfully when your bank card is linked to your Spotify account.
However, Web 3.0 aims to accomplish total decentralisation, permissionless internet and easy payment. Therefore, you should be able to access any platform without going through a third-party site to register. You can also pay for services without relying on banks and other traditional institutions.
Undoubtedly, the crypto world and blockchain projects will increase exponentially in the future—consequently, Web 3.0 could contribute to the development of the digital economy.
How To Invest In Web 3.0
One of the best things about internet connection is that through Web 3.0, the blockchain is available to everyone who can access the internet.
In addition, blockchain technology has created a means for individuals, businesses and industries to integrate digital operations into their systems. For example, you do not have to depend on traditional banks to pay for goods and services when you have digital payment options.
Because Web 3.0 still has much potential, now would be an excellent time to make money from it through investment. There are many opportunities to explore, and here are a few ways you invest in Web 3.0.
Cryptocurrencies are digital assets that are based on blockchain technology. You could also refer to these tokens as the financial sector of Web 3.0 because every transaction influences the blockchain network. In other words, crypto coins contribute to the economy of the network.
Projects on the blockchain require crypto to operate consistently. You can use cryptocurrencies to invest in Web 3.0 by making crypto transactions, minting NFTs, exploring the metaverse, and playing crypto games on various blockchain-based projects. Additionally, the blockchain allows you to stake your token for passive income.
The term ‘blockchain’ means blocks of data and information linked together and available to everyone on the network. When a block is filled up, a new block is created and chained to the previous. However, these blocks need security and management to prevent just anyone from altering the database.
Therefore, proof-of-stake is a consensus mechanism that allows you to process transactions and ensures that all data entries on the blockchain are valid and secured. Additionally, PoS is more energy efficient than Proof-of-Work because it reduces the amount of computational work needed to verify blocks and transactions that maintain the network.
Compared to miners on the Proof-of-Work mechanism, PoS participants are called validators. These validators create and verify blocks while earning rewards from transaction fees on the network.
Therefore, you can use your assets to earn rewards by staking them for a chance to create a new block on the blockchain network. As a result, what you staked allows you to benefit from any new transaction added to the blockchain. You can also be a validator based on how much and how long you have staked.
Benefits of staking
Passive income: Staking allows you to earn more crypto assets and increase your holdings by earning interest.
Efficiency: As discussed earlier, staking is a process that requires fewer resources compared to crypto mining. This benefit could positively influence the environment as well.
Voting power: The more you stake on the blockchain, the higher your ability to control the network's decision-making process. Therefore, staking gives you more voting right.
Why you should stake on Margex
Margex is a crypto exchange that allows you to trade world-class features with over 100x leverage on Bitcoin, Ethereum, Litecoin, and other prominent tokens. As a leading trading platform, Margex interests users with its built-in charting tools and long and short positions on popular assets.
Additionally, security is essential to Magex as the protocol is protected by the proprietary Margex MP Shield system, making it secure and dependable compared to other trading platforms. As a user, you can also benefit from the new staking function on the network.
This feature allows you to lock up your asset and use your staked balance as collateral for margin trading for a higher rate than other platforms. Interestingly, anyone around the globe can access this non-promotional opportunity.
You can stake for assets like BTC, ETH, ADA, DOT, and USDT and enjoy rates of up to 13.05% without lockup periods or limitations. But, first, you must quickly secure your spot in Margex’s trading pool. The available list of crypto assets with staking pools (and their respective rates) include USDT (13.05%), BTC (8.46%), ETH (9.54%), USDC (13.05%), DAI (13.05%), and LINK (8.1%).
To begin staking, simply deposit, click, and start earning. After locking up your asset, you can allocate the locked-up token balance toward margin trading, the world’s most popular cryptocurrencies. Through staking, you can learn how to invest in Web 3.0.
While PoS involves validating new transactions, PoW is more energy-driven. This consensus mechanism is used by first-generation and second-generation blockchains like Bitcoin and Ethereum, respectively, where ‘miners’ solve cryptographic puzzles to verify transactions and earn rewards.
Because of the nature of Proof-of-Work, this mechanism relies on super-fast computers that consume high energy resources to work. Therefore, the growth of cryptocurrency on the network reduces the transaction speed because of its need for energy. So how does PoW secure the network?
Notably, the blockchain can only be threatened when a bad actor controls at least 51% of the ecosystem. Consequently, the community can change the network’s system, and the chain splits into a second blockchain. This process is called ‘forking’.
The primary data is moved in a new direction to maintain originality. Furthermore, miners can move to the more recent forked network, or they can focus on the original blockchain. As a result, bad actors will find it hard to control over 51% of the resources in the blockchain because they cannot split computing resources to both sides of the fork and focus on both networks to gain control.
As someone new to cryptocurrency and the blockchain, one of the best ways to easily invest in Web 3.0 is through coin sets.
For example, you might not be familiar with various projects dominating the Metaverse. However, you believe that the virtual world could be valuable tomorrow. Because you do not want to feel left out, you can avoid putting your assets in just any project by focusing on the metaverse coin set.
One of the coin set’s key advantages is that you can invest in prominent projects with significant tokens that provide stability. Additionally, you can diversify your portfolio by investing in multiple crypto assets that can grow over time.
Non-fungible tokens are digital assets that include digital arts, real estate, audio and videos on the blockchain. Interestingly, NFTs are part of the foundations of Web 3.0, making it one of the best investment opportunities for this advanced internet version. One distinct feature of NFTs is that every digital asset is unique irrespective of the project. This quality makes non-fungible tokens valuable to their audience.
Gamefi platforms and the metaverse are one of the main projects pushing NFTs adoption. For example, you can only play a Web 3.0-based game when you purchase characters in the form of NFTs, and the more you win, the more the value of your assets increases. As a result, you can sell your tokens at a higher price. How cool is that?
On the other hand, celebrities have made money from NFTs because they have excellent utility in Web 3.0. Consequently, having digital artwork as an asset gives you specific rights, like ownership, on the blockchain, and your assets may increase the more you invest in them. First, however, you need to focus on an NFT project that could be valuable for you tomorrow.
Stocks are shares of publicly traded companies which investors can own and trade on stock exchanges. They increase or decrease in value based on different market forces and conditions.
Does Web 3.0 have stock?
You could ask yourself, “I am still not convinced about NFTs and cryptocurrencies because of their irregular nature in the market. So how can I invest in Web 3.0?” Easy, stocks are one of the best ways to put your money in Web 3.0 without worrying about the market crashing down with your crypto.
For example, companies have seen that the future of technology is in Web 3.0, creating a foundation to become part of that future. You can also benefit from these next-generation projects by investing in stocks of various companies laying the infrastructure of an advanced and decentralised version of internet connections.
Examples of companies that you can purchase stocks from include Advanced Micro Devices (AMD), Coinbase (COIN) and Nvidia (NVDA).
Advanced micro devices (AMD)
Web 3.0 will change the scope of technology and can only be effective when the tools are top-notch, hence the need for AMDs. Advanced Micro Devices is a semiconductor company that contributes to Web 3.0 by offering advanced systems like central processing units (CPU) and graphics processing units (GPUs) for computer systems, workstations, servers, mainframes and embedded systems.
Additionally, AMD is the leading manufacturer of advanced computer processors worldwide that creates computer chips, integrated circuits, and relevant devices backed up by research and artificial intelligence. Therefore, AMD will be a good place for you to invest indirectly in Web 3.0 through stocks.
Coinbase is one of the leading cryptocurrency payment platforms globally. Through its convenient and cost-effective services, the company has contributed to the swift adoption of cryptocurrency. Irrespective of your location and level of crypto trading experience, Coinbase’s services are always at your fingertips.
Consequently, Coinbase will keep growing as cryptocurrency adoption increases. So you do not have to directly get involved in crypto to access Web 3.0 when you can buy stocks from a growing digital assets platform like Coinbase.
Like AMD, Nvidia is also one of the leading manufacturers of GPUs and chips for AI technology, especially for the gaming sector. Consequently, this tech giant could play a massive role in developing crypto-related games for Web 3.0 gamers.
One of the reasons why Nvidia is known to be a leader in its field is its revenue generation. Compared to $16.68 billion in 2021, the tech company recorded revenues of $26.91 billion in its 2022 fiscal year.
Therefore, potential investors can benefit from the figures from Nvidia’s financial statements. Moreover, buying stocks could show crypto sceptics how to invest in Web 3.0.
Metaverse is a decentralised digital world that relies on Web 3.0 and the blockchain. Imagine a world where there are no limits to what you can accomplish. You can interact with your environment, trade, play games, attend parties and concerts, own real estate properties and earn by just participating in a virtual world on an advanced internet network.
How do I invest in Metaverse?
You can invest in the metaverse in different ways. For example, the virtual reality world allows you to explore the real estate sector by buying land and building houses that you can sell to potential buyers.
You could also invest in commercial stalls and malls and rent them out to business owners on the metaverse. Additionally, some games allow you to earn when you play and win consistently. Crypto enthusiasts and gamers can join play-to-earn metaverse projects to invest and make money.
What else can you invest in to make money from Web 3.0 in the long term?
One of the challenges of centralised advertising is the presence of middlemen—however, Web 3.0 allows you to connect with your audience without paying a dime to intermediaries. Therefore, all advertisements on the blockchain are free. As a result, you are creating brand awareness for your goods and services, which could increase revenue and save money.
Can I buy Web3?
Web 3.0 is the most advanced internet technology that promotes decentralisation and supports crypto projects and the blockchain. Therefore, you can only invest in Web 3.0 through cryptocurrency trading, the NFT marketplace, and the Metaverse.
Is Web3 only Ethereum?
Web 3.0 is only possible because of the presence of decentralised tokens like Bitcoin and Ethereum based on the blockchain network.
What companies are Web3?
Web 3.0 companies stand out from others because they have total control and ownership over their services without the participation of third parties. These companies are Binance, Coinbase, Ripple, Crypto.Com, and other crypto-related businesses.
What is Web3 in crypto?
Web 3.0 is a next-level internet connection that improves private ownership through blockchains, cryptocurrencies, and NFTs. Because crypto assets are decentralised, they can only be exchanged on a blockchain platform supported by Web 3.0.
Is blockchain a Web3?
Blockchain is the supporting structure that allows Web 3.0 to thrive. The blockchain is an advanced and distributed ledger managed by several remote servers and stores data and information securely and transparently.
What is the best Web 3.0 crypto?
Any cryptocurrency based on the blockchain network is a Web 3.0 crypto. The top cryptocurrencies include Bitcoin, Ethereum, Solana, Cardano, Ripple, etc.
What are some Web3 coins?
Web 3.0 coins are native tokens that belong to blockchain networks like Bitcoin, Ethereum, Solana, Ripple, Cardano, BNB, Litecoins, etc.