Since Facebook announced their pivot to the Metaverse many people are asking: can you invest in Web3? If the next generation of the internet is like the last, there may be plenty of money to be made by getting in early.
In this article we’ll explain how to invest in Web3, including some of the protocols and businesses that could be the most successful as this internet revolution plays out. However, a word of caution…
As Grant Williams says at the beginning of his podcast, “please do your own research before putting a dime of your money into these crazy markets. And now, on with the show!”
What is Web3?
The Web3 internet revolution is a move away from large, centralized platforms like Facebook, Instagram, Twitter, etc. These companies earn tens of billions of dollars from user content, while the users who do the posting get nothing.
Web3 will change that business model. People will own their content and have a stake in the platforms they use. Anyone can buy Ethereum or Polkadot, and if adoption of those blockchains increases, then the prices of their native coins should increase too.
Having a stake in the platform isn’t the only defining feature of Web3 crypto, though. This next iteration of the internet also includes,
- Non-fungible tokens (NFTs). More than just pictures, NFTs can represent a claim on assets. For example, Rolex could issue a watch ownership certificate as an NFT, or a concert venue could sell NFT tickets
- Micropayments will be commonplace, as soon as the right scaling solutions can make these transactions easily affordable
- Decentralized Autonomous Organization (DAO) tokens. Users can buy a piece of their favorite protocol and vote on governance decisions. They can also make money as new users join the platform and bid up the price of the DAO tokens
- Permissionless protocols. Anyone can use MakerDAO, Uniswap, Yearn, or any other Web3 protocol. The Web3 financial system is open to everyone!
In short, Web3 is all about taking power away from the oligarchic tech companies and returning it to the users. Decentralized networks will connect the world and give everyone a chance to participate in a next-generation financial system. Here’s how to invest in Web3 crypto and get in early before mass adoption starts.
Can you invest in Web3?
Yes, absolutely! The simplest way to invest in Web3 is to buy a stake in the blockchains that make up the backbone of Web3, although keep in mind that not all native tokens have good tokenomics, and not all blockchains are here to stay.
Ethereum and the ETH token are probably the most likely candidates at the moment, as the project has a clear lead over the competition, with the most value locked in its DeFi ecosystem, more users than any other smart contract platform, and more developers than any other blockchain.
That being said, it’s not as though Web3 will run on just one blockchain. Solana has cheap transactions that finalize on the base layer in seconds. Polkadot and Cosmos are both working on interoperability, so there are multiple ways to invest in Web3 platforms.
Decentraland is the most popular decentralized, metaverse protocol. The MANA token has done quite well over the last few years, and land prices have steadily risen in Decentraland since the virtual world went live in 2020. Buying land in Decentraland, or in another well-established online world like Sandbox, would be a unique way to invest in Web3.
If you’re interested in buying into a business rather than a blockchain, Exodus is one of the few public companies directly involved in Web3. With the new Exodus browser extension, the company is well-positioned to benefit from growth in the crypto ecosystem.
If you want to know how to invest in Web3 at the protocol level, another simple idea is to buy governance tokens for Web3 crypto applications like Uniswap, MakerDAO, Sushiswap, Yearn and Polygon.
Although nothing is certain in crypto, these protocols are considered to be the “blue chips” of DeFi.
The Web3 internet revolution
2022 presents one of the best Web3 investment opportunities. We haven’t reached anything close to mass adoption, and an investment today could pay huge dividends as Web3 takes over the world throughout the 2020s.
One of the most exciting aspects of this opportunity is that there are so many ways to take advantage of it. Whether it’s buying a cryptocurrency, a DAO token or a publicly listed company, everyone can invest in Web3 differently and still find really interesting use cases to get involved in.
How to browse Web3
Ready to get started with Web3 and DeFi? Connect to Web3 apps with the Exodus Browser Extension:
- Browse without limits across both Ethereum and Solana, with other chains to be added soon
- Enjoy a curated experience with recommended Web3 apps and the ability to customize your dashboard with your faves
- Swap tokens at the best rates, thanks to a built-in decentralized exchange that connects to Ethereum and Solana
- Access your funds on mobile, desktop, and even Trezor!
Available now for Chrome and Brave.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.