How to Invest in Web 3.0: A Step-by-Step Guide to Blockchain Opportunities


  1. Web3 is the term used to describe the decentralized Internet. It is a new approach to World Wide Web existence. 
  2. Redistributing control from global corporations to end users is the key idea.
  3. The field is in the early stages of development. Therefore, investments in it can bring multiple returns.

Here’s how to get started with Web3. And some of the risks and intricacies of being a tech investor.

What is Web3 and Key Concepts

Gavin Wood was the first to use the term Web3. The most important concepts have been formulated by Jason Calacanis. Key characteristics of the new stage of World Wide Web development:

  • Decentralization. Data centers will be replaced by gadgets and laptops. 
  • Transparency. Open source software will dominate. Transactions will be recorded on a blockchain that is publicly available. 
  • Freedom of speech. Large corporations will have no power of censorship. This can be done in a decentralized manner.
  • Ubiquity. As Web3 evolves, the Internet will be available everywhere in the world.
  • Incorporating Artificial Intelligence. Today, securities analysis and portfolio management are done with specialized software. Going forward, AI will play a major role in finding all kinds of information.
  • Security. Better than current applications, cryptography protects against tampering.

Blockchain is used to control data in Web3. Blockchain is a distributed ledger technology. It enables the decentralized storage of information. Its immutability is guaranteed at the same time.

The key building blocks of the network of the future are cryptocurrencies, smart contracts, and decentralized protocols. This includes the meta-universe that unites virtual and physical realities.

It is predicted that the Web3 market will grow to $33.5 billion by 2030. But at the moment, the technology is still in the early stages of development. At the moment it is one of the options for investment with a small financial budget.

Comparing Web 2.0 and Web 3.0 

The key difference between Web 2.0 and Web 3.0 is the principle of control. That is, centralized vs. decentralized operation. In Web 2.0, information is stored on web servers. These are owned by large corporations and governments. Web 3.0 does not require data centers.

Web 3.0 differs from Web 2.0 in a number of ways, including

  • blockchain technologies;
  • involves minimal corporate control;
  • protects the confidentiality of personal information;
  • ensures transparency by providing open source code.

In the future, Web 3.0 should be much more secure than Web 2.0. But today’s technology is imperfect. Systems with centralized control are still considered more secure.

Importance of Web3 

Web 3.0 is a new ecosystem that goes beyond Web 2.0. It is designed to make the Internet user-centered. Developing such innovations will respond to society’s demand for democracy and transparency on the Web. Web3 will give people more control over their personal information and finances.

Decentralizing is going to be good for business. Web 3.0 represents a new opportunity to invest. It is predicted to reduce the cost of customer acquisition. Elimination of intermediaries is one of the main concepts.

Censorship, excessive targeting, and unauthorized marketing espionage are among the weaknesses of Web 2.0. The emerging concept of Web 3.0 implies the loss of control of the tech giants over the flow of information.

Why Invest in Web3?

For the sake of developing a decentralized network, many people participate in fundraising for Web3 projects. It is also a risky but highly profitable investment. According to Grand View Research, Inc., the Web 3.0 market is expected to grow at a compound annual growth rate of more than 49% through 2030.

How to Invest in Web3

There are active and passive approaches to investing in Web3. 

Here are the answers to how to invest in Web3:

  • On the stock market, through shares of companies that create emerging
  • w technologies;
  • through funds that work with these assets;
  • on decentralized exchanges through cryptocurrencies, NFT.

Active Web3 Investing 

Active investment in Web3 includes work in the following areas:

  • blockchain startups;
  • decentralized apps;
  • cryptocurrencies and NFT;
  • DeFi;
  • AI;
  • Metaverse.

Blockchain Startups 

Early stage investments have high growth potential. Participating in a blockchain startup ICO is considered the best way to invest in Web3.

Choosing a team that can deliver innovative solutions is the biggest challenge. Not every project emerges as a market demand. For a cryptocurrency to grow in value, it must be an internal token of a significant system. Such investments require an assessment of the startup’s business model, market potential and competitive advantages.

One of the advantages of investing in blockchain is its low correlation with the stock market.

Decentralized Applications and Protocols

Direct exposure to DeFi platforms can be achieved through self-deposited cryptocurrency wallets. One of the most popular strategies in DeFi projects is lending. It allows you to earn passive income. The interest rates are higher than those offered by traditional finance instruments.

Liquidity pools are the most important aspect of DeFi. They are used to confirm transactions and keep the network stable. Investors get paid for placing cryptocurrency on the platform. The rate depends on the project and the number of tokens.

Steaking is similar to traditional banking. One of the main differences is that there is no insurance involved. Also, it is usually simple interest. The interest you receive is not frozen. But over long time horizons, investments with compound interest are more profitable.

Another way to invest in Web3 is through decentralized autonomous organizations. Governance rights are granted through participation in such a structure. Control is decentralized and not hierarchical. The same possibilities are offered by smart contract coding and the formation of liquidity pools.

NFT Marketplaces and Creation 

Another answer to the question of how to invest in Web3 is NFTs, which are unique digital assets created on the blockchain. They prove the digital ownership of a virtual world object. These can be:

  • text or image;
  • audio recording;
  • videotape;
  • game items;
  • virtual lands.

Creating or investing in digital assets in the form of NFTs is one way to capitalize on Web 3.0. When choosing an NFT to buy, one must consider market dynamics, authenticity, and prospects for appreciation. 

Platforms such as Nifty Gateway allow digital art to be traded. Open Sea is a virtual real estate platform. The inability to sell the asset at a higher value is the main risk.

Major Cryptocurrencies 

There is a risk of mispricing when buying NFTs and blockchain startup tokens. The demand has already been proven by the major cryptocurrencies. The most relevant are considered to be:

  1. Bitcoin. In Web 3.0, it is called the baseline of value. It has no ties to central bank monetary policy. Therefore, it is considered a store of value.
  2. Etherium. This is now a major platform for Smart Contracts. Thanks to its emergence, the creation of decentralized applications, blockchain games, etc. is possible.
  3. XRP. It is an internal token of a blockchain network that specializes in fast and cheap transactions.
  4. Polygon. This cryptocurrency is necessary to reduce Etherium’s mainchain costs. Its purpose is to shift part of the burden to the sidechains.
  5. Polkadot. For the future of Web 3.0, this ecosystem of blockchain network interoperability is essential.

Metaverse and Virtual Experiences

The virtual reality and augmented reality market is predicted to grow 2.8 times within 5 years. Companies that develop their own Metaverse can be a good investment decision.

This is the direction IT giants like Meta and Apple are taking. Another option is the development of technologies that make it possible to blend the digital and physical worlds. For example, virtual reality headset manufacturers.

It is possible to invest in the digital world and in augmented reality by using cryptocurrencies and NFT. The Sandbox Game or Decentraland are suitable for this purpose.

Passive Web3 Investing Approaches 

Long-term passive investments in Web 3.0 are possible through the following instruments:

  • Public company stocks;
  • cryptocurrency index funds; 
  • Web 3.0 ETFs and blockchain platforms.

You will need to research information about the asset class before buying the last 2 options. There are many indices that are related to cryptocurrency.

Public Companies Expanding into Web3

Public companies adopting cloud infrastructure fall into this category. As well as those making money from blockchain integration and crypto transactions. Examples of companies actively engaged in Web3 are:

  • Coinbase is the only publicly traded crypto exchange. The platform also allows purchasing Web 3.0 tokens.
  • Nvidia is the manufacturer of the hardware needed for Web3 to function.
  • IBM (International Business Machines) — a cloud computing company. Its business model includes blockchain solutions. 
  • AMD (Advanced Micro Devices) — a chip manufacturer. This is an important component of Web 3.0.

Ripple Labs occasionally mentions IPO plans. It is an IT company, the developer of XRP Ledger. However, such a step will only be possible if the process with the SEC is successfully completed.

Crypto Indexes and Asset Class Exposure 

Index fund tokens allow you to stake on multiple cryptocurrencies at the same time. The asset class performance as well as diversification tool is high.

Crypto investors have access to:

  • CRYPTO 20 — tracks 20 cryptocurrencies with maximum market capitalization;
  • DeFi Pulse Index — reflects the dynamics of major tokens in the decentralized finance industry;
  • NFT Index – tracks quotes of tokens related to the NFT industry. For example, Polygon (Matic), Decentraland, Sand, etc.

These instruments allow you to build a diversified portfolio. They work in a similar way to ETFs.

Web3 and Blockchain ETFs 

For those getting started, an effective way to invest in Web3 would be to buy ETFs. Exchange traded funds are a tool that allows you to diversify even a small portfolio. There are ETFs that have digital currencies as their net asset. The purchase of these ETFs is a way to protect yourself from the risks of decentralized crypto exchanges.

Several thematic ETFs are available on the exchange. They invest client money in the following asset classes:

  • one cryptocurrency – Bitcoin Strategy ETF from ProShares;
  • several cryptocurrencies – Bitwise 10 Crypto Index;
  • metaverse assets — Roundhill Ball Metaverse Exchange;
  • decentralized ecosystems — VanEck Crypto and Blockchain Innovators;
  • Stocks related to NFT platforms and DeFi protocols, — Defiance Digital Revolution ETF;
  • Stocks of digital wallet companies, — ETF ARK Fintech;
  • Stocks of issuers associated with smart contract providers, — ETF Hashdex Smart Contract Platforms Index.

The main disadvantages of such ETFs are low liquidity and poor diversification. Another disadvantage is the limited number of funds for such assets. This results in low competition and high management fees. 

The asset lists are for informational purposes only and do not constitute investment advice.

Non-Financial Web3 Investing

A common question is how to invest in Web3 without any seed money. The following options are appropriate:

  • The Web 3 development contribution through community building;
  • software development;
  • play-to-earn gaming;
  • cryptocurrency browsers;
  • airdrop participation;
  • content creation, digital assets.

Let’s examine some proposed investment opportunities with Web3.

Community Development and Content Creation 

Participating in the emergence of Web3 can be done through social community engagement. The following are some of the skills that are in demand by companies that want to increase the credibility of their project:

  • writing articles;
  • shooting video clips;
  • clip editing;
  • image creation.

Web3 projects are looking for people to take over marketing, social media promotion, etc.

In Web3, even without big companies, a creative person can make money. For instance, by creating NFT. Artists, musicians, writers can use this option.

Software and Product Development 

Another way to monetize your intellectual property on Web3 is through programming. Those who know how to code can get involved in creating smart contracts. Applications based on decentralized protocols are also in demand.

DApp monetization occurs through the initial distribution of tokens. As well as their subsequent mining/stacking.

Smart contracts can be monetized by selling or charging subscription fees. They are used in a wide variety of applications:

  1. Real estate. If rent is not paid, for example, a smart contract can lock the door. Maintaining a blockchain-based registry of owners is a more global option.
  2. Games. Smart contracts can be used to transfer items between players.
  3. Legal industry. Californians can use blockchain technology to obtain a marriage license.

Play-to-Earn and Browser Token Models 

Ecosystem participation includes rewards from cryptocurrency games and browsers. Axie Infinity and Brave are examples. Developers attract users to their project by distributing tokens. To earn a reward, one must perform a targeted action. 

When playing games, you are usually required to buy digital items first. Then the reward is accumulated in cryptocurrency. The main disadvantage is the risk that the price of the project token will collapse.

Browsers typically give away cryptocurrency in exchange for viewing ads. Attracting new users through referral links is another way to make money.

Evaluating Web3 Investments

Due diligence is required when investing in Web technologies. The investment plan includes a risk management strategy. There are many factors to consider in order to make informed decisions.

Firstly, not all Web 3.0 initiatives are going to succeed. You need to understand the basics to find the most promising ones. Knowing the development team’s history is also important.

Just as important are the competitive advantages of any given blockchain platform. You need to consider the possibility of niche leadership. Otherwise, its token value is unlikely to grow. Give priority to projects that will engage users. Hype should not be the reason for popularity.

Diversification is especially important in these high-risk areas.

Key Risks, Limitations and Unknowns

The following risks are currently associated with investing in Web3:

  1. Security Threat. There are frequent hacks and thefts of digital assets. There are also non fungible tokens. Such coins cannot be sold after purchase.
  2. Lack of integration into the regulatory environment. Investors should monitor changes in cryptosphere regulation to avoid legal complications.
  3. High market volatility. Cryptocurrency portfolios can show significant value drawdowns.
  4. Scalability issues. Existing infrastructure is inadequate for decentralized storage of truly massive amounts of information.
  5. Uncertainty about mainstream adoption. The decentralized networks are still in a very early stage of their development. There is no guarantee that they will grow in line with expert predictions.

There are a number of barriers to the rapid development of Web3. The first is high power consumption. Running computers that process transactions requires a lot of energy. The difficulty of using DeFi protocols by untrained people is the second problem.

Another negative factor is the lack of standards. As a result, not all applications can interact with each other.

Investment Evaluation Criteria 

For an investor with a long-term orientation, due diligence is important. The following questions need to be considered:

  1. What does the project involve and innovate?
  2. What kind of tasks does it solve?
  3. Who is behind the project?
  4. What are the key events in the roadmap? Will the deadlines be met? 
  5. Which venture capital firms are investing in this project? 

These questions will be answered by analyzing the white paper and roadmap. As well as studying the website, social networks of the project.

The risk parameters should be clear to the investor. A lot of people are reluctant to invest in the project. This happens when it includes someone who has been involved in scams in the past.

Ensuring Asset Security

In the cryptocurrency world, choosing projects is not enough. Investors must ensure that their assets are protected. Keeping large sums in a cryptocurrency account is not worthwhile. In the long run, the best storage solution is a cold or hardware wallet. This is also where the rule of diversification comes into play. It is recommended to spread the capital across several wallets.

No less important is the security of the seed phrase. Many people have lost access to their crypto assets because they lost their password. It is necessary to write it down on paper or make a backup copy of the file containing it.


Web3’s emerging advances have the potential to generate significant returns for investors. The earlier one enters the project, the greater the potential returns. Therefore, it is important to monitor developments at the earliest stage.

It is possible to gain profit from the technological advancements and the decentralized Internet using cryptocurrency and NFT. A more conservative option is to buy stocks of companies involved in Web3. A diversified portfolio can be created with the help of ETFs.


What Is Web 3.0?

Web 3.0 is a new stage in the development of the Internet. As it gets implemented, the Net will become decentralized. IT companies will lose their influence. And users will become more confident about having their digital identities protected. Fighting censorship is another mission of Web 3.0. 

Can You Invest Directly In Web 3.0?

Web 3.0 is a general concept. It has many components. There is no single company involved in its development. Therefore, it is impossible to invest directly. There are 2 ways of profit from Web3 development. The first one is the purchase of cryptocurrency and NFT. The second is to invest in shares of companies that work with the decentralized network.

What’s the Difference Between Web 2.0 and Web 3.0?

Its main difference is its mode of operation. Web 2.0 uses the http protocol. Web 3.0 uses blockchain technology. As a result, the former is a centralized system and the latter is decentralized Web. This results in greater user control over their personal data. As well as the absence of censorship, the influence of IT companies, etc.

Is Investing in Web 3.0 Safe?

Web 3.0 investments are among the riskiest types of investments. First, they carry the usual risks of falling prices. Second, crypto assets can be stolen by hackers if they are not stored properly. Secure wallets and complex passwords are required. Moreover, these are new technologies. It is difficult to assess the prospects of individual projects.

Who Should Invest in Web 3.0?

Investing in Web 3.0 requires people with a high tolerance for risk. In addition, you should have a good understanding of blockchain technology. This will help in selecting promising projects suitable for investment goals. 

What Is the Future of Web 3.0?

Web 3.0 continues to evolve as investments continue to be made. It is expected that smart contracts will become an indispensable part of many areas in the near future. However, their proliferation faces challenges that have yet to be solved. The first is safety.

How do I start investing in Web3?

The first step for an active investment is to learn about the principles of Web3. A person needs to understand the projects in order to make an informed decision. Those that are a long way from blockchain technologies can restrict themselves to buying a thematic ETF.

Is Web3 a good investment?

Investing in Web3 can be a good investment. To make money, you need to choose the right crypto coins or NTFs. Investing in Web3 through public companies is a bit easier.

What is the highest salary in Web3?

The salary of a Web3 programmer can exceed $200 thousand. Interface designers and project coordinators are also well paid. The exact figures are not known. The amount of employee compensation is not always published.


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