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People are rushing to join the new web revolution because of the growing excitement surrounding the Web3 universe and its endless possibilities. Web3 provides both investors and users with exciting opportunities. As it is free from centralized control, users in the decentralized world can directly collaborate to build digital ecosystems, receive crypto tokens, and even obtain several benefits of building a thriving digital environment.
The internet is evolving right in front of our eyes. Web3 is still in its early stage and has a great tendency to be accepted worldwide in the near future. Investing is a matter of getting in early, and the “future of the internet” is as big as it gets to invest in early. Imagine you were among the first set that invested in Google, Amazon, or Facebook when their shares were cheap. You would have made a lot of returns if you did not sell early. According to Maximize Market Research, Web3 has a present market size valued at $5.7bn, and its revenue is expected to grow to 35.4% between 2022 and 2029.

Related Article: Best Web3 Gaming Platforms

How to Invest in Web3

The web3 space provides investors with two asset classes to choose from – equities (stocks) and digital assets. And this provides the opportunity for investors to diversify their portfolios. There are no companies that solely exist for the growth of Web3. However, many stocks offer indirect access to the Web3 space through web technologies and their business models. Most of them operate in the telecommunication industry.
There are three easy steps you can take to invest in Web3 stocks:

  • Pick an Online Trading Platform: The platform you invest in plays a big part in your investment journey and experience. Every stock trading platform is unique. Some trading platforms are suitable for beginners, and others are mainly for experienced investors. Some of these stock trading platforms offer mock stock trading, where you trade with virtual money and see how you perform over time. It is important to consider a platform that best fits your need.
  • Select Companies: It is important to understand the business you are investing in and how it fits into your strategy and goals. You can pick stocks by making use of both quantitative and qualitative analysis. Quantitative analysis involves looking at the fundamentals of a company. How much revenue has grown or fallen over the years? And how much revenue does the company keep as profits? Qualitative factors deal with news surrounding the company. Certain personnel changes some financial events that may affect the company’s operations.
  • Choose The Right Mix of Assets: When choosing stocks to invest in, another important thing to consider is your risk tolerance level. Spreading your capital across multiple stocks is a good practice to adopt when investing. It is also great to remove emotional bias when picking stocks of your choice.

5 Best Web3 Stocks to Buy Now

  1. Coinbase Global Inc. (NASDAQ: COIN): Coinbase is a well-known cryptocurrency exchange with over 103 million users worldwide. Coinbase has launched an NFT-based platform where users can buy and sell digital assets. With the widespread adoption of cryptocurrency, the company’s revenue increased by 330% to $1.23 billion, according to its Q3 2021 report. Many investors are interested in this company because of its crucial contribution to facilitating digital transactions online. Users can now easily store cryptocurrencies such as Solana, Polygon, Avalanche, Ethereum, etc. This eliminates the need for users to have multiple wallets and simplifies payments within the Web3 space.
  1. NVIDIA Corporation (NASDAQ: NVDA): NVIDIA is an established tech giant in the semiconductor design sector. NVIDIA has entered the exciting world of developing software for this new phase of decentralization with the emergence of Web3. Nvidia’s technology is poised to power the Web3 of the future. For example, its chips enable crypto miners to perform critical tasks that keep blockchain networks running. The chipmaker is working on advanced AI chips that will power new Web3 platforms and apps. Furthermore, Nvidia recently unveiled Nvidia Omniverse, a platform designed for Web3 developers to develop metaverse products.
  1. International Business Machines Corporation (NYSE: IBM): This leading global technology conglomerate was a pioneer in the blockchain industry. International Business Machines Corporation (IBM) has helped in the deployment of several Web3-based products that use smart contracts. The IBM Blockchain Platform is one of their product offerings and is used by the Everest Group, IDC, and many others. The company has a variety of AI initiatives that are perfectly positioned to benefit the Web3 space, making this an attractive Web3 stock. IBM uses machine learning to develop immersive experiences for Metaverse users. The company is also seeking to use blockchain to tackle real-life issues such as supply-demand transparency and a lot more.
  1. Block (NYSE: SQ): Block, formerly known as Square, is a fintech leader. Its ecosystem includes solutions for point-of-sale (PoS), peer-to-peer (P2P), and cryptocurrencies. Its P2P payments marketplace, Cash App, has driven the company’s growth. The growth of a decentralized Web3 that provides privacy and data security should help this ecosystem grow even more. The CEO Jack Dorsey has devoted a significant portion of Block’s revenue to new Web3 ventures.
  1. Unity Software Inc. (NYSE: U): Unity Software offers an extensive solution for creating 3D experiences, digital assets, and much more. This company is responsible for many video games, including Fall Guys, Beat Saber, and others. Unity Software provides a platform for creating real-time 3D content for smartphones, desktop computers, and augmented reality (AR) gadgets. Unity’s engine is used in a large variety of video games. As a result, Unity has emerged as an appealing bet for capitalizing on Web3’s potential. Its platform provides the foundation for creating and engaging in the metaverse.

Conclusion

It is important to recognize that investing in stocks is a long-term commitment. The companies listed above have had successes in the past, with a large customer base. They have previously gained a great deal of attention and shown promise. Nevertheless, customer base and traction are not the only factors to consider when investing in Web3 stocks. Prices can fluctuate due to a variety of factors, so it is best to diversify your portfolio and conduct thorough research before investing.


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