Web 3.0 Tokens | Invest in Web 3.0 Tokens

web 3.0

About WWW(World Wide Web):

The World Wide Web (the Web) is recognized as the fastest-growing publishing medium of all time. In order to stay competitive, it is essential to keep up with technological trends. The web is maturing in its own unique way.

Evolution from Web 1.0 to Web 3.0: 

It has moved from the static informational characteristics of Web 1.0 to the interactive experience that Web 2.0 provides. The next phase of web development, Web 3.0, is already underway. Web 3.0 includes an integrated web environment where a machine will be able to understand and catalog data in a similar way to humans. This will facilitate a global data warehouse where any data format can be shared and understood by any device on any network.

New Functionalities in Web 3.0: 

Web development will bring new opportunities and challenges. The identified opportunities can mainly be characterized as the autonomous integration of data and services that enhance the already existing capabilities of web services, as well as the creation of new functions. The challenges mainly concern unauthorized access and manipulation of data, autonomous triggering of actions, and development of malicious scripts and languages.

Web 3.0 Tokens:

  1. Web 3.0 will be supported by a number of specialized sectors within the blockchain industry. This includes everything from smart contracts and games and finance and the Metaverse.
  2. Web3 is a nascent but rapidly developing user-owned Internet. As the next phase of the Internet, it will give users the right to create and own their content, while providing multiple monetization options. The Web3 environment gives investors access to two asset classes: stocks and digital assets. To diversify your portfolio and maximize your investment returns, it's better to choose a bit of both.

How to Invest in Web 3.0 Tokens:

As we discussed earlier, we extensively elaborated on web 3.0 tokens. Now we will discuss the steps to invest in web 3.0 tokens.
Step 1:
  • Passive investing means buying a diversified portfolio that is already selected for you – in other words, an index. Active investing, on the other hand, is handpicking individual digital assets or stocks that you think will outperform over time.
  • While there are quite a few stock indexes focused on Web3, their number is slowly increasing. This year, popular ETF issuer Simplify Asset Management filed an application to launch a new ETF that will invest primarily in American and foreign Web3 companies. However, it is not clear when this ETF will be launched.
  • Passive Web3 investors can also invest in Metaverse ETFs such as the Round hill Ball Metaverse ETF (METV).
Forms of Web 3.0 Tokens:
  1. Cryptocurrencies
  2. Platforms for lending crypto
  3. Non-Fungible Token(NFT)

Step 2:

  • You Can Invest in Web 3.0 tokens using different blockchain platforms to make a better future or invest in tokens.
  • To find worthy Web3 stocks, you can use Fin Viz, a stock screener, or Crunch base where you can sift through companies by ‘Blockchain’ with their IPO status. 
  • Air Drops is a great way to get free tokens. Airdrops happen when a startup gives away free tokens within its community. This marketing strategy is used to raise awareness of new blockchain projects and encourage user adoption.

Step 3:

  • If you go the mathematical route, we highly recommend using frameworks like Modern Portfolio Theory (MPT) as it optimizes for maximum return at a given level of risk.
  • If you choose to go with your gut, you can pick a position depending on your sense of risk tolerance or conviction. In this case, you would only hold a few digital assets and stocks, each representing a large portion of your portfolio.
  • However, if you are optimizing for risk, set a percentage limit for each investment